Google launches Waze Carpool with cost-neutral pricing

2016-05-26T18:46:00-04:00

The pilot program is limited to about 25,000 employees of companies including Walmart and Adobe Systems... Waze will match riders with drivers already heading along similar routes during the morning and evening rush hours. [...] Waze Carpool is charging riders just $0.54 a mile, which is also what the IRS recommends companies reimburse their employees per mile for business-related travel. “Waze Carpool focuses on covering costs, not generating an income,” the company explains.

Google purchased Waze, the Israeli GPS-based navigation system with real-time travel details submitted by users, in 2013 for $1.15B. With a fleet of already operating autonomous vehicles, Google stands to leverage its Waze transit data in big ways for an autonomous taxi service that could hit companies like Uber and Lyft hard.

That $0.54 rate for the Carpool rides is also significant because it won't lead to the same insurance-scrutiny that has plagued other ridesharing companies:

Waze Carpool’s $0.54 rate is also important from a regulatory standpoint. As Waze explains, car insurance policies in states including California typically cover “not for profit, share-the-expense carpooling.” By framing its operations that way, Waze Carpool may be able to avoid the scrutiny around insurance coverage that has at times sidelined Uber and Lyft.

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Google launches Waze Carpool with cost-neutral pricing