Bloomberg, citing unnamed people "familiar with the matter", on Thursday reported that Alphabet has been talking with Lyft in recent weeks about making a "potential investment" in the rideshare company. Uber began heavily recruiting Google employees for a number of divisions within the company and Google chief legal officer David Drummond stepped down from Uber's board a year ago as the two companies began racing to develop autonomous vehicle technology. CapitalG Partner David Lawee will join Lyft's board.
Lyft raised $1 billion in a deal that values the ride-sharing startup at $11 billion, steps up competition with rival Uber Technologies and builds ties with internet giant Alphabet Inc.More news: Deeney questions Arsenal's spirit after Watford defeat
Lyft is now valued at $11 billion. But what was a promising partnership quickly turned rocky as Uber and Google became ostensible competitors in the self-driving and transportation spaces.
Lyft has been expanding in the United States market as Uber's image has taken a hit in recent months.
Initially, Alphabet teamed up with Uber. SoftBank invested in Alibaba. But this year, Lyft has closed the valuation and market-share gap. The latter company ranks as the largest privately-held firm in the world with a valuation of $68 billion.
What's also interesting about this deal is that CapitalG was a backer for Uber early on in the company's life.