Uber and Lyft simply scored an enormous federal transportation contract
The US authorities awarded a giant transportation contract to Uber and Lyft this week, authorizing the ride-hailing corporations to supply transportation to as much as 4 million federal workers and their households.
The Basic Companies Administration, the procurement arm for the federal authorities, granted the five-year contract to Uber and Lyft, the businesses confirmed. The contract is value as much as $810 million, although it’s unclear how a lot every firm will obtain.
Whereas particular person federal workers have beforehand been in a position to make use of ride-hail companies for journey, the brand new contract permits the businesses to formally launch their companies inside companies and straight work with officers to advertise the service.
The contract was awarded to Uber for Enterprise, the ride-hailing firm’s business-to-business division. “The growth of our buyer base to incorporate authorities is a pure subsequent step for us, and we’re proud to assist federal companies sort out a number of the greatest administrative challenges they face,” Ronnie Gurion, international head of Uber for Enterprise, mentioned in an announcement.
Lyft additionally hailed the contract as a very good signal for the expansion of its enterprise. “Lyft already works carefully with choose companies, however with this award underneath our belt, we see a possibility to be the popular rideshare associate for a lot of different prime federal companies,” a spokesperson mentioned.
A spokesperson for GSA didn’t instantly reply to a request for remark, however in a weblog submit again in April, the company mentioned it was in a position to negotiate a 2–4 % low cost with the businesses, in contrast with massive industrial prospects. Uber and Lyft additionally agreed to waive know-how charges charged to make use of back-office vendor information and reporting capabilities, the company mentioned.
The contract with Uber and Lyft “modernizes official journey and can make it simpler, and cheaper, to make use of rideshare companies for official journey,” Federal Acquisition Service Assistant Commissioner for Journey, Transportation and Logistics Charlotte Phelan wrote. “No new apps to obtain – and no paper receipts to lose.”
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