General Motors announced the extension of the partnership with Lyft to enhance the Express Drive Program, which will permit more drivers to rent GM vehicles at an affordable cost.
Apart from the four cities, the Express Drive program, will be available in Los Angeles, Denver and San Francisco this summer. The ride-sharing drivers may use Chevrolet Equinox, GMC Terrain, Volt and Malibu before the year ends.
From the $99 base rate per week and the additional $0.20 per mile paid by the drivers for the rental of Chevrolet Equinox crossover SUV, the mileage cost will be gone as long as the driver can have at least 40 rides each week. Also, the base rate will be erased if the driver gets 65 rides weekly.
GM President Dan Ammann stated that the Chevrolet Bolt EV and Volt are a perfect fit for ride-sharing offering very low operating costs and a wide range of connectivity features for both drivers and passengers.The automotive company has allocated $500 million on its investment at the start of the year, considering it remains to be the largest-selling automaker in the United States.
Following the partnership with Lyft, the popularity of the GM vehicles increased in the rural areas, where it holds upbeat sales. The products of the company will be well exposed to the young car enthusiasts as it caters renting program, another smart move to heighten the favorable impression for GM.
John Zimmer, Lyft president and cofounder expressed, his excitement towards the expansion of the program. In the statement released to the press, Mr Zimmer said that expanding Express Drive provides opportunities to hundreds of thousands of new potential the Lyft drivers and continues to make car ownership optional for both drivers and passengers.
"We are also excited to be adding electric vehicles to Express Drive, which is an important milestone for Lyft and the industry," Mr Zimmer added.
For the record, there has been 130,000 people who applied to be a Lyft driver in the metropolitan areas, however, they failed to meet the standards of Lyft. Currently, around 30 percent of the new Lyft-driver applicants applied in the program in Chicago. The Express Drive in Chicago was launched last March and has reached Baltimore, Washington and Boston.
GM Stock Performance
Recently, Shares of General Motors Company traded 1.56 higher to $30.60 with a market capitalization of $47.87 billion. The American multinational corporation had a price earnings ratio of 4.58 and a dividend yield of 4.97 percent.
The stock has a 52-week high of $36.88 and 52-week low of $24.62 with an average trading volume of 16,816.827. Its latest earnings per share stands at 6.67 while its 20-day simple moving average is 1.17 percent and the 200-moving consensus is -2.54 percent.
Analysts warned about the supply chain issue surrounding the auto company and the doubts on the peak of auto sales. Also, the slump of the share price from the previous sessions sent a negative impression on the value of the stock. However, General Motors may be creating a firm foundation globally to maintain the profit and reputation.
The second quarter earnings report of the auto juggernaut is expected to be strong, however, the market share price might be wobbly as the investors look for the balance of the margins and the volume of sales.
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