Lyft continues to expand beyond its core business of driving bikes, scooters, transportation and now rental cars. The company said Thursday that it is taking Lyft Rentals, a pilot program launched in December, and that it is expanding it through a partnership with Sixt.
Initially, Lyft Rentals gave people in Los Angeles and San Francisco the opportunity to rent vehicles through its app, which could traditionally be used to greet a ride or take a shared scooter. The pilot was successful enough to justify an expansion, but with a noticeable change. Lyft owns and operates the rental fleet in Los Angeles and San Francisco. The new partnership will transfer that responsibility to Sixt, a global car rental company with over 70 locations in the United States. Lyft said it will continue to own and manage the rental fleet in Los Angeles and San Francisco.
The car rental option through the Sixt partnership will initially expand to Las Vegas, Miami and Seattle. Lyft has said it plans to expand to all cities of the Sixt rental network in the United States in the coming months.
Customers can open the Lyft app to find a selection of cars that can be rented directly from the "Rentals" tab. From here, users can select the vehicle class, booking dates, location and an option to add insurance coverage. Customers also have the option of selecting the exact make and model of their vehicle. Lyft said it will provide a $ 10 credit to be used to greet a ride after leaving the car at the Sixt lot.
Lyft Rentals should not be confused with the company's Express Drive program, which allows people who wish to drive on the Lyft app to drive a vehicle to gain access to a vehicle. Express Drive, in collaboration with Hertz, is aimed at drivers. Lyft Rentals is a consumer product.
Lyft is betting that the partnership with Sixt will allow it to scale rapidly without facing the high capital costs for the purchase, ownership and maintenance of real vehicles, not to mention the burden of managing the various authorizations needed to run a company car rental in the city and at the airports.
Lyft will receive a commission from each rental made through the app, according to the company.
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