GM is expected to bring forth its expertise when it comes to developing autonomous vehicles while Lyft will be working on software that would automate routing, payments as well as ride matching.
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In a separate statement, Lyft said its $1 billion funding round includes an investment of $100 million by Saudia Arabia’s Kingdom Holding Company.
General Motors (GM) has announced it will invest $500m in Uber rival Lyft in order to develop an on-demand network of self-driving cars.
John Zimmer, president and co-founder of Lyft, said the relationship would lead to “redefining traditional vehicle ownership”. Taken together, GM and Lyft could create a network of cars that operate themselves and are available on demand. Those vehicles will tap into GM’s OnStar service, while GM and Lyft promised “personalized mobility services and experiences”, but did not elaborate. With the latest investments, Lyft is now valued at $5.5 billion. Though recently the company announced that the post valuation of the company now is $5.5 billion. But Lyft, along with Google, Uber, Tesla and other companies, is interested in autonomous vehicles that could navigate roads without someone behind the wheel. “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.
Prince Alwaleed said: “Lyft is a solid partner for us in line with our investment strategy of creating value for our shareholders”.
General Motors has invested $500 million into ride-sharing company Lyft as it looks to the future of transportation.
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Major auto manufacturers are now trying to prevent Silicon Valley from dominating the future of self-driving cars and ride-sharing.
