The General Services Administration (GSA) has awarded Uber and Lyft with contracts for rideshare/ride-hailing services. The five-year contracts are worth up to $810 million.

Federal agencies had been exploring the use of transportation network providers (TNCs) and innovative mobility technology companies (IMTCs) to reduce travel expenses and the related burdensome back office functions such as reports, analytics, and business improvement processes, according to the RFP.

GSA’s goal with awarding the contract is to consolidate federal spending in this subcategory of travel to obtain the most favorable terms, conditions, and discounts. GSA expects federal employees to use $162 million in rideshare/ride-hailing services annually, based on FY-18 vouchers processed.

In addition to on-demand transportation services, the contract winner is expected to provide data analytics to support the number of trips and savings, access to an online data portal to each participating agency and GSA, capabilities for reconciliation of consolidated invoices and travel voucher receipts, consolidated billing options, and more.

Federal employees can use the service while carrying out official duties in the contiguous United States, Alaska, Hawaii, and Puerto Rico.

GSA was able to negotiate discounts of 2-4% and waived technology fees charged to use back-office vendor data and reporting capabilities, according to a GSA blog post. 

*This article was updated 4/28.