ride-sharing
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Getting children to school safely and reliably is a challenge as old as public education itself. But rarely have any entrepreneurs tackled the problem of updating and optimizing one of the nation’s largest legacy transit systems, now nearly a century old. It’s still common to find people at U.S. student transportation hubs speaking into walkie-talkies and wrangling clipboards as they sort passengers into gas-guzzling yellow buses.
Ritu Narayan was working as a product executive at eBay when her two children began attending school. Finding safe and reliable options for getting them to campus was sometimes so difficult that anytime those options would fall out, she would be on the verge of leaving her job.
“We had the minimum viable product, which we expanded upon, built the entire platform, and we kept on going to better places with our solutions.”
Bearing in mind that her mother in India had set aside a career to raise Narayan and her three siblings, she founded Zūm in 2016 with brothers Abhishek and Vivek Garg to optimize routes, create transparency and make school commutes greener; since then, Zūm has operated in several California districts (including San Francisco), as well as in Seattle, Chicago and Dallas. In Oakland, Zūm has optimized routes to reduce the previous bus requirement by 29 percent, with the balance being serviced by midsized vehicles.
Zūm also plans to have a fleet of 10,000 electric school buses by 2025 and is partnering with AutoGrid to transform that fleet into a virtual power plant with the potential capacity to route 1 GW of energy back to the grid.
To get a deeper look into the startup’s plans and hear what Narayan has learned from its journey so far, we discussed the pandemic’s impacts on Zūm’s development, where she thinks the company will be a year from now, and how she convinced investors to back a business model that embraces accessibility and equity.
(Editor’s note: This interview has been edited for clarity and length.)
How did COVID-19 affect your business? What percentage of your business is back now?
It’s funny, because we used to say that student transportation is a recession-proof business, and no matter what, kids are still going to go to school, but the pandemic was the first time in probably the last 100 years when kids across the globe did not go to school. It was an interesting time for us, because overnight, all the rides were closed and we had to focus on what was needed immediately to support our districts and students.
We realized that the school is such an important physical infrastructure that’s not just for education, but students get meals there as well as physical and emotional help. So we helped the school districts with reverse logistics, taking the meals or laptops from the school districts and delivering them to homes, because our software could handle that kind of thing. That was just an interim to make sure the communities settled. Starting last year, rides started coming back around 30%, and this year starting in April, it has been 100% back in the business.
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Uber for Business, the business side of the consumer ridesharing service, has typically focused on helping companies track their Uber expenses, but during a pandemic, needs have changed. It’s no longer about getting employees to and from the airport or shuttling an important client from the hotel to the office, it’s about getting essential personnel to the office safely, and to that end, Uber introduced a couple of new business commuting options today.
“Uber for Business is really about how we allow organizations of all shapes and sizes around the world to leverage the great consumer technology that Uber makes available, for business purposes,” Ronnie Gurion, global head at Uber for Business told TechCrunch.
While the business side of the house helps employees charge business-related Uber rides to their employers, it can now help them choose a couple of commuting options beyond the standard ridesharing everyone has access to, regardless of who is paying the bill.
For starters, the company is introducing Employee Group Rides. Group might be an overstatement, as it involves two employees in the same area sharing an Uber for the purpose of getting to or from work. It works in a similar fashion to the way Uber Pool worked, except it only involves matching employees at the same company.
In terms of safety, Gurion says that Uber sees this as a “transit bubble” with employees who are working together anyway willing to share a car together. “We’re seeing that companies are finding this option to be more attractive because they are comfortable putting more than one person in the same office in the same car, when they’re going to be in the same office together anyway, once they get to the office. So, it makes things a little more socially distant or creates a social transit bubble, so to speak, to get people to and from the office,” he explained.
Image Credits: Uber
The second option is called Business Charter, and this involves Uber connecting the customer to a third-party fleet partner, who can pick up multiple employees and bring them to the office.
“A company can come and create a commute program with Uber across sedans, SUVs, vans and buses, and based on the employee base and commuting data, it might order 20 sedans and X number of our [larger] vehicles, and decide how to deploy them — and we can do that, and those vehicles will only accept rides from that employer,” Gurion said.
As for commuting during the pandemic, Gurion points out that these programs are being introduced in the EMEA, APAC and North American regions for starters, and that each of these geographies is in different places in terms of COVID. “Not every market looks like the U.S. There are a wide range of situations, but core safety issues are relevant everywhere,” he said.
While Uber has instituted a safety program to help ensure both drivers and passengers are wearing masks, and has devoted $50 million to providing cleaning supplies to drivers, they don’t have a formal testing program in place for drivers, Gurion said. How comfortable employees are with these arrangements will likely depend on individual preferences.
In addition to these commuting options, Uber for Business also offers Uber Eats for Business, a food delivery service geared for business users, and Uber Direct, a package delivery platform.
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Ridesharing and transportation platform Didi Chuxing announced today that it has formed a joint venture with BP, the British gas, oil and energy company, to build electric-vehicle charging infrastructure in China. The charging stations will be available to Didi and non-Didi drivers.
The news of Didi and BP’s joint venture comes one week after Didi announced that it had received funding totaling $600 million from Toyota Motor Corporation. As part of that deal, Didi and Toyota Motor set up a joint venture with GAC Toyota Motor to provide vehicle-related services to Didi drivers.
BP’s first charging site in Guangzhou has already been connected to XAS (Xiaoju Automobile Solutions), which Didi spun out in April 2018 to put all its vehicle-related services into one platform.
XAS is part of Didi Chuxing’s evolution from a ridesharing company to a mobility services platform, with its services available to other car, transportation and logistics companies. In June, Didi also opened its ridesharing platform to other companies, enabling its users to request rides from third-party providers in a bid to better compete with apps like Meituan Dianping and AutoNavi, which aggregate several ride-hailing services on their platforms.
Didi says it now offers ridesharing, vehicle rental and delivery services to 550 million users and covers 1,000 cities through partnerships with Grab, Lyft, Ola, 99 and Bolt (Taxify). The company also claims to be the world’s largest electric vehicle operator with more than 600,000 EVs on its platform.
It also has partnerships with automakers and other car-related companies, like Toyota, FAW, Dongfeng, GAC, Volkswagen and Renault-Nissan-Mitsubishi, to collaborate on a platform that uses new energy and AI-based and mobility technologies.
In a press statement, Tufan Erginbilgic, the CEO of BP’s Downstream business, said “As the world’s largest EV market, China offers extraordinary opportunities to develop innovative new businesses at scale and we see this as the perfect partnership for such a fast-evolving environment. The lessons we learn here will help us further expand BP’s advanced mobility business worldwide, helping drive the energy transition and develop solutions for a low carbon world.”
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Welcome to this week’s transcribed edition of This is Your Life in Silicon Valley. We’re running an experiment for Extra Crunch members that puts This is Your Life in Silicon Valley in words – so you can read from wherever you are.
This is your Life in Silicon Valley was originally started by Sunil Rajaraman and Jascha Kaykas-Wolff in 2018. Rajaraman is a serial entrepreneur and writer (Co-Founded Scripted.com, and is currently an EIR at Foundation Capital), Kaykas-Wolff is the current CMO at Mozilla and ran marketing at BitTorrent. Rajaraman and Kaykas-Wolff started the podcast after a series of blog posts that Sunil wrote for The Bold Italic went viral. The goal of the podcast is to cover issues at the intersection of technology and culture – sharing a different perspective of life in the Bay Area. Their guests include entrepreneurs like Sam Lessin, journalists like Kara Swisher and politicians like Mayor Libby Schaaf and local business owners like David White of Flour + Water.
This week’s edition of This is Your Life in Silicon Valley features Mike Isaac, whose upcoming book about Uber – ‘Super Pumped’ – is sure to generate controversy. Isaac conducted hundreds of interviews for the book, and answers some pointed questions about his research during this podcast. Isaac also talks about press leaks, Facebook hacks and more during this interview.
If you want to hear what Mike would ask Travis Kalanick if he had the opportunity for a sitdown, you don’t want to miss this transcript.
For access to the full transcription, become a member of Extra Crunch. Learn more and try it for free.
Sunil Rajaraman:
Welcome to season three of This is your Life in Silicon Valley, a podcast about the Bay Area, technology, and culture. I’m your host Sunil Rajaraman, and I’m joined by my cohost, Jascha Kaykas-Wolff-Wolff. This is your Life in Silicon Valley is brought to you by The Bold Italic.
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French startup Heetch has an ambitious goal. The company wants to become the second ride-sharing service in France and in the other European countries where it operates. The startup just raised $20 million from Félix Capital, Via ID, Alven Capital, Idinvest Partners and InnovAllianz. This is the same funding round as last year’s $12 million round, but new investors joined the round.… Read More
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Similar to Uber’s “God View” scandal, Lyft staffers have been abusing customer insight software to view the personal contact info and ride history of the startup’s passengers. One source that formerly worked with Lyft tells TechCrunch that widespread access to the company’s backend let staffers “see pretty much everything including feedback, and yes, pick up… Read More
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Google-owned navigation app Waze is expanding its ride-sharing ambitions with the launch of a pilot program in the San Francisco Bay area which will allow employees of select companies to carpool to and from work via Waze’s carpooling service. This program is similar to the service Waze began testing last year in Tel Aviv, Israel, via an app called “RideWith.”
The app… Read More
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Waze, the popular Google-owned navigation app that helps drivers route around traffic and alerts them to other road hazards in real-time, is today announcing partnerships with half a dozen companies in the on-demand and transportation space worldwide, including Lyft, who will integrate Waze software into their own applications to provide routing and guidance. This, in turn will feed more… Read More
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