Lyft starts a business travel brand, escalating its Uber rivalry

Lyft is starting Alcove, a new brand aimed at business travelers.

Paul Bersebach/MediaNews Group/Orange County Register via Getty Images Lyft is starting a new business-focused ride brand.

Alcove will offer chauffeur services using a company that Lyft acquired last year.

Both Uber and Lyft are betting big on the upscale business travel market.

Lyft is creating a new brand to target the business travel market.

The division, called Alcove, will combine new corporate travel offerings with UK-based TBR Global Chauffeuring, which Lyft acquired last year for the equivalent of $110 million.

Alcove will provide "the highest levels of service" with "great chauffeurs," Lyft CEO David Risher said in a statement Thursday.

"Like the bridge instead of the tunnel? Prefer 72 degrees? Want the rear window open just a bit? That's what Alcove will offer," he said.

Alcove is the latest effort by a ride-hailing company to tap into business and executive travel — a market that companies believe is more lucrative than your average ride.

In March, Uber started its own version, called Elite, as a similar black-car service "designed for executives, frequent travelers, and riders looking for a more elevated experience," the company said .

The same month, Uber acquired Berlin-based chauffeur service Blacklane .

The global chauffeur market is worth "tens of billions of dollars," Lyft said in its statement announcing Alcove.

Alcove will initially work directly with companies and travel management firms, Lyft said.

The company plans to formalize the new brand by unveiling a new portal and a mobile app next year, it said.