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LYFT ENTERS CAR RENTAL MARKET WITH SIXT

Aggregates like Kemwel now have a new competitor in town by the name of Lyft whose mission is to provide “friction-free” USA car rentals in collaboration with our German partner SIXT.

Lyft teams up with SIXT to launch car rental feature

Original date of publication: August 17, 2020

Cheap car rental Kemwel

Kemwel - Seeing how COVID-19 has impacted companies like Hertz into filing bankruptcy or Uber losing US$1.02 per share, an unlikely match made in heaven may have just transpired between Lyft and SIXT. That's to say, both have identified an opportunity to better support city folks without personal vehicles as more people start to rent cars as an alternative to airfare.

As an extension of Lyft Rentals, this new partnership will enable Lyft app users to reserve a USA car rental from various SIXT locations over the ride-hailing app. For the time being, this new service is only available in Seattle, Las Vegas and Miami but other car rental locations will reportedly start operating later this month.

The purpose of this collaboration isn’t to make ride shares obsolete but rather streamline the often complex booking process in times of a public health crisis.

“Partnering with SIXT enables us to rapidly expand the reach of our rentals in a time when customers are looking for hassle-free and intuitive transportation solutions,” said said Cal Lankton, Lyft’s VP Fleet and Global Operations. “With our vision for car rentals, we are offering a completely integrated, frictionless, and transparent experience for transportation that renters have come to love.”

How does Lyft car rentals function?

Now with this novel in-app feature, SIXT car rentals join other Lyft product offerings including bikes, scooters, rideshare, and transit options. What we can surmise so far is that Lyft is making major headway into becoming an “all-in-one-app” dedicated to all things mobility.

“Lyft is moving beyond what most people think of rideshare app,” said Lankton. “With COVID concerns, people want easy friction free rentals.”

Everything involving Lyft car rentals will take place over the app where you will see SIXT vehicles available in the Rentals tab. What allegedly sets this procedure apart is how users can choose the precise make and model on top of vehicle class, reservation dates, locations, as well as add-on services.

Once you have provided all of the necessary reservation details, then you will have the option of adding insurance followed by an expedited pick-up at a nearby SIXT office. According to a Lyft press release, the company will even throw in a US$10 credit to help you get home from the SIXT lots after drop-off.

What does this mean for SIXT?

All the while, SIXT is priming itself to become more of a household name across the United States as the German company continues to acclimate to a new foreign market. In the upcoming months SIXT expects to increase its fleet operations in 85 U.S. locations, 30 of which at airports. 

“We’re now over a quarter million cars around the world,” said Sebastian Birkel, President of SIXT US. His company is especially known for leasing luxury car rentals such as Mercedes, Lincolns and Cadillacs at low-cost prices.

“Just as we’ve become a market leader in Germany, our vision is capturing market share from the big guys,” added Birkel.

Even though SIXT launched its USA car rental segment in 2011 and currently possesses only 2 percent of the market share, it's one of the most prominent car rental businesses in Europe with over US3.7 billion of revenue last year. So far in the United States, it has US$500 million in revenue, according to Forbes.