This week, it was reported that General Motors would be pulling Maven out of eight of the 17 markets it currently operates in to optimize the ride-sharing app’s business and focus on markets where it has so far proven to be the most popular.
Speaking to The Detroit Free Press, GM said the Maven changes weren’t officially announced by the company, as it always predicted it would have to make adjustments to Maven’s business strategy. It went public with the info with the media in order to let affected customers know of the change.
“This is not an announcement, just the course of business,” Maven spokesperson Jordana Strosberg told The Free Press. “We want to give customers and members a heads-up and the right amount of time so people can be aware of when or if their reservations can be made or not.”
In a previous statement, GM said it would be “shifting Maven’s offerings to concentrate on markets in which we have the strongest current demand and growth potential.”
Many details of the changes are not known, including which markets it will pull out of. Reports indicate Maven will cease operations in Chicago, New York City, and Boston, among others, and will remain open in major markets like Los Angeles, Washington, D.C., Detroit, and Toronto.
According to The Fress Press’ report, Maven will continue to operate certain services in some markets such as Maven Gig, but will stop ride sharing. In others, it will discontinue all Maven services. Both Maven Gig and Maven ride sharing will remain in the automaker’s home market of Detroit, with Strosberg describing GM’s hometown as “a very important market focus” for the company.
While Maven is likely not profitable for GM at the moment, many automakers are currently operating similar ride-sharing apps or services as market research for the future, when such business models may become commonplace. Experts believe the company is also farming data through Maven about vehicle selection and usage that could be useful for product planning.