CapitalG, Alphabet’s growth investment fund, will lead a $1 billion financing round in taxi app Lyft, a rival to the also Alphabet-backed Uber.

Alphabet previously made an investment in Uber via its GV unit, formerly Google Ventures, but the relationship between the two has been complex.

Lyft’s paths crossed with Alphabet when it partnered with Waymo, Alphabet’s self-driving car unit.

A CapitalG representative told The Wall Street Journal (WSJ) the move reflects “a belief in Lyft, their business model, their future growth and [is] not strategic positioning”.

Lyft is planning to use its new funds to enter markets outside the US and expand its driverless car efforts. The company said it completed its 500 millionth ride earlier this month and its service is now available to 95 per cent of the US population, up from 54 per cent at the beginning of the year.

“While we’ve made progress towards our vision, we’re most excited about what lies ahead. The fact remains that less than 0.5 per cent of miles travelled in the US happen on ride share networks. This creates a huge opportunity to best serve our cities’ economic, environmental, and social futures,” it said.

Lyft raised around $3.6 billion in total funding since launching under the name in 2012, and the current round gives it a valuation of around $11 billion. Uber raised about $15 billion in equity and debt and was valued at $68 billion.

Uber is also close to a deal with SoftBank, which is looking to invest between $8 billion and $10 billion.

While Uber appears to hold an advantage in terms of operating internationally (Lyft is only available in the US), it has not had an easy ride in recent months.

Former CEO Travis Kalanick left following a series of controversies including allegations of sexual harassment at the workplace, a lawsuit over self-driving car technology (which involves Google), and accusations it used its software to mislead regulators.

Lyft reportedly met with officials earlier this year in London, where regulators have said they will not renew Uber’s licence to operate.

CapitalG invests in late-stage companies, such as Snap and Airbnb, unlike Alphabet’s other investment arm GV, which looks at younger businesses, WSJ said.

It invested $258 million in Uber in 2013, but since then Uber began working on autonomous cars and competes directly with Alphabet.

In 2016, Alphabet executive David Drummond stepped down from the Uber board.