On October 19, CapitalG, the investment army of Alphabet invested $ 1 billion dollars in Lyft, that makes Lyft valuation spike up to a whopping $11 billion. Are you wondering what is the big deal with this hype? This will position Google to dominate the ride-sharing market with their autonomous vehicles. With existing deals from companies like GM, Ford, Drive.ai, Google’s Waymo, and Nutonomy Google will be able to start testing their autonomous vehicles on Lyfts platform.
Why is it important for Toronto?
If you haven’t heard yet, Sidewalk Labs, an Alphabet company that focuses on creating data-driven smart cities will invest $50 million over the next year to build a 12-acre district on Toronto’s waterfront just east of the city centre. The futuristic district will have data-driven system aiming to improve traffic, air quality, noise, waste and public transportation. This district will also include a new headquarters for Google Canada.
It has been reported that Sidewalk Labs will test their self-driving technology for a “point-to-point transit system”. This means that with Alphabet’s investment in Lyft, we can see the company go head to head with the ride-sharing Titan Uber which currently dominate Toronto market.
With this investment and a new relationship between Lyft and Alphabet, I can see Lyft dominating this ride-sharing market soon most especially Uber is trying to rebound from a series of scandals that led to the resignation of Uber CEO Travis Kalanick. Also, Uber recently has lost footing in some key cities like London and stricter restrictions in Quebec. With Alphabet’s technologies, it is only a matter of time till we see the domination of the mustached ones, Lyft. Expect they are going to be around anytime soon.