GM Launches Short-Term Car Rental Service
General Motors’ Express Drive program will initially offer Chevrolet Equinox SUVs to Lyft drivers in Chicago. Cars will be rented out for $99 per week.
General Motors will provide Chevrolet Equinox SUVs for the drivers through its Maven carsharing business. Photo courtesy of GM.
General Motors will provide Chevrolet Equinox SUVs for the drivers through its Maven carsharing business. Photo courtesy of GM.
Two months after investing in ride-hailing app Lyft, General Motors have announced plans to launch a short-term car rental program aimed at attracting more drivers to the service, according to a report by Fortune magazine.
The Express Drive program will initially offer Chevrolet Equinox SUVs to Lyft drivers in Chicago — before rolling out in Boston, Baltimore, and Washington, D.C.
The cars will be rented out for $99 a week, according to the report. Drivers will pay 20 cents a mile, but this charge will be dropped once they surpass 40 rides a week. If a driver completes 65 rides or more in a week, the rental is free.
GM spent $500 million in January on a 9% stake in Lyft, as it ramps up its efforts to compete with Uber, according to the report.
Lyft Co-Founder John Zimmer says the company has received over 150,000 applications from drivers whose cars aren't good enough for the service in those four cities, says the report. Vehicles must be from the 2004 model year or newer, have four doors, and pass a 19-point vehicle inspection.
GM will provide SUVs for the drivers through their Maven carsharing business, which lets customers rent a car for as short as an hour, says the report.
Click here for the full Fortune magazine report.
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