In a separate statement, Lyft said its $1 billion funding round includes an investment of $100 million by Saudia Arabia’s Kingdom Holding Company.
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The deal would immediately make GM a “preferred provider” of short-term use vehicles available for rent to today’s Lyft drivers.
Uber competitor Lyft has received a $500 million investment from General Motors that now values the company at approximately $5.5 billion.
John Zimmer, Lyft’s president and co-founder, added that the new alliance aims to “build a better future by redefining traditional vehicle ownership”.
Neither GM nor Lyft gave an exact time frame as to when the network would be up and running, but we assume the project will be kicked into high gear to match the competition.
Following this latest round, it’s suggested that Lyft is valued at $5.5 billion, “post money”.
But before a chauffeur-less auto accepts an in-app ride booking and before passengers chance their life in the hands of a smart vehicle, GM is leveraging Lyft’s platform to stay relevant and profitable.
GM will gain one seat on the board of directors at Lyft in exchange for the investment.
“Thanks to OnStar, we drive help-sending, thief-catching, self-diagnosing, remotely commanded cars”. “We think there’s going to be more change in the world of mobility in the next five years than there has been in the last 50”, he said. The company just completed a big $1 billion round of financing.
Elsewhere, the companies will provide each others’ customers with “personalized mobility services and experiences”.
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Lyft was founded in 2012 and has grown quickly to establish ride-sharing networks in 190 United States cities with the vision of improving personal transport and reducing the number of cars on the road.
