A local start-up is challenging the dominance by American companies Uber and Lyft when it comes to app-based rides.
Carpooll, based in Kitchener, is looking to achieve this by filling in the market for longer distance trips at what the founder said is at a fraction of the cost.
“If you go from one city to another city where average commute time is approximately one hour, then that particular trip will cost you approximately $150 to $180 depending on the time,” said Rutvik Babaria, CEO and co-founder of Carpooll. “If you use Carpooll then it might cost you around $20 to $30.”
How the app works, Babaria explained, is it connects riders and drivers who are heading in the same direction such as the airport.
“(The driver) just picks you up and drops you there and you just pay him for the commuting cost,” he said, adding the cost is based on either a flat fee of up to $18 for trips under 80 km or a maximum of 18 cents per kilometre for trips over that.
The company does not take a commission from the drivers, only a 20 per cent fee from any riders.
“It’s not that you have to make profit out of it, it’s helping the environment, reducing traffic as well as commuting times because of traffic,” he said.
Barbaria said the app also offers women the option of turning on Pinkpool, which pairs riders and drivers with other women only for their own comfort and safety, which isn’t offered by Uber or Lyft.
“It is only available to the female community because there is some hesitation in the carpooling industry while travelling especially at nights,” he said.
With safety and security a big concern in this industry, Barbaria said all users are verified on the platform with submitted IDs, not just drivers.
He explained Canadians spend a lot on travel costs and this app is a way for it to be spent locally in Canada.
“The drivers and riders, they are local Canadians, they are not who we have employed … we want to give back money to the local Canadians,” he said.
The app so far has crossed 10,000 users, mainly the target audience being those in the tri-cities area but also Hamilton, Toronto, Brampton and London.