The Lithia blueprint: how one major dealer group transformed its transportation model

Lithia Motors, one of the nation’s largest dealer groups—and still growing—recently modernized its transportation model. That decision was driven by the rising costs across the industry, inconsistent customer experiences, and limited scalability of its shuttle fleets.

Lithia’s transportation challenge

With every new dealership Lithia opened, this automotive retailer needed more shuttle vehicles, personnel, and scheduling systems. That model can’t easily expand or contract with changing business needs.

When the procurement team evaluated possible solutions, it focused on scalability, operational flexibility, and the best experience for customers, including more choice. As Lithia described in a recent ASOTU webinar with Uber for Business, it compared a fixed‑cost shuttle model with a variable model through Uber for Business. It chose the latter.

Why Lithia made the switch

Uber for Business offered an on‑demand alternative: a nationwide platform matching Lithia’s footprint and capable of delivering consistent customer experiences anywhere Uber is available. As executives explained, moving to a variable approach meant they didn’t need facilities, personnel, or systems dedicated to transportation at each location.

With Uber, Lithia pays only for the rides taken, turning a fixed overhead expense into a scalable, usage‑based service. But cost concerns alone didn’t drive the decision. Analysis showed that the variable model could put the company in a stronger position from a customer‑service standpoint—including that customers didn’t have to accept a one-size-fits-all shuttle.

The Uber for Business approach also frees dealership staff from managing shuttle vehicles, insurance, and scheduling, so they can refocus on service quality.

Lithia’s rollout strategy

Implementation is designed for simplicity and speed. Dealerships can start in minutes:

Network‑wide availability: Any dealership can use the program immediately.
Low‑barrier setup: No added cost, no contracts, and flexible parameters that let you start small.
Integration optionality: Access is through existing tools, including CDK, partner platforms, or Uber’s Central platform.
Minimal training: Employees already familiar with Uber’s consumer app can easily adapt.

Before the rollout, conversations between the Lithia and Uber for Business teams revolved around understanding goals, customizing cost caps or distance limits, and fitting Uber for Business into existing dealership workflows.

Measured success

Dealership managers report increased satisfaction from service teams and customers who appreciate transparency and communication throughout each trip.

Financial results support the model as well. OEM warranty reimbursement programs—offered by more than half of major manufacturers—help cover the cost of rides for service customers, amplifying ROI.

Beyond basic transportation

The success of the rideshare model has opened the door for dealerships like Lithia to expand use cases:

New‑car delivery logistics to enhance purchase‑day convenience
Uber Eats to support customer satisfaction when service delays occur
Parts delivery as a future consideration to streamline internal operations

Each use case demonstrates how a flexible transportation model can scale across departments and adapt to evolving customer expectations.

Learning from Lithia’s success

Lithia Motors proves that switching from a fixed to a variable model can increase efficiency, improve experiences, and scale without adding complexity. Dealerships of any size can adopt the same approach: quick setup, nationwide coverage, and no‑contract testing.

Explore how Uber for Business can help your organization modernize customer transport, or request a demo from our team.