General Motors made an investment worth US$ 500 million for Lyft

General Motors made an investment worth US$ 500 million for Lyft

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General Motors have claimed to invest around US$ 500 million for ride hailing company Lyft – that has stated to have had raised US$ 1 billion in a round funding worth US$ 5.5 billion.

GM is also to avail a seat on Lyft’s board during this deal.

The investment initiative taken by General Motors is a clear cut sign of how much under pressure auto manufacturer is on growing market’s latest trends – General Motors finds it difficult to cope with a rapid pace of growing availability of ride-hailing apps and the race toward self-driving cars.

“We think the owner-driver model, the traditional model, will remain a very, very significant part of the transportation model. But we see ride-sharing in particular growing very rapidly.” – General Motors’ president Dan Amman

The money invested is likely to go towards new products to create a more awareness among public towards the brand.

Why Lyft? Certainly General Motors isn’t a fool here; Lyft has been expanding without a halt in this era. Well, credit goes to its ability in expenditure towards its new products – a carpooling service that could reduce costs for auto lovers no doubt. General Motors’ investment in Lyft also is part of its plan to start making self-driving cars, a technology that’s also become a big focus for Silicon Valley tech giant’s like Google.

“Our objective is to reshape the future of mobility. We expect our business and our industry to change more in the next five years than it has in the last 50.” – General Motors’ president Dan Amman

Moreover, apart from this deal, General Motors and Lyft will also launch a rental program to allow Lyft drivers to rent General Motor vehicles – a test drive some may call it as.

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I cover technology, utilities and biotechnology for Markets Morning, and I help out occasionally with other industry sectors. I've written about investment and personal finance topics for more than 20 years from a lowly copywriter to editor-in-chief, so I've done a little bit of everything. For what it's worth, I have a BA from Duke University and an MBA from Rollins College. I'm married with one daughter, and that's worth more than everything else put together.

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