Ford revealed it will be testing its latest self-driving technology next year, but will not begin commercial production until 2021.
The automaker said it is to test various pilot programmes using self-driving prototypes, with its partner Lyft, a ride services company.
In 2019, General Motors plans to introduce its on-demand ride-sharing service in a number of different cities in the US, using self-driving versions on Chevrolet Bolt, which is battery-powered.
Jim Farley, president of global markets, noted in a blog post that Ford would test new business models that involve its self-driving vehicles, including the movement of people and goods.
Ford is also adding 850 jobs and will be boosting investment to US$900million from US$700million.
Written by Leah Alger