Lyft snags USD500 million investment from General Motors
Monday, 05 Jan, 2016
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Uber’s main rival in the ride sharing business, Lyft, has scored a huge $500 million investment from auto maker General Motors.
Part of a funding round totalling $1 billion, GM and Lyft will collaborate on an ‘autonomous on-demand network’ of driverless cars for hire as well as car rental hubs around the country.
It is the first time a major car manufacturer has made a sizable investment in the sharing economy.
GM said it will work on the development of self-driving cars integrating Lyft’s ride hailing software.
"We see the future of personal mobility as connected, seamless and autonomous," GM president Dan Ammann said.
"With GM and Lyft working together, we believe we can successfully implement this vision more rapidly. We think our business and personal mobility will change more in the next five years than the last 50."
The companies have not set a timeline to have a driverless taxi service up and running but would offer Lyft drivers short-term rentals of GM cars straight away.
Under the terms if the deal, Amman will take a seat on the Lyft board to consolidate the companies’ ‘really common view of the future.’
Lyft said the latest funding round gives it a valuation of about $5.5 billion, consolidating its place as one of so-called ‘unicorns’ of Silicon Valley.
It is still some way off rival Uber, which has a current valuation of more than $60 billion.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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