Uber, Lyft and other car hailing apps have been working overtime in Washington, D.C. this summer, as the Metro SafeTrack program has delayed and frustrated commuters all over the District. New York City-based Via sees a space for its own carpool ride service, offering a flat $2.15 ride cost. Via launched service in the District on Monday.
"D.C.'s always been at the top of our list. The specific timing was definitely structured around SafeTrack and the Red Line disruption," Via CEO Daniel Ramot told DC Inno in an interview. "It's a good city, where folks are open to new transit ideas.
That flat fee sounds strikingly unrealistic at first glance, even with some caveats. The area covered by Via isn't comprehensive, being aimed specifically at the central Red Line part of the Metro. The drop-offs and pick-ups might be not precisely at the address either, with a small radius of potential places to board and disembark. Plus, to make it financially feasible, the operations only run during commuting hours. 6 a.m. to 10 a.m. and 4 p.m. to 8 p.m.
"Assuming we can get enough people to use the service we are actually very efficient," Ramot said. "I think we can get drivers on our platform moving a lot of people. The $2.15 promotional price is obviously a very low price, but I'd love to keep it as long as possible. In the next few weeks and months we're hoping to expand the area and hours we cover.
But, Via certainly has the cash to jump in to D.C., having raised a monster $100 million round in May led by the Israeli firm Pitango Growth. That makes $137 million raised in total for the company from a mix of investors including Russian, American and additional Israeli companies. The low ride price does stand out though, especially in tandem with Via's guarantee of a minimum $20 an hour for drivers. The rules to be a Via driver are somewhat narrow however, with a limited number of vehicle models and a mandatory leather seat requirement.
There's a strong preference toward big cars in the Via list of models. That makes sense since more people using the system makes the proprietary data-crunching algorithm Via uses more efficient. That might sound familiar to connoisseurs of D.C.'s ride-sharing services. It's the principle behind mass transit startup Bridj, which provides a private bus service in fancier than average mini-busses along routes determined by a combination of user votes and data analysis. It also feels reminiscent of Split, which picks up customers who are all going the same way, taking them to their destination. And of course Uber and Lyft have their own versions of carpooling. But, the appeal of Via may be stronger, Ramot said.
"I don't think Uber drivers have been treated particularly well," Ramot said. "We really focus on making sure drivers are heard, we take a lower commission and do a lot to [make drivers] feel connected."
Whether Via's pricing and payment system is at all sustainable is a big question. And undercutting costs like this brings up long-term potential problems about keeping the customers attracted to Via because it is so cheap. For the summer though, Via and it's leather-upholstered vehicles will probably find plenty of people eager to hop on to survive the Metropocalypse.
