Alphabet's Capital G invests $1B in Lyft

John Zimmer

Mary Catherine Wellons | CNBC John Zimmer

The ride hailing company says the injection of cash brings valuation to $11 billion.

In May, Alphabet's Waymo self-driving auto division inked a joint development agreement with Lyft - while Waymo has filed a lawsuit against Uber seeking billions in damages, alleging Uber stole trade secrets.

News of this possible investment may deepen the rift between Alphabet and Uber. Waymo, Alphabet's self-driving-car company, has partnered with Lyft on the technology.

Earlier this month, Lyft said that it had completed its 500 millionth ride and was available to 95 percent of the USA population - up from 54 percent at the beginning of the year.

The company already received an investment from GM GM.N but it looks like Lyft is shifting more to Alphabet, which has its own autonomous vehicle development platform Waymo.

Google has chose to take a Lyft.

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Alphabet's GV early investment fund invested early in Uber, which makes this more interesting. The $1 billion Lyft secured in funding on Thursday follows a $600 million funding round in April.

Up round: Lyft received a $7.5 billion post-money valuation after raising $650 million in venture funding earlier this year led by Japan's Rakuten.

But now, it appears, there's another complication in Alphabet's (NASDAQ: GOOGL) relationship with Uber.

Alphabet, Google's parent company, also is an investor in Uber, Lyft's chief rival.

"We're looking forward to working with Lyft to explore new self-driving products that will make our roads safer and transportation more accessible", a Waymo spokesperson said at the time.

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