General Motors has acquired the technology and most of the assets of Sidecar Technologies, a San Francisco-based ride-handling start-up. About 20 Sidecar employees, including co-founder and Chief Technology Officer Jahan Khanna will join General Motors with the notable exception of co-founder and Chief Executive Officer Sunil Paul, who will not join GM.
The price of the acquisition was not disclosed, but a person familiar with the matter told Bloomberg News that the amount was less than the $39 million that Sidecar raised in its last effort to compete with Uber and Lyft, which were much better-financed.
GM’s sidecar acquisition comes on the heels of its $500 million investment into ride sharing provider and platform Lyft. GM spokesperson David Roman said that the assets and employees would support the Lyft alliance and The General’s other efforts. Both efforts are widely viewed as a way by GM to fortify itself against Uber Technologies, and serves as yet another reminder that carmakers are reacting to the threat posed by Uber to the auto industry as we know it today.