Lyft Rentals shuts down as the ride-sharing company lays off about 60 people

Lyft launched its rental car service in December 2019, more than a year after Uber shut down a similar program that provided rental cars and access to bike rides and public transportation. Lyft Rentals stood out for its low starting rate of $35 a day and lack of mileage limit that also allowed renters as young as 22 years old. Now, The Wall Street Journal reports Lyft has decided to call it quits, and the company confirmed to The Verge that it laid off about 60 employees in the rental car service as well as a smaller number of people in operations.

In an emailed statement, the company said it discontinued the business to instead focus on partnerships with rental car companies Sixt and Hertz. “This decision will ensure we continue to have national coverage and offer riders a more seamless booking experience,” said spokesperson Jodi Seth.

Other tech companies have been slowing down or halting hiring due to the economic downturn. Uber CEO Dara Khosrowshahi announced in early May that it would slow down hiring in an effort to reduce spending.

Within the last month, Google and Apple have both declared plans to slow down hiring. A Google spokesperson said that a two-week pause in hiring is occurring so company teams can “prioritize their roles and hiring plans for the rest of the year.” Microsoft also announced hiring slowdowns in May, and Bloomberg reported on Wednesday it removed many open job listings.