GM acquires Sidecar assets following $500m Lyft investment
General Motors has bought assets from the closed ride-sharing company Sidecar for a reported $39 million, following its $500 million investment in Lyft earlier in January 2016.
General Motors has acquired the assets of Sidecar Technologies, a San Francisco-based ride-sharing company that ceased operations at the end of 2015. The deal, reported by Bloomberg to be worth around $39 million, brings approximately 20 Sidecar employees, including co-founder Jahan Khanna, into GM’s urban mobility team.
Sidecar, once a rival to Uber and Lyft, shut down its ride and delivery services on 31 December 2015 after struggling to compete in a market dominated by larger players. General Motors’ purchase includes both technology and staff, but not Sidecar’s CEO and co-founder Sunil Paul. A GM spokesperson confirmed that the new hires and assets would be integrated into the company’s global mobility programmes, supporting both its alliance with Lyft and other urban transport initiatives.
GM’s urban mobility strategy
The Sidecar acquisition comes only weeks after GM announced a $500 million investment in Lyft, part of a $1 billion fundraising round for the ride-sharing firm. That deal also secured GM a seat on Lyft’s board and formalised a partnership to develop an on-demand network of autonomous vehicles. The move underlines GM’s intent to position itself within the rapidly changing mobility sector, where traditional car ownership faces competition from shared and on-demand models.
Bloomberg sources indicated that Sidecar’s technology and engineering talent will feed into both the Lyft alliance and GM’s own mobility projects. At the time, GM was also preparing to launch Maven, its own car-sharing service, to further diversify its presence in urban transport. The integration of Sidecar’s personnel is expected to accelerate development in these areas, particularly around software for ride-hailing and autonomous vehicle management.
What the deal means for GM and the sector
For General Motors, the Sidecar deal is a relatively modest outlay compared to the Lyft investment, but it offers direct access to experienced engineers and proprietary ride-sharing technology. This strengthens GM’s position in the competitive urban mobility market, where major manufacturers are seeking ways to remain relevant as transport models shift. The move also signals that GM is willing to acquire both partnerships and intellectual property to accelerate its transition beyond traditional car sales.
