Lyft drives away with $500M from General Motors, plus $500M from others
Ride-sharing business Lyft has landed a $ 1 billion investment round – half of which is coming from car manufacturer General Motors.
The Series F round will apparently the company in a $ 5 billion+ valuation bracket.
The round has been talked about for some weeks after an official regulatory filing by the company, but this did not include the names of investors.
Others coming in on the latest round are Kingdom Holding Company (run by Saudi Prince Al-Waleed), Janus Capital Management, alongside existing backers, Chinese ecommerce service Alibaba, Didi and Japanese giant Rakuten.
But it will be GM’s involvement that will make the headlines, not least because the car giant says it will work alongside Lyft to create and then introduce self-driving cars into the network.
The collaboration may make a lot of sense in the years to come as car manufacturers grapple with an apparent levelling off in demand for car ownership but wish to maintain their position as providers of vehicles into the new economy of sharing and transportation.
It is worth remember that this is not the first time that GM has got involved with a car transport provider.
Those with memories pre-internet world with recall how GM was a vehicle provider of choice to Avis for many years and took a stake in the business in 1989.
GM eventually sold its stake for $ 800 million in 1996.
Still, the company has pledged to enter the driver-less/self-drive vehicle sector in recent months – the latest in a line of statements from the traditional car manufacturers, all of which are eager to shift the apparent lead in innovation away from brands such as Tesla.
The funding round for Lyft (GM also gets a board seat) comes as it attempts to ramp up its service against arch rival Uber.
It was a founding member alongside Didi to create Rides Everywhere, a movement recently joined by Ola in India and GrabTaxi in South East Asia.
The companies collaborate on technology, market knowledge and resources so that travellers can use each of the services when overseas by having the same interface and experience they would normally get in their home country’s application.http://www.hotelglobe.net/lyft-drives-away-with-500m-from-general-motors-plus-500m-from-others/Best Hotels