Economy

If Google invests in Lyft, what does that mean for Uber?

If Google invests in Lyft, what does that mean for Uber?

Google already has a stake in Uber, but is also suing Lyft's ride-sharing rival in an intellectual property dispute.

Alphabet is now a shareholder at Uber as well through its venture capital company GV, but Waymo, an Alphabet unit is now suing Uber for technology for self-driving vehicles.

The funding could come from either Google itself or CapitalG, Alphabet's private equity arm, according to Bloomberg.

Investors are focusing on Uber and Lyft, the two companies that are powering the ride-sharing industry.

In addition, Waymo and Lyft announced a partnership in May to develop new autonomous vehicle technologies. This lawsuit was filed back in February of this year and since then the relationship between Google and Uber has broken down more and more.

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Ride hailing services have exploded on the scene the last couple of years with Uber and Lyft now the two largest in the U.S. The services link drivers with riders through an app online and prices for rides are much less expensive than normal taxi fare. But others say that Alphabet will end up acquiring Lyft.

Just keep in mind that the Google-Lyft deal is not finalized yet, so it's quite possible that it won't happen. Either way, this can't be good news for Uber. With a billion dollars in its wallet, Lyft could take advantage of this and seriously increase its market share in the United States, expand overseas, and give Uber a run for its money.

Lyft could certainly do with the funding as it tries to play catch up with Uber.

In San Francisco, the company has expanded its shuttle service with a total eight routes, and it has six sroutes in Chicago.

Both Alphabet and Lyft declined to comment when pinged by the publication. Press invites sent for the company's upcoming Pixel 2 launch asked attendees if they'd like to receive a promotional code for a Lyft ride to the event.