GM invests $500 million in Uber rival Lyft

The “long-term strategic alliance” will include the development of autonomous vehicles.

Lyft’s shiny new $5.5 billion valuation comes with further investments from the likes of Janus Capital Management, Japanese e-commerce company Rakuten Inc., and Saudi Arabia’s Kingdom Holding Co.

GM will also become a preferred partner for Lyft drivers.

“We strongly believe that autonomous vehicle go-to-market strategy is through a network, not through individual auto ownership,”he said“.

“We had a really common view of the future”, said GM President Dan Ammann in an interview with Reuters. While that seems to be more of a partnership about spreading Lyft’s services – which have only been available in the USA – world wide, the GM partnership seems to be a long-term technology play. With the latest investments, Lyft is now valued at $5.5 billion. Ammann will join Lyft’s board as part of the deal.

In the future, the two companies plan to build a self-driving vehicle fleet that could be hailed using Lyft’s app, according to statements.

General Motors has invested $500m in ride-sharing technology group Lyft as part of a joint venture to develop driverless cars.

Ride sharing firm Lyft announced that General Motors Company (NYSE:GM) will invest $500 million in company’s ride-sharing services.

Lyft’s partnership with GM may be tough news for Uber.

Elsewhere, the companies will provide each others’ customers with “personalized mobility services and experiences”.

The deal could be a potential win-win for Lyft, both now and in the future.

Lyft vies with industry leader Uber in ride-hailing services which have undercut taxi services in many countries but also allowed many more people access to on-demand transportation without owning their own vehicles.

Lyft has raised $2.1 billion since launching in 2012. But Lyft, along with Google, Uber, Tesla and other companies, is interested in autonomous vehicles that could navigate roads without someone behind the wheel.