'Bolt designed with Lyft in mind'

http://www.wsj.com/articles/gm-invests-500-million-in-lyft-plans-system-for-self-driving-cars-1451914204
GM Invests $500 Million in Lyft, Plans System for Self-Driving Cars
Jan. 4, 2016  Douglas MacMillan  John D. Stoll

[image  / Zuma Press
http://si.wsj.net/public/resources/images/BN-LY132_0104GM_P_20160104045037.jpg
A phone showing the ride-hailing app Lyft, known for its signature pink
mustache on drivers’ vehicles, in Miami in June 2014. GM is planning to work
with Lyft to develop a self-driving-car system.
]

Auto maker will work to develop system that could have autonomous cars
appear at customers’ doors

General Motors Co. is betting $500 million that ride-hailing services such
as Lyft Inc. will be crucial to the future of self-driving vehicles and the
transformation of an auto industry dominated by car ownership.

The auto maker has invested that sum in Lyft as part of a new $1 billion
round of funding, the companies said Monday. Saudi Arabia’s Kingdom Holding
Co., Janus Capital Management and Japanese e-commerce firm Rakuten Inc. also
contributed to the financing, which values Lyft at $5.5 billion.

The deal marks the first time a large car maker has joined with a
ride-hailing company, whose services threaten auto sales as more urban
commuters hail rides from Lyft and Uber Technologies Inc. instead of owning
a car. Ford Motor Co. Executive Chairman Bill Ford invested in an earlier
funding round for Lyft, but that was through his venture firm,
Michigan-based Fontinalis Partners LLC, and not associated with the auto
maker.

At the same time, auto makers are moving quickly to smarten up their
vehicles and develop their own autonomous capabilities as technology
companies including Uber, Google parent Alphabet Inc. and Apple Inc. take
aim at the industry. Ford and GM are among a slate of auto makers testing a
range of future mobility experiments, either alone or in partnership with
tech firms such as Alphabet’s Google.


GM said it would work with Lyft to develop a self-driving-car system that
could eventually let customers order a car on their smartphones and have the
vehicle appear at their doors with no driver required.

“We believe that the first large-scale deployment of autonomous vehicles
will be in this kind of on-demand, ride-share platform,” GM President Dan
Ammann said in an interview. GM was also an initial mover on electric cars,
and will unveil the production version of its Chevrolet Bolt in Las Vegas
this week, a car aimed at taking on Tesla Motors Inc. ’s long-range electric
vehicles.


Mr. Ammann said teams from Lyft and GM would begin working together soon but
declined to give more specifics on what they would develop or how soon it
could become available.

“A lot of the work will be centered around integrating capabilities that
already exist,” Mr. Ammann said.

GM has already begun developing its own autonomous-car technology and has
said it plans to have a fleet of self-driving Chevrolet Volt plug-in hybrid
sedans operational in its Detroit technical center this year.

The auto maker’s investment provides Lyft with more capital to compete with
its main rival Uber and gives it a powerful new strategic partner.

In the coming months, GM and Lyft plan to build a series of rental-car
centers where Lyft drivers can rent vehicles at discounted rates. Last year,
Lyft formed a partnership with several Asian ride-hailing companies to allow
users of each company’s app to hail rides using the other apps while they
are traveling in each country.

Lyft had previously raised close to $1 billion from investors including
Chinese ride-sharing company Didi Kuaidi Joint Co. and hedge-fund titan Carl
Icahn. Other backers include Chinese technology majors Alibaba Group Holding
Ltd. and Tencent Holdings Ltd., as well as U.S. investment firms Founders
Fund, Andreessen Horowitz and Coatue Management LLC.

The company has more than doubled its valuation since May 2015, when it
raised funds from Mr. Icahn in a round valuing Lyft at $2.5 billion.

Still, Lyft has raised a fraction of the funding that Uber has. Lyft’s
larger competitor has raised a total of more than $12 billion in debt and
equity. Uber, which is also developing its own autonomous-vehicle
technology, recently raised $2.1 billion—roughly matching Lyft’s total—in a
round valuing the company at $64.6 billion That valuation is higher than
GM’s market value of about $53 billion.
[© wsj.com]



http://www.freep.com/story/money/cars/general-motors/2016/01/05/chevys-bolt-ev-designed-lyft-mind/78333474/
Chevy's Bolt EV designed with Lyft in mind
January 5, 2016 ... The new four-door EV, which goes into production at the
end of 2016, has been designed specifically with ride-sharing in mind,
executives say ...




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