Lyft’s new partnership with Alphabet’s Waymo is sure to lift investors’ eyebrows and change the future of both companies.
Lyft is a difficult stock to evaluate at this point. Uber’s IPO is still in its earliest phases and could affect Lyft’s new stock in a variety of ways. While we can’t know what will happen with Lyft in the long run, the one thing that is certain is that this partnership will give more credibility to Waymo should everything go according to plan. Waymo, as a part of Alphabet (and a part of Google from 2009 to 2016) has been expected to take off at some point in the last few years. Now that it’s 2019, some have questioned what Waymo has provided, but now Waymo is providing some real value and is working on showcasing their technology with the help of Lyft, which could also use a hand right now.
If Lyft and Alphabet can properly hype Waymo up, it will certainly help improve both companies’ positions on the market. Business Insider reports that Lyft has fallen to a record low due to a highly disappointing Q1 report and the looming Uber IPO. Lyft took a plunge of 11% on Wednesday, although Lyft’s new partnership with Waymo has served as a boost. Many see this partnership as a critical form of leverage for Lyft given the course of autonomous vehicles and how they are expected to change transportation during the coming decades. We will have to wait for Uber’s IPO to enter full swing to see what will happen next.