From Guest Blogger Jordan: Google Attempts to Invade Uber's Ride-Sharing Turf Through Waze

The driverless cars that Google is developing seem to fit perfectly into the ride-sharing industry, so it comes as no surprise at all that the search giant is looking to enter this business. The immense growth in popularity that ride-sharing services have seen lately is the reason behind Google’s decision to invest in Uber – the largest ride-sharing company in the world – a few years back, forming a partnership that seemed like a match made in heaven at that time.

But, earlier this year, rumors started surfacing about Google’s plans to launch its own taxi-hailing app and effectively become a competitor to Uber. Now, it seems that the tech company is officially starting to invade Uber’s turf, through a new app launched by Waze, the navigation start-up that it owns. Waze has announced that it has launched a ride-hailing app in Israel, which is aimed at commuters going to and from work. The app is called RideWith, and it is part of a beta test that will be conducted in Tel Aviv, where Waze is based.

“We are conducting a small, private beta test in Tel Aviv for a carpool concept,” Julie Mossler, a spokesperson for Waze, said in a statement for WIRED. “Waze regularly experiments with new ideas in our backyard, and we have nothing specific to announce at this time.”

The app will help commuters needing a ride find drivers who have a similar route on their way to or from work, in a service resembling carpooling. Although RideWith is touted as a direct competitor to Uber’s app, there are several significant differences between them. For starters, the number of rides that drivers can accept through RideWith is limited to two per day, and only for those who are traveling to or from work. Also, passengers will only have to contribute for the driver’s gas costs and his/her car’s wear and tear, unlike Uber users, who have to pay a specific fare that is based on the distance covered and a few other factors. What’s more, passengers will not be able to book a ride on-demand, and will have to do it a couple of hours in advance. While drivers will not receive any compensation beyond costs associated with their car’s wear and tear, Google will take a cut of the payment.

The above-mentioned restrictions are supposed to help Waze avoid the regulatory issues faced by Uber, which prevent it from operating in many cities around the world, and have lead to numerous protests from taxi drivers in some of the cities where it is allowed to offer its services. Regulators are not expected to have any objections to this service offered by Waze, since drivers will not be realizing any commercial gain by transporting passengers to and from work, so they won’t be required to obtain a commercial driver’s license and undergo background checks, which is what Uber’s drivers have to do.

In any case, the launch of the RideWith app certainly has the potential to heat up the competition in the ride-sharing industry, which is poised to grow substantially for years to come.