Uber and Lyft Have a New Competitor, BMW

Jul 18, 2018

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

Uber and Lyft have a new competitor, and it’s not just another Silicon Valley based startup. ReachNow, BMW’s car-sharing service is launching a ride-hailing service of its own.

For those unfamiliar with ReachNow, it offers short-term rentals of BMW and Mini Cooper vehicles, à la Zip Car or Car2go (which plans to merge with ReachNow). Now when users open up the ReachNow app, there’s a “Ride” option where you can hail a car to pick you up and take you wherever you need. Seattle is the only city where you’ll see this feature, but it’s possible it will expand to the other cities where ReachNow operates, Portland and Brooklyn. ReachNow, the car rental vertical of BMW, is launching a ride-hailing service in Seattle that will compete with Uber and Lyft.

ReachNow will differentiate itself by offering a handful of perks like the ability to pre-request the temperature inside your ride, the music selection (or lack thereof), use of phone chargers and free Voss water and candy.

Unfortunately there’s no such thing as a free lunch — rides are pricier than competitors Uber and Lyft but on par with higher-end options like Uber Black or Lyft Lux. Trips will costs $2.40 a mile plus 40 cents per minute, in addition to a base charge. However, ReachNow won’t participate in surge-pricing.

This differs from Uber and Lyft’s strategy of offering preset prices based on the estimated time, distance and demand of a route (and sometimes what it thinks you’re willing to pay).

ReachNow drivers are using cars owned by the company, not their own personal vehicles so they’ll save on maintenance, gas and insurance costs. They’re also paid hourly instead of being compensated per ride. They’ll take home $14.25 an hour and full benefits are offered to eligible drivers — they’ll even receive a five percent bonus if their average rating stays above 4.8 stars.

H/T: The Seattle Times

Featured image courtesy of ReachNow. 

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.