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Google enters the rideshare market

This will be worth watching.

Google is moving onto Uber Technologies Inc.’s turf with a ride-sharing service to help San Francisco commuters join carpools, a person familiar with the matter said, jumping into a booming but fiercely competitive market.

Google, a unit of Alphabet Inc., began a pilot program around its California headquarters in May that enables several thousand area workers at specific firms to use the Waze app to connect with fellow commuters. It plans to open the program to all San Francisco-area Waze users this fall, the person said. Waze, which Google acquired in 2013, offers real-time driving directions based on information from other drivers.

Unlike Uber and its crosstown San Francisco rival Lyft Inc., which each largely operate as on-demand taxi businesses, Waze wants to connect riders with drivers who are already headed in the same direction. The company has said it aims to make fares low enough to discourage drivers from operating as taxi drivers. Waze’s current pilot program charges riders at most 54 cents a mile—less than most Uber and Lyft rides—and, for now, Google doesn’t take a fee.

Some years ago, I remember reading a story in the Chronicle about Houston drivers cruising through the park-and-ride lots in the mornings to pick up passengers for the commute into downtown. They were doing this because having an extra person or two meant they could take the HOV lane, thus greatly reducing the drive time they’d face if they went solo, as they would have done otherwise. This was done more or less ad hoc – I’m pretty sure this was all before Facebook and smartphones were things – but it seemed to work pretty well. I bring it up because that’s what this story reminds me of; having the smartphone app and the financial backing of a behemoth like Google just formalizes what had been an ad hoc process borne of frustration and impatience. I have no idea how well this will scale outside of a unique environment like the San Francisco area, but if anyone can make it into something viable, it’s Google. Slate and the Associated Press have more.

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