GM invests $500M in Lyft to develop autonomous vehicles

GM invests $500M in Lyft to develop autonomous vehicles image

Text: Marcus De Guzman / Photos: General Motors | posted January 05, 2016 14:38

General Motors taps into ride-sharing in developing self-driving automobiles

The future of autonomous vehicles and ride-sharing companies may have just been set after General Motors (GM) and Lyft recently announced a long-term partnership. With it, the two companies plan to make a network of on-demand autonomous vehicles that can ferry passengers to their destination/s.

“We see the future of personal mobility as connected, seamless and autonomous. With GM and Lyft working together, we believe we can successfully implement this vision more rapidly,” said Dan Ammann, General Motors President.

GM invested $500 million in Lyft to help the growing company continue the growth of its ride-sharing business. Aside from that, GM gets a seat on Lyft's board of directors.

GM and Lyft partnership

The new alliance covers several deals and agreements between the two companies, namely:

1) Autonomous On Demand Network – joint development of a network of autonomous vehicles that will allow GM to study autonomous tech further and to broaden Lyft's choice of ride-sharing services.

2) Rental Hub – GM will become the preferred provider of short-term use vehicles to Lyft drivers through rental hubs in various cities in the USA.

3) Connectivity – Both Lyft drivers and customers will have access to GM's wide array of cars and OnStar services. This will allow for a richer ride-sharing experience to both parties according to GM.

4) Joint Mobility Offerings – Personalized mobility services and experience will be provided by Lyft and GM.

“Working with GM, Lyft will continue to unlock new transportation experiences that bring positive change to our daily lives. Together we will build a better future by redefining traditional car ownership,” said John Zimmer, President and co-founder of Lyft.

Lyft was founded back in 2012 by Logan Green and John Zimmer. It is a ride-sharing company that operates in the USA and is available in over 190 cities.