Google puts Uber on alert by investing in arch-rival Lyft

Google's parent company Alphabet has led a $1bn (£763m) funding round in ride-hailing platform Lyft, valuing the company at $11bn.

Google puts Uber on alert by investing in arch-rival Lyft

Alphabet’s growth-stage investment division, CapitalG, will lead the the investment, which comes four years after Google Ventures, which targets early stage companies, made a $250m investment in Uber.

Lyft only operates in the US, but it now has a quarter of the market there, according to the Financial Times, growing its share as Uber has been hit by a series of problems including criticism of the company’s culture, leading to the exit of former chief executive Travis Kalanick.

And despite being a major shareholder, Alphabet, through its self-driving car division Waymo, sued Uber for allegedly stealing its technology.

Lyft’s chief executive Logan Green has said the company is considering London as one of its first cities for international expansion. Uber is currently appealing against Transport for London’s decision not to renew its licence to operate.