Google could make a billion-dollar bet on Uber's biggest competitor

Google's parent company, Alphabet, may soon invest in the app Lyft, Reuters reports.

The investment discussions come months after Alphabet's self-driving car unit, Waymo, announced a partnership with the ride-hailing app. Waymo and Lyft will combine resources to collaborate on self-driving technology that could alter the ride-hailing industry. Waymo is also in the midst of a lawsuit against Uber Technologies, Lyft's largest competitor, over allegedly stolen self-driving car technology.

An unnamed source told Bloomberg that Alphabet's investment could amount to $1 billion. Neither company would comment on the possible investment.

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Lyft trails slightly behind Uber in terms of market shares, but it has been rapidly expanding its services over the last few months. According to August statistics, Lyft is now available in 40 U.S. states, serving 94 percent of the U.S. population. An investment from Alphabet could help Lyft more effectively compete with Uber.