BERLIN – Blacklane, a luxury company with the largest investor, Daimler AG
DMLRY 1.46%
, launches new in-city service in New York on Monday, trying to challenge the black car services of rivals Uber and Lyft LYFT -0.38%
as the coronavirus pandemic continues to reshape the industry.
After New York, the service will expand to Boston, Chicago, Los Angeles, London, Paris, Berlin, Milan, Singapore, Dubai and other locations throughout the month, Blacklane CEO and co-founder Jens Wohltorf told the Wall Street Journal . .
Blacklane aims to serve a narrow market share targeting business customers. It uses premium or luxury driver-driven vehicles and offers services such as baggage handling, passenger door opening and other facilities.
The pandemic industry was hit hard by the pandemic when blockades stopped mass transportation. Uber and Lyft said in February that travel bookings halved in the fourth quarter compared to the previous year.
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The industry has adapted. Uber’s food delivery service helped it withstand the gutter in its core offering. The new service within the city of Blacklane is part of a similar effort, using existing drivers who previously only served airports to provide the same driver service for rides in the cities where they operate.
While Uber and Lyft dominate the wider market, the much smaller Blacklane initially tried to carve out a niche with an app that provides driver-to-driver rides to and from airports, which was later available in 300 of cities around the world.
That business stopped when the virus caused most air travel. So in December, Blacklane began a long-distance service to the United States to attract business travelers cautious to take crowded trains and short-haul flights. Travelers can book a Blacklane driver for a trip from New York to Boston for $ 399, about half the cost of an Uber or Lyft trip on the same route.
With the new in-city service, Blacklane hopes to attract the same safety-conscious business audience. It combines a traditional luxury limousine service with the convenience of a booking application.
“Being dependent on travel and airports, we have been at the forefront of the pandemic,” said Mr Wohltorf, who co-founded the company in 2011, saying a revival of international travel is still on the horizon. “But the cities have returned; they are mobile. There is a good recovery of mobility within the city. ”
Mr Wohltorf and his investors have targeted a potential initial public offering next year, but have postponed the plan until 2023 at the earliest, he said.
“The longer we wait, the more valuable we will become and the greater the impact we will have. There is no reason for agitation, “he said.
Last month, Blacklane acquired a majority stake in Havn, the all-electric driver service launched by Jaguar Land Rover in 2019, to help Blacklane make a transition to a fully electric fleet.
Write to William Boston at [email protected]
Corrections and amplifications
Uber and Lyft said in February that travel bookings halved in the fourth quarter compared to the previous year. An earlier version of this article incorrectly implied the statements made in January. (Corrected on February 28, 2021.)
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It appeared in the March 1, 2021 print edition as “New Service to Edge Into Uber, Lyft.”