Alphabet leads $1 billion Lyft investment

GM CEO Mary Barra

GM CEO Mary Barra

"Lyft Inc said that CapitalG â€" Alphabet's (GOOGL, GOOG) growth investment fund â€" is leading a $1 billion financing round in Lyft.

Price point: The Information last summer reported that General Motors had expressed interest in buying Lyft at $6 billion, but that the ride-hail company was holding out for $9 billion (i.e., $2b less than the new valuation).

It is the latest challenge to Uber, which is appealing against a decision by London transport bosses to strip it of its licence to operate in the capital.

The investment represents a further complication in the tangled web of alliances in the sector.

Details about the deal between Waymo and Lyft were scant.

Lyft said, "We're also excited to work with CapitalG Partner David Lawee, who is joining Lyft's Board". It also claims to be available to 95% of the U.S. population, including state-wide coverage in 41 states.

The second largest US ride services firm has been aggressively trying to overtake closest rival Uber.

With both Alphabet and Lyft researching self-driving car technology, the partnership makes sense for both sides. The company now has partnered with several automakers and self-driving software developers.

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