In 2016, General Motors announced a sizable investment of $500 million in Lyft, a major ride-hailing company. At the same time, General Motors President Dan Ammann joined Lyft’s board of directors to have a say in the company’s future. That relationship has come to a screeching halt, however.
Bloomberg reported on Wednesday that Ammann has left the Lyft board with Maggie Wilderotter, a former telecommunications executive who sits on Hewlett Packard Enterprise Co.’s board with Ammann, replacing him. Ammann chose Wilderotter to fill his vacancy.
At the time of the investment, GM and Lyft envisioned a close partnership. GM planned to lease its vehicles to Lyft drivers over short periods and the automaker announced plans for fleets of self-driving cars for Lyft’s network.
However, Lyft began to stray shortly thereafter. The ride-sharing company partnered with Ford in 2017 to develop self-driving technology, and then Google’s Waymo. This past March, Lyft likely put the final nail in the GM-Lyft partnership’s coffin when it announced a major partnership with automotive supplier Magna International Inc.
According to the report, Ammann had to recuse himself from numerous corporate decisions at Lyft after the multiple partnerships. And, GM’s continued focus and investment in its Cruise Automation subsidiary quickly became a point of contention, per an unnamed source.
Despite Ammann’s departure, GM is happy with its investment into the company, and the board change does not impact the investment, either.