GM to invest $500M in Lyft; creating integrated network of on-demand autonomous vehicles
04 January 2016
General Motors and rideshare company Lyft are entering a long-term strategic alliance to create an integrated network of on-demand autonomous vehicles in the US. GM will invest $500 million in Lyft to help the company continue the rapid growth of its successful ridesharing service. In addition, GM will hold a seat on the company’s board of directors.
The GM investment is part of a $1-billion funding round Lyft is closing. In addition to the GM money, Kingdom Holding Company invested $100 million making the total investment of Kingdom Holding and its affiliates approximately $250 million. Several new and existing Lyft investors were also in the round including Janus Capital Management, Rakuten, Didi Kuaidi and Alibaba. Following this latest round, Lyft is valued at $5.5 billion, post-money. Key elements of the GM and Lyft alliance include:
Autonomous On-Demand Network: The joint development of a network of on-demand autonomous vehicles will leverage GM’s deep knowledge of autonomous technology and Lyft’s capabilities in providing a broad choice of ride-sharing services.
Rental Hub: Beginning immediately, GM will become a preferred provider of short-term use vehicles to Lyft drivers through rental hubs in various cities in the US.
Connectivity: Lyft drivers and customers will have access to GM’s wide portfolio of cars and OnStar services, leveraging two decades of experience in connectivity. This will create a richer ride-sharing experience for both driver and passenger.
Joint Mobility Offerings: GM and Lyft will also provide each other’s customers with personalized mobility services and experiences through their respective channels.
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.
—GM President Dan Ammann
Lyft was founded in June 2012 by Logan Green and John Zimmer and is the fastest growing rideshare company in the US; the serviceis available in more than 190 cities.
The race is definitely on among most of the relevant actors to deliver the world's first self-driving taxi service hopefully before 2020. Those who are late to this game will bankrupt. There will not be a meaningful market left for self-owned cars except for luxury cars.
Posted by: Account Deleted | 04 January 2016 at 10:02 AM
Autonomous vehicles are but another attack on individualism and freedom by the central planning marxists. I will be keeping the vehicle that I drive & doesn't report to Big Brother...thank you very much.
Posted by: ejj | 04 January 2016 at 10:56 AM
ejj you will still be able to buy and own a car. It will be self-driving and it can do it off-line. Just like GPS apps can work off-line. I think they will all be luxury as it cost a lot to make them self-driving and pollution free. I think the law in the future will prohibit driving cars yourself because it is too risky. 1.2 million people are killed every year in traffic accidents and that could be nearly eliminated by self-driving cars. I also think gasoline and diesel and biofuels will be prohibited as they kill about 4 million people every year prematurely due to air pollution. We can't have that if there is a cheaper alternative which is self-driving BEV taxis.
Posted by: Account Deleted | 04 January 2016 at 11:26 AM
GM invests in car-dependency. Lyft is just a taxi service - nothing new there. Self-driving cars is a complete ruse which corporate interests want the public to believe is possible and won't make traffic worse. Driving to armegeddon, la la la, buy a new car and save money now! GM is monopoly. Globalization is the end game. Once every nation is completely dependent upon long-distance travel and transport, all GM has to do is withhold fuel/energy supply for the public to feel the jackboot on their necks. Only boob tube bimbos and twits believe the self-driving car idea isn't idiotic.
Posted by: Sirkulat | 04 January 2016 at 12:00 PM
In 20 years or so Cuba might be the only place left where freedom loving peoples can still drive Lada powered Lincoln Continentals on consumer gas left.
Better get in quick.
Posted by: Arnold | 04 January 2016 at 12:32 PM
The Lyft CEO was on a business channel today. They have a good plan, good funding and good management.
Posted by: SJC | 04 January 2016 at 03:46 PM
Aaannd...ejj continues with his lunatic rants.
Perhaps he prefers the post-apocalyptic Australia depicted in the Mad Max film series. I know _those_ cars aren't self-driving.
Posted by: Brent Jatko | 19 November 2016 at 05:54 AM
and there's no central authortity to enforce the rule of law, either.
A true Libertarian paradise!
Posted by: Brent Jatko | 19 November 2016 at 05:56 AM