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Ed Carpenter Racing on Wednesday said it has ended its relationship with driver Conor Daly effective immediately and will announce a new driver for the No. 20 Chevrolet by IndyCar's next race.

Daly has been working with ECR since 2020, but did not run a full season with the team until last year when he brought sponsor BitNile to the team. BitNile has been supportive of Daly and sponsored him in the Daytona 500 this year.

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Conor Daly walking

Conor Daly, driver of the #20 BitNile Chevrolet, is introduced before the NTT IndyCar GMR Grand Prix at Indianapolis Motor Speedway on May 13, 2023 in Indianapolis, Indiana.  (Photo by Justin Casterline/Getty Images)

"This is the most difficult decision I have made as a team owner because I respect Conor and know what he means to IndyCar and its fans," Carpenter said of the 31-year-old Indianapolis native.

"Our team has not been performing at the level we are capable of this year, and despite making technical changes and investments in the offseason, 2023 has been extremely challenging," Carpenter continued. "I have put a great deal of consideration into the current state of our team and realize it is my obligation to our employees, partners, and supporters to do whatever is necessary to elevate our team’s competitiveness."

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Conor Daly driving

Conor Daly, driver of the #20 BitNile Chevrolet, drives during the NTT IndyCar GMR Grand Prix at Indianapolis Motor Speedway on May 13, 2023 in Indianapolis, Indiana.  (Photo by Justin Casterline/Getty Images)

Daly is ranked 20th in the standings after Sunday's 15th-place finish in Detroit. His best finish this season was eighth in the Indianapolis 500 last month.

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Conor smiles for camera

Conor Daly signs autographs at the 2023 Acura Grand Prix Of Long Beach on April 14, 2023 in Long Beach, California.  (Photo by Greg Doherty/Getty Images)

"Although we’ve mutually decided that it’s in our best interests to take different paths, I’d like to thank ECR for the past three and a half seasons," said Daly. "I’m grateful to everyone who has supported me – past, present and into the future. I look forward to taking on the next opportunities that await, and I want to thank the fans for being with me on this ride."