Alphabet mulling $1 billion investment in Lyft

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This opens up a big opportunity for Uber's rival, Lyft, and now a new report says that Alphabet could invest as much as $1 billion in the company. The potential investment could come either from Google or from CapitalG, Alphabet's investment division, Bloomberg reported. Neither company would comment on the possible investment.

With Uber on the rocks, and one of its own companies fighting Uber, a Lyft investment - if not an outright acquisition - seems to make a lot sense for Google here. Alphabet's self-driving vehicle unit, Waymo, is now involved in a fierce court battle with Uber over alleged intellectual property theft and patent violation. This lawsuit was filed back in February of this year and since then the relationship between Google and Uber has broken down more and more.

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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. Two months later Lyft announced it would start developing an autonomous platform as a "core" part of its business and that it'd begin licensing the tech out to hardware manufacturers (think: Ford, General Motors and Chrysler). In July, Lyft announced it was forming an autonomous auto division that would be based in Palo Alto, California. They plan to bring autonomous vehicle technology into the mainstream through pilot projects and product-development efforts. To compare, Lyft has received $2.6 billion in venture funding and is valued at $7.5 billion, and Uber has received $12.9 billion and is valued at $68 billion.

Uber appointed a new chief executive, former Expedia CEO Dara Khosrowshahi, in late August after a string of scandals.