General Motors is an American multinational corporation headquartered in Michigan. It is a company that designs, manufactures, deals in automobiles, automobile parts and finances. It is one of the world’s largest car manufacturers.

The General Motors Inc. on Monday said that it will invest $500 million in Lyft enterprise, which is a privately held transport network company which is touted to be one of the largest in its field. They are teaming up to develop driverless cars. This has been announced as a joint venture with the investment of $500 million by GM to Lyft. This does not only include monetary support, but the two companies will also work together on developing a network of self driving cars that even companies like Google, and Uber have currently invested into.

They will together set up a hub of small car rentals across the United States, where people who do not possess their individual vehicle can rent cars and serve as drivers for Lyft. This is only one among the many points of cooperation the two companies have agreed upon.

This investment would prove to be a major support for Lyft, which would benefit having a mammoth conglomerate like General Motors’ name attached with it. Along with the experience and expertise they bring to the exercise.

Lyft has already been invested into by Alibaba, and other e-commerce giants. Uber is being deemed as Lyft’s most formidable competitor, which recently teamed up with local taxis to expand its ambit of functioning.  The spokespeople from both companies affirmed that this was only the commencement of their joint ventures, and this would be an alliance for the long haul.