OnStar Teams Up With RelayRides
OnStar, the subscriptions-based communications subsidiary of General Motors (NYSE: GM), has teamed up with RelayRides, the company which allows customers to rent cars from people in their community.
According to a press release by OnStar, "subscribers can now rent out their idle vehicles through the RelayRides marketplace, leveraging OnStar connectivity already active in their vehicles to potentially earn hundreds of dollars a month to offset the cost of owning a vehicle."
"General Motors, through OnStar, and RelayRides have joined forces to create an entirely new mobility solution for U.S. drivers interested in more affordable, sustainable and collaborative automobile options," said Nick Pudar, Vice President of OnStar Strategy and New Business Development. "Our exclusive relationship with RelayRides provides an exciting new choice: the first automobiles to run on collaborative consumption."
With the terms of the new deal, RelayRides' renters will be able to use their smart phones to unlock OnStar-enabled cars.
"Using the OnStar API to access GM vehicles empowers RelayRides to make car sharing even safer and more convenient," said Shelby Clark, Founder and Chief Community Officer of RelayRides. "The sheer number of vehicles eligible for the program allows us to greatly expand across the U.S. and introduce the economic, environmental and community benefits of car sharing to regions that car sharing services have previously been unable to serve."
With OnStar's API, renters are able to unlock doors with their smart phone or by replying to a text message.
This new service is bad news for rival companies like Zipcar (NASDAQ: ZIP), which is a similar business but, as a direct result of this new deal, is not as convenient for OnStar subscribers.
On Monday morning, General Motors traded at about $19.50, up roughly 0.3 percent.
Follow me @BCallwood.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.