OnStar teams with RelayRides to offer car sharing service
RelayRides, which is backed by Google Ventures, is teaming up with OnStar to provide an alternative to traditional car rental firms. The company aims to allow individual car owners to rent their vehicle when they are not using it themselves, utilizing OnStar technology to monitor and manage the rental. Someone who might need a car, say, to run a couple errands, could access a vehicle from someone living down the block or working in a nearby office.
The exclusive relationship will begin in early 2012, and will be limited to GM vehicles equipped with OnStar. An owner who wants to make a vehicle available can sign up online and set their own rental rate and after the vehicle is inspected and approved, it is offered to RelayRides customers who pay by the hour.
The service is currently available in Boston and San Francisco. RelayRides claims the average vehicle is generating $250 in revenue a month. Of that, 65% goes into the pocket of the vehicle owner, 20% covers insurance and the remaining 15% is kept by RelayRides.
Were using technology to make both our older and newest models car share ready and available for those owners who choose to participate in car sharing, said Stephen Girsky, GM vice chairman. Our goal is to find ways to broaden our customer reach, reduce traffic congestion in Americas largest cities and address urban mobility concerns.
Car sharing is being tried in many parts of the world, especially in crowded urban areas where vehicle ownership can be costly. In Paris, for example, the city has just begun a program which makes available small electric vehicles that can be picked up in one neighborhood and then dropped off at a reserved parking spot on the other side of town without a penalty.
The best-known car share company in the U.S. is ZipCar, which provides a fleet of vehicles that are typically parked at dedicated spots in many cities, particularly those with large college and university communities.
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