Uber and Lyft have announced they are expanding their taxi-alternative services to include carpooling.
Uber was the first to announce the service yesterday, calling it "UberPool." The service will essentially allow users to share a ride with someone going a similar route to split the cost. It's currently in beta and the vendor says it will officially hit August 15.
Lyft calls its version "Lyft Line," and users can save up to 60 percent when sharing a ride. Lyft will only be offering the service to iOS users living in the San Francisco area initially.
"We're kind of combining the concept of public transportation with on demand rides to create personal transit at your doorstep," said John Zimmer, president of Lyft.
Lyft says 90 percent of its rides are followed by similar trips by someone else within five minutes. In a city such as New York or San Francisco, it makes carpooling an obvious strategy step.
Both companies have said users who sign up to carpool will get discounts regardless of whether or not someone else shares the ride . Of course, the more people in the car, the cheaper the cost.
"At these price points, Uber really is cost-competitive with owning a car, which is a game-changer for consumers," said Uber in the blog post declaring the beta.
It seems as though both companies are aiming to be the type of service that people would use on a daily basis, rather than something that would be used every now and then for a night on the town. While riders will pay more for sharing a ride with someone else, drivers will still earn more for each person that ends up in their vehicle.
Many are skeptical of the service, saying they don't want to share a car with a stranger or allow strangers into the vehicle. Despite this, both companies screen drivers and riders when they sign up for an account, minimizing the risk of awkward or dangerous situations.
Ideally these new services will not only allow for convenience for users, but they will also mean drivers will get paid more, and there will be fewer vehicles on the road which is better for the environment. If the services are successful it's a win for everyone involved.
