General Motors has invested $500 million into Lyft as part of the ride-sharing company's latest $1 billion funding round. The recent venture from G.M. and other investors has increased Lyft's valuation to $5.5 billion.
The $500 million investment is more than just financial backing, according to the New York Times. G.M. will work with Lyft to set up short-term car rental hubs across the United States, where people can pick up a car and drive for Lyft to make money. What's more, the Detroit-based car manufacturer will partner with Lyft to develop self-driving cars, which could be called up on-demand by customers.
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