A positive outcome of the talks could enable Lyft to ward off discussions on its IPO, slated for 2018, and could enable it to increase its footprint in the U.S.
As per a source familiar with the matter at hand, Alphabet Inc is holding early talks with Lyft Inc regarding purchasing a stake in the ride-hailing company. The move could potentially deepen the partnership between the two firms.
If the talks come to fruition, it would result in Lyft gaining the support of one of Silicon Valley’s largest companies which could significantly boost its market share.
It isn’t immediately clear as to how large an investment Alphabet might make.
Bloomberg reported, citing sources familiar with the matter at hand, that the discussion could be as high as $1 billion.
Alphabet and Lyft declined to comment.
In April, the Lyft had managed to raise $600 million in fresh funding round, which valued the company at $7.5 billion, up from $5.5 billion.
Earlier in May, Alphabet’s self-driving car unit Waymo had announced a partnership with Lyft which was aimed at collaborating on self-driving technology.
In August, Lyft had commenced an expansion of its services, and had said, its rides would be available in 40 U.S. states and would cover 94% of the country’s population.
According to sources close to Lyft, additional investment in the company could enable it to further ward off discussions of an IPO, which Lyft had planned for 2018.