Uber-rival Lyft may soon be getting a huge infusion of cash from Google parent company Alphabet. Alphabet already is an Uber shareholder, but that relationship turned south this year when Google's self-driving auto spinoff, Waymo, sued Uber for trade secret misappropriation.
It's not clear which Alphabet division would make the $1 billion investment into the popular ride-hailing platform.
Investors are focusing on Uber and Lyft, the two companies that are powering the ride-sharing industry. Waymo and Lyft have a partnership to test self-driving cars, and perhaps eventually build a network. Waymo is now stepping up its efforts to compete with Uber in autonomous driving: CEO John Krafcik recently said the company will not only look at autonomous ride-sharing, but also autonomous trucking, a field Uber previously had nearly to itself. While still much smaller than Uber, Lyft has seen its market share grow recently, in part because of its rival's many scandals.
Lyft could certainly do with the funding as it tries to play catch up with Uber.
Given that Uber now is not in a favorable position, as far as its ongoing legal confrontation with Waymo is concerned, these deals could help both of them (Waymo and Lyft) to gain an increasing share in the growing self driving vehicle market. Uber sales have slipped throughout the year from lawsuits, former CEO Travis Kalanick stepping down, probing into competitors, and evading government regulations and officials. It would allow the company to expand its technology and services. Alphabet and Lyft declined to comment on the report regarding the rumored investment, though sources who wished to remain anonymous said that there is a chance that the deal would not push through.