US based automaker General Motors has announced its plans to invest $500m in car hailing service provider Lyft to create an integrated network of on-demand autonomous vehicles in the US.
As per the agreement, the companies will develop a network of on-demand autonomous vehicles that will use the self driving technology created by GM and Lyft’s broad choice of ride-sharing services.
According to GM, the company is investing in Lyft to help the taxi hailing service provider to grow its ridesharing service, with the investment also securing GM a seat on the company’s board of directors.
GM is also expected to become a preferred provider of short-term use vehicles to Lyft drivers through rental hubs in various cities in the country, with Lyft customers gaining access to GM’s portfolio of cars and OnStar services.
The announcement has come at a time when automakers are trying to figure out ways to address the competition they would face from Apple, Alphabet and Uber in self driving car technology.
Lyft president John Zimmer said: "Working with GM, Lyft will continue to unlock new transportation experiences that bring positive change to our daily lives.
"Together we will build a better future by redefining traditional car ownership."
Recently, Toyota and Ford also joined forces by announcing that that they would adopt the same software to link smartphone apps to vehicle dashboard screens.