CapitalG, the growth investment fund of Google parent company Alphabet, is leading a $1 billion financing round in Lyft.
Google was an early investor in ride-hailing rival Uber, a company now being sued by Alphabet entity Waymo. But it’s never put money into Lyft.
The investment puts Lyft’s post-money valuation at $11 billion. CapitalG partner David Lawee is joining Lyft’s board. CapitalG began in 2013 as Google Capital. The growth equity investment fund changed its name in 2016 following Google’s creation of parent company Alphabet.
“CapitalG is honored to work with Lyft’s compelling founders and strong leadership team,” Lawee said in a statement emailed to Fortune. “Ridesharing is still in its early days and we look forward to seeing Lyft continue its impressive growth.”
The $1 billion financing round will be used to continue Lyft’s expansion plans.
Lyft has spent 2017 in partner-and-expansion mode. The company has expanded its operations in the United States by more than 50% in the past nine months, taking advantage of problems at rival company Uber to capture new market share. It’s also preparing to move into Canada.
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