Google’s parent company has been bedfellows for several months with ride-sharing start-up Uber.
But now, it appears, there’s another complication in Alphabet’s (NASDAQ: GOOGL) relationship with Uber.
CapitalG, an investment arm within Google-parent Alphabet, will lead a $1-billion funding round for Uber rival Lyft, according to the two companies, with partner David Lawee joining Lyft's board.
Alphabet's self-driving car unit, Waymo, confirmed earlier this year it would partner with Lyft on a self-driving car project.
The funding round comes as a chummy relationship between Uber and Google has soured.
Lyft, now worth $11 billion, is still much smaller than nearly $70-billion market leader Uber. Uber also got an infusion of about $250 million from Google in 2013, earning Google's David Drummond a seat on Uber's board.
Alphabet Inc. had been holding conversations with Lyft dating back several months bout a potential investment in recent weeks, signaling strong support for Uber ’s main U.S. competitor, according to people familiar with the matter.
With the extra billion, Lyft would be able to ensure its independence for the near future, something co-founder John Zimmer has said is a priority. But some investors have suggested Alphabet would be a natural home for the ride-hailing startup. Lyft held informal talks with Alphabet and other potential acquirers last year but didn’t pursue a sale.
Shares in Alphabet plummeted Thursday by $9.70, or nearly 1%, to $1,003.04, near the apex of a 52-week trading range of $743.59 to $1,016.31.
