UPDATED 20:48 EDT / SEPTEMBER 14 2017

EMERGING TECH

Lyft and Uber eye big funding from Google and SoftBank

Ride-hailing giants Lyft Inc. and Uber Technologies Inc. look to be on the verge of landing even more big funding rounds, led by Google Inc.’s parent company Alphabet Inc., and Japanese technology giant SoftBank Group Corp.

The biggest surprise is Lyft’s funding. It’s being reported by both Bloomberg and Axios that Google is looking to pump $1 billion into Lyft, though it’s not clear whether the money will come from Google itself or one of its investment arms such as Capital G.

Meanwhile, the Wall Street Journal is reporting that SoftBank wants to inject 10 times that amount into Lyft’s main rival Uber. The report says Softbank will fund Uber to the tune of $10 billion in return for a 22 percent stake in the company. The deal, which could be completed as early as next week, is said to be quite complex, and would entail SoftBank purchasing shares directly from Uber as well as existing shareholders looking to cash out.

Google’s funding of Lyft is notable, however, because its self-driving car division Waymo is currently locked in a bitter legal dispute with Uber. Waymo alleged in February that Uber had stolen trade secrets from it when former Google engineer Anthony Levandowski left the firm to join the ride-hailing company.

Neither Alphabet nor Lyft would comment on the report.

Lyft could certainly use the funding as it tries to catch up with Uber. The company has picked up $2.6 billion in funding to date and is valued at $7.5 billion, but that’s small change next to Uber’s total $12.9 billion funding on a $68 billion valuation.

Even so, Lyft may be making inroads on its rival of late. That’s mainly because the company has managed to avoid the endless scandals that have engulfed its controversial rival.

Uber has been left reeling from wide-ranging allegations such workplace sexual harassment, bribery and illegally tracking Lyft’s vehicles, and then there’s the debacle over former Chief Executive Officer Travis Kalanick, who was forced out of the job in June. The company has since replaced Kalanick with former Expedia Inc. CEO Dara Khosrowshahi, but the new chief will need some time to steady the ship.

Meanwhile, Lyft has reportedly been gaining market share in the U.S. at the expense of Uber. The company has launched its services in a host of new cities across the U.S. this year, and is currently available in 40 states. Lyft is also said to be looking at international expansion, first into Canada by the end of this year, and later Australia, Mexico and the U.K.

Image: Noeltock/Flickr

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