Uber will sell its software to transit agencies to Uber-ify public transport
Can I still get the AUX cord?... Not the type of question bus drivers like to get. Uber is selling its ride-tracking, route-mapping software to public transit agencies on a subscription basis. We're calling it UaaS: Uber as a Service. It's Uber's latest move to diversify beyond gig ride-hailing. And CA's Marin County Transit is the first guinea pig:
- Booking: When Marin riders open the Uber app, they'll see an option for Marin's public transport van. They can book it just like a regular Uber, but with no booking fee.
- Paying: Riders pay a $4 per mile fare, but share it with other riders going the same direction. Fares are then passed directly to Marin Transit.
Tech-ifying public transit... Uber already includes public transit info in-app in some big cities. Like: what's the fastest subway line and how much will it cost. But now it's actually getting paid by a transit agency to include it as a booking option through its app. Right now, the Marin service only includes four six-seater vans. Uber thinks it could grow way beyond this:
- Uber plans to partner with more transit agencies after testing the waters in Marin for $80K. Imagine what Uber could charge San Francisco or Mexico City?
Uber is worried about the future of gig... Uber always insisted that it's just a tech company. Now it's selling its techy platform as its most valuable asset — not its army of gig workers. Since CA no longer classifies gig workers as contractors, gig icons like Uber may have to start giving them benefits like full-time employees. This new anti-gig product adds a new revenue stream that could offset some gig-related losses.