General Motors (NYSE: GM)announced on Tuesday that it is launching a peer-to-peer car sharing business that will be operating under GM’s Maven brand app, which has car-share businesses in several cities and over 150,000 users.
Those who own or lease a GM vehicle, including cars from Chevrolet, Buick, GMC or Cadillac, from 2015 or later, can enlist their vehicle onto the Maven platform. Pre-approved car-share users will be able to rent cars through the app. People who put their car up for rent will receive 60% of the revenue while GM will keep the rest of the 40% and provide insurance for vehicles that are rented.
Maven claims that there have been over 300 Million miles driven through 180,000 reservations. “Maven is a platform designed for sharing and we’ve proven demand exists,” said Julia Steyn, Vice President, General Motors Urban Mobility and Maven. “In this beta, we are excited to offer GM owners the opportunity to capitalize on this demand and earn income by listing their vehicles.”
GM claims the ability to rent out cars will entice people to purchase more expensive cars since they have the ability to rent the car out to cover some of the costs. Shares of GM were up by more than 1% Tuesday morning.