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Lyft gets $1 billion in funding — including $500 million from GM

January 04, 2016

Human cloud firm Lyft received $1 billion — including $500 million from automaker General Motors — in a new investment round announced Monday.

Lyft ranked No. 6 on Staffing Industry Analysts’ list of largest human cloud firms. Monday’s investment round will bring total funds raised by the ride-sharing provider to more than $2 billion since 2013. It is now valued at $5.5 billion, according to the company.

The move is an infusion for Lyft as it competes with larger rival Uber.

As part of the deal, Lyft and GM will work on an integrated system of on-demand autonomous vehicles. The companies will also work together on a series of national rental hubs in the US where Lyft drivers can rent short-term vehicles to earn money as Lyft drivers.

“We see the future of personal mobility as connected, seamless and autonomous,” GM President Dan Ammann said. “With GM and Lyft working together, we believe we can successfully implement this vision more rapidly.”

The investment comes as Sidecar, a rival to Lyft and Uber, announced last week that it was shutting down its ride-sharing and delivery services. Uber and Lyft also still face court battles over the use of independent contractors.

In addition to GM, Kingdom Holding Company is investing $100 million in the round. Kingdom Holding Company is a holding company listed on the Saudi Stock Exchange, the Tadawul.

“This raise and collaboration with GM are exciting milestones in our three-year history that continue Lyft's leadership in redefining traditional car ownership,” Co-Founder and President John Zimmer said. “We are thrilled to take this momentum into the new year and continue improving life in our cities through more affordable, accessible and enjoyable transportation.”

Other investors include Didi Kuaidi, Janus Capital Mangement, Rakuten and Alibaba. Didi Kuaidi is the one of the largest human cloud firms in the world, according to Staffing Industry Analysts. Didi Kuaidi invested $100 million in Lyft in an earlier financing round.

In October, Lyft reached an annual gross run rate of $1 billion, according to the company.