Can Car-Sharing Keep General Motors on Top of the US Auto Market?



General Motors in the US auto market

General Motors (GM) is the largest US automaker with 17.3% market share in 2015. This is much higher than 14.7% of its closest competitor, Ford (F). Last year, GM sold nearly 3.6 million vehicles in North America, which accounted for ~70% of its total revenues. Now, with changing auto industry (VCR) dynamics, the company is trying to explore ways to remain on top of the US auto market.

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General Motors and Lyft: A strategic alliance

In January 2016, General Motors entered into a strategic alliance with Lyft, a US-based company that provides car-sharing services in the United States. Currently, these services are available in 190 cities. General Motors made a half billion dollar investment in Lyft and reserved a seat on Lyft’s board of directors.

This strategic alliance with Lyft is important for General Motors, as the company has been trying to expand its presence in new businesses with high growth potential. After realizing the potential of rapid growth in car-sharing, GM became one of a few automakers to get involved in this business.

Series overview

In this series, we’ll discuss the growth potential of the car-sharing business in the United States. Then we’ll take a closer look at how GM is aligning itself to benefit from car-sharing and on-demand mobility services. We’ll also explore whether General Motors’ car-sharing services could be seen as a hedge against a possible downturn in the US auto demand in the coming years. Later in this series, we’ll explore GM’s recently launched Express Drive program. Then we’ll conclude the series by looking at the car-sharing businesses of other automakers such as Volkswagen (VLKAY) and Daimler (DDAIF).

In the next part of this series, we’ll take a close look at the car-sharing business and its potential for growth.


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