GM's Car-Sharing Business to End Service in Eight of Its 17 North American Cities--Update

Date : 05/20/2019 @ 9:43PM
Source : Dow Jones News
Stock : General Motors Company (GM)
Quote : 39.48  0.36 (0.92%) @ 1:00AM

GM's Car-Sharing Business to End Service in Eight of Its 17 North American Cities--Update

GM (NYSE:GM)
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By Mike Colias 

General Motors Co. plans to wind down its Maven car-sharing service in more than a half-dozen cities, the latest car company to encounter challenges as it works to expand new transportation ventures.

Maven, a car-sharing brand launched in 2016 by GM, will end service in eight of the 17 North American cities it currently operates in within the next few months, a GM spokeswoman said.

The cities where it plans to terminate business include major markets, such as Chicago and Boston. Maven will continue to operate in Los Angeles, Washington, D.C., Detroit, Toronto and other cities, she said, declining to provide a full list of closures.

"We're shifting Maven's offerings to concentrate on markets in which we have the strongest current demand and growth potential," the company said in a statement. GM declined to elaborate on the specific reasons why it was ending service in the eight markets.

An email sent to one Maven customer in Chicago said the service would wind down there by July 26.

The move comes as Uber Technologies Inc. -- a ride-hailing firm that served as a model for many car makers trying to diversify into new transportation ventures -- has continued to post sharp losses and its stock has slumped following its IPO earlier this month.

In January, Maven chief Julia Steyn left GM after leading the division since its inception. GM didn't give a reason for her departure. Ms. Steyn, a former Goldman Sachs and Alcoa executive, didn't reply to requests for comment.

(More to come)

Austen Hufford contributed to this article.

 

(END) Dow Jones Newswires

May 20, 2019 16:28 ET (20:28 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.

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