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GM Acquires Sidecar After Lyft, Strengthens Urban Mobility Team
General Motor Co. (GM) has acquired most of the assets of the San Francisco based ride hailing pioneer Sidecar Technologies Inc. The automobile maker is also hiring 20 employees on board to GM Mobility from the Sidecar team. The move is apparently aimed to fortify its efforts against the rise of rival competitor Uber Technologies Inc.
GM has declined to comment on details of the deal including the number of employees hired, assets bought and cost. However, Vijay Iyer, a GM spokesman has acknowledged continuing a process for hiring the Sidecar employees for the company's urban mobility team, reports The Detroit News.
Sidecar has reportedly raised around $39 million in price after failing to compete with much better financed rivals like Uber and Lyft. However, the acquired assets and employees of Sidecar will support the previously owned Lyft alliance and other efforts of the automaker, reports Bloomberg.
Sidecar has closed shop at the end of December after struggling for years to remain in the race against Uber and Lyft. Eventually it has shifted its business to provide delivery for other companies in 2015. Emotion choked Sidecar CEO Sunil Paul has termed the exit as the end of the road for the Sidecar ride, reports Fortune.
Uber has been brokering for rides between users of its mobile app and licensed Limousine drivers. Lyft has appeared in the scene soon and Uber has reported to launch its own ride sharing service.
Subsequently, Uber has raised more than $10 billion in financing and offered generous monetary incentives for any driver switching from competing ride sharing platform. Recently, it has been valued for $62.5 billion and thus attained the nod for World's most valuable startup.
GM is approaching towards introducing its own set transportation service, dubbed as Maven. The initiative will allow owners of GM vehicles to enjoy rides with other passengers commuting in the same direction. GM President Ammann is all set to take charge of Maven.
GM officials have been reported searching mobility space for quite some time. While remaining confident for strong growth alongside core business arena, it avails of a mobility opportunity. Through purchasing Sidecar, the US automobile giant has grabbed the opportunity to play a more pro active role.
General Motor Co. has finally acquired ride hailing giant Sidecar. Details of the deal still remain undisclosed, but price has been predicted to be not less than $39 million. With the ever ushering of Uber, Sidecar has played the role to deliver for other companies during 2015. But finally it has given up the fight and followed Lyft's trend to become a GM associate and assist its urban mobility team.