Uber Rival Lyft has closed $1 billion with a $500 million investment from General Motors. GM will also have a seat on Lyft’s board. Kingdom Holding Company invested $100 million making the total investment of Kingdom Holding and its affiliates approximately $250 million.
Several new and existing Lyft investors were also in the round including Janus Capital Management, Rakuten, Didi Kuaidi and Alibaba. Following this latest round, Lyft is valued at $5.5 billion, post money.
In addition to GM’s investment in Lyft, the companies are creating an Autonomous On-Demand Network. GM is at the forefront of autonomous vehicle development and Lyft is the leading innovator of software to automate ride matching, routing and payments.
Together, the companies will work to help make this integrated network of on-demand autonomous vehicles part of people’s daily lives.
Lyft and GM will also work together on a series of national rental hubs where Lyft drivers can rent short-term vehicles, unlocking new ways for people to earn money without having to own a car.
Lyft is the fast-growing rideshare platform in the United States, completing 7 million rides per month in more than 190 cities.
In October, Lyft reached an annual gross run rate of $1 billion and surpassed more than 40 percent market share in San Francisco and Austin. Since 2013, Lyft has raised more than $2 billion.
John Zimmer, Lyft’s president and co-founder, said: “This raise and collaboration with GM are exciting milestones in our three-year history that continue Lyft’s leadership in redefining traditional car ownership. We are thrilled to take this momentum into the new year and continue improving life in our cities through more affordable, accessible and enjoyable transportation.”
GM president Dan Ammann said: “We see the future of personal mobility as connected, seamless and autonomous. With GM and Lyft working together, we believe we can successfully implement this vision more rapidly.”
Prince Alwaleed said: “Lyft is a solid partner for us in line with our investment strategy of creating value for our shareholders. Lyft has built a strong business with fast growth and we believe in their long term success.”