Connect with us

Hi, what are you looking for?

CleanTechnica

Cars

GM Recently Offered To Acquire Lyft, But Was Declined

In an interesting and somewhat surprising bit of news, General Motors recently approached the ridesharing firm Lyft about acquiring it … but was declined.

LyftGeneral Motors, of course, already owns a 9% stake in Lyft, following an investment of $500 million last January. While it’s interesting enough that General Motors is so confident in Lyft’s future that it would be willing to put down the cash for a full acquisition, Lyft’s decision to turn down the offer is the surprising bit.

What’s the reasoning? What else might Lyft execs have in mind for the future of the company?

A couple of notes here: Lyft is privately held, and was valued at around $5.5 billion at the time of GM’s 9%-stake investment last year; the investment by GM was accompanied by GM President Dan Ammann joining Lyft’s board of directors, as a condition of the investment; and the recent offer of acquisition was accompanied by an actual financial figure, but this figure hasn’t been publicly revealed.

GM-Volt.com provides more details: “The Detroit Free Press is reporting that the automaker approached Lyft in ‘recent weeks’ about a potential acquisition that was declined. Citing a post from technology website The Information, the report said a ‘person briefed on the situation,’ stated that after seeking other potential strategic buyers, Lyft decided to raise funding from venture capital firms and other investors.”

Continuing: “The two companies are said to be ‘happy with the alliance and the progress made to date,’ GM told Fortune, and the partnership has achieved relative success in their initial projects. With the Express Drive program, Lyft drivers can lease select GM models in Chicago, Baltimore, Boston and Washington, DC. The program will soon expand to San Francisco, Los Angeles and Denver.”

I wonder if Lyft’s decision to decline the GM offer will lead to GM looking elsewhere for further inroads into the fast-growing ridesharing market. Alternatively, I wonder if it will come back in the future with another offer and nab the ridesharing startup.

Related:

Lyft To Use Autonomous Chevy Bolts

Michigan’s Treasury Bought $48 Million Of Tesla Stock In Q2, Has 2x More Invested In TSLA Than Ford + GM

 
 
 
Appreciate CleanTechnica’s originality and cleantech news coverage? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
 

Don't want to miss a cleantech story? Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!
 

Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Advertisement
 
Written By

James Ayre's background is predominantly in geopolitics and history, but he has an obsessive interest in pretty much everything. After an early life spent in the Imperial Free City of Dortmund, James followed the river Ruhr to Cofbuokheim, where he attended the University of Astnide. And where he also briefly considered entering the coal mining business. He currently writes for a living, on a broad variety of subjects, ranging from science, to politics, to military history, to renewable energy.

Comments

You May Also Like

Cars

General Motors says it plans to avoid opportunistic pricing for its upcoming electric cars so they are affordable by more drivers.

Cars

General Motors is set to introduce new electric cars in China and may bring a Chinese EV to the US shortly.

Batteries

Rare earth minerals and other battery materials are crucial for global politics. As this article explains, China’s power over the worlds clean technology advancements...

Clean Transport

Are the wrong Americans buying electric cars? Well, yes. But also no. Between electric car superusers and EV hoarders, some households that have more...

Copyright © 2022 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.