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GM is ending its Maven ride-sharing service in several US cities, including Boston and Chicago

May 21, 2019, 18:27 IST

GM

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  • GM is taking its Maven ride-sharing service out of eight cities, including Boston and Chicago.
  • The head of the service departed GM earlier this year.
  • GM CEO Mary Barra has stressed that the carmaker will consistently work to maximize its return on investment, and has been unflinching about shedding unprofitable ventures.


General Motors' Maven ride-hailing service will cease operations in eight cities later this year.

Those markets include Boston and Chicago, according to a report in The Wall Street Journal. GM confirmed to the Journal that Maven would be leaving Boston and Chicago, but declined to provide the names of the other six cities.

Maven was started in 2016, but it lost its chief, Julia Steyn, earlier this year. GM didn't comment on Steyn's departure at the time and didn't immediately respond to a request from Business Insider for additional detail on Monday's news.

GM and other traditional automakers have been delving into transportation services that are distinct from their historic business of building and selling vehicles. The profit margins in the legacy industry can be slim, while services could be rather lucrative.

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But with hyped IPOs from Lyft and Uber failing to meet expectations, transportation services are under a financial microscope. And GM is currently investing $1 billion per year on its Cruise self-driving plans, with the goal of launching in 2019.

CEO Mary Barra has reliably focused on GM's return on investment and has been unflinching about shedding unprofitable ventures, including the carmaker's European division, Opel, which was sold to Peugeot in 2017.

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