General Motors (GM) reportedly was rebuffed in an effort to acquire ride-hailing partner Lyft outright.
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General Motors wanted to make its relationship with Lyft more than just a minority investment, according to a new report out from The Information’s Amir Efrati.
In an age where commuters find it’s so much easier to hail a ride and carpool, vehicle manufacturing companies like GM have been struggling to find alternative models of auto sharing and auto ownership.
General Motors raised $500 million investment for a 9% stake in the ride hailing company in January.
Lyft solicited other potential strategic acquirers before opting for the new round of funding, said The Information.
The ridehailing company, which was now worth $5.5 billion, plans to opt for another funding round instead, as it was said to require billions of dollars by way of additional investment to compete with Uber, the industry leader expanding in the global market.
Lyft’s plans for new funding come close on the heels of an earlier-this-month disclosure by rival Uber that it has merged its loss-making Chinese operations with a Chinese competitor.
Lyft’s future recently became more complicated as well, after Uber conceded its battle in China to rival Didi Chuxing and has more time to devote to its battles at home. The company will also use the money to continue tapping into other worldwide markets, such as Europe and other parts of Asia, while boosting its presence in the U.S. The firm has been tasked with either handling a funding round for Lyft or planning the sale of the ridehailing company. Our Lyft community drivers have been.
Lyft and GM also plan to test self-driving taxis, with autonomous systems installed in all-electric Chevy Bolt vehicles. The program has picked up and is expanding into three more key cities in the United States before it ventures into other countries.
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Meanwhile, with regard to Lyft’s decision to turn down GM’s acquisition interest, GM has not made any official comments, but has asserted that it is extremely pleased with the way its strategic partnership with Lyft is progressing.
