Posted on August 17, 2016
The Secretive World of the Lyft-GM Deal
Toronto drivers who know what Lyft is and follow it, probably know that the upstart automotive fleet is now neck-and-neck with Uber in the market to replace some urban bus lines. Call it a Google Car – Tesla Car thing. Whether innocent competition or not, the fact is that Lyft is calling the shots on a proposed deal with GM. Here’s what we could find out!
Sources at TechCrunch confirm the automobile maker’s enthusiasm about buying Lyft. GM made the first move in declaring an interest in buying Lyft, even declaring what they’d be willing to pay for it. But Lyft didn’t bite. Instead, they looked for new funding models to raise money themselves. Interesting…
While Lyft didn’t make any comment, another source said the on-demand service provider just said No to GM. GM had no comment on the matter. The proposed offer from GM was complex, extending beyond an interest in the car sharing market or partnering with a progressive company, but its balloon didn’t fly although both parties have indicated they are interested in their mutual partnership in the future. This is indeed a glimpse into some deal-making at its best.
According to TechCrunch, other carmakers like Daimler have opted to own their own car sharing subsidiaries, with the German automaker operating Car2Go, and commanding a controlling stake in the merged Hailo/MyTaxi European on-demand ride provider.Most recently, this partnership has resulted in the expansion of their Express Drive program, which offers potential Lyft drivers without their own qualifying cars the ability to rent vehicles to use for Lyft with fees based on usage.
So we know that talk will continue between GM and Lyft. A fruitful meeting is bound to happen before we know it. Stay tuned.