A new startup is looking to change how drivers earn fares in the Valley's growing ride-hailing market.
Phoenix-based HUM describes itself as the ride-hailing industry’s first “user-centric platform,” allowing drivers to keep 100% of their fares through its subscription-based model.
“Our drivers are our customers and so they pay to access (HUM) each month and keep 100% of their fares, whereas with other traditional [ride-hailing] companies, those corporations take a split that can be upwards of 70% of what a passenger pays," Chris Kolb, co-founder and president of HUM, said. "So we said, ‘There has to be a better way.’”
HUM validated the proof of concept for its ride-hailing app in February, when Phoenix hosted the Super Bowl LVII and the WM Phoenix Open. That same month, the company launched a beta version of its app in the Valley and Tucson.
“We're approaching the 1,000 active driver mark, primarily here in Phoenix,” Kolb said. “We are working towards building that up more. We want to make sure we have enough drivers to satisfy the demand that is present in the Valley.”
HUM is offering a free trial for drivers during its beta phase that includes a background check. After the beta period concludes, the company will eventually roll out its subscription-based model at a monthly cost between $30-$60, depending upon a driver’s vehicle classification, Kolb said.
Passengers on HUM can expect to see fares comparable to other ride-hailing companies without surge pricing. The company, however, may release an option in the future in which passengers can incentivize drivers to accept rides during high-demand periods, he added.
“We welcome passengers to give it a go. It's, again, a beta version of the app,” Kolb said. “But we do have a growing number of passengers and a growing number of rides every day, every week."
HUM born out of need for driver pay transparency
Kolb, a University of Arizona alumnus, moved to the Bay Area after graduation and spent the past seven years working for various tech companies.
His idea for HUM when it got off the ground in 2020 was initially sparked by a desire to improve the passenger experience, but later placed emphasis on bringing value to drivers as they faced rising take rates at ride-hailing competitors, he said.
“We said, ’Let's put them first. Let's earn their business month-over-month and if we do right by them and create a happy driver, we can really curate a happy [ride-hailing] experience," Kolb said. "So this is all modeled around that.”
Kolb moved to the Phoenix area this year and co-founded HUM with his father, Garrett.
Kolb thought the Valley would be an ideal place to start HUM because of its growing population and thriving business community.
“I've never been so excited for a market like this one," Kolb said.
After HUM wraps up beta testing, the company will launch a marketing campaign for passengers, in addition to updating its app to include basic enhancements and user interface improvements by the end of the year, Kolb said.
The company is planning to launch a community round of funding via crowdfunding platform EquityVest in the future. It's also considering other funding opportunities.
“We have under $500,000 remaining in our seed round, and we're going to push for that," Kolb said. "That’s going to really help us improve the app and lean into the these new campaigns, driver side and passenger side.”
Meanwhile, the company is “hyper-focused" on continuing to build its driver team. HUM estimates it will need a total of 2,000 active drivers to meet demand, he said.
“That’s what we've said is kind of our minimum goal here to really start making the difference that we need to,” Kolb said.
