The car rental industry is changing with Google’s $1 billion deal
Chrysler, GM and Fiat Chrysler Automobiles have all signed a $1.6 billion deal to buy luxury car rental service CarHire, which will include a $5 million cash infusion from Google.
The deal is expected to close by the end of this year.
The news comes on the heels of another deal that Google announced last week, in which it will acquire Lyft and invest $100 million in a new startup called Waze.
The car-rental giant said it was buying Waze because it “believes in a disruptive future in transportation,” according to the press release.
Read more about car rentals: The deal was announced Thursday during the company’s quarterly earnings call.
It was announced in the company website and via a news release.
Read moreAbout CarHive: CarHire is a free-to-use platform that enables drivers to rent a car from a private car rental company.
The service is currently available in 11 cities, including Chicago, Chicago, Detroit, Los Angeles, New York, Philadelphia, San Francisco and Washington D.C. Carhire, founded in 2009, allows drivers to book a rental vehicle through the Google-owned mobile app, and it offers car-sharing, rental car, private car, and car hauler services.
It will provide drivers with real-time and live information about the cars they are booking, including fuel and maintenance, insurance, and other details.
“Our mission is to make renting a car easier and more affordable for everyone,” said Andy Rubin, co-founder of Google.
“Google’s CarHair is one of the first examples of a new type of sharing economy that’s powered by technology and technology can change how we share our lives.”
The company said it will launch a subscription-based service in 2017.