General Motors has partnered up with the ride-hailing company Lyft to create an integrated network of on-demand autonomous vehicles in the U.S.
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The massive investment by GM accounts for half of Lyft’s latest $1bn (£680m) fundraising round and is one of GM’s biggest investments in another company to date.
“We see the world of mobility changing more in the next five years than it has in the last 50”, Ammann said.
Lyft said it was the fastest-growing rideshare platform in the U.S., boasting 7 million rides per month in more than 190 cities.
“This raise and collaboration with GM are exciting milestones in our three-year history that continue Lyft’s leadership in redefining traditional vehicle ownership”, Co-Founder and President John Zimmer said.
The investment, which is part of a financing round of $1 billion, is the largest move by any automakers thus far when it comes to coming to grips with the meteoric rise of this industry of ride-hailing.
Under the terms of the deal, GM will invest $500 million into Lyft to support the company’s continued growth. In addition to its financial support, GM is also granting Lyft access to short-term use vehicles by way of rental hubs throughout the USA, and will provide Lyft drivers access to both their extensive network of cars and their OnStar services. This will offer GM vehicles to prospective drivers if they either don’t have a auto or if their auto is not good for driving customers.
Other companies, including Google, Ford, Tesla and Uber, have been said to be exploring self-driving cars. The company has raised $2 billion since 2013 and is now valued at $5.5 billion, post-money – still a long ways from its main competitor Uber, which is valued at more than $60 billion.
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In a keynote speech to be delivered in Las Vegas on Wednesday GM CEO Mary Barra is expected to disclose more details about GM’s progress in developing autonomous technologies. That funding round would value Uber at $62.5 million.
