Lyft Launching Car Rental Service

Lyft Inc. (NASDAQ: LYFT) has announced that it is launching a car rental service that will be accessed through its app in the near future. In a blog post announcing the new initiative, Lyft said, “With Lyft Rentals, we’re giving riders the flexibility to rent a car for weekend getaways, business trips, or even to run errands.” It’s easy to imagine this service being quite popular if it is cheap and convenient.

The new car rental service will initially be available for select customers in the Bay Area and Los Angeles. The Bay Area customers will be able to choose between a Volkswagen Passat and Atlas, while Los Angeles Customers will choose either a Mazda 3 or CX-5. Lyft is starting prices as low as $35 per day, and will reportedly allow rentals by those as young as 22 years old.

According to the blog post, renters will not need to go to a rental counter to coordinate a rental. Users will be able to book a rental car through the app via a key icon on the home screen. Lyft will give customers a $20 ride credit to get to the lot to pick up the vehicle from a concierge.

The rental option includes unlimited miles and refueling will be handled at market price. The company also wrote in the post: “Our vehicles come equipped with Apple Carplay, Android Auto, and phone chargers. Choose free add-ons like ski racks, car seats, and tire chains. And, we’re adding hybrid vehicles to the mix soon.”

This is just the latest expansion for the ride hailing service. Last year, Lyft added bikes, scooters, and public transit to its services. The news of the new car rental service was concerning to some of the major players currently in that industry. Hertz shares dropped almost 6 percent on the news, plunging to $15.26, while Avis shares fell 5 percent to $30.89.