Lyft and GM Begin Short-Term Rental

In a move which could affect taxi-challenging Uber, General Motors Co. (NYSE: GM) and Lyft, Uber’s primary competitor, launched a plan under which Lyft drivers have access to the auto giant’s cars. Underfunded drivers who want to become drivers for Lyft can take advantage of the program.

According to GM management:

Lyft and General Motors today announced the launch of their Express Drive short-term rental program exclusive to the Lyft platform. The program will make cars available to Lyft drivers at affordable rates with insurance and maintenance included.

The launch of Express Drive comes two months after GM entered into a strategic alliance with Lyft to develop an integrated on-demand network of autonomous vehicles.

Express Drive begins later this month in Chicago and will soon roll out to additional cities including Boston, Washington D.C., Baltimore and others. With Express Drive, the more you drive, the less you pay. Express Drive will start at $99 USD per week including insurance and maintenance making Express Drive the most flexible and affordable option. When drivers complete 65 rides a week in Chicago, drivers will be able to access a vehicle at no weekly rental cost. In addition to affordability, Express Drive offers flexible terms for drivers who can rent cars on a weekly basis for up to eight weeks at a time.

There is a definite need for access to high-quality GM cars for Lyft. In Chicago alone, there were 60,000 people who applied to drive on the Lyft platform, but did not have a car that qualified. Express Drive directly addresses this need for millions of Americans who do not have access to a qualifying vehicle.

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Since Lyft has lagged well behind Uber, it gives the company a small chance to close that gap.