General Motors today announced it will invest $500 million in Lyft, a ridesharing service, to create a network of on-demand autonomous vehicles across the nation.
“We see the future of personal mobility as connected, seamless, and autonomous,” says Dan Ammann, president of GM. “With GM and Lyft working together, we believe we can successfully implement this vision more rapidly.”
Under the terms of the deal, GM will become a preferred provider of short-term use vehicles to Lyft drivers through rental hubs in various U.S. cities. The vehicles will come equipped with GM’s OnStar services.
Ammann says the two companies will develop an integrated network of on-demand vehicles. “Working with GM, Lyft will continue to unlock new transportation experiences that bring positive change to our daily lives,” says John Zimmer, president and co-founder of Lyft.
GM’s investment comes as part of a $1 billion investment round by Lyft from Kingdom Holding Co., Janus Capital Management, Rakuten, Didi Kuaidi, and Alibaba. Following the latest round of investments, Zimmer says Lyft is valued at $5.5 billion. GM will also hold a seat on Lyft’s board of directors.
Lyft, founded in 2012, is a competitor of Uber, another ride sharing platform. Lyft is available in more than 190 cities, including Detroit, and has averaged more than 7 million rides per month.