The ride-hailing company, Lyft, has received a $1 billion investment from Alphabet’s growth investment fund - CapitalG. The investment brings Lyft’s post-money valuation to $11 billion. The deal brings Lyft and Alphabet closer together in order to tackle their main rival, Uber, which is currently weathering a bit of a storm due to various scandals.
In the company’s announcement, Lyft said:
“Today we’re happy to announce CapitalG - Alphabet’s growth investment fund - is leading a $1 billion financing round in Lyft. This brings Lyft’s post-money valuation to $11 billion. We’re also excited to work with CapitalG Partner David Lawee, who is joining Lyft’s Board.”
Lyft have had a busy year so far, earlier this month it completed its 500 millionth ride and is now available to 95% of the US population, up from 54% at the start of the year. With the funding from Alphabet, the company says it hopes to fulfill its vision of increasing the number of people using ridesharing networks. It points out in its statement that just 0.5% of miles traveled in the US are made through rideshare networks which leaves a big opportunity for companies, like Lyft, to seize on.