Google’s parent company is throwing its financial support behind ride-hailing service Lyft, deepening its rift with market leader Uber.
Alphabet Inc., which gets most of its money from Google’s digital ad network, is leading a $1 billion investment in Lyft that values the privately held company at $11 billion. The investment is being made through Alphabet’s CapitalG venture capital arm.
Lyft is still far smaller and worth far less than Uber, another privately held company whose investors have valued it at nearly $70 billion.
But Uber has been enmeshed in internal strife amid management upheaval and allegations of rampant sexual harassment.
Google was an early investor in Uber, but now its self-driving car spin-off Waymo is suing Uber for the alleged theft of its secret technology.