An Inside Look at the GM Talks to Purchase Lyft
Posted on August 18, 2016
Mississauga drivers who know about Lyft and Uber may have heard that the smaller car sharing company is now highly sought after by GM. Lyft, a growing fleet-based firm that’s now rivalling Uber, and General Motors are in talks about carving out a mutually-beneficial partnership. For now, the talks aren’t getting very far, but word has it that GM is continuing the chase even after Lyft said No Deal.
As a car sharing fleet, Lyft is known for being about friendliness and community, and it allows users to tip drivers straight through its app. Although Uber is bigger and is available in more locations, Lyft has a home feel that many local people want to stay loyal to and promote through word-of-mouth. That may have been part of its appeal to GM. While both Uber and Lyft are in the market to take over existing bus lines in some urban centres, it’s Lyft that is being eyed with interest by people at GM.
TechCrunch sources have confirmed that GM is enthusiastic about buying Lyft and even named the price that they would be willing to pay for it. Lyft’s reaction was simply that they are seeking out new funding models to be able to raise cash themselves.
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.
We expect more news will come down the pipe about the continuing talks between GM and Lyft. It could be that once Lyft finds other funding models, it will be in a better position to leverage itself better regarding the proposals coming from GM.