Lyft hires Tesla’s president of Sales& Service as COO

Lyft has hired a new C-level executive: Jon McNeill, who joins as Chief Operating Officer. McNeill previously held a top role at Tesla, where he was president of Global Marketings& Service, overseeing all of the company’s showroom and customer-facing interactions.

Tesla CEO Elon Musk exposed on the company’s earnings call on Wednesday that McNeill was departing the company, though he didn’t disclose what McNeill’s next move would be. Lyft sent a note confirming McNeill’s hire shortly after, citing his many years of experience in entrepreneurship and transportation as primary reasons for his selection to the senior role.

“Jon is a world-class leader who brings deep experience as a highly successful entrepreneur and executive, ” Lyft CEO and co-founder Logan Green said in a statement provided to TechCrunch. “Last year, the Lyft community experienced more growth than in all previous years combined, growing rides by 2.3 x and increasing the shares by more than 50%. Jon is the right leader to build upon this momentum with his unique background of starting companies from scratch and managing at scale.”

McNeill explained in his own statement that his reason for joining has to do with the ride-hailing company’s they are able to “take care of both customers and drivers, ” along with the “passion of[ their] leaders and teams.”

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Calling an Uber Is Cooler Than Owning a CarAnd Automakers Want In

People don’t want automobiles, they want rides. That’s the existential fear plaguing automakers today. And they’re scrambling to do something about it.

Just months after GM poured money into Lyft( the one with the pink mustasche ), Toyota and Volkswagen both said today they were joining up with other ride-hailing competitors. In VW’s case, it’s investing $300 million in Israeli ride-hail startup Gett. Toyota, meanwhile, is partnering with Uber to, among other things, let people automatically deduct their vehicle pays from the fares they make as Uber drivers.

Clearly automakers have Silicon Valley envy. Startups are transforming the route people move around cities. In order to bide relevant, auto companies are trying to show they understand that on-demand services have changed consumer behaviour. Driving yourself around in a automobile you own, it turns out, isn’t the only route to get around anymorea trend that’s likely to become only more pronounced when the cars start driving themselves.

To be sure, the actual details provided by the companies about how these joint efforts will work have been scant. Toyota did not disclose how much fund it invested in Uber. The two companies simply said they had entered into a memorandum of understanding to explore a cooperation. The one concrete detail is that Toyota will create new leasing options that allow drivers to cover their payments through their Uber earnings, a more direct version of Uber’s existing leasing programs.

As for Volkswagen, the beleaguered automaker is still looking for ways to revamp its ruined image following the revelation of a vast scam to cheat on emissions exams. Gett isn’t that well known in the US but is available in 60 cities worldwide, with an especially strong presence in Europe.

From Ride-Hailing to Self-Driving

But for auto companies, the on-demand ride marketplace is just a first step toward a more radically altered future dominated by autonomous vehiclesvehicles whose brains are powered by Silicon Valley tech under development by the likes of Google, Tesla, and Uber itself.

But how will people actually use self-driving automobiles on the road? One likely scenario: they’ll use their phones to summon them for a ride. Volkswagen says Getts big-data technology and predictive algorithm could serve as a foundation for a viable on-demand autonomous car operation. Toyota and Uber are more vague, saying only that existing cooperation would accelerate their research attempts. But its not hard to see where “its going”, especially in light ofToyotas own move to hire an artificial intelligence and robotics research squadlate lastyear.

In a sense, even Apples massive$ 1 billion investment in Chinese ride-hailing giant Didi plays into this trend. Apple is under increasing pressure to discovery other ways to grow as the global smartphone market slows down. Maybe on-demand rides are it. Ride-hailing still has a long way to go before people stop buying automobiles in favor of simply summoning rides. But that future could come, and automakers know it.

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Obama thrills Silicon Valley with pledge to invest$ 4 billion in self-driving cars

Venture capitalists and Silicon Valley firms have been pouring money into autonomous vehicles for years, but there’s a new investor getting in on the action: the United States government.

The Obama administration on Thursday called for$ 4 billion of spending on self-driving cars.

The investment, which would be budgeted over a 10 -year period, will be used to “accelerate the development and adoption of safe vehicle automation through real-world pilot projects, ” according to a statement by Mark Rosekind, administrator of the National Highway Traffic Safety Administration( NHTSA ).

Transportation Secretary Anthony Foxx, in a speech at the North American International Auto Show in Detroit, promised a series of initiatives aimed at solving the considerable technological and legal challenges that could otherwise slacken the rollout and adoption of self-driving vehicles.

Now in its final year, the Obama administration is advising a longterm opinion toward federal involvement in the development of autonomous vehicles. Foxx indicated the process could take several decades while emphasizing the potential benefits of a future with roads occupied by self-driving cars.

“Automated vehicles promise to move people and goods more efficiently than we are moving them today, ” Foxx continued. “And, when automation is combined with other technologies like electric motors and innovations coming out of the sharing economy, we will be able to reduce congestion and pollution even further.”

Bryant Walker Smith, chair of theEmerging Technology Law Committeeof theTransportation Research Boardof the National Academies of Sciences, Engineering, and Medicine, compared this stage of investment in autonomous vehicles to the invention of the airplane.

“We’re all lucky that Orville and Wilbur Wright had a beach where they could fly their aircrafts. The relevant proposals is about determining that beach for the 21 st Century, ” he said. “In words of funding, it could rival European efforts.”

Smith cautioned, however, that the White House’s pledge is simply a proposal with no detailsnot a definitive investment. The nearly$ 4 billion in suggested spending will appear in the administration’s 2017 budget.

In the near word, Foxx said there are plans to have the NHTSA work with automakers and state governments to develop model laws and regulations for states to adopt. This will take place over the next six months, he said, with hopes of creating a route to a consistent national policy.

Some early steps are already in place. The U.S. Department of Transportation( DOT) has launched initiatives to learn more about the future of transportation, including connected vehicle test beds across the country and the Smart City Challenge. Likewise, the NHTSA has funded a project to develop best practices among the states with respect to automated driving.

Still, Smith called the six-month goal for policy framework “remarkably ambitious, ” and he suggested it is “both inspired and imperiled” by the impending end of the administration.

“Policy is about much more than passing a law, ” Smith said. “I’m pleased that the U.S. DOT is going to facilitate a more thoughtful approach to the regulatory topics. Some countries have been essentially praying the U.S. DOT to do this for years. But states will still play an important role in calibrating their laws, preparing their roads, and taking other measures to encourage automated driving.”

In Silicon Valley, tech companies have welcomed the pledge, which is an expansion on Obama’s statement during the State of the Union to invest in a “2 1st century transportation system.”

“Fully autonomous vehicles have the potential to save lives, ” spokesperson forGoogletold the Daily Dot, “so we welcome the secretary’s commitment to removing barriers that may prevent them from sharing the roads when they’re ready.”

Areportin December indicated Google is planning to partner with Ford to manufactureself-driving vehiclesthat would be used to develop a ridesharing service.

The statement from the search giant echoed Foxx’s on the health risks security benefits of autonomous vehicle technology, which the secretary suggested could have saved “more than 25,000 lives … in 2015 alone.”

There is some question as to just how much safer self-driving cars will be; a study by the University of Michigan Transportation Research Institute found that self-driving vehicles have a higher crash rate per million miles traveled than conventional vehicles. However, most of those accidents were were caused by human drivers slamming into the computer-controlled automobiles, suggesting people still have not adjusted yet to sharing the roads with autonomous cars.

Lyftand General Motors recentlyannounceda plan to bring autonomous vehicles to the roads of Austin, Tx. for users of the ridesharing platform.

A spokesperson ridesharing service Lyft told the Daily Dot that the company is “optimistic about the Obama administration’s plan to support the introduction of autonomous cars.”

“Safety is the top priority for Lyft and GM’s on-demand autonomous network, which will introduce self-driving autoes to the U.S ., ” the spokesman said. “We look forward to continuing to work with federal, nation, and localgovernments to shape the future of mobility.”

While ridesharing is clearly a focus of the future of transportation for many firms, consumer-focused companies are also optimistic about the government’s participation in the future of autonomous technology.

“A consistent, coordinated, and transparentregulatoryframeworkis the best way toallowtechnologyto moveforward, ” aTeslaspokesperson told the Daily Dot. “Our conversations with the Department of Transportation and California DMV have been quite positive. Theybothclearly acknowledge the safety potential ofautonomous transport and want tosupportit ina style that encourages its appropriate growth and introduction into the market.”

H/ T The Hill | Photo via Open Grid Scheduler/ Flickr( Public Domain )

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General Motors expends $500 m in ride-hailing company Lyft

The Uber rival and the automaker plan to open a network of US hubs where Lyft drivers can rent GM vehicles, giving non-car-owners a way to earn money

General Motors and ride-hailing company Lyft are forming an unprecedented partnership that could help them beat their rivals to the self-driving future.

Lyft said Monday that GM invested $500m in the company as part of a $1bn round of fund-raising.

GM gets a seat on Lyfts board and access to the three-year-old companys software, which matches riders with drivers and automates payments. It also becomes a preferred vehicle provider, with the chance to get many more people behind the wheel of a Chevrolet, Buick, GMC or Cadillac.

San Francisco-based Lyft gets the expertise of a 108-year-old automaker with decades of experience in making connected and autonomous vehicles. Detroit-based GM also has an enviable global reach; it sells almost 10m cars each year in more than 100 countries. Lyft operates in 190 US cities, and it recently formed partnerships with ride-sharing services in China and India.

Together, the companies plan to open a network of US hubs where Lyft drivers can rent GM vehicles. That could expand Lyfts business by giving people who dont own cars a way to drive and earn money through Lyft. It will also give GM a leg up on competitors like Daimler AG and Ford Motor Co, who are developing their own ride-sharing services.

In the longer term, GM and Lyft will work together to develop a fleet of autonomous vehicles that city dwellers can summon using Lyfts mobile app. Partnering with GM could give Lyft a boost over its arch-rival, Uber Technologies Inc, which is working on its own driverless cars.

Lyft co-Founder and president John Zimmer and GM president Dan Ammann say the two companies began serious discussions about three months ago. Both see big changes coming in the traditional model of car ownership, and they had similar ideas about how to address it. It felt very natural very quickly, Zimmer said.

Ammann said the resulting partnership is unlike any other in the auto and tech industries.

Do we want to deploy the resources and people to do everything ourselves, or get there faster by working in partnership? Ammann said. We see a really compelling, complimentary set of capabilities.

Following its latest round of fundraising, which also included a $100m investment from Saudi Arabias Kingdom Holding Co, privately-held Lyft set its value at $5.5bn. The company expects revenue of around $1bn this year. By comparison, GM is valued at $53bn and earned $153bn in revenue in 2014.

But neither company can afford to rest. Ubers value could soon surpass GMs, and newcomers like Apple and Google are also eager to disrupt the traditional auto industry.

We see the world of mobility changing more in the next five years than it has in the last 50, Ammann said.

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