Lyft has been looking at Uber’s taillights in the rapidly-growing ride-hail industry for several years now but may have changed the game with the recent announcement of the company’s partnership with General Motors (GM) for a short-term rental program exclusive to the Lyft platform.

The Express Drive program will make cars available to Lyft drivers at affordable rates with insurance and maintenance included.

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

The new program kicks off later this month in Chicago and is slated to roll out in additional cities such as Boston, Washington, D.C. and Baltimore in the coming months.

According to GM, Express Drive will start at $99 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.

In Chicago, Express Drive will provide access to Chevrolet Equinox crossovers equipped with OnStar, additional connectivity features as well as ample cargo space and flexible seating for up to five.

“Launching Express Drive is another way we treat drivers better, in addition to Power Driver Bonus, tips and same day payouts. We’re making sure everyone who wants to be a Lyft driver can be, by providing ultimate flexibility at incredible rates,” said John Zimmer, Lyft’s president and co-founder.

"This is geared toward the millions of Americans across the country who don't have access to a vehicle that is qualified to drive for the platform," Zimmer added. "This solves
a major component of it that probably isn't possible without the type of relationship we have with General Motors, so it becomes a big differentiator."

GM President Dan Ammann spoke of the rapid coordination between the two companies.

“We’re very pleased with how quickly the GM and Lyft team collaborated to create the Express Drive program, which we will be implementing using our Maven mobility infrastructure,” he said.

Uber, the leader in the car-hail market, launched a pilot program with Enterprise Rent-A-Car in December in the Denver market.

"What we're trying to do here is lower the barrier to entry for someone who does want to work with Uber but who does not have a qualifying car or doesn't have a car at all," said Andrew Chapin, Uber's Head of Vehicle Solutions.

Uber Partners get a special rate of $210 per week, plus taxes and other fees, and a $500 refundable deposit. The charge is automatically deducted from the driver's earnings.
The fee won't go up during busy seasons, like typical car rental rates do, but if drivers don't make enough from Uber for the week, they still owe Enterprise.

GM’s partnership with Lyft is part of a long-term strategy that will focus on the following areas:
• Autonomous On-Demand Network: The joint development of a network of on-demand autonomous vehicles will leverage GM’s deep knowledge of autonomous technology and Lyft’s capabilities in providing a broad choice of ride-sharing services.
• Rental Hub: GM will become a preferred provider of short-term use vehicles to Lyft drivers through rental hubs in various cities in the U.S.
• Connectivity: Lyft drivers and customers will have access to GM’s wide portfolio of cars and OnStar services, leveraging two decades of experience in connectivity. This will create a richer ride-sharing experience for both driver and passenger.
• Joint Mobility Offerings: GM and Lyft will also provide each other’s customers with personalized mobility services and experiences through their respective channels.
“We see the future of personal mobility as connected, seamless and autonomous,” said Ammann. “With GM and Lyft working together, we believe we can successfully implement this vision more rapidly.”