innovations BidRide takes the surge out of ridesharing Auction app allows rider to set price
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idesharing services have become a common form of transportation in Milwaukee, particularly among young professionals. While the services, such as Uber and Lyft, offer a convenient way to request a ride MOLLY DILL, managing editor Email: molly.dill@biztimes.com Phone: (414) 336-7144 Twitter: @BizMolly
from one location to another via a mobile app, there are a couple of aspects some users dislike, says Andrea Davis. For one, the existing ridesharing services use a surge pricing model, in which the cost of a ride can increase significantly during peak ridership times and large events, such as Summerfest.
Another concern among riders is safety, as Uber and Lyft drivers are contractors who sometimes do not have commercial insurance. Davis has co-founded a new ridesharing service, called BidRide, which was launched in late April and is currently piloting in Milwaukee. She recently presented her startup at a meeting of entrepreneurship organization 1 Million Cups at Ward4 in the Historic Pritzlaff Building near downtown Milwaukee, where other innovators asked her questions about the company. Growing up in her family’s taxi company, American United Taxi Co., Davis felt the industry was slow to innovate and adapt to the new transportation paradigm. “Traditional taxis are perceived as
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slow, for good reason,” she said. “Most taxicab rides are not picked up within 10 BidRide minutes,” while Uber and Lyft rides often Milwaukee arrive more quickly. Innovation: Ridesharing auction app Riders also perceive taxis as more exwww.bidrides.net pensive than ridesharing services, but Davis said that’s not usually the case. “After we looked at the challenges, we hours per week in their free time, she said. looked at, ‘What are the opportunities? The rider downloads the BidRide app What can we do differently?’” she said. and inputs his or her credit card informaBidRide is powered by an app, and uti- tion. When the rider would like to go somelizes American United’s existing licensed where, he or she enters the pick-up and drivers and well-marked, fully insured drop-off locations. The app suggests a price, taxicabs to provide ridesharing services, and the rider makes the decision on what to Davis said. offer, then puts the request out to the driver When Uber enters a new city, it must network. There is no minimum bid. recruit both drivers and riders. BidRide A driver can accept the price, make a has a leg up since it uses existing taxicab counter offer or deny the bid. The driver drivers with which it already has a rela- can see a map within a 15-mile radius and tionship, she said. which riders are making bids. Multiple “We already have the drivers. We just drivers can bid on the same rides. A ride’s need to get them to sign up for the app,” status is indicated by a green, yellow or red Davis said. “They already have to have the dot. A green ride has not been reviewed, a appropriate amount of insurance for you yellow ride is in the bidding process and a to get in their cars.” red ride is in transit. There are a couple of other key differBidRide takes the flat fee and a small ences from existing ridesharing apps. For commission of each ride, but the tip is one, there is no surge pricing. The rider not included. and driver agree to a price for the ride, plus “Our main appeal is that we have the a $1 bid fee, through an auction process. rider and the driver negotiate the price “Since the rider and the driver nego- between themselves,” Davis said. “We have tiate the price, (the drivers) can make as nothing to do with the price. Whereas much money as they want,” Davis said. apps like Uber and GetTaxi, they decide And BidRide’s drivers work full time, the price for you.” about 40 hours per week, versus ridesharing drivers, who often work about 10 .................. INNOVATIONS continued on page 11
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