GM to invest $500 million in Lyft image

General Motors and Lyft Inc have formed a long-term strategic alliance to create an integrated network of on-demand autonomous vehicles in the US.

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. Both sides stated that the new alliance emerged from their shared view that autonomous vehicles will first reach consumers as part of a ride-sharing service, rather than vehicles owned by drivers. “We see the future of personal mobility as connected, seamless and autonomous,” said GM President Dan Ammann. “With GM and Lyft working together, we believe we can successfully implement this vision more rapidly.” John Zimmer, president and co-founder of Lyft, said: “Working with GM, Lyft will continue to unlock new transportation experiences that bring positive change to our daily lives. Together we will build a better future by redefining traditional car ownership.”

The automaker will invest 500 million dollars in Lyft to help continue its rapid growth in ride-sharing network and, in addition, GM will hold a seat on the company’s board of directors. Lyft said other investors in this fundraising round included Kingdom Holding Company, the firm of Saudi Prince Alwaleed bin Talal which invested 100 million dollars, Janus Capital Management, Japanese online retailer Rakuten Inc, ride-hailing service Didi Kuaidi and Chinese Internet giant Alibaba Group Holding Ltd.

Via Reuters