General Motors invests $500 Million in Lyft
Lyft announced that G.M has invested 500$ million in the company, the ride-hailing service company received help from G.M to reach their goal of one day reducing the number of cars on the road. Apart from the financial help, G.M will also support Lyft on developing an on demand network for self-driving cars. Nowadays, many companies like Google, Tesla, and Uber are also doing research on automated cars.
Lyft was founded in 2012 and faces competition with other ride-hailing service providers like Uber though now with the help from G.M it has an upper hand. G.M will work with Lyft to set up short-term car rental hubs across the United States in an effort to allow people to drive for Lyft to earn money by using the cars in the rental hubs. The two companies envision self-driving car rentals to be more commonplace than owning a car.
Rakuten, Alibaba, and Didi Kuaidi have also invested in Lyft. The company has partnered with Didi Kuaidi, the Chinese ride-hailing company, Ola, and GrabTaxi in an effort to compete against its biggest competitor Uber.
Currently Uber is valued at $62.5 billion, Lyft is valued at $4.5 billion, and operates in many cities around the world. Though there is opposition against Uber and Lyft alike from traditional taxi services, it doesn’t seem to faze the growth of either companies or their aim to create a network of self-driving cars. Though technically self-driving cars won’t be completely autonomous, there are laws for example in California where there has to be a driver in the driver seat of the self-driving car just for safety precautions.