The United States government awarded a transportation contract to Uber and Lyft. The agreement authorizes the rideshare companies to provide transportation to up to four million federal employees and their families.
The contract, granted by the General Services Administration, is worth up to $810 million and is good for five years. It’s unclear at this time how much each company will receive. While federal employees have previously been able to use ride-hailing for travel, the new contract allows Uber and Lyft to formally launch their services within agencies and work directly with officials to promote those services.
Uber’s ride-hailing business-to-business division received the contract. In response to the agreement, Ronnie Gurion, global head of Uber for Business, released the following statement: “The expansion of our customer base to include government is a natural step for us, and we’re proud to help federal agencies tackle some of the biggest administrative challenges they face.”
A Lyft spokesperson also commented on the contract: “Lyft already works closely with select agencies, but with this award under our belt, we see an opportunity to be the preferred rideshare partner for many other top federal agencies.”
While the General Services Administration did not immediately respond to a request for comment from The Verge, a blog post back in April discussed the contract. It said it was able to negotiate a two to four percent discount with the companies, compared with large commercial customers. As part of the agreement, Uber and Lyft also agreed to waive technology fees charged to use back-office vendor data and reporting capabilities.
According to the Federal Acquisition Service Assistant Commissioner for Travel, Transportation, and Logistics, Charlotte Phelan, the contract “modernizes official travel and will make it easier, and cheaper, to use rideshare services for official travel. No new apps to download—and no paper receipts to lose.”
With this expansion, Uber and Lyft may look to expand with similar contracts in the future. While this will benefit the employees of those agencies, it’s possible it could put more rideshare drivers on the road—resulting in additional congestion and the potential for more accidents.
In the event you’re involved in a rideshare accident, you may be able to pursue a personal injury claim to cover the losses related to the crash and hold the negligent party accountable for the actions that caused the incident. The Rideshare Law Group can help. Contact us today to learn more.