General Motors is trying its change the sharing economy in the autonomous car market. The company announced that they invested $ 500 million and collaborated with Lyft to develop a service that focused on autonomous vehicles. Last days, the company Lyft getting stronger against its biggest enemy Uber, now $ 500 million of the investment came from the GM, and there was $ 100 million from Prince Alwaleed bin Talal’s Kingdom Holding as expected.
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Other supporters of the record round are Janus Capital Management, Rakuten, Didi Kuaidi and Alibaba. Description of the $500 million investment is that GM and Lyft will work on autonomous vehicles service together. The partnership combines Lyft’s driving mapping, routing and payment technologies with GM’s autonomous vehicle technology. It means that both companies will try to develop calling a driverless car service within the Lyft first. In the long term, Lyft will become a fully driverless car service with all other cars in the market.
The agreement shows that GM is strong-minded to take place in the sharing economy side. The automaker is convinced by choosing this way to offer a better experience, and it is also a safer way to enter a new market with their autonomous vehicles. The cars will be designed for different purposes. Thus, the passengers enjoy their trip so much. Lyft and GM are also working on new rental car centers to offer short-term car rental in the US. It means that Lyft drivers will lose their jobs in long terms. As a note, the active driving number of Lyft is monthly average of 7 million in 190 cities in the US.