Published: Sat, September 16, 2017
Money | By Oscar Reynolds

Alphabet's Interesting Strategy To Take Revenge Against Uber

Alphabet's Interesting Strategy To Take Revenge Against Uber

Alphabet and Lyft declined to comment on the report.

The investment discussions come months after Alphabet's self-driving auto unit, Waymo, announced a partnership with the ride-hailing app. Waymo and Lyft will combine resources to collaborate on self-driving technology that could alter the ride-hailing industry. Alphabet already is an Uber shareholder, but that relationship turned south this year when Google's self-driving vehicle spinoff, Waymo, sued Uber for trade secret misappropriation.

Sources say that the possible $1 billion investment may come from Google of CapitalG, but there is no confirmation on whether the deal will be completed or not. The company has previously invested in Lyft's rival, Uber, but that relationship has soured lately.

Such an injection of support from one of Silicon Valley's largest companies would certainly be a boost as it aims to grab more of Uber's market share.

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. The companies said that under their partnership, they would work together on new self-driving products and pilot projects.

For those unaware, Google is in the middle of a lawsuit against the popular ride-sharing service Uber for allegedly acquiring trade secrets from a former Google employee.

In April, Lyft raised $600 million in fresh funding, increasing its valuation from $5.5 billion to $7.5 billion.

Although these conflicts with Alphabet have not been earning a good name for Uber, it still has big brand recognition in and outside San Francisco and Los Angeles.

The news about Alphabet's potential investment in Lyft comes as Uber attempts to recover from a series of crisis that resulted in the ouster of its Chief Executive Travis Kalanick as well as other top executives.

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