Reuters in September reported investment talks between the companies.
David Lawee, a partner at CapitalG, will join Lyft's board as part of the deal, the company said in a blog.More news: Maisie Williams Was Excited To Hear About Sophie Turner's Engagement News
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There's yet another complication in Alphabet's relationship with start-up giant Uber.
Lyft has been expanding in the U.S. market as Uber's image has taken a hit in recent months.
Those obstacles have taken their toll: while Uber has been valued as high as $70 billion, that number could fluctuate pending an investment deal with SoftBank, the Japanese conglomerate that's been eying a major stake in Uber. But what was a promising partnership quickly turned rocky as Uber and Google became ostensible competitors in the self-driving and transportation spaces. The Alphabet arm poured $258 million into Uber back in 2013. Microsoft invested in Facebook.
That represents a big increase from the $7.5 billion valuation Lyft was given after its last funding round in April, but still puts it far behind Uber Technologies Inc. In March 2016, Google built an "Uber tab" inside its Maps app.
The ride-hailing wars just got even messier. Uber's valuation tops $68 billion, despite recent setbacks. Dara Khosrowshahi rushes to clean up the messes left by his aggressive, rule-bending predecessor Travis Kalanick, he also faces an increasingly formidable challenge in Lyft, the smaller, friendlier ride-sharing upstart that Uber repeatedly tried to sabotage.