Ride-hailing company Uber is venturing into new product categories with the launch of a car rental feature on its mobile app.
The company said the feature should be available to customers nationwide where its partner's services are available. A valet delivery service will also be launched in Washington, D.C., next month and then the rest of the country in the following months, Uber said.
According to Uber, it has signed a partnership with car rental brands such as Avis and Hertz for the new program. The feature, called Uber Rent, will allow customers to directly book rental cars from its mobile app wherever they are.
Uber said pricing will be set by the rental companies depending on the location and vehicles selected by customers. Uber said it will only be taking a cut out of the bookings, similar to how traveling booking sites operate.
Following the pandemic, the U.S. has been experiencing a shortage of rental cars after rental companies had sold off much of their idled fleets. Uber said it may be able to attract customers to reserve rental cars once again through its streamlined app experience.
The company said its app should provide a "decluttered" experience for customers based on its recent user testing. To encourage customers to rent cars, Uber is offering a 10% rebate on all bookings using Uber Cash. Uber did not say when the promotion would end.
For its valet service, Uber said it will be making the feature available in DC next month. The company said the feature should be available to customers in other states later in the year.
Ube said the price for the valet service will be similar to the cost of an on-demand ride. Valet drivers, which will be drawn from Uber's pool of drivers, can deliver rental vehicles right onto a customer's doorstep.
Uber said it is exploring contactless delivery methods using technologies such as PIN codes and biometric authentications to address social distancing concerns. Customers can also leave tips for valet drivers using their apps, Uber said.
Uber's competitor, Lyft, already offered car rental services in its app. Lyft launched its car rental service in 2019 through a partnership with Sixt. The company currently offers the service in 15 states and the District of Columbia.
