Lyft (NASDAQ:LYFT) said on Thursday that it’s introducing a car rental service, allowing customers to rent a vehicle without having to go to the counter. Hertz (NYSE:HTZ) and Avis (NASDAQ:CAR) shares plunged on the news.
The service is initially available for select customers in the Bay Area and Los Angeles. Users tap the key icon on their app to start the process.
The rental option includes unlimited miles, and Lyft said it will handle refueling at market price.
"Our vehicles come equipped with Apple Carplay, Android Auto, and phone chargers,” the post said. "Choose free add-ons like ski racks, car seats, and tire chains. And, we’re adding hybrid vehicles to the mix soon."
Hertz dropped 17 cents, or 1.1% to $15.26, and Avis fell 54 cents, or 1.7% to $30.56.
Meantime, Lyft is facing another lawsuit from women accusing the ride-hail giant of not doing enough to protect passengers from its drivers.
The 20 women say they were victims of rape or sexual assault during rides after the previous lawsuit was filed in September. Both suits allege Lyft knowingly "continued to let sexual predators drive and interact with vulnerable members of the public."
Lyft says it's "continually investing in new features and policies to protect our riders and drivers."
Since September, Lyft launched an emergency button in the app and a "smart trip" feature that checks in with riders if something seems odd about the ride timing or course.
Lyft began Friday up 16 cents to $46.76
