Lyft recently turned down an acquisition offer from GM, opting instead to raise another round of financing and stay independent, according to The Information.
GM made a $500 million investment in Lyft earlier this year to help prepare it for impending trends of autonomous cars and reduced personal car ownership.
Despite a record-setting month, Lyft took a blow recently when Uber and Didi made a deal to align their interests in China. Didi had previously invested in Lyft as part of a partnership that helped create a so-called “anti-Uber alliance.”
So why did Lyft turn GM down? The Information sums it up like this:
Lyft’s backers say the U.S. market is big enough for multiple players and Uber won’t run away with all of it. They say offering rides on demand is a commodity because it isn’t hard for drivers and users to switch from one service to another and that Lyft in many markets has enough participating drivers to be able to pick up most riders within a few minutes and charge a similar rate as Uber.