GM Invests $500 Million in Ride-Hailing Lyft
- Updated: January 4, 2016
General Motors has entered into an agreement to invest $500 million in Lyft a ride-hailing company. The partnership was announced on Monday and aims to bring self-driving, on-demand vehicles to roadways in the U.S. within the next 10 years.
On Monday, GM said it would invest $500 million in the company based in San Francisco, while both companies will work together with the goal of creating a network of autonomous, on-demand automobiles.
Dan Ammann the President of GM said that the carmaker sees the future of personal mobility as seamless, connected and autonomous. He added that with Lyft and GM working hand in hand, we believe we will have success in implementing our vision quicker.
GM will gain one seat on the board of directors at Lyft in exchange for the investment. Together the companies are planning to embark on a relationship that is years long that John Zimmer the President of Lyft said would build a future that is better by redefining car ownership, as we know it today.
The center of this plan is an on-demand autonomous network – a fleet of automobiles that are self-driving with the goal of combining the in-progress robots research at GM with the rideshare at the touch of a button service that already allow millions around the world to travel from one point to another with using only a smartphone app.
Although most of the specifics of this network of driverless rideshare have not yet been cemented, GM said this system would leverage the deep knowledge the automaker has of autonomous technology, with the broad choice of Lyft’s ride-sharing service.
The president of Lyft added that he is expecting the self-driving vehicles fleet to be tied to his company’s platform for ridesharing within the upcoming 10 years and likely even sooner.
GM in the meantime will also start immediately providing use of vehicles over the short term for drivers of Lyft at rental hubs for certain cities in the U.S. of which they will be equipped with the OnStar navigation system, as well as other modern up to date technology.
Lyft’s current service of on-demand ride sharing created over 7 million rides a month during 2015 in more than 190 cities within the U.S., with the company grossing over $1 billion in revenue through October.
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