Lyft and GM enter into partnership agreement, end goal is driverless ride-share network

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Today General Motors and Lyft announced they are entering into a long-term agreement that they hope will one day result in a network of driverless vehicles to be used for ride-sharing purposes. In the short term, the two companies will work to complement each other’s offerings with current technology and services. As part of the deal, GM is investing $500 million in Lyft, which is worth about $5.5 billion, and will receive a seat at the Lyft board of directors’ table.

Through the partnership, GM will continue their work on development of autonomous vehicle technology which will ultimately be combined with Lyft’s expertise in ride-sharing services. By making autonomous vehicles available through a temporary arrangement, the companies hope they can tap into a market for individuals who struggle with accessing traditional public transportation options. Lyft president John Zimmer says,


“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.”

Until the concept is fully developed and deployed, which could be several years from now, GM and Lyft will work together to benefit each other in other ways. For example, GM will become the preferred vehicle provider for Lyft drivers. For Lyft drivers and customers, GM is offering to let them tap into their OnStar service. The two companies will also share information between each other regarding their customer bases so that each can offer services.

The partnership comes as growth in the autonomous vehicle field continues to fill up with contenders. Notably Google is working in the space, though other auto manufacturers also have technology in the pipeline. Lyft rival Uber is working on driverless cars as well. The combination of Lyft with GM merges a couple different parts of the larger pie for transportation services.

You can read the full press release from GM below.

GM and Lyft to Shape the Future of Mobility


2016-01-04


SAN FRANCISCO – General Motors and Lyft today announced a long-term strategic alliance to create an integrated network of on-demand autonomous vehicles in the U.S.

GM will invest $500 million in Lyft to help the company continue the rapid growth of its successful ridesharing service. In addition, GM will hold a seat on the company’s board of directors.

“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.”

Key elements of the GM and Lyft alliance include:

  • Autonomous On-Demand Network: The joint development of a network of on-demand autonomous vehicles will leverage GM’s deep knowledge of autonomous technology and Lyft’s capabilities in providing a broad choice of ride-sharing services.
  • 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, leveraging two decades of experience in connectivity. This will create a richer ride-sharing experience for both driver and passenger.
  • Joint Mobility Offerings: GM and Lyft will also provide each other’s customers with personalized mobility services and experiences through their respective channels.

About General Motors
General Motors Co. (NYSE:GM, TSX: GMM) and its partners produce vehicles in 30 countries, and the company has leadership positions in the world’s largest and fastest-growing automotive markets. GM, its subsidiaries and joint venture entities sell vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Opel, Vauxhall and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety, security and information services, can be found at http://www.gm.com.


About Lyft
Lyft was founded in June 2012 by Logan Green and John Zimmer to reconnect people and communities through better transportation. Lyft is the fastest growing rideshare company in the U.S and is available in more than 190 cities. Lyft is preferred by drivers and passengers for its safe and friendly experience, and its commitment to driving positive change for the future of our cities.



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