Phoenix, AZ — August 29, 2018– A startup that is trying to make renting cars from Uber easy has announced it’s going to start leasing cars through Lyft’s platform.
The company, Zipcar, announced the move in a blog post.
The announcement comes after Zipcar was one of the first to receive approval from the Federal Trade Commission (FTC) to begin a partnership with Lyft in early 2018.
The new leasing service will let Zipcar users rent cars from any Zipcar app in the United States for a flat fee of $99 per month.
Zipcar said the plan will allow users to use the company’s Zipcar Connect service to rent a car for an extra $99.
That option will be available for new customers starting August 28, the company said.
Zipcar Connect will work with existing Zipcar memberships.
The service also comes as the industry is increasingly focused on driving down the cost of car rentals, which are still expensive.
Zipcar’s pricing model has been criticized as too high and that it doesn’t allow customers to rent cars at a competitive rate, particularly when the cars can cost as much as $1,200.
In its first quarter, Zipcars revenue rose 18% to $1.6 billion, while operating expenses rose 6% to about $1 billion.
The growth comes despite its launch a year ago.
The startup, which was founded by Josh Schmitz, has a fleet of over 1,200 cars.
It is also exploring the use of a partnership or partnership-in-principle with Lyft.
Read more at TechCrunch: Zipcar to start renting cars through Uber and Lyft by Zane Larkins and Mark Ristevski