The Alphabet company structure provides each of the other bets with responsibility for its own profit and loss statement.
It empowers each Alphabet company to make business deals. Like the self driving car group to make a deal with Ford.
It also allows each Alphabet company to issue its own shares. This means that the self driving car group could issues its own shares and thus incentivize each company with shares in its own company. A self driving car group would need to dominate the entire world automotive industry to move the needle on overall Google shares. A new self driving car Alphabet company would get far more benefit from selling its first 10,000 robotic cars or 100,000 robotic cars. Each doubling would be huge for a new Alphabet google car company.
Keeping and motivating the best talent
As with many Alphabet companies, Google Capital can be interpreted as a vehicle for keeping a talented exec inside the Googleplex. In this case, it’s David Lawee, a 10-year Google vet who has run Capital since its inception and, from accounts of people who know him, takes it very seriously. He’s in demand in the Valley; Facebook has tried to poach him before, according to sources.