Ride hailing company Lyft made a big announcement this week that caused shares of car rental service companies to plummet.
Lyft announced on Thursday that the company is launching its own car rental service within its main app. On the news shares of both Hertz and Avis fell into the red. Hertz dropped almost 6% to $15.26, and Avis fell 5% to $30.89.
“We’re giving riders the flexibility to rent a car for weekend getaways, business trips, or even to run errands,” the company said in a blog post.
The service is initially available for select customers in the Bay Area and Los Angeles and users can tap the key icon on their app to start the process.
The rental option includes unlimited miles, and Lyft said it will handle refueling at market price.
“Our vehicles come equipped with Apple Carplay, Android Auto, and phone chargers,” the post also read. “Choose free add-ons like ski racks, car seats, and tire chains. And, we’re adding hybrid vehicles to the mix soon.”
The blog asks, Why Choose Lyft Rentals? and answers, “Now you can rent a car for road trips, moving day, errands, and that much-needed weekend escape — right from your Lyft app (make sure you have the latest version). You won’t pay extra for gas, and we’ll cover your ride to and from the rental lot (up to $20 each way). Plus, no lines, hidden fees or last-minute vehicle model changes.”
Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.