Google Launches Waze Carpool Rideshare Service

Google recently launched its own version of a ride-sharing service in the San Francisco Bay Area aimed at commuters. Should Uber or Lyft be worried? Not yet.

For now, Google is only offering carpool services, which drivers and riders can access through the company’s Waze app. Waze, which Google acquired a few years ago, is best known for its interactive navigation service allowing drivers to warn each other of road hazards or law enforcement officers. Now, Google has expanded the app to include Waze Carpool, which will attempt to compete with established ride-sharing companies like Uber and Lyft.

According to the The Wall Street Journal, Waze Carpool is only available to around 25,000 employees employed with larger San Francisco-based companies like Google and Adobe Systems. Riders are limited to two rides daily (essentially a round-trip commute to and from work), and rates are targeted to undercut Uber or Lyft. Meanwhile, drivers aren’t required to pass a background check, a process required for Uber and Lyft.

So how is Waze Carpool able to keep costs low and avoid regulations? According to Time¸ California law considers Google’s model a true ride-sharing operation, as opposed to Uber and Lyft, which are primarily for-hire services providing a profit for the driver and company. For example, Waze Carpool drivers are likely picking up coworkers (or those who work nearby), making it easier to prove that the trip is incidental, “meaning that the driver was already going from A to B in their own car regardless of whether someone hitched a ride,” Time reports. Additionally, drivers apparently won’t be making a profit. Instead, they’re allowed to collect a maximum of 54 cents per mile, just enough to cover fuel and wear and tear costs for a commute they were going to take anyway. Google reportedly won’t take a cut from the driver’s earnings (for now).

That said, it will be interesting to see if the services catches on. It could be a tough sell for drivers who may need to go out of their way to pick up passengers for a relatively meager compensation (though carpool lane access is definitely a benefit, if available).

Source: The Wall Street Journal, Time

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