General Motors is shutting down its car-sharing service Maven just one month after suspending operations due to the impact of the COVID-19 pandemic on market conditions, according to published reports.
The automaker had already started winding down Maven by closing the service in eight markets. However, Maven was continuing to operate in Los Angeles, Detroit, Toronto and Washington, D.C. The service allows consumers to opt out of vehicle ownership and had about 230,000 members.
Shuttering Maven is not the first time GM has closed the doors on a new transportation service. In November 2018, the OEM reported that it halted its vehicle-subscription service, Book by Cadillac.
Also read: GM renews $2B credit line for GM Financial
Maven started in 2016 as a way for GM to compete in the burgeoning mobility-as-a-service sector. After launching Maven, the automaker added Maven Gig, which provided GM vehicles directly to ride-sharing drivers who might have otherwise leased from another OEM. That same year, GM acquired self-driving vehicle startup Cruise.
Several OEMs — including BMW USA, Ford Motor Co., Hyundai Motor Co. and Volvo Cars — have similar car-sharing and subscription services. However, these services have also come into question as being too costly for affordability-focused consumers, even prior to the COVID-19 crisis.
GM’s stock [NYSE: GM] was trading down 5.09% at $21.24 per share at market close. The automaker has a market capitalization of $30.35 billion.
