Uber Technologies Inc. and Lyft Inc. have a new app-based taxi competitor in Silicon Valley.
Alto Experience Inc. launched its ride-hailing service in the area last week, the company announced in a press release. Unlike its bigger competitors, the Dallas company owns the vehicles used with its service and employs its drivers directly. It also hopes to distinguish itself by offering a premium and safe experience; its drivers have to undergo background checks, while its vehicles are frequently cleaned and maintained and have security cameras installed in them.
Additionally, Alto is aiming to have the first company-owned fleet comprised solely of electric vehicles. It expects to be operating 3,000 such vehicles by next year.
"It's an exciting time to bring a safe, elevated rideshare experience to Silicon Valley," Alto CEO Will Coleman said in the press release. "The future of ridesharing is electric fleets with employee drivers, and our expansion and continued growth into new markets are important steps in helping us bring this vision to life."
Alto is entering the market as Uber and Lyft have drawn criticism for classifying their drivers as independent contractors, largely preventing them from accessing the benefits and protections typically offered to in-company employees. By contrast, Alto offers its drivers training and benefits like a 401k plan.
Silicon Valley is Alto's sixth market so far, following its entry into Los Angeles, Houston, Miami, Dallas and Washington, D.C.
In Silicon Valley, the company's "core service area" — the region in which it offers on-demand rides within 10-15 minutes — is centered around Redwood City, stretching north to San Mateo and south to Palo Alto. Its "extended service area," which has longer pickup times and where it encourages prescheduled rides, stretches from San Bruno to Mountain View.
The company offers service between 7 a.m. and 10 p.m. Sundays to Thursdays, and from 7 a.m. to midnight on Fridays and Saturdays.
Thus far, Alto has raised $59.5 million in venture funding, according to PitchBook Data. Some $45 million of that came in a Series B round in June.
