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Lyft's Investor GM Partners With Uber To Offer Car-Sharing To Drivers

By Jiran , Nov 02, 2016 05:21 AM EDT
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Uber has just announced that it is partnering with General Motors' car sharing company Maven. This is despite the fact that GM is connected with Uber's rival Lyft. In fact, GM has invested $500 million in Lyft. Will this affect the automaker's partnership with the other? Or will it be business as usual?

Uber And GM Working Together

According to TechCrunch, the partnership will allow Uber drivers to rent GM vehicles on a weekly basis. It will be a 90-day pilot program. Uber and Maven will observe if the said arrangement will work. The said project will debut in San Francisco. The drivers will have to operate within the city for now.

Furthermore, they will be charged with a $179 weekly fee for the use of GM vehicles. That will include the pilot project, plus taxes and fees. Fortune reported that the drivers can choose to use between GM's Chevrolet Cruze, Malibu and Trax vehicles. The good thing is the fact that Uber drivers will also be able to use the cars for personal trips.

According to Reuters, GM's Vice President for Urban Mobility Julia Steyn mentioned that the pricing is similar to that of Lyft drivers pay. She added that both companies offer incentives to their own drivers.

GM's Partnership With Lyft

The Express Drive program was the result of the partnership between GM and Lyft. The connection is even more evident. Lyft's Sheila Bryson said that the Maven's partnership is similar to how Lyft worked with Hertz. The said program will let Lyft drivers use Hertz cars.

Bryson also pointed out that vehicle access programs have multiple partners. This seems to reflect the current scenario. GM is not the only car provider for Lyft. Likewise, it is not an issue for GM's car-sharing service Maven to partner with Lyft's rival Uber.

It Is All About Business

A spokesman for GM told Fortune that the partnership with Uber is unrelated to its investment in Lyft. GM also ensured that it will protect its partner's data from other parties. This applies to both Uber and Lyft.

An Uber spokesman agreed that there is no conflict of interest. Uber is aware that GM is also involved with Lyft. He pointed stated that Uber has been working with several other manufacturers over the years.

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