Big changes are coming in the Ridesharing world in Austin. Two of the big players who stepped in after Lyft and Uber left town when the city passed an ordinance requiring them to fingerprint drivers have made changes to their business model.
Ride Austin have announced that they will be lowering their per mile cost on regular rides to $.99/mile, which makes it the lowest in town. Previously, Fasten was the lowest priced rideshare company in town at $1.15 per mile. Both companies have added tipping options to their apps as well.
Ride Austin will also change what portion it takes from each driver for their trips, The Austin Business Journal reports. Rather than taking 20% of each fare, they will charge drivers a $1.50 charge per ride. Rides start at minimum of $5.00.
In an effort to keep drivers who may be dismayed at the rate decrease, Ride Austin will give them an extra $.15 per mile for the next two weeks.
The CEO of Ride Austin maintains that drivers will make more, even with the fare increase, but the Austin Business Journal’s data shows that only works if the rides are very short or if the $.15 per mile incentive is made permanent.
They calculated that a three-mile, seven-minute ride would pay a driver $6.22 under the new basic fare structure, ($6.67 with the incentive), compared to $6.20 under the old fare structure. For a 20-mile, 25-minute ride, a driver would be paid $27.55 in the new system versus $30.20 in the old one. With the temporary incentive, that goes up to $30.55.
Ride Austin will also unveil its Android app to all users in addition to the 500 beta users it has had in place for the last few months.
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