An early breakthrough in the space, based on deals like Lyft, will encourage investors and boost Alphabet's share price and competitive position against the likes of Apple AAPL, Intel INTC and NVIDIA NVDA. That could strengthen the ties between two of Uber's main autonomous-car rivals. Although the online search giant did invest millions of dollars into the ride-hailing company, it's also now battling with it in court. Lyft is the most despised adversary of Uber, which is associated with a progressing legitimate tussle with Waymo; in this way, it bodes well for Alphabet to put resources into Lyft. This has been your daily ride-hailing app business-deal update for Friday, September 15th, 2017.
Uber once dominated the US ride-hailing scene with around 90 per cent of the market, but according to some surveys Lyft has whittled that down to around 75 per cent as Uber has continued to grapple with a series of scandals. Google, which had previously invested $258 million in Uber (via Google Ventures), is suing Uber for allegedly stealing thousands of files from Google's self driving vehicle company, Waymo. In July, Lyft announced plans to launch an in-house self-driving auto division as well. The companies said that under their partnership, they would work together on new self-driving products and pilot projects. Neither company would comment on the possible investment.
Although these conflicts with Alphabet have not been earning a good name for Uber, it still has big brand recognition in and outside San Francisco and Los Angeles. Alphabet's cash would also make Lyft stronger. Uber also reportedly is under federal investigation for its "Hell" program it allegedly used to spy on Lyft drivers, and its "Greyball" software used to evade regulators in cities where it wasn't allowed to operate.