Google Appears to be the New Rival for Ride-hailing Service Providers
Ride-hailing, a public transport phenomenon, has become very popular over the years in UK and Australia. Google is fully aware of the vogue of the field where Uber, Lyft and, Sidecar are already providing their services. After realizing the potential growth of the business, the Internet giant has planned to offer a similar service itself.
A report, published in Bloomberg, says that Google will possibly combine the novice service with its already existing driverless car project.
According to the aforementioned publication, David Drummond — Google’s chief legal officer and senior vice president of corporate development and a member on Uber’s board — recently informed Uber about Google’s new venture.
Both the organizations, Google and Uber, seem not willing to comment on the current scenario.
Both the companies are in grave confusion, I guess. Because Uber’s car-hailing app currently relies on Google Maps for directions about the routes, and, similarly, the Google’s app recommends Uber to the travelers. Now the interesting situation is likely to occur. When Google will launch a rival service, Uber, who considers Google as one of its major investors, will remain paralyzed and compelled to rely on Google.
Additionally, if the driverless cars’ trend gets popular, Google will again be a focal point for Uber. However, reportedly, Uber is possibly starting research projects in the latter field.
Uber was launched initially as a luxury service. But, with the passage of time, it started offering cost effective daily services too. Thus, the organization, jumped into the field to compete the traditional taxi services. And it competed well.
After five years of its establishment, the company has reached heights of popularity. The company has became dear to many, and has attained an identity of one of the most talked about tech companies. The San Francisco-based Uber has generated heaps of revenue: it earned more than $2.4 billion in the last year, thus getting a valuation of about $41.2 billion.
Despite this substantial success, this journey was never an easy one for Uber as it lived through many controversies. Drivers, for an instance, protested for price cutting. Similarly, regulators found shouting at the organization to cease its services.
Nonetheless, Uber continued its services, plus the war with many rivals. Now, Google appears to be its new adversary.
Before this new debate over the issue of hail-riding services, already a tension existed between both organizations. The tension rose last week when Google started giving information and actions from the top Android apps on its personal assistant dashboard. Among the other dozens of cards, Google is offering a card giving information about hailing a ride from Lyft, which is a serious business competitor for Uber.
While I’m writing this, I wonder how veterans of the technological world like Google (founded in 1998), are seen competing with ‘tech-infants’ in short span of time. By infants, what I simply mean are that the apps or sites which are relatively new in the tech world.
However, Google appears to be attempting to pacify things and relieving the growing tension between Uber, Lyft and itself. Here is a tweet from Google in response to the current scenerio:
@business We think you'll find Uber and Lyft work quite well. We use them all the time.
— Google (@google) February 2, 2015
Hope it will work!