For the past few years, Uber and Lyft have been involved in an endless battle to control the ride-hailing industry. As a result, Lyft has announced that it’s looking for ways to go public before the end of next year. The company also announced that it’s looking for ways that it would strengthen its financial position. This includes the $1 billion funding that has been offered by Google’s investment arm. Reports have emerged in San Francisco that Lyft had contacted several investment banks with the aim of a public offering come next year. This information was brought to light by people familiar with the discussions. However, since the matter at hand is very confidential, the sources asked for anonymity. The firm has not made a decision on the bank which will become their main underwriter come to the IPO. The firm announced that the $1 billion funding was offered by CapitalG, which is the investment arm of the search giant Google. Before the introduction of any new funds or capital, the $1 billion fund puts Lyft at a valuation of $10 billion. The new funding will also complicate the financial relationships that have emerged in the ride-hailing industry. For instance, companies like Uber and Lyft have received funds from companies that compete with each other on a normal day.
The new investment also means that the company becomes a formidable partner of Google’s sister company Alphabet. This is because a deal was signed to allow a venture capital partner at CapitalG, David Lawee, to take a position on the Lyft’s board of directors. However, the company could not disclose the other investment participants but said that the investment round was open. Lyft president John Zimmer said that 0.5 percent of miles travelled in the United States were as a result of ride-sharing networks. As a result, this opened a huge opportunity for the firm to serve the country in many aspects that include social futures, environmental and economic futures. However, Uber remains the force to be reckoned with in the ride-sharing industry as it has a market valuation of $70 billion. Nevertheless, Uber has numerous problems involving its business and cultural practices. This began in the month of June when Travis Kalanick was ejected as the chief executive of the company. These scandals have benefited Lyft in one way or the other as the two companies are locked in a battle for supremacy in the United States.