General Motors Company (NYSE:GM) and Uber Technologies have teamed up to offer rental cars to drivers of the transportation company’s services.
GM mobility brand manager Maven is aiding Uber drivers in need for vehicles, despite the fact that the company holds a $500 million stake on rival Lyft. Prices are reasonable at $179 per week for Chevrolet offerings, including Trax SUVs, Malibus or a Chevy Cruze.
Meanwhile, GM offers Lyft drivers a Chevrolet Cruze sedan for $135 a week, or a Chevy Equinox SUV for $239, and Lyft subsidizes these rates. Drivers who do this as a full-time job could potentially pay nothing.
Lyft appears to be OK with the Uber move, saying ““Maven’s supply channels do not impact our programs with GM. We continue to work together to shape the future of mobility.”
The move makes sense for GM as these vehicles that are not being used would pack rental lots if they were not being leased out to other companies. Julia Steyn, GM vice president of Urban Mobility said the alternative is very exciting for the company.
“It allows us to significantly optimize our residual values and how we turn the vehicles in the market,” she said.
Meanwhile, Rachel Holt, Regional General Manager of Uber in the U.S. and Canada said the move would be beneficial to the company as it would help it rent cars as it looks to expand its services around North America.
GM shares fell 0.1% Wednesday.
