Renowned ride hailing companies, Lyft and Uber, have reportedly been awarded a large transportation contract by the US government. The new deal effectively authorizes the ride hailing companies to offer their transportation services to approximately 4 million federal employees as well as their families.
The General Services Administration, procurement arm of the US federal government, awarded a five year transportation contract to both Lyft and Uber, the firms confirmed. The agreement is worth up to approximately $810 million, however, it is still unclear as to which company will receive what amount.
While federal employees have earlier been able to use both Lyft and Uber’s services to commute, the new agreement enables the firms to formally rollout their services inside the agencies and work with officials directly and promote their service.
The five year deal was granted to Uber for Business, the ride hailing giant’s business-to-business division.
Global Head, Uber for Business, Ronnie Gurion stated that the expansion of the company’s consumer base to include government employees is an incredible next step for the firm, and Uber is proud to help federal agencies resolve some of the greatest administrative issues they face.
Meanwhile, Uber’s competitor, Lyft also hailed the new contract as a good sign for the company’s business growth.
A Lyft spokesperson stated that the company already works closely with a number of agencies, but with the new contract under its belt, the firm sees a opportunity to become the ridesharing partner of preference for several other top federal agencies.
The deal with Lyft and Uber effectively modernizes official travel, making it cheaper, and easier to utilize these ridesharing services for the official travel.
Charlotte Phelan, Federal Acquisition Service Assistant Commissioner for Travel, Transportation, and Logistics, stated that this deal makes commute more convenient for federal employees as there is no need to worry about losing paper receipts, and no need to install separate apps.