RIDE SHARING: GM drops $500 million into Lyft partnership

Ride-sharing company's value has now grown to more than $5 billion

Transportation Management News Associated Press January 04, 2016
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General Motors Co. announced today that it is investing $500 million in the ride-sharing company Lyft Inc.

 

GM gets a seat on Lyft's board as part of the partnership, which could speed the development of on-demand, self-driving cars.

 

The two companies will soon open numerous U.S. hubs where Lyft drivers can rent GM vehicles. That could expand Lyft's business by giving people who don't own cars a way to earn money through Lyft. Over the long term, the companies plan to develop a fleet of autonomous vehicles that can be summoned with Lyft's software.

 

Lyft says the investment came as part of $1 billion round of fund-raising. Another big investor was Saudi Arabia's Kingdom Holding Co., which invested $100 million.

 

Lyft is now valued at $5.5 billion, or about 10% of GM's value.

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