General Motors Invested $500 Million In Lyft To Design Driverless Cars

One of the world’s largest car manufacturer is partnering up with one of the world’s largest ride-hailing companies. General Motors and Lyft are joining forces to develop self-driving cars.

This partnership could potentially change the way consumers travel on the road, and could also help bring the two companies out of the shadows of their competitors. 

The two companies announced the partnership on Monday (Jan. 4). An investment of $500 million was made by GM in Lyft. Kingdom Holding Co. and its affiliates also invested $250 million, which helped raise the company’s value to $5.5 billion.

“There’s a huge amount of change in the world of mobility, especially in the urban environment,” GM president Dan Amman said. “This investment is important, but more important is the long-term strategic alliance [between GM and Lyft].”

Driverless vehicles are still a few years away from being sold to the general public. However, this won’t stop GM and Lyft from working together to create rental hubs that allow Lyft drivers to rent short-term vehicles, which will open paths for people to earn money without owning a car.

“This is unique,” President of Lyft, John Zimmer said. “It’s the only time a transportation network company, or ride-sharing company, has partnered with a leading auto manufacturer.” 

“We have a common view of the future and what the future should look like,” Amman added.

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