General Motors is teaming up with ride hailing service provider Lyft to create an integrated network of on-demand autonomous vehicles in the US.
Under the agreement, General Motors (GM) is planning to invest $500m in Lyft to help the company continue its growth in ridesharing service.
The companies are planning to develop a network of on-demand autonomous vehicles by making use of GM's knowledge of autonomous technology and Lyft's capabilities in providing a broad choice of ride-sharing services.
The partnership is expected to help create a network of cars that would operate themselves and be available on demand.
The alliance will also include Rental Hub, where GM will become the provider of short-term use vehicles to Lyft drivers through rental hubs in various locations across the US.
Lyft drivers and customers will also get access to GM several cars and OnStar services.
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."
The partnership has come at a time when automakers are teaming up with each other and other tech giants in autonomous vehicle segment.
Recently, Toyota and Ford said that they would adopt the same software to link smartphone apps to vehicle dashboard screens, and Ford also teamed up with Google to manufacture self driving cars.
Image: General Motors President Dan Ammann (center) with Lyft Inc. co-founders John Zimmer (right) and Logan Green (left. Photo: courtesy of General Motors Company.
