Britain's biggest carmaker Jaguar Land Rover said its mobility services business, InMotion Ventures, would invest $25m in US ride services company Lyft to help develop and test technology for self-driving cars. 

The auto industry and technology companies are racing to develop self-driving technology.

This is expected to transform transportation by cutting costs of ride services and changing the way people buy and use cars in the years to come. 

InMotion will also supply Lyft with a fleet of Jaguar and Land Rover vehicles, the car maker said today. 

InMotion's investment follows its recent seed investment in SPLT, the Detroit-based digital carpool business, which works with Lyft to provide non-emergency medical transport.