Lyft Raises $1 Billion from Alphabet Investment Fund

Lyft Raises $1 Billion from Alphabet Investment Fund

Lyft Raises $1 Billion from Alphabet Investment Fund

In September, anonymous tipsters leaked word that Lyft Inc. may be looking to raise capital through an initial public offering scheduled for as early as 2018. "Earlier this month, we completed our 500 millionth ride and our service is now available to 95 percent of the US population - up from 54 percent at the beginning of the year".

The ride-hailing company, Lyft, has received a $1 billion investment from Alphabet's growth investment fund - CapitalG.

The deal brings Lyft and Alphabet closer together in order to tackle their main rival, Uber, which is currently weathering a bit of a storm due to various scandals. The latter company ranks as the largest privately-held firm in the world with a valuation of $68 billion.

"While we've made progress towards our vision, we're most excited about what lies ahead".

Bloomberg previously reported Alphabet, which already has a stake in Uber, was considering a $1 billion investment. Any attempt to move into international markets would likely be a rather costly endeavor for Lyft that the investment from Alphabet could potentially help foot. "The fact remains that less than 0.5% of miles traveled in the U.S. happen on rideshare networks", said the company in its post. Lyft executives apparently did not discuss the topic of an expansion explicitly but were said to express a "keen interest" in the city.

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