Uber has announced its new carpooling service called UberPool
Shortly after aggressively dropping the prices on its ridesharing service, Uber has announced an experimental carpooling service, called UberPool, which could further reduce the price of its service by as much as 40% when compared to its UberX offering.
The startup began rolling out a private beta for the new service on Tuesday. Ther service is, as of yet, limited to the San Francisco Bay area, but the company is planning to expand the testing to more areas on August 15.
UberPool will use a special algorithm the match riders with other people who are travelling along similar routes. Customers who are not matched with other rides will still receive the discount, though.
Although Uber didn’t specify how much would be discounted or how the fare would be calculated, it mentioned some hypothetical prices. “On average, UberX already costs 40% less than taxi. Imagine reducing that cost by up to another 40%! In San Francisco, how about $6 to Uber from the Castro to the Financial District? Or $10 from Sunset to SOMA?”
Apart from saving money, Uber is also trying to focus on the social aspect of the carpooling experience. Riders who are matched with each other will be given each other’s first names. “This is also a bold social experiment,” the company said in a blog post. “There’s the interaction between riders in an UberPool–should they talk to each other? When is that cool and when is it, well, annoying?”
When UberPool eventually launches in more cities, it will bring some serious competition to Uber’s rivals such as Lyft and Sidecar. Bundling customers with similar routes together will help Uber be more efficient, save customers money, and help drivers earn more every hour.
Read more about the story at Forbes.
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