Two rival car-ride services are now operating in Miami.
The Miami Herald reports UberX plans to launch in Miami-Dade County on Wednesday, joining rival Lyft which started service two weeks ago. The two companies will compete against each other while fighting opponents in county government, which considers their services illegal.
Business Model: No Fleet But On-Demand Digital Dispatchers
The two San Francisco-based businesses don’t have a fleet of vehicles. Instead, the technology companies act as on-demand digital dispatchers. Mobile apps pair passengers with drivers. Each company charges a fare and takes a commission for each ride. Many of the drivers work part-time. The companies say they’re vetted to make sure they have driver’s licenses, pass background checks and have suitable automobiles.
They’ve run up against county rules requiring a permit for per for-hire drivers.
Information from: The Miami Herald, http://www.herald.com
