Google has bought Uber for $19 billion, a deal that could give the search giant an edge in the race to become the next dominant company in the global ride-hailing industry.
The deal is worth $19 per share, and Google is currently the only major tech firm that owns Uber.
Uber shares were up 7% in morning trading, and the company’s stock price rose more than 25% after the news broke.
The acquisition is part of a larger $20 billion deal Google announced in January to acquire the mobile app-focused company, and it has also been a boon for Alphabet, the parent company of Google.
The move comes just a few months after Google’s founder Larry Page made a major acquisition of the social media company Twitter, giving the company a massive reach into new media and news, and bringing the company closer to its ambitious goal of transforming how we consume and organize information.
“Today we are adding another layer of strategic value to our existing businesses and expanding them further, creating new opportunities for people to get to work, explore, and collaborate with friends and family,” Alphabet CEO Sundar Pichai said in a statement.
Alphabet has also taken a leading role in developing and delivering apps, and has been aggressively pursuing its own apps in a bid to become a more dominant force in the tech world.
It is a big deal for Google, because Uber, along with its competitors, are among the most popular and most popular apps on smartphones.
Uber’s mobile app has more than 500 million monthly active users, according to a study by the research firm comScore.
Uber has struggled to gain traction in the US, where its market share has dropped in recent years.
Uber drivers in San Francisco are known for protesting during demonstrations, and last year, a group of drivers sued the company, claiming it discriminates against drivers based on race.