Mr. Ammann said the partnership that came out of the talks, and the investment that made up half of Lyft’s latest $1 billion Series-F round of funding, is unlike anything else happening in either the auto or tech industries. According to a statement from GM, the two companies will work together as part of a long-term strategic alliance to create an integrated network of on-demand vehicles. The deal allows GM to test and refine autonomous vehicles in development without having to release the cars or trucks in wide-scale production. He added that with Lyft and GM working hand in hand, we believe we will have success in implementing our vision quicker. GM also becomes Lyft’s preferred vehicle provider, improving chances that drivers will be behind the wheel of a Chevrolet, GMC, Cadillac, or Buick.
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Lyft revealed that Kingdom Holding Co. has invested $100 million making the total investment of Kingdom Holding and its affiliates to approximately $250 million. Lyft promised “to build a network of on demand autonomous vehicles that will make getting around more affordable, accessible and enjoyable”.
Lyft has raised $2.1 billion since launching in 2012.
Lyft’s competitors include Sidecar and Uber, whose various ride-hailing services have disrupted traditional taxi and other transportation businesses in numerous countries around the world since it was founded in 2009.
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The two companies said the partnership, which involves one of GM’s largest investments in another company, stemmed from their shared view that autonomous vehicles will first reach consumers as part of a ride-sharing service, rather than vehicles owned by drivers. Additionally, Lyft and GM will tap each other’s existing infrastructures to provide complementary services to their existing customers. F and Daimler AG DDAIF, who are both now working to develop ride-sharing services of their own. Uber also poached about 50 people from Carnegie Mellon University’s robotics department at the start of the year.
