Uber, Lyft Win $810 Mln Worth Federal Transportation Contract

The U.S. federal government’s General Services Administration or GSA has awarded a five-year federal transportation contract, estimated to be worth up to $810 million, to Uber Technologies Inc. and Lyft Inc., according to multiple reports.

Under the contract, the ride-hailing companies would provide services to various public agencies and their around 4 million employees across the nation.

Earlier, individual federal employees were allowed to use ride-hail services for travel, while the latest contract would allow the companies to formally launch their services within agencies and directly work with officials.

The contract has been awarded to Uber’s business-to-business division “Uber for Business.”

Ronnie Gurion, global head of Uber for Business, said, “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.”

GSA, which manages various services for federal agencies, in April had announced tentative deals with the ridesharing companies. In a blog post then by FAS Assistant Commissioner for Travel, Transportation and Logistics Charlotte Phelan had revealed that ridesharing and ride-hailing services would be offered by Lyft and Uber in U.S domestic locations that include the top 50 markets where government employees travel.

The agency further said then that it had negotiated discounts of 2 percent to 4 percent with the companies, comparable with large commercial customers. Uber and Lyft also waived technology fees charged to use back-office vendor data and reporting capabilities.

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