Uber Technologies Inc and Lyft Inc have been awarded a federal contract value as much as $810 million to supply their ride-hail companies to public businesses and their greater than 4 million staff and contractors throughout the nation.
The General Services Administration (GSA), which manages companies for federal businesses, issued its ultimate five-year award on Monday, stated Veronica Juarez, Lyft’s vp of social enterprise and authorities.
While particular person federal staff have beforehand been in a position to make use of ride-hail companies for journey, the brand new contract permits the businesses to formally launch their companies inside businesses and instantly work with officers to advertise the service.
Juarez stated the award capped a virtually four-year negotiation course of. She declined to say how a lot income Lyft anticipated from the contract, however stated the U.S. authorities spends round $200 million on floor transportation every year.
Lyft additionally hopes the federal government contract will open doorways to additional collaboration on public well being and fairness initiatives that require transportation.
The GSA didn’t instantly reply to a request for remark, however the company in April introduced the award to Uber and Lyft tentatively.
At the time, the company stated in a weblog publish that it had negotiated reductions with the businesses of two%-4% in contrast with massive business prospects and that Uber and Lyft had agreed to waive some further charges.
Uber in an announcement stated working with the federal authorities was a part of its Uber for Business program that serves massive corporations and organizations.
“The expansion of our customer base to include government is a natural next step for us, and we’re proud to help federal agencies tackle some of the biggest administrative challenges they face,” Ronnie Gurion, world head of Uber for Business, stated in an announcement.