You decide to go for a movie with your friends but instead of stepping out on the street to look for a cab, you simply book one from your ride-hailing app. Even though you need to wait for ten minutes for the cab whereas you can get one on the street within two minutes, you decide to go with the app. This is mainly because of the fact that we have got used to such ride-hailing apps. To take things a notch higher, companies are adamant on introducing autonomous cars for the same. The Lyft Waymo Collaboration also took place with this motive in mind. The latest Alphabet investment will hopefully speed things up in this project.
Somewhere in the month of May this year, the news was about the collaboration between these two companies was out. It was assumed that this collaboration may give a severe blow to the business of Uber. This was the phase when Uber was going through way too many ups and downs. It seems that what started as a competitive project has now become an ambitious one. This can be known due to the possibility of an impressive Alphabet investment in this project on its way.
Will the Alphabet investment bear fruit?
Speculations about the Alphabet investment came out on Thursday through an inside source. This news may not be taken down well by Uber who is in desperate need for a serious round of funding. The main reason behind Google considering a huge investment in this project is that Lyft is planning to expand itself to the country of Canada. This will be the first ever international expansion of the ride-hailing giant. Through this step, even Waymo could spread its branches to different regions of the world.
Approximately, the Alphabet investment will be valued somewhere around $1 billion. This is a massive amount considering the fact that the collaboration took place only a few months back. This news is also a sign of the fact that Google is no more interested in Uber. There was a time when the tech giant was one of Uber’s funders but now it shows a keen interest in the rival. As the news has not been confirmed yet, the officials of both the companies involved have refused to comment. The current market value of Lyft is calculated to be somewhere around $7.5 billion.