Lyft gets an investment — from an Uber investor

From Recode: A large Uber shareholder has made an investment in chief U.S. rival Lyft, part of the latest twist in the entangled web of ride-sharing deals.

Lyft said on Tuesday that Fidelity, the giant mutual fund, would participate in an expanded financing round that now values the company at $11.5 billion. The round, led by Alphabet affiliate CapitalG, was previously only expected to collect $1 billion; it now stands to raise $1.5 billion.

Shareholders typically try to avoid conflicts of interest in their investments, but when it comes to Uber and Lyft it seems like all’s fair. Alphabet, for example, is also invested in both Uber and Lyft. Fidelity declined to comment.

Fidelity’s ownership position in Uber is almost certainly much larger than its position in Lyft — Fidelity led $1.2 billion Uber’s Series D financing round in 2014.

Notably, Fidelity was a key investor that helped oust Uber’s CEO Travis Kalanick this summer.

View: Article @ Source Site