GM purchased Sidecar's technology this week. Share This Tweet This

The Detroit automaker also invested $500 million in Lyft. Uber didn't launch its ride-sharing service until 2013 but compared to Lyft and Uber, Sidecar hasn't been successful in raising enough in investments to remain competitive in this ever-increasingly popular market. The value of the deal was not disclosed, but a source close to the situation told Bloomberg that "it was less than the roughly $39 million that Sidecar raised in its failing effort to compete with much better-financed rivals like Uber and Lyft".

GM on Tuesday said that it snapped workers and technology from ride-sharing and deliver service Sidecar, revving its drive into a future of autonomous on-demand cars. The proposed undertaking, which will be led by General Motors President Daniel Ammann, could let owners of GM cars give rides to people who are traveling in the same direction. Contained within a simple statement on Lyft's blog page, the company announced that "prices will automatically be lower in your Lyft app starting January 15", and that this move was created to "help you get out and do more", even when we all know it's likely a direct response to Uber's move a few weeks back. It was most recently valued at US$62.5 billion, making it the world's most valuable startup.

"We are the innovation leader in ridesharing despite a significant capital disadvantage, continually rolling out new products that set the bar for others to follow", Mr Paul wrote.

General Motors is spending an undisclosed amount about to buy up what's left of failed ride-hailing and delivery service Sidecar, which shut down a year ago.

General Motors according to reports is planning to use the acquisition to develop its own transportation service.

According to Bloomberg, a person with knowledge of the deal claims that GM plans to introduce its own ride-sharing service called Maven.

Paul will not be working for GM and will take a break before "starting my next thing", he said. The company filed to trademark the name Maven past year, detailing application software for connecting vehicle drivers and passengers.

GM has also purchased most of Sidecar's assets and is taking on 20 of the company's employees.