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Todd Hallenbeck5 Jan 2016
NEWS

GM invests US $500 million in Uber rival

More than just a taxi service, Lyft will be the foundation for GM's autonomous ride-sharing network

A ridesharing start-up named Lyft, based in San Francisco, has received considerable financial support from General Motors and has stated the two companies will work to create a future network of on-demand autonomous self-driving vehicles in the U.S.

GM President, Dan Ammann, announced today that GM has invested US $500 million in Lyft. In return, GM will hold a seat on Lyft's board of directors.

Lyft was founded in 2012 and has grown quickly to establish ride-sharing networks in 190 US cities with the vision of improving personal transport and reducing the number of cars on the road. Via an app, Lyft users can 'hail' a car in lieu of using a taxi or public transportation.

GM's investment comes as a surprise but reveals the 107-year-old company has a clear vision and strategy for the future of autonomous vehicles.

"We see the future of personal mobility as connected, seamless and autonomous," Ammann was quoted saying in a statement. "With GM and Lyft working together, we believe we can successfully implement this vision more rapidly."

The speed of change will be very fast as tech companies such as Google, NVIDIA, Tesla and tier one auto suppliers race to develop autonomous technology.

Neither Lyft nor GM revealed timing for an autonomous network, but did say the two companies will leverage GM's deep knowledge of autonomous technology and Lyft's capabilities in providing a broad choice of ride-sharing services.

In a keynote speech to be delivered in Las Vegas on Wednesday GM CEO Mary Barra is expected to disclose more details about GM's progress in developing autonomous technologies.

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Written byTodd Hallenbeck
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