January 4, 2016 by Canadian Underwriter
General Motors and ridesharing company Lyft announced on Monday a “long-term strategic alliance to create an integrated network of on-demand autonomous vehicles” in the United States.
GM will invest US$500 million in Lyft to “help the company continue the rapid growth of its successful ridesharing service,” GM said in a statement. In addition, GM will hold a seat on the company’s board of directors.
Key elements of the alliance include:
• The joint development of a network of on-demand autonomous vehicles to leverage GM’s knowledge of autonomous technology and Lyft’s capabilities in providing a broad choice of ridesharing services;
• 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.;
• Lyft drivers and customers will have access to GM’s wide portfolio of cars and OnStar services, leveraging two decades of experience in connectivity. This will help create a richer ridesharing experience for both driver and passenger; and
• GM and Lyft will provide each other’s customers with personalized mobility services and experiences through their respective channels.
“We see the future of personal mobility as connected, seamless and autonomous,” said GM president Dan Ammann in the statement. “With GM and Lyft working together, we believe we can successfully implement this vision more rapidly.”
John Zimmer, president and co-founder of Lyft, added by working together with GM, the companies will “build a better future by redefining traditional car ownership.”