General Motors (GM) has announced the closure of Maven, its car sharing service, marking the end of its venture into the competitive mobility sector. Launched in 2016, Maven aimed to rival established services like Zipcar and Car2Go, but joins a growing list of car-sharing platforms, particularly those initiated by automakers, that have struggled to thrive in North America. This decision reflects a strategic shift for GM as it re-evaluates its business in the face of industry changes and the unprecedented impact of the COVID-19 pandemic.
Maven’s Journey: From Ambitious Start-up to Market Exit
Maven’s initial concept was to directly compete with popular car sharing services, offering users on-demand vehicle access in urban environments. Expanding its model in 2018, Maven ventured into peer-to-peer car sharing, allowing individual car owners to list their vehicles on the platform, similar to Turo or Getaround. At its peak, the Maven Car Sharing Program boasted operations in 17 major US cities, signaling initial promise and market penetration.
However, the journey wasn’t without its challenges. Following the departure of Maven’s first CEO early in 2019, GM began to scale back the service’s reach. By mid-2019, Maven had ceased operations in approximately half of its cities, including significant markets like Boston, Chicago, and New York City. Despite maintaining services in key locations such as Detroit, Los Angeles, Washington, D.C., and Toronto, operations were suspended last month as the COVID-19 pandemic disrupted daily life and significantly reduced travel demand.
COVID-19 and Strategic Reassessment Drive Shutdown
In a communication to Maven customers, GM cited a critical review of its business, the broader automotive industry landscape, and the ongoing COVID-19 crisis as key factors in the decision to discontinue the maven car sharing program. The pandemic has significantly impacted the car sharing industry, with reduced demand and heightened concerns around shared mobility. This external pressure, combined with internal business considerations, led GM to make what it described as a “tough but necessary decision.”
Pamela Fletcher, GM’s vice president of global innovation, emphasized that valuable lessons were learned from the Maven experiment. “We’ve gained extremely valuable insights from operating our own car-sharing business,” Fletcher stated. She further indicated that these “learnings and developments from Maven will go on to benefit and accelerate the growth of other areas of GM business,” suggesting that the knowledge gained will be repurposed for other GM initiatives, potentially in areas like electric vehicles or autonomous driving technologies.
Maven Gig to Wind Down, Prioritizing Driver Needs
The shutdown also encompasses Maven Gig, a specialized service branch that provided vehicles exclusively for drivers working with ride-sharing platforms like Lyft and Uber. GM acknowledged that winding down Maven Gig will be a more complex process. Recognizing the essential role Maven Gig drivers play, particularly in current circumstances, GM stated, “we will ask customers to return [Maven Gig] vehicles only when it’s safe and allowed to do so. We also don’t want to disrupt important food and supply deliveries Gig drivers might be making.” This cautious approach highlights GM’s consideration for the drivers who relied on Maven Gig for their livelihoods.
Conclusion: Industry Insights and Future Mobility
The closure of the maven car sharing program underscores the challenges in the car sharing market, particularly for automaker-backed initiatives. While Maven’s journey was relatively short-lived, GM emphasizes the valuable insights gained. These learnings will likely inform GM’s future strategies in the evolving mobility landscape, even as it steps away from direct car sharing operations. The decision reflects a broader trend of reassessment within the automotive industry as companies adapt to changing consumer behaviors and market dynamics, especially in the wake of global events like the COVID-19 pandemic.
