GM Invests $500M in Lyft Ride-Hailing Service
SAN FRANCISCO – General Motors will invest $500 million in Lyft Inc., a ride-hailing startup that says it has raised $2 billion in its bid to challenge the dominance of Uber Technologies in the new industry.
The automaker described its investment as a “long-term strategic alliance to create an integrated network of on-demand autonomous vehicles in the United States.”
The president of GM, Dan Ammann, will hold a seat on Lyft’s board of directors, the companies said.
“We see the future of personal mobility as connected, seamless and autonomous,” said Ammann in a statement. “With GM and Lyft working together, we believe we can successfully implement this vision more rapidly.”
Key elements of the GM and Lyft alliance include:
- Autonomous on-demand network: The joint development of a network of on-demand autonomous vehicles.
- Rental hub: Beginning immediately, GM will become a preferred provider of short-term use vehicles to Lyft drivers through rental hubs in various cities in the U.S.
- Connectivity: Lyft drivers and customers will have access to GM’s wide portfolio of cars and OnStar services.
- Joint mobility offerings: GM and Lyft will also provide each other’s customers with personalized mobility services and experiences through their respective channels.
Lyft, based in San Francisco, was founded in June 2012 by Logan Green and John Zimmer.
The company says it completes 7 million rides per month in more than 190 cities. In October, Lyft reached an annual gross run rate of $1 billion and surpassed more than 40% market share in San Francisco and Austin.
In addition to GM, Lyft said its investors include Kingdom Holding Co. – a Saudi company that has invested $250 million in the startup, Janus Capital Management, Rakuten, Didi Kuaidi and Alibaba.
Said John Zimmer, president and co-founder of Lyft, “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.”
Pictured: General Motors President Dan Ammann (center) with Lyft Inc. co-founders John Zimmer (right) and Logan Green (left)
Copyright 2020 The Business Journal, Youngstown, Ohio.