GM sides with Lyft in ridesharing war with $500M investment, self-driving car partnership

Posted:
in Future Apple Hardware edited January 2016
Stalwart American automaker General Motors on Monday announced an expansive tie-up with ridesharing service Lyft that includes a $500 million cash infusion and technical support for mobile connectivity and autonomous vehicle technology.




Described as a "strategic alliance," the partnership will bear immediate fruit for both companies in the form of a new short-term rental arrangement. Lyft drivers will have access to rental hubs around the U.S., where they can pick up GM vehicles for use during peak hours.

The two companies have also agreed to cooperate on the formation of an "autonomous on-demand network," which would see self-driving cars from GM used to provide rides for Lyft customers.

This represents a marked difference in strategy for Lyft compared to its competition. Uber has invested heavily in the creation of its own autonomous vehicle technology, rather than partnering with an existing automaker.

"We see the future of personal mobility as connected, seamless and autonomous," GM President Dan Ammann said in a release. "With GM and Lyft working together, we believe we can successfully implement this vision more rapidly."

The autonomous vehicle market is set to explode over the next few years, as the world's major carmakers jostle for position with Silicon Valley companies. Apple itself is widely rumored to be among those competitors, with a self-driving "Apple Car."

GM's $500 million investment will also net the company a seat on Lyft's board of directors.

Comments

  • Reply 1 of 9
    SpamSandwichSpamSandwich Posts: 30,837member
    Autonomy won't be happening in California. They just recently passed a law which requires a driver in all autonomous vehicles. No doubt some protectionist BS for the "bus driver union" or "taxi cab driver union"...
  • Reply 2 of 9
    lostkiwilostkiwi Posts: 587member
    Wow this is quite big news. 
    I wonder if Uber will do an about face and partner up with a competing car company?
  • Reply 3 of 9
    GM has the most recalls of any car company. In 2014 it was 5 times as many as the next highest company. Johnny Cab might want to look elsewhere.
  • Reply 4 of 9
    schlackschlack Posts: 686member
    smart move by GM...staying in the game...for (relatively) cheap.
  • Reply 5 of 9
    radarthekatradarthekat Posts: 2,995moderator
    Question that immediately popped into my head:  if two significant ride-sharing services exist today that didn't exist a few short years ago, how difficult really was the creation of ride sharing (routing and payment, basically) software platforms.  I could see GM not being capable of just duplicating this, but an Apple or Tesla, once they are shipping self-driving cars, seems like either could float their own ride-sharing service pretty easily.  
  • Reply 6 of 9
    I saw an autonomous Tesla on the roads this last weekend - still had a driver, but he was leaning back and folding his arms.
    It had a big red sign in the rear window announcing the autonomous nature of the vehicle.
    I didn't know that Tesla was trying out driverless cars... looks like a bunch of companies are pushing for this to be the future.
  • Reply 7 of 9
    irelandireland Posts: 17,547member
    lostkiwi said:
    Wow this is quite big news. 
    I wonder if Uber will do an about face and partner up with a competing car company?
    I think the likelihood of Uber competing on a global level building their own cars is truly slim.
  • Reply 8 of 9
    nolamacguynolamacguy Posts: 4,758member
    ireland said:
    lostkiwi said:
    Wow this is quite big news. 
    I wonder if Uber will do an about face and partner up with a competing car company?
    I think the likelihood of Uber competing on a global level building their own cars is truly slim.
    why? they design the software & needed systems, then hire a contract manufacturer for production.
  • Reply 9 of 9
    SpamSandwichSpamSandwich Posts: 30,837member
    ireland said:
    I think the likelihood of Uber competing on a global level building their own cars is truly slim.
    why? they design the software & needed systems, then hire a contract manufacturer for production.
    LOL! Yeah...it's so easy, anyone can do it!
Sign In or Register to comment.