General Motors and Lyft Inc. have entered into a long-term strategic alliance to establish an integrated network of on-demand autonomous vehicles in the United States. As part of the agreement, GM will make a $500-million investment in Lyft and will hold a seat on the ridesharing service company’s board of directors.
The alliance between GM and Lyft has four key elements: Autonomous On-Demand Network; Rental Hub; Connectivity; and Joint Mobility Offerings. Under the agreement, GM and Lyft will jointly develop a network of on-demand autonomous vehicles.
This project will leverage the carmaker's already deep knowledge of autonomous technology and Lyft’s capabilities in providing ride-sharing services. Likewise, with immediate effectivity, the carmaker will become a preferred provider of short-term use vehicles to Lyft drivers through a number of rental hubs spread across various cities in the US.
Moreover, the agreement gives both Lyft drivers and customers access to GM vehicles and OnStar services – thereby providing a connected ride-sharing experience for both drivers and passengers. Furthermore, GM and Lyft are to provide each other’s customers with personalized mobility services and experiences via their respective channels.
GM President Dan Ammann described the carmaker's vision of personal mobility as connected, seamless and autonomous. He remarked that this vision could be implemented more rapidly through the alliance between the carmaker and Lyft.
On the other hand, Lyft president and co-founder John Zimmer quipped that via the alliance with GM, the company aims to continue unlocking new transportation experiences and to redefine traditional car ownership.
General Motors Co. -- along with its partners, subsidiaries and joint venture entities -- is a global manufacturer and seller of vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Opel, Vauxhall and Wuling brands.
It has production facilities in around 30 countries. OnStar, a global leader in vehicle safety, security and information services, is a subsidiary of GM.
Founded by Logan Green and John Zimmer in June 2012, Lyft aims to reconnect people and communities through better transportation. It is currently the fastest growing rideshare company in the US with services available in over 190 cities.