Meet the Ride-Hailing startups taking Uber and Lyft



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While horror stories continue to tell that women ride in vehicles and face everything harm at ease for the fatal, Uber and Lyft are called to take more aggressive security measures.

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And they are. Today, Uber has announced its campus initiative in partnership with the University of South Carolina to help students identify false drivers. At the beginning of the week, Lyft doubled the driver identification and background check tasks.

While both companies are moving towards the public market while pressure is strong to be better, smaller helicopter start-ups are finding room to strengthen their security position. These players are small potatoes in terms of capital and users, but they target users left behind by Uber and Lyft.

David King, a professor who studies trends in strike conduct at Arizona State University, told Crunchbase News that, in general, "market segmentation is undervalued in the world of touring."

"I am skeptical of world domination but optimistic about the niche markets that provide new services," he said. "Trying to be a monopoly from the beginning will not work, but the development of a beautiful and medium-sized business will happen."

King points out that while Lyft and Uber are primarily for the average user, niche startups have the ability to target peripheral users. In this case, this category refers to those who identify as women. But knowing if these companies could be profitable is another story, he said. Yet, some startups convince investors that they have a future.

A Boston-based company, Safr, wants drivers who identify as women to feel safer when getting into a car. The company has 10,000 drivers boarded across the country; However, it has not yet been officially launched.

To try to differentiate itself from Uber and Lyft, Safr queries each driver joining the platform. (Note: In the early days of Lyft, its co-founders also did so, in accordance with its note S-1.) In addition, users can express their preference for sex when they call a vehicle.

Shebah, meanwhile, wants to bring an "all women ridesharing" experience to Australia. Its goal is to secure the carpool market for women and children. Its potential users are ready to bet on this project: the company has raised $ 3 million in crowdfunding.

According to Shebah, 1,000 drivers are on board and another 800 are in preparation. Their driver recruitment process includes government and police controls, a clean driving record and appropriate vehicles.

Yet even these niche companies seeking to fill the security gaps left by Uber and Lyft are not immune to criticism and intrigue.

Safr CEO Syed Gilani was arrested in June 2017 for embezzlement in a separate Safr case, the Boston Globe reported. Gilani said that this fact did not affect the interest of investors for his company.

In addition, Safr has been criticized for its feminine star image, which some legal experts believe would discriminate against men. Gilani said the society was women-centered and non-specific. That said, once you have registered, you will receive an email stating "Welcome to Safr Sisterhood – You are a Superwoman".

At the same time, Carol O'Hanlon, Shebah's chief marketing officer, told Crunchbase News that the company only wanted to include female drivers of the app. King, a carpool researcher, wonders if it is legal to exclude men. Shebah also said she had trouble convincing male investors; therefore, it sticks to crowdfunding at this stage.

The market still needs to be convinced

It is clear that across the industry, mobile phone companies are thinking and talking about security.

Lilly Kenyon, Operations Manager at RideGuru, observed that many players are trying to take advantage of various niches in the distance selling market, but that does not mean it works.

"Although there is a place for these niche companies, Uber and Lyft still dominate the market," she said. According to a recent RideGuru survey, 57% of respondents said they use the most Uber, followed by 29% for Lyft. The remaining 14% was split between other niche companies such as Juno, Via or Arro.

King echoed the feeling.

"I doubt that women are interested in paying a premium for what appears to be comparable services to Uber and Lyft. If they do not feel safe, they will probably drive or not go out at all, "he said.

This year, Uber will release a transparency report providing the public with "data on sexual assault reports and other security incidents that would have occurred on our platform in the United States," according to its latest S-1 document.

Uber did not immediately respond to questions about when it will publish the report or what it does to handle claims related to international incidents (as this is happening internationally too, of course).

Lyft's Kaelan Richards, Senior Policy and Security Communications Officer, told Crunchbase News that there is "no place in the Lyft community for discrimination or violence of any kind" .

Safr stresses, in the eyes of critics, the interest shown by investors and user demand, as evidence pleading for its success, although it faces enormous and enormous challenges. rich rivals, Uber and Lyft. On the first point, Safr will announce a new fundraiser in the coming weeks. more when we know it.

There was a time when it was assumed that only one company controlled the entire US market. The Lyft IPO negates this argument, and new security candidates could do the trick for more than two. Over time, the discussion of ramp-up may become less focused on total market control and more on the satisfaction of different slices of demand.

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