GM Makes $500 Million Investment On Lyft
It’s turning out to be a good year for Lyft. The ride sharing company has announced that it managed to secure as much as $1 billion in capital, made possible by a recent $500 million investment by General Motors (GM).Advertisement
GM was not the only company that made a sizable investment with Lyft this early in the year. In fact, the ride sharing company managed to secure $100 million in capital from the Kingdom Holding Company. Meanwhile, other Lyft investment partners also made capital contributions for this investment round, including Alibaba, Rakuten, Didi Kuaidi and Janus Capital Management. And with the latest influx of capital, Lyft is now valued to as much as $5.5 billion.
In addition, as part of their new partnership, Lyft and GM will be creating an Autonomous On-Demand Network together. GM is expected to bring forth its expertise when it comes to developing autonomous vehicles while Lyft will be working on software that would automate routing, payments as well as ride matching. At the same time, GM and Lyft will also work together to create various national rental hubs where drivers for Lyft will be able to make short-term rents on vehicles – a great way to help people make money without having to own a car.
Lyft says it has the fastest-growing rideshare platform in the U.S. Each month, the company completes as much as 7 million rides across over 190 cities. It also enjoys more than 40-percent market share in cities like San Francisco and Austin. Lyft is a relatively young company, having only begun operations last June 2012.