Lyft targets executive travel with new luxury chauffeur brand

Lyft (LYFT) is preparing to expand its presence in executive transportation with Alcove, a luxury chauffeuring business designed for corporate clients, senior executives, and high-profile events, according to comments by Chief Executive Officer David Risher in an interview with Bloomberg.

The new brand, slated to launch early next year, will bring together TBR Global Chauffeuring, a Glasgow-based provider that Lyft (LYFT) bought last year for $110 million. The existing business operates across more than 3,000 cities in 120 countries and has a 24-hour service center. Lyft (LYFT) plans to build on that network while raising Alcove’s profile in the US.

Risher described Alcove as a more service-oriented offering than Lyft’s (LYFT) current premium rides. The service will target executives who need transportation across packed schedules of meetings, conferences, and flights, with drivers potentially handling requests beyond routine travel, including arranging a replacement shirt after a coffee spill.

The chief executive expects the business to eventually generate billions of dollars, citing demand from Fortune 500 companies and major entertainment events. Lyft (LYFT) reported about $18.5 billion in gross bookings last year.

In the interview, Risher said the market remains fragmented, with corporate clients frequently depending on smaller chauffeur operators that lack broad coverage and modern technology.

The expansion comes as Uber Technologies (UBER) also pursues corporate transportation growth. Uber has agreed to acquire Blacklane, a chauffeur provider operating in more than 500 cities across over 60 countries.

Risher expects Alcove’s customers to value personal attention from human drivers, even as ride-hailing companies expand their partnerships in autonomous transportation.