In the midst of reports that Softbank is ready to invest a hoard of its money into Uber, Lyft announced a $1 billion round led by Google’s parent company Alphabet. According to Crunchbase, Lyft has already raised north of $2.6 billion, putting the company at $3.6 billion total invested at an $11 billion valuation.
The announcement adds further complexity to the already tangled web of relationships between ridesharing companies and their investors. So what does that mean for Uber? Luckily, we asked that same exact question a little over a month ago:
In its corner was Google (now part of the holding company Alphabet), which invested $258 million into Uber at a $3.5 billion valuation several years ago. But that relationship has famously soured, with Alphabet-subsidiary Waymo suing Uber in a very public manner. And, of course, Alphabet is now threatening to put about four times the capital it spent on its Uber bet into Lyft.
That threat has become real, and it also calls into question some of Uber’s other ambitions. Alphabet subsidiary Waymo entered into a self-driving car partnership with Lyft in May of this year, and General Motors, also a major investor in Lyft, has set its sights on mass producing self-driving cars through its acquisition of Cruise Automation. Meanwhile, Ford has also partnered with Lyft in the self-driving car space. Here’s an outline of the current state of partnerships between Uber and Lyfy courtesy of ReCode:
Aside from self-driving cars, however, Uber has more immediate concerns. Will GV sells its stake in Uber in the event of a Softbank investment? With lawsuits and a major investment in Uber’s primary US competitor, chances are likely Alphabet will find a way out. But if ridesharing has taught us anything, it’s that a lot of money can find itself in the shockingly often.
And so the wheel turns.
From the Crunchbase Daily:
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August Home sells to Assa Abloy
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Blue Apron cuts staff
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Why seed deals are contracting
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