Ride-hailing company Lyft’s latest venture is a rental-car business that it is currently testing in three California markets – San Francisco, Los Angeles, and Oakland.

This is not your normal rental-car as there is a ride-sharing component. Lyft offers renters a USD 40 ride-share credit so they can get to the pickup location. However, prices are comparable to those offered by traditional car-rental companies.

Some of the vehicles available for rent are Volkswagen Passat, Volkswagen Atlas, Mazda 3, and the Mazda CX-5.

Drivers must be at least 22 years old to rent a car from Lyft. Unlike other rental car companies, Lyft does not charge a premium for drivers under age 25.

This new service is part of Lyft’s goal of having more modes of transportation – from cars to bikes to scooters. The company had this vision of a world where no one owns personal vehicles and they are instead shared. This seems to be another move in that direction.

Lyft has been toying with car rental for years. Lyft has long offered car rentals as an option through a programme called Express Drive, which is a partnership with Avis, FlexDrive, and Hertz.