General Motors Invests $500 Million In Lyft

General Motors Company GM and Lyft are partnering to develop a national network of self-driving cars. Lift on Monday announced that it will be closing $1 billion with with a $500 million investment from GM.

As part of the deal, GM will also secure a seat on Lyft's board.

The car manufacturer is betting its investment in Lyft will underscore the pressures that traditional automakers are currently facing. Automakers have been faced with having to keep up with the new trends that are disrupting the automotive industry in the coming decade.

Kingdom Holding Company has invested $100 million and and its affiliates invested approximately $250 million.

Related Link: Trouble Ahead For GM?

Additionally, GM and Lyft will be developing an Autonomous On-Demand Network. With GM at the forefront of autonomous vehicle development and Lyft a leading automated ride software innovator, both companies will be integrating a network of on-demand autonomous vehicles.

Lyft is currently the fastest-growing rideshare platform in the United States. The company has completed 7 million rides per month in more than 190 cities.

John Zimmer, Lyft's president and co-founder, stated, "This raise and collaboration with GM are exciting milestones in our three-year history that continue Lyft's leadership in redefining traditional car ownership. 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."

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