GM partners With Lyft to construct A network Of Self-using cars

Lyft, the experience-hailing startup, introduced nowadays that it’s partnering with common Motors to create a network of on-demand self-driving vehicles. The announcement comes as Lyft closes a $1 billion funding spherical, half of which came from GM. Lyft is now valued at $5.5 billion.

For the automobile manufacturer, the move demonstrates a shift faraway from focusing completely on promoting vehicles, and extra toward offering services and products for people who simply want to get around but don’t necessarily need or need to personal a vehicle. “the automobile industry is going to vary more within the subsequent five years than in the past 50,” GM president Dan Ammann advised Re/code, adding that GM plans to proceed to put money into totally different industry fashions going forward.

This isn’t GM’s first foray into self reliant autos; in October the automaker pledged to get self-riding Chevy Volts on roads by using 2017. but this new partnership with Lyft may provide GM access to the trip-share company’s user base, which is reportedly growing unexpectedly. The Lyft app allows 7 million rides each month; Uber serves 2 million rides per day.

“GM is the most important automaker within the U.S., so it made numerous experience,” stated Lyft president and cofounder John Zimmer. “We each see the way forward for transportation through a network versus ownership and this is a step in that direction.”

Uber can also be gaining knowledge of self sustaining riding options and will companion with Tesla down the street. Ford can also be rumored to be joining forces with Google to create autonomous vehicles that run on the quest massive’s technology, and may formally announce the partnership at CES this week.

Neither GM nor Lyft gave a sign of when the network of on-demand self-driving cars would be to be had. in the period in-between, GM says Lyft drivers will be able to rent GM cars for short-time period use through condominium hubs across the U.S., “unlocking new ways for folk to earn money with no need to own a automobile.”