General Motors Places $500 Million Bet on Lyft
As part of that effort, General Motors is investing $500 million in the Uber competitor, Lyft announced Monday morning.
The Michigan automaker said it’s also teaming up with Lyft to create a service that would allow people to hail a ride in a driverless vehicle.
As a result, GM’s investment comes with short-term gains.
Lyft president John Zimmer said: “Working with GM, Lyft will continue to unlock new transportation experiences that bring positive change to our daily lives”.
General Motors knows that, in the future, not everyone is going to own their own vehicle.
As part of the deal, GM will also provide its vehicles to Lyft drivers through numerous rental hubs across the United States.
Neither Lyft nor GM revealed timing for an autonomous network, but did say the two companies will leverage GM’s deep knowledge of autonomous technology and Lyft’s capabilities in providing a broad choice of ride-sharing services.
While Lyft works on software to automate ride matching, routing and payments, GM was at the forefront of driverless vehicle development.
Other investors in this latest funding round for Lyft include Kingdom Holding Company, which put in $100 million, as well as Alibaba, Didi Kuaidi, Janus Capital Management and Rakuten.
“We see the future of personal mobility as connected, seamless and autonomous”, said GM President Dan Ammann. Lyft is the fastest growing rideshare company in the U.S and is available in more than 190 cities.
So there you have it, the future is to be about redefining traditional auto ownership, so you better get ready to buy a set of custom tires and wheels for a vehicle with the personality of a toaster. Last year, it partnered with Carnegie Mellon University to develop self-driving vehicle technology, and is testing such cars in Pittsburgh and Tucson.