General Motors is winding down Maven, its car-sharing business, which fell victim to both the societal and economic challenges of the coronavirus pandemic.
Why it matters: With its factories shuttered and car demand plummeting, GM needs to shore up its finances to support its core business. Besides, the idea of car-sharing is less appealing when you don't know who drove the vehicle before you and whether they left any germs behind.
Maven had already pulled out of certain cities last May, as GM struggled to adapt to the rapidly evolving mobility business.
- When the coronavirus struck, the company suspended remaining Maven services.
- Now it is shuttering the business entirely. Maven employed 45 people, most of whom will stay with GM.
- Maven boss Sigal Cordeiro will move to GM’s Global Innovation organization as the executive director of sales, marketing and partnerships.
What they're saying: “We’ve gained extremely valuable insights from operating our own car-sharing business,” said Pamela Fletcher, GM's vice president of global innovation. “Our learnings and developments from Maven will go on to benefit and accelerate the growth of other areas of GM business.”