It was in the year 2016 when GM invested $500 million in the app-based ride-hailing enterprise Lyft which has the second largest taxi fleet in the world after Uber. Many people tried to find out the reason behind GM choosing to invest in Lyft and not in Uber. The one thing about which everybody was sure that being the second largest player in the industry the terms of this investment would have been favorable for GM and Lyft would serve the purpose for which this investment was being made.
GM invested $500 million in Lyft in early 2016 and owns about 9% of the company. Dan Ammann, the carmaker's president, sits on Lyft's board. When they formed the partnership a key goal was to create an autonomous, on-demand vehicle network.
GM invested $500 million in Lyft in January 2016. With a 180-day lock-up period during which GM cannot sell and the expected April IPO of larger rival Uber Technologies Inc further stoking interest in the ride-hailing sector, the value could subsequently rise.
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