Motorola Update Services is a free tool which handles the task of downloading system updates over-the-air (OTA) for your Motorola device. You will have to install this version on your smartphone if you desire to enable the upgrade to Android 5.x, Lollipop for the following devices: Moto G, E, X, all first generation, and Moto G with 4G LTE (first generation).
In simple terms, if you own one or more of the devices mentioned above, and you want to update them to Android 5.x version, you are required to install this package to enable you to upgrade your operating system. Motorola Update Services does not take more than 15MB of space on your device's storage, but keep in mind that the OS updates will take a lot.
You should check if you have enough free space to update to Android 5.x, Lollipop.