Lyft teams up with Hertz, Shell

The San Francisco-based ride-hailing company Lyft has teamed up with Hertz Global Holdings Inc for offering rental cars to its drivers. Hertz offers car rentals on daily, weekly and monthly basis and now these services will be available as part of the agreement with Lyft, which offers rental cars to drivers who don't have their own cars or meet Lyft standards. On a pilot basis, Lyft plan with Hertz is available for drivers in Las Vegas and it will expand this plan to other locations soon. Lyft has also partnered with Shell for providing gasoline at discounted price to its drivers.

The Lyft plan is available drivers without own cars in Las Vegas. Drivers can avail of Lyft plan at Hertz offices. Oliver Hsiang, Vice-President (partnerships), Lyft, said: "As part of the pilot program for Lyft drivers in Las Vegas, car rentals from Hertz are available on a daily, weekly and monthly basis. The plan will be expanded to other markets."

Drivers can sign up for Lyft at Hertz offices. They have to pay $65 a day on car rentals, but will earn 20-30 percent higher than other drivers as they use sports utility vehicles (SUVs). Drivers can charge a premium from passengers for the SUVs, said Hsiang.

From November onwards, Lyft drivers can get their earnings directly credited into their bank accounts instead of waiting for the payday. The competition between Uber and Lyft is churning out more schemes and programs benefiting passengers and drivers as well.

With an objective of providing cheaper gasoline at minimum three cents lower price, Lyft has also tied up with Shell. As part of the partnership with Shell, Lyft drivers can get gasoline with a discount at 12,500 gas stations in San Francisco, Chicago, and Los Angels.

The latest measures are likely to enable Lyft to compete with Uber, the market heavyweight in the ride-hailing segment. Uber is also offering car leasing and rental programs to drivers.

Lyft has been working to position itself as a better caring company for drivers, who can accept tips on Lyft app, but Uber doesn't allow it. John Zimmer, President and co-founder, Lyft, said: "About $40mn has been distributed to Lyft drivers in tips since the service began."

Lyft has over 100,000 active drivers on its app churning out a million trips every week across 150 cities in the US. With an objective of improving the experience for driver and passenger, Lyft tied up with Starbucks. Frequent passengers with Lyft can earn free coffee.

Lyft tied up with China's largest ride-hailing company, Didi Kauidi, in last September. This partnership allows each company to serve other's passengers also. Didi Kuaidi app is accessible to Lyft users traveling in China. Similarly, Didi Kuaidi app users can avail of Lyft services when they're in the US.