- General Motors has announced a $500 million investment in ride-sharing firm Lyft
- GM says the investment represents a long-term strategic alliance between the companies
- The two firms say they will develop an on-demand fleet of autonomous vehicles
General Motors has officially announced that it will invest an impressive $500 million in ride-sharing firm Lyft. The announcement also rolls out a long-term strategic alliance, which sees the two companies working together to enhance and grow Lyft’s business with GM’s help.
According to the two companies, there are several facets of the partnership, which involves one of GM’s largest recent investments in another company and a seat for General Motors on Lyft’s board of directors.
One element of the partnership, for instance, will focus on creating a network of on-demand autonomous vehicles to combine GM’s expertise in engineering and manufacturing with Lyft’s ride-sharing services. General Motors will also provide short-term-use vehicles to Lyft drivers through rental hubs in various cities and will increase connectivity for drivers and passengers alike by providing GM’s wide portfolio of OnStar services.
The $500 million investment from General Motors comes as part of a $1 billion fundraising round from Lyft, which is intending to grow its ride-sharing business dramatically in the coming months and years. According to GM and Lyft, the automaker’s investment was spurred by a “common view of the future” shared by both companies.
“We see the future of personal mobility as connected, seamless and autonomous,” said Dan Ammann, GM’s president. “With GM and Lyft working together, we believe we can implement this vision more rapidly.”
Neither GM nor Lyft has announced any definite timelines regarding updates to Lyft’s services except to say that the “rental hub” program will begin immediately.
What it means to you: By investing heavily in Lyft, General Motors is clearly demonstrating that it views ride sharing as a key element in the future of the automobile.