This week General Motors and Lyft announced an alliance which would eventually create an on-demand autonomous vehicle network in the United States.
Advertisement
Lyft’s shiny new $5.5 billion valuation comes with further investments from the likes of Janus Capital Management, Japanese e-commerce company Rakuten Inc., and Saudi Arabia’s Kingdom Holding Co. An automated vehicle service is still a long way off, but in the meantime the companies will work on a network of rental hubs around the country where Lyft drivers can rent vehicles on a short-term basis.
The partnership between GM, America’s largest automaker, and ride-sharing app Lyft is designed to create a “network of on-demand autonomous vehicles” that would see Lyft deploying driverless cars to service customers nationwide.
GM President Dan Ammann stated they see a future of personal mobility that is “connected, seamless and autonomous”.
The service will utilise GM’s work on driverless cars with Lyft’s software platform that matches drivers and passengers and calculates routes.
However, it still lags behind Uber, which is valued at more than $50 billion.
That target is still some way off however, and neither GM nor Lyft has set a timeframe for the deliver of autonomous services.
Mr Harrold added that GM’s investment was an important signal that traditional vehicle companies have to adapt. Ammann will join Lyft’s board as part of the deal. GM’s investment is part of a $1 billion round for privately held Lyft that values the San Francisco-based company at $5.5 billion. “Together we will build a better future by redefining traditional vehicle ownership”.
Advertisement
Other companies, including Google, Ford, Tesla and Uber, have been said to be exploring self-driving cars. The company competes with Uber and other firms specializing in uniting a customer in search of a ride with a driver or shared auto.
