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.