Lyft gets $1 billion in funding – including $500 million from GM

For GM, the investment could provide some protection amid signs that vehicle ownership could decline with the growing use of ride-hailing services and, eventually, the arrival of self-driving cars.

Lyft Co-Founder and President John Zimmer and GM President Dan Ammann said in interviews with the Associated Press that the two companies started serious talks about three months ago.

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

Under the terms of the deal, GM will invest $500 million into Lyft to support the company’s continued growth. With the latest investments, Lyft is now valued at $5.5 billion.

GM will invest $500 million in Lyft as part of a new $1 billion round of funding – valuing Lyft at $5.5 billion. He added that with Lyft and GM working hand in hand, we believe we will have success in implementing our vision quicker. How exactly this network of autonomous vehicles will work and when it will arrive are still unknown.

The GM-Lyft deal comes as automakers and Silicon Valley companies are exploring new alliances and new technologies that will reshape the global automotive industry. Those vehicles will tap into GM’s OnStar service, while GM and Lyft promised “personalized mobility services and experiences”, but did not elaborate. General Motors will not only support Lyft with a huge cash influx, but it will also be helping Lyft develop a network of autonomous self-driving cars.

Uber has been developing its own autonomous vehicle capabilities.

Lyft is hitching a ride with GM on the road to robo-cars.

In the more immediate future the collaboration will look at potential new services and systems refinements that the two organisations can bring to their existing customers. Meanwhile, other Lyft investment partners also made capital contributions for this investment round, including Alibaba, Rakuten, Didi Kuaidi and Janus Capital Management. “If, you know, you’re heading with your family to Tahoe, you’ll get to order a specific kind of autonomous experience where you get to enjoy movies on your trip or after work you can get a sports Lyft and watch a Clippers game with friends”.