Business

Alphabet may catch a Lyft as it eyes major investment

Alphabet may catch a Lyft as it eyes major investment

Waymo is also in the midst of a lawsuit against Uber Technologies, Lyft's largest competitor, over allegedly stolen self-driving vehicle technology.

A potential $1 billion investment in Lyft Inc. would mark a new direction in Google's ride sharing strategy. Also with the investment, it could allow Lyft to become independent, which was co-founder, John Zimmer's, priority for the company.

Lyft has already risen more than $2bn worth of funding working with investment backers including the partnership with Waymo to test self-driving cars as well as General Motors, Rakuten, and Floodgate. Although the online search giant did invest millions of dollars into the ride-hailing company, it's also now battling with it in court.

Lyft has a stringent background check policy in place for its drivers, while also ensuring each of its drivers with a $1 million Dollars liability policy.

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As CNET reports, Lyft has always been the underdog in the ride-sharing space, but has been making steady gains on its biggest competition.

Recently Lyft has been focusing on controlling its spending, as the cash would give the startup the chance to pursue more growth with subsidies for its drivers, discounts for its riders and marketing. Press invites sent for the company's upcoming Pixel 2 launch asked attendees if they'd like to receive a promotional code for a Lyft ride to the event. Alphabet and Lyft both declined to comment on the subject.

Son said: "We are interested in discussing with Uber, we are also interested in discussing with Lyft, and we have not decided which way yet". If this deal with Alphabet materializes, it could derail Uber's self-driving auto efforts or at least slow down its pace.This could help Lyft to get an edge and outmuscle Uber to become the largest USA ride-hailing provider.

In San Francisco, the company has expanded its shuttle service with a total eight routes, and it has six sroutes in Chicago.