Uber Technologies Inc. and Lyft Inc. have been received a federal contract worth up to $810 million. This is to offer their ride-hail services to public agencies. In addition, to their more than 4 million employees and contractors across the United States.
Uber, Lyft is Getting the Final Five-Year Award
Moreover, the General Services Administration (GSA) which manages services for federal agencies. The GSA has issued its final five-year award on Monday, November 23. Veronica Juarez, Lyft’s vice president of social enterprise and government, reported this.
Uber, Lyft’s New Contract
Previously, individual federal employees could use ride-hail services for travel. Now, the new contract allows the companies to officially launch their services within agencies. Therefore, they can now directly work with officials promoting the service.
U.S. Government Spends Millions on Ground Transportation
The award capped a nearly four-year negotiation process, Juarez said. However, she did not say how much profit Lyft expected from the contract. But Juarez said the U.S. government spends around $200 million on ground transportation each year.
Lyft has hopes the government contract will open doors. This includes further collaboration on public health and equity projects that require transportation.
In April, the GSA announced the award to Uber and Lyft tentatively. They did not immediately respond to a request for comment.
Uber, Lyft Agreed to Waive Some Additional Fees
The agency said, at the time, in a blog post they had negotiated discounts with the companies at 2-4 percent compared with large commercial customers. Moreover, Uber and Lyft it is reported to have agreed to waive some additional fees.
The federal government was part of the Uber for Business program that serves large companies and organizations. Uber is working with them.
To include the government is a natural next step for us as well as expand its customer base. We are proud to help federal agencies tackle some of the biggest administrative challenges they face. Ronnie Gurion, global head of Uber for Business, has said in a statement.