The General Services Administration (GSA) has awarded both Uber and Lyft a federal contract which will now give both companies the opportunity to work with federal agencies. The contract is allegedly worth up to $810 million and will allow both companies to offer rides to up to 4 million employees in public agencies across the country.

Although many employees were previously able to use both ride-share companies to get from one place to another, this new contract would allow them to do so directly through their companies. This contract would expand Uber’s Business program (launched in 2017) and Lyft’s business program (launched in 2018). 

This would eventually create travel discounts as well as getting fees waived when riding with one of the ride-sharing companies. Uber and Lyft would eventually be able to gain more promotion coming from private federal agencies from now on as well. 

The Los Angeles Post depicted that the main thing federal agencies seek to obtain from this contract is to be able to ensure their employees’ safety as well as being able to provide multiple ride-sharing services. 

The GSA has been negotiating this contract for quite some time now, commenting in April on being able to negotiate a discount between the companies. The statement came directly from a GSA blog post written by FAS Assistant Commissioner for Travel, Transportation and Logistics, Charlotte Phelan.  

“I’m proud our team was able to negotiate discounts of 2-4%, comparable with large commercial customers, and waived technology fees charged to use back-office vendor data and reporting capabilities,” Phelan said.

“Improving the rideshare reporting process also is a unique opportunity. GSA’s new governmentwide Rideshare/Ride-hail BPAs modernizes official travel and will make it easier, and cheaper, to use rideshare services for official travel.”

Eventually, the 2-4% discount would help agencies save many fees that were paid while using private travel companies. This new unity would also make it easier for the cost to get directly transferred over to the travelers’ GSA SmartPay card so that the expenses could be tracked, eventually making it easier to report to the Modernizing Government Travel Act. This act reimburses agencies for any expenses made for traveling when working with government business.

Written ByItzel Mendoza

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