GM Stock Climbs on Lyft Partnership Expansion

GM stock is trading higher this afternoon as it will expand its car-rental partnership with Lyft to California and Colorado.
By Rachel Graf ,

NEW YORK (TheStreet) -- Shares of General Motors (GM) - Get Report are gaining 1.45% to $30.09 in mid-afternoon trading on Monday as the automobile manufacturer will expand its program for renting vehicles to U.S. drivers for ride-hailing app Lyft to California and Colorado.

The Express Drive program launched earlier this year in Chicago and has since expanded to Baltimore, Washington, DC and Boston.

The companies said 30% of Lyft new driver applicants in Chicago asked for an Express Drive vehicle and the Boston program was fully subscribed in fewer than four days, the Wall Street Journal reports.

In January GM invested $500 million in Lyft. It uses the app as a main customer for its Chevrolet Bolt electric vehicle, the Journal adds. GM is also working with Lyft to develop a system that could deploy driverless cars to customers.

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.

GM's strengths such as its compelling growth in net income, revenue growth, notable return on equity, attractive valuation levels and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

You can view the full analysis from the report here: GM

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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