Why Carmakers Suddenly Invest Into Taxi Apps And Uber, And It’s Not What People Tell You

960x0taxi

All in one week, major carmakers took equity positions in companies that supposedly will put them out of business. Toyota invested in Uber, Volkswagen bought shares of Gett, BMW became a shareholder of carpool-platform scoop. The feeding frenzy was kicked off months ago by GM, which became a shareholder of ride-hailing service Lyft. Of course, this was immediately hailed as the beginning of the end of the traditional auto industry. Vanity Fair called it an “if you can’t beat them, invest millions of dollars in them” move. The New York Times thinks that “automakers have become increasingly concerned about those technologies, and their potential to help people travel easily and cheaply without owning a car — or even without knowing how to drive.” Have we finally reached the eve of disruption?

More in Forbes