U.S. based automaker General Motors has announced its plans to invest $500m in auto hailing service provider Lyft to create an integrated network of on-demand autonomous vehicles in the US.
Advertisement
GM is one of many companies, including Tesla, Volvo, BMW, and Mercedes-Benz, which has been working on self-driving vehicles for quite some time now.
“We see the future of personal mobility as connected, seamless and autonomous”, Ammann was quoted saying in a statement. Together the companies are planning to embark on a relationship that is years long that John Zimmer the President of Lyft said would build a future that is better by redefining vehicle ownership, as we know it today.
Ammann said the alliance should not be viewed as odd given Lyft is in the business of ride sharing, which theoretically hurts automobile sales for the likes of GM.
This round also included Kingdom Holding Company, who invested $100 million, along with several new and existing Lyft investors including Janus Capital Management, Rakuten, Didi Kuaidi and Alibaba. Daniel Ammann, president of G.M., said that the company makes their core profit selling vehicles outside of the urban areas where Lyft primarily operates.
Advertisement
Looking farther into the future, GM and Lyft will work together to develop a group of autonomous vehicles that consumers could call on using Lyft’s mobile app. The partnership could provide a leg up on fellow ride-sharing company, Uber Technologies Inc. The investment, which is part of a billion fundraising round, will give General Motors a seat on Lyft’s board. “We are thrilled to take this momentum into the new year and continue improving life in our cities through more affordable, accessible and enjoyable transportation”. But they said the partners would immediately offer Lyft drivers short-term rentals of GM cars to use to offer the service. Having fewer people own cars has always been a long-term goal for Zimmer and his co-founder Logan Green.
