Get All Access for $5/mo

Sidecar Co-founder Leaves General Motors for Uber Jahan Kanna is switching from a Lyft partner to its corporate rival, Uber.

By Kia Kokalitcheva

This story originally appeared on Fortune Magazine

Bloomberg—Getty Images

In February, General Motors acquired the assets and talent behind ride-hailing startup Sidecar to help it develop its own car service.

But the Sidecar band isn't staying together.

Jahan Khanna, who co-founded Sidecar in 2011 with Sunil Paul, has left GM after to join Uber, Fortune has learned. His departure comes after growing disagreements between him and GM, according to people close to the matter. GM declined to comment.

Khanna is joining Uber as the product lead of the Vehicle Solutions growth team and starts his new role on Monday, Uber confirmed to Fortune. Uber's Vehicle Solutions includes initiatives like its car-leasing program for drivers.

Uber, which continues to battle rival and GM partner Lyft, no doubt finds value in Khanna's experience and expertise from founding a company with similar aims. Khanna may also have insight into GM's car-sharing plans, which may also be of value.

"We are committed to making it easier for more people to drive with Uber. As part of that, we are continuing to invest in Uber's Vehicle Solutions Program. We are excited to welcome Jahan to the team leading that charge," an Uber spokeswoman told Fortune.

Despite getting an early start in the ride-hailing game and raising $39 million, Sidecar increasingly struggled to compete with Uber and Lyft, which have raised billions of dollars in funding over the years. Last year, Sidecar tried to salvage its business by shifting to providing deliveries for merchants. It shut down in December, partly blaming its struggles on Uber's massive size, resources, and ruthlessness. It then sold itself to GM.

That deal came just as GM was forging a partnership with Lyft. In January, GM announced that it would invest $500 million in Lyft as well as collaborate with the startup to eventually deploy autonomous cars into Lyft's service offerings. GM is also developing its own car-sharing service, a project on which Khanna worked.

Lyft and Uber's have been waging a ride-hailing war for years, including aggressive attempts to steal each other's drivers along with allegations that Uber repeatedly ordered and canceled Lyft rides to cause trouble. Six months ago, that war took an international turn when Lyft teamed up with ride-hailing services Didi Kuaidi in China, Ola in India, and Grab in southeast Asia to let their respective customers use each other's services.

As the auto industry plans for a future of self-driving cars, so does Uber and Lyft. Uber has invested millions into its own research and development of the technology, partly through a partnership with Carnegie Mellon University.

Lyft, on the other hand, is leaning on GM and its autonomous driving ambitions.

Kia Kokalitcheva is a reporter at Fortune.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Productivity

6 Habits That Help Successful People Maximize Their Time

There aren't enough hours in the day, but these tips will make them feel slightly more productive.

Growing a Business

The Best Way to Run a Business Meeting

All too often, meetings run longer than they should and fail to keep attendees engaged. Here's how to run a meeting the right way.

Fundraising

Working Remote? These Are the Biggest Dos and Don'ts of Video Conferencing

As more and more businesses go remote, these are ways to be more effective and efficient on conference calls.

Business News

Taylor Swift Just Trolled Ryan Reynolds With a Hilarious Post That Gives a Masterclass in Social Media Promotion

The pop icon endorsed "Deadpool & Wolverine" with a post that provided a great lesson in connection.

Travel

Save Big on Business Travel with Matt's Flights Premium Plan

Access savings and custom travel support with lifetime access to Matt's Flights Premium Plan for Just $79.97.

Franchise

7-Eleven Stores in the U.S. Will Introduce Some Japanese-Inspired Changes. Here's What to Expect.

You'll soon be able to pick up some fresh sushi or a new type of snack at your local 7-Eleven — but the Big Gulp isn't going away.