Carpool 2.0: Uber and rivals Lyft roll out electric vehicles and employee drivers

Startups like Alto, Revel and Kaptyn are positioning themselves as Rideshare 2.0. – alternatives to Uber and Lyft which use employees rather than concert workers as drivers and put fleets of company-owned cars on the road.

Why is this important: These companies’ vertically integrated business models mean they can roll out electric fleets faster than current market leaders, whose promises to go electric depend on persuading concert drivers to upgrade their personal cars to vehicles. electric.

  • The newcomers are also betting on a puff of cachet: Alto, for example, which plans an all-electric fleet by the end of 2023, uses a subscription model and boasts “5-star vehicles + 5-star experiences”.
  • “Our drivers are employees, not contractors, which benefits them – and you,” boasts Alto.

Driving the news: Alto begins service in Washington, DC, this week and in Silicon Valley by the end of the month, with ambitious growth plans for the remainder of 2022 after raising an additional $ 45 million in capital last summer.

  • Alto currently offers trips to Los Angeles, Houston, Miami, and his hometown of Dallas.
  • The bulk of its fleet consists of Buick Enclave, Cadillac XT6 and Volkswagen Atlas SUVs, and the company expects to have more than 1,000 Altos on the road by the end of September.

And after: The company is negotiating the purchase of 3,000 electric vehicles by the end of 2023.

  • This will require the installation of charging infrastructure in its maintenance depots on the outskirts of each city where it operates.

The big picture: Alto joins Revel and Kaptyn in an attempt to reinvent the industry by avoiding the many stumbles that have stumbled Uber and Lyft over the years.

  • By employing their own drivers and maintaining their own fleets, these companies aim to provide more consistent, reliable and safe transport, while ensuring that drivers can make a decent living – and businesses can make a profit.
  • Revel, which starts in New York, has a fleet of all-electric Tesla.
  • Kaptyn, which operates in Las Vegas, markets itself as a private car service with a fleet of premium electric vehicles that allows you to “experience zen travel in a comfortable, zero carbon ride in which you can. feel good ”.

What they say : “We see this as the difference between Airbnb and Westin,” Alto CEO Will Coleman told Axios.

  • “Every Westin is the same. They treat you the same. That’s what you’ll get in an Alto, no matter what city you’re in.”

The trap : You’ll pay more to get into an Alto, as you would to stay in a Westin hotel.

How it works: Alto members pay a monthly access fee of $ 12.95, or $ 99 per year, which includes priority status when demand is high.

  • Member fares are comparable to an Uber XL, while guest fares are about the same as the more expensive Uber Black, Coleman says.
  • “This is what is needed to pay the driver fairly, to pay for a safe, well-maintained, and clean vehicle, and to build a business that works,” said Coleman.
  • Drivers can earn $ 15.50 to $ 18.75 an hour, depending on demand, plus company-paid health insurance.

The bottom line: Your options for getting around are multiplying.

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