GM & Lyft team up to take on Uber with autonomous vehicles

GM is one of many companies, including Tesla, Volvo, BMW, and Mercedes-Benz, which has been working on self-driving vehicles for quite some time now. These functions, GM believes, will “create a richer ride-sharing experience for both driver and passenger”. At this stage, no date has been set as to when we could see the program in operation.

In the same interview, Lyft President John Zimmer said that the “culture and vision are very alike” between the two companies.

“We see the future of personal mobility as connected, seamless and autonomous”, Ammann said in a statement.

The substantial investment announced on Monday will help San Francisco-based Lyft grow its transportation service and is part of a larger $1 billion Series F round it closed today.

The partnership will pair GM’s decades-long R&D devoted to autonomous vehicle technology with Lyft’s software for ride matching, navigation and payment. “From a GM perspective, we view this as much more of an opportunity than a threat”, said GM President Daniel Ammann, who will join the Lyft board of directors.

In a keynote speech to be delivered in Las Vegas on Wednesday GM CEO Mary Barra is expected to disclose more details about GM’s progress in developing autonomous technologies.

Through the partnership, Lyft drivers and customers will have access to GM’s OnStar services.

Together, GM and Lyft plan to open a network of USA hubs where Lyft drivers can rent GM vehicles.

Lyft’s latest funding round values the company at $4.5 billion.

Besides an “autonomous on-demand network” (their words), GM will let Lyft integrate company assets into their services, according to the GM blog. The company expects revenue of around $1 billion this year.

Uber and Lyft, meanwhile, have shaken up the taxi business by making hailing and paying for a ride as easy as just a few taps on a smartphone app.

But Uber’s CEO has said it could take up to 15 years before self-driving cars are effectively deployed in the US.