Tech companies are in the race to develop the first self-driving car and take advantage of the opportunity. Even the ride-hailing service companies are not much behind in trying hard to be the first one to do so. Uber and Lyft are equally competitive and making some good strategic decisions to stay ahead in the race. For that reason, Lyft had entered into a contract with TATA Motors Ltd owned Jaguar Land Rover wherein, they would be providing vehicles on rent as well as financial assistance to the company. Lyft is the second largest ride-hailing service company in the US and the biggest competitor of Uber.
Uber had already made an attempt to develop the self-driving car but failed miserably due to an accident in the Arizona during their test attempt. Also, Waymo has filed a case against Uber of stealing 14,000 database files relating to this self-driving technology and using it in their systems. According to the new agreement between Lyft and Jaguar Land Rover, Jaguar would be investing $25 million in Lyft which will help the company to value for $7.5 billion. The ride-hailing service business seems to have a bright future and looks promising to fetch huge profits in near future, due to which many big giants like TATA Motors and General Motors are investing heavily in them.
Previously last year, TATA Motors have invested $100 million in Uber India and started the operations in Indian Market. Similarly, General Motors Co. was one of the major investors in Lyft and has also invested in Uber. Various agreements and contracts have been signed in last few months between various technological companies, ride-hailing service companies, and automobile companies to take advantage of this opportunity. Lyft has got into an agreement with TATA Motors as well as Alphabet Inc. which took over Waymo. Lyft didn’t stop here by signing contracts with these companies but have gone far ahead and signed similar deals with General Motors Co. and NuTonomy.
All the above companies specialize in core areas and have very different skill sets and capabilities and Lyft want to ensure that they make the best out of this opportunity in the future. For that matter, these agreements and contracts with various giants are very important and beneficial for the company. Self-driving car technology seems to be very promising but the usage and application are very unpredictable right now. But the efforts of these technology giant companies and automobile companies in association with ride-hailing services seem to have big mystery hidden in future.