Uber-competitor Lyft raises $1 billion in investment round led by Alphabet

Alphabet just backed Lyft, a US rival to Uber, in a $1bn funding round

Alphabet just backed Lyft, a US rival to Uber, in a $1bn funding round

The second largest USA ride services firm has been aggressively trying to overtake its closest rival Uber Technologies Inc, which is trying to recover from a slew of controversies, including the taxi app being stripped of its London licence. In July, it was reported that Lyft's gross bookings, the revenue earned by its drivers, grew by about 25 percent to $1 billion in the second quarter of 2016 from $800 million in the previous period.

Lyft is now valued at $11 billion.

The news isn't all that surprising considering Alphabet's self-driving auto unit Waymo in May announced a partnership with Lyft to bring autonomous vehicle technology to the masses. The investors behind the April investment were not disclosed.

Google parent company Alphabet's investment arm CapitalG is making a big bet on Lyft.

The latest funding round comes as Uber looks to rebound from a string of scandals that culminated in Uber founder Travis Kalanick's resignation as CEO.

Uber losing its footing in a number of places - and even losing its operating license in London - has provided an opening for its competitor.

Interestingly enough, CapitalG is also an early investor in Uber.

There's yet another complication in Alphabet's relationship with start-up giant Uber. Waymo, Alphabet's self-driving auto division, has been working with Lyft on an autonomous vehicle pilot program. The Alphabet arm poured $258 million into Uber back in 2013. Uber's valuation tops $68 billion, despite recent setbacks.

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