General Motors buys another ride-sharing company image

Following a 500-million-dollar investment in Lyft, General Motors has bought the assets of the recently defunct Sidecar Technologies ride-sharing company.

Ride-sharing companies are seen as a threat in the eyes of the automakers, especially with Uber being so successful and profitable. Unable to compete in the business, Sidecar has been forced to shut down its ride and delivery operations starting with December 31, but most of the company’s assets have just been acquired by General Motors. According to a person familiar with the matter who disclosed the information to Bloomberg, the automaker paid around 39 million dollars for the take-over, also bringing in 20 of Sidecar’s employees, including the company’s co-founder Jahan Khanna, but not co-founder and CEO Sunil Paul. “In connection with Sidecar ceasing operations, we can confirm that we have attracted Sidecar employees to be integrated into the GM urban mobility team and acquired certain related assets, for work on our global mobility programs,” a GM spokeswoman told Fortune. Another GM spokesman told Bloomberg the assets and employees would support the Lyft alliance and other efforts of the automaker.

Earlier this month, General Motors and Lyft Inc announced a partnership to develop an on-demand network of autonomous vehicles, as well as a 500-million-dollar investment by the automaker as part of a 1-billion-dollar fund-raising round by the ride-sharing service. The deal represents one of GM’s largest capital injections into another company and will help Lyft to continue its growth in the ride-sharing network and, in addition, GM will hold a seat on the company’s board of directors. GM also plans to bring to market its own set of transportation services, dubbed Maven, according to Bloomberg sources.

Via Bloomberg