Reports suggest that Alphabet Inc.’s subsidiary Google will now allow all its Waze app users in the San Francisco area to find fellow commuters who are headed in the same direction. This is as the company tries to establish itself as a strong player in the transportation segment. The fares for this ride sharing are aimed to be low enough to discourage drivers to operate as taxi drivers. While this is seen as a direct competition to Uber and Lyft, Google’s fares are much lower than the rides of these players and the company is pitching this more as a car pooling facility. We believe this feature can help the company monetize its Waze app, which currently does not have a regular revenue stream. Also, as Google increases focus on driver-less cars and ventures into the transportation segment, ride sharing can be the growth driver for this segment, in our view. As consumers shift away from car ownership, ride sharing could be the default mode of transportation in the future. With its superior technology and experience with Waze, Google can capture a significant market share in this segment.

from Forbes – Tech http://ift.tt/2c0Dq78
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