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Maven, GM's car-sharing service, is shutting down as the coronavirus pandemic upends mobility startups

Matthew DeBord   

Maven, GM's car-sharing service, is shutting down as the coronavirus pandemic upends mobility startups
Thelife1 min read
  • Maven, General Motors' car-sharing service, announced that it would wind down its operations through the spring and summer.
  • Maven had suspended operations in March, amid the COVID-19 pandemic.
  • Maven was founded in 2016.
  • 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.
  • Visit Business Insider's homepage for more stories.

Maven, the car-sharing service that General Motors established in 2016, is winding down operations, the company said on Tuesday, citing the COVID-19 pandemic as a cause.

"We've gained extremely valuable insights from operating our own car-sharing business," GM vice-president Pamela Fletcher said in a statement. "Our learnings and developments from Maven will go on to benefit and accelerate the growth of other areas of GM business."

Maven had been under stress since last year, when it curtailed the number of cities it operated in, leaving large markets such as Boston and Chicago. In early 2019, the company had lost its chief, Julia Steyn.

The wind-down will be completed by the end of summer. Members were informed of the decision on Tuesday.

The company said that Maven's "assets and resources will be transferred to GM's Global Innovation organization, as well as the larger enterprise."

GM added that Maven's operations had been suspended in March, at which time the business was evaluated for it viability moving forward. GM CEO Mary Barra has been focused on maximizing return on investment from all the automaker's business, leading to moves such as selling the underperforming Opel division in Europe in 2017 and ending manufacturing in Australia.

COVID-19 has wrecked havoc with the so-called sharing economy, hurting a range of business, including Uber and Lyft, as well as AirBnB.

In addition to an app-based ride-sharing service Maven ran Maven Gig, proving rental vehicles to ride-hailing drivers.

Read the original article on Business Insider

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