Lyft raises $1 billion from big new ally in battle with Uber

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XAutoplay: On | OffCapitalG, Alphabet's growth investment fund, led the financing round, Lyft said in a blog. But the technobromance first began to bud back in May, when Alphabet's autonomous vehicle development company Waymo partnered with Lyft, which gave Waymo a major boost in its effort to catch up with Uber-its main rival in the self-driving auto wars.

Over the past few years, Uber and Lyft have poured money into subsidies and other short-term stimulants of market share growth. GV invested in Uber in 2013 but has since had a strained relationship with the ride-hailing company, as Uber began to develop autonomous cars and compete directly with Alphabet.

Lyft just raised $1 billion in a funding round led by CapitalG, the investment arm of Alphabet.

Alphabet's venture firm Capital G has announced an $1 billion investment in Uber competitor Lyft.

Lyft is now valued at $11 billion.

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Alphabet also has ties to Uber through its second investment arm, GV, which backs young startups. Google previously invested in Lyft's chief rival, Uber.

News of this possible investment may deepen the rift between Alphabet and Uber. Lyft last week said that its drivers will use Google Maps for in-app navigation.

That represents a big increase from the $7.5 billion valuation Lyft was given after its last funding round in April, but still puts it far behind Uber Technologies Inc.

Both companies are betting the ride-hailing market will continue to expand dramatically and move beyond the largest cities by weaving itself into the transportation fabric of America's heartland. Uber executives scoffed privately that Lyft was only worth $2 billion in 2016.