ZIP-A-DEE UBER ZIP-A-DEE YAY
‘Sharing’ innovators team up
Ride-hailing giant Uber is teaming up with Zipcar — one of the original “sharing economy” companies — in its latest move to entice potential drivers to its platform.
In an agreement dubbed Uber Xchange and slated to be announced today, drivers will have access to a fleet of dedicated Zipcar vehicles that can be rented by the hour at a discounted rate. The company expects the program to get potential drivers off the fence and try it out. It could also lure drivers who only want to work occasionally, and serve as a stopgap if a driver’s car is in the shop.
“This partnership opens the way for more people to drive when they want and earn what they need, even if they don’t own a car,” said Meghan Verena Joyce, GM for Uber’s East Coast operations.
Uber’s business model relies not only on passengers requesting rides, but having enough drivers to satisfy demand. If riders have to wait too long, they will look for other options, like Lyft or taxis. Uber says it has more than 20,000 drivers in the Boston market.
The 20 four-door Zipcar sedans will be at one of Uber’s driver centers in Dorchester. Uber has said in the past that one in 50 Dorchester residents is an Uber drivers. Both companies called the partnership “mutually beneficial,” meaning no extra money is changing hands.
“As the automotive landscape evolves, technology is playing an ever-increasing role in transportation services,” said Andrew Kupiec of Zipcar.
“Our quality, well-maintained vehicles, coupled with Zipcar’s technology, will give Uber’s driver partners wheels when they want them,” Kupiec said.
Still, the Zipcar program won’t be for everyone. Drivers must sign up or already be Zipcar members, and pay between $12 and $13 per hour to use the vehicle. That includes unlimited millage, gas and insurance, which Uber drivers must normally cover themselves. But it is still close to half of what an Uber driver makes per hour in Boston. Local drivers make $788 each week, just under $20 per hour based on a 40-hour work week.
This is not the first program Uber has put in place to attract drivers and try to make it as easy as possible to work for the company. Uber already has partnerships with some rental car companies for weekly rentals, and has its own vehicle leasing program.
Uber Xchange is looking to expand in Boston, including running a series of ads on the backs of MBTA buses and throughout Boston and adding staff, according to online job postings.