Uber and Lyft just signed huge federal freight contract



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The U.S. government this week awarded a major transportation contract to Uber and Lyft, allowing rideshare companies to provide transportation to up to 4 million federal employees and their families.

The General Service Administration, the federal government’s procurement arm, has awarded the five-year contract to Uber and Lyft, the companies have confirmed. The contract is worth up to $ 810 million, but it’s unclear how much each company will receive.

While federal employees could previously use hail hail services for travel, the new contract allows companies to officially launch their services within agencies and work directly with officials to promote the service.

The contract was awarded to Uber for Business, the business-to-business division of the ridesharing company. “Expanding our client base to include government is a natural next step for us, and we pride ourselves on helping federal agencies address some of the biggest administrative challenges they face,” said Ronnie Gurion, Global Head of Uber for Business. A declaration.

Lyft also hailed the contract as a good sign for the growth of its business. “Lyft is already working closely with select agencies, but with this award under our belt, we see an opportunity to be the preferred ridesharing partner for many other top federal agencies,” a spokesperson said.

A GSA spokesperson did not immediately respond to a request for comment, but in a blog post in April, the agency said it was able to negotiate a 2-4% discount with the companies. , compared to large commercial customers. Uber and Lyft have also agreed to waive technology fees charged for using vendor back-office data and reporting capabilities, the agency said.

The contract with Uber and Lyft “modernizes official travel and will make the use of carpooling services easier and less expensive for official travel,” wrote Charlotte Phelan, deputy commissioner of the Federal Acquisitions Service for travel, transport and logistic. “No new apps to download and no paper receipts to lose.”

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