Automotive manufacturer General Motors and ride-hailing app Lyft have announced a strategic alliance centred on developing an on-demand network of autonomous vehicles that has also seen the motoring brand invest $500m (£339m) in the taxi service.

The investment, which is part of a $1bn round Lyft is aiming to complete, is one of the largest ventures GM has ever made with another company, and stems from the shared view the two firms hold that autonomous vehicles will likely first reach consumers as part of a ride-sharing service, rather than as individually-owned vehicles.

“We see the future of personal mobility as connected, seamless and autonomous,” said Dan Ammann, president of GM. “With GM and Lyft working together, we believe we can successfully implement this vision more rapidly.”

Along with the joint development of a network of autonomous vehicles, GM will become a preferred provider of short-term use vehicles to Lyft drivers through the companys existing rental hubs in the US, and the two companies will provide each others customers with personalised mobility services and experiences through their respective channels. Lyft drivers and customers will also gain access to GMs portfolio of OnStar services, and GM will hold a seat on Lyfts board of directors.

“Working with GM, Lyft will continue to unlock new transportation experiences that bring positive change to our daily lives,” said John Zimmer, president and co-founder of Lyft. “Together we will build a better future by redefining traditional car ownership.”

The announcement comes as automakers and tech companies work increasingly closely to bridge the gap between cars and mobile technology. Experts are predicting that both enterprise and consumer transportation will undergo dramatic shifts over the next 10 years as more and more autonomy is brought to the automotive market.

While GM and Lyft have not provided a timeline for the creation of its on-demand network, with progress being made in the autonomous car field by companies including Apple, Google and a variety of car manufacturers, we will likely see some form of announcement in 2016.