The Verge - Welcome to Uberville 15min

Both Uber and Lyft tell The Verge that the past year has seen a surge in public officials interested in giving the companies taxpayer dollars for public transit contracts. For the companies, it’s an appealing new way to establish themselves as vital infrastructure, especially in low-density communities like Altamonte where running traditional mass transit can be expensive. Given the pace at which these partnerships are coming together, it’s possible to imagine ride-hail companies taking on the role of all-encompassing, smartphone-driven public transit providers, one town at a time. ... The pilot program is unusable for people without a smartphone or credit card, and the company attempted to have the city sign an unusually far-reaching nondisclosure agreement. ... At a subsidy rate of 25 percent — and assuming the ridership would grow annually by 100 percent — Uber would receive roughly a million dollars per year from the city. A potential indication of Uber’s aspirations, the chart also included a scenario in which Altamonte would pay Uber a full 100 percent subsidy, putting the town on the hook for up to nearly $7 million in ride-share funding over a two-year span. ... Martz settled on a 20 percent subsidy for any trip within Altamonte, and 25 percent for rides to and from the city’s commuter rail station. Martz foresees the yearlong pilot costing taxpayers less than a hundred thousand dollars, far cheaper than building a new bus system. Nor does it involve navigating the regional transit authority or negotiating with potentially unionized public employees.