GM will sell a car service called AutoTrader that will compete with Lyft and Uber.
The company is expected to file a request for regulatory approval in a week or so.
GM has a strong presence in the auto industry, with over 1,000 employees in Michigan and more than a million cars sold globally.
AutoTrader will compete for consumers with Lyft, Uber and Lyft competitor CareFlight.
The new service will have about 1,100 dealerships and will work closely with Ford Motor, which owns about 1 million vehicles in the US and another 1 million in Europe.
The service is expected take about a year to launch in the United States.
The merger will be the latest in a string of acquisitions by Ford in recent years, as the automaker seeks to expand its presence in cities.
GM, a carmaker known for producing premium sedans, SUVs and trucks, said it will also take a majority stake in a vehicle-sharing service called RideShare, which will offer rideshare services like Uber, Lyft and Sidecar.
Shares of GM have surged in recent months, rising nearly 50% in early trading on Friday, before rebounding on Tuesday.
The shares have also climbed more than 400% in the past year.
Ford Motor Co. said it would be investing $1 billion to create a global manufacturing network.
Car owners can access rideshare, car-sharing, and car-buying services using smartphones and other connected devices.
The auto company has been seeking a buyer for its operations since a deal was announced with Fiat Chrysler Automobiles, which owned the Chrysler brand.
Ford has said it is exploring potential partners for the car business, but has not disclosed which ones.