Economy, Auto

Lyft Declines GM Buyout Offer

Lyft Declines GM Buyout Offer  Lyft Declines GM Buyout Offer

Although Lyft is looking for money to compete with Uber, the ridesharing company turned down an offer to be purchased by General Motors.

According to Tech Insider, citing a report by The Information, General Motors and Lyft are already working together.

Earlier this year, GM bought 9% of Lyft for $500 million. The two companies are currently testing self-driving technology and are using a fleet of specially equipped Chevy Bolt EVs in San Francisco, California, and Scottsdale, Arizona, to further develop the technology.

The plan is to introduce a fleet of self-driving Lyft rideshare cars that don’t need drivers.

According to The Information, General Motors initially approached Lyft about buying the company. Lyft checked with other potential buyers but then turned GM down.

Apparently, Lyft now plans to seek an additional funding round to further its fight with Uber for the US market share.

Uber recently merged with rideshare company Didi in China, which enabled Uber to focus more on market dominance in the US.

Although Lyft’s market share has been growing in larger cities, Uber still rules the industry.

Strategically, General Motors appears most interested in building a self-driving vehicle rideshare network with Lyft. Like Uber, Lyft has stated that its plan for the future includes fleets of driverless cars, at least within cities.

Now it looks as if GM and Lyft will continue their partnership, with General Motors possibly increasing its investment in the company, despite Lyft’s sale refusal.