The word on the street is that Alphabet, Google’s parent company, is mulling over the idea of dropping some serious coin into Lyft. Early rumors indicate that Alphabet may invest over one billion dollars into the ride sharing company as it looks to get a leg up in the car business to compete with Uber and if true, the money would flow in from Alphabet’s investment company, Capital G.
This would be the second major cash infusion from a big player for the ride hailing company as it took in $500 million from General Motors back in 2006. What’s intriguing is that Alphabet is also an investor in one of Lyft’s potential competitor, Google’s autonomous driving division, Waymo. Waymo is embroiled in a legal battle with Uber over trade secrets. In the process Waymo has signed a partnership agreement with Lyft to test more autonomous driving tech. This infusion of cash will help Lyft move more aggressively on its growth plans as it looks to take more market share away from Uber while their rival goes through a regime change and several lawsuits.