Google’s parent company, Alphabet, is leading a $1 billion investment in Lyft as the ride-sharing company explores the possibility of going public in 2018. This is particularly interesting because Google Ventures was an early investor in Lyft’s main competitor, Uber.
If Lyft moves forward with an IPO in 2018, it will propel the burgeoning ride-sharing industry. Currently, around half a percent of the miles driven in the United States are done through ride-sharing, leaving a tremendous upside potential for the industry.
There’s a good chance that this investment by Alphabet may be driven by more than just good business practices. Uber has been sued by Waymo, the self-driving car unit owned by Alphabet, for allegedly stealing trade secrets after hiring a former Google employee.
Uber is currently valued at $70 billion compared to Lyft at $10 billion, but Uber has been embroiled in multiple scandals and lawsuits recently. Their co-founder and former CEO was ousted this year by the board.
“Ride-sharing is still in its early days,” said David Lawee, a partner at Alphabet’s investment arm, CapitalG. “We look forward to seeing Lyft continue its impressive growth.”
Lawee will assume a role on the board at Lyft as part of the investment deal.
Google parent company Alphabet today announced that it has led a $1 billion in ride-hailing company Lyft at an $11 billion post-money valuation, one month after Axios first reported that the two companies were in talks. The investment came via CapitalG, Alphabet’s growth equity unit, with CapitalG partner David Lawee joining Lyft’s board of directors.
Why it matters: Alphabet was an early investor in Lyft rival Uber via its Google Ventures unit, but since has become a legal antagonist.
This is important because self-driving cars are unlikely to exist without a mobility service to support them. The vehicles are far too costly to own and can only seriously thrive as a method to cut taxi costs, encouraging more frequent ridership.
Major automakers see this as well. GM has invested $500 million in Lyft, Volvo has partnered with Uber, and companies like Ford have launched their own car-sharing services.
A quarter of American drivers might be better off using Uber or Lyft than owning a car – MarketWatch
We’ve conducted an analysis of the all-in cost of car ownership, and we found that mobility services such as ride-hailing and ride-sharing apps — which few people today would consider their main mode of transportation — will likely provide a compelling economic option for a significant portion of Americans. In fact, if the full cost of ownership is accounted for, we found that potentially one-quarter of the entire U.S. driving population might be better off using ride services versus owning a car.
One Sick Day Proves We Need More Voices in Truthful Media
On October 19, I was sick. It crossed my mind that I had finally gotten the ‘rona, but my wife’s cream of chicken soup and a few extra hours of sleep into mid-afternoon had be back up and running after a sleepless night before.
When I finally stumbled over to my computer in the evening, I was met with a deluge of concern from readers. They asked what had happened as only one article had been posted that day. Generally, we post between 10-20 daily between all of the sites, not included curated and aggregated content. Seeing that we’d only posted my super-early morning article before taking the rest of the day off had readers assuming the worst.
We have a wonderful and talented group of writers who volunteer their time for the sites and their readers. Sharing their amazing perspectives has always been a blessing to us because we cannot afford to hire anyone at this time. But having great writers is meaningless if we don’t have great editors, or at least one additional. My wife helps me read and edit stories from time to time, but I’m a one-man show when it comes to getting the stories posted.
Whenever I highlight our desperate need for donations, I note that we do not receive money from Google ads even though most in conservative media are beholden. I often ambiguously note that the money donated will help us grow. Today, I’m highlighting a specific need. We must get an editor to help take some of the load and to expand on our mission of spreading the truth to the world. One sick day proved that.
The great news is that there is no shortage of people who CAN help. I am emailed variations of resumes every week by people who are much smarter than I am. As much as I’d love to hire some of them, we simply cannot. That takes money and as blessed as we’ve been to receive donations and collect ad money (though not from Google or Facebook), we have still fallen short.
Those who have the means, PLEASE consider donating. We have the standard Giving Fuel option and people can donate through PayPal. We are also diving into what we believe is extremely disruptive technology at LetsGo.finance, the world’s first major donation portal for crypto. I’ll be talking a lot more about them in the near future. Those who prefer Bitcoin can send to my address here: 3A1ELVhGgrwrypwTJhPwnaTVGmuqyQrMB8
We can get the voices out there and we’re willing to shine a spotlight on new talent. We just need the resources to make it happen. If you can help, we would be extremely grateful.
Thank you and God bless!
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JD Rucker – EIC