GM and Lyft team up for self-driving car alliance
Investing USD 500 million, GM and startup Lyft enter co-operation to develop autonomous taxis.
America's largest automaker General Motors and ride-sharing startup Lyft will begin a long-term business partnership dedicated to self-driving cabs, the two companies announced in a statement.
As part of the deal, General Motors will invest USD 500 million in the young San Francisco mobility provider. According to their joint statement, the carmaker and the Uber rival are teaming up to build an integrated on-demand network of autonomous vehicles.
The automotive company and Lyft told Reuters that their alliance roots in their collective perception that automated cars would be brought to the masses first through ride-sharing services prior to individual drivers buying them.
"We think our business and personal mobility will change more in the next five years than the last 50," GM President Dan Ammann - who will also join Lyft's board as part of the agreement - stated in an interview with Reuters.
The planned liaison is a striking example of how traditional car manufacturers and up-and-coming tech firms join forces to master the future challenges in the auto market environment.