An electric drive system is provided. The electric drive system includes a first output member, a second output member, and an electric motor that includes an output shaft having an axis of rotation. The output shaft is operatively engaged with the first and second output members to rotate the first and second output members. A differential steering system is disposed between the electric motor and the first and second output members. The differential steering system includes at least one planetary gear assembly that has an axis of rotation that substantially aligns with the axis of rotation of the output shaft. A steering motor is operatively engaged with the at least one planetary gear assembly and is operable to modify the rotational speed of the at least one planetary gear assembly to thereby adjust the rotational speed of one of the first and second output members relative to the other of the first and second output members.