Lyft Enter into Car Rental Service | Financial Buzz

Lyft Enter into Car Rental Service

Lyft, Inc. (NASDAQ: LYFT) announced on Thursday that it is introducing a car rental service where customers can simply rent a vehicle from the convenience of their smartphones. 

Following the announcement, car rental services Hertz (NYSE: HTZ) and Avis (NASDAQ: CAR) fell by 4.81% and 4.37%, respectively.

“With Lyft Rentals, we’re giving riders the flexibility to rent a car for weekend getaways, business trips, or even to run errands,” said Lyft in a blog post. “Best of all? You can set everything up in the Lyft app. Just tap the key icon on the home screen to start your reservation. No rental counter required.”

The service is expected to begin for select customers in the Bay Area and Los Angeles. 

Lyft also highlighted a number of included incentives, which may seem much more appealing than traditional rental agencies. 

The Company mentioned in the blog post that customers will be provided door-to-door service, where Lyft will cover up to USD 20.00 to get you back home after you drop off your rental.

Customers will have unlimited miles on their rental and will not get charge for extra mileage fees. Moreover, customers will be able to fill up their rentals with gas at local market prices.

Lyft is also experimenting with customizable vehicles, such as vehicles that have add-ons like ski racks, car seats, and tire chains. The vehicles come equipped with Apple Carplay, Android Auto, and phone chargers. Lastly, Lyft also said it is planning on introducing hybrid vehicles into the service soon.