General motors invests a total of $500 million in taxi service Lyft. Lyft is a service similar to the popular taxi service Uber and is one fastest growing taxi services in the US. The company announced Monday that they exchange the capital injection from GM for 10% shares in Lyft. Along with the investment GM and Lyft also become partners for future business like the self driving car. In 2014 GM already partnered up with Google to further the development of the self driving car
The move from GM to collaborate with Lyft is bold from GM because the expansion of taxi services like Lyft could will drive car sales down. A part of the deal is that GM loan’s cars to drivers of the Lyft service. With this bold move GM transforms itself from traditional car manufacturer to a software-service company.
Lyft gathered a total of $ 1 billion the other $500 million investment is from the Saudi prins Al Waleed bin Talal, investor Janus Capital and the Japanese firm Rakuten.
Dan Ammann president of GM “In the next 5 years the automotive industry will transform more then the past 50 years.
This is a little setback for the similar taxi service Uber, they don’t have a strategic partnership yet. Uber did start a reseearch lab last year and the may have big plans which they didn’t bring forward yet.
Lyft is only active in the US, in Asia they made plans with local services, in Europe there is no active sign of Lyft.