Will Priceline Group (NASDAQ: PCLN) start offering an Uber-like ride-sharing service to its menu of transportation options? Probably — but first, it’s going to test the waters with a ground transportation service through its RentalCars business.
According to industry news site tnooz, Priceline is rolling out a ride-hailing service called Rideways that will pick up passengers from from airports, hotels, train stations, and the like, to take them wherever they want to go. People don’t necessarily want or need to rent a car when they arrive at a destination — they merely need to have someone take them to and from their transportation hubs, and Rideways will expand RentalCars’ utility.
Initially, it will be a customer-facing app, but tnooz reports it will eventually be developed into a turnkey white-label service that businesses will be able to offer on their own websites. That offers a lot of potential for the business to significantly expand, but it would appear that it will need to significantly reduce the wait time for rides if it wants to be truly effective.
Tnooz quotes Rideways’ managing director as saying it is launching with a 60-minute lead time to obtain a ride, which won’t put much pressure on on-demand services such as Uber and Lyft. But the plan is to transition it to eventually offer that capability as well.
Certainly there’s something to be said for the plan-ahead aspects of the service, but Uber has realized people want that as well, and has begun offering scheduled pick-ups too. That would seem to suggest Rideways will need to ramp up the service quickly if it hopes to make an impact on the name recognition the incumbents enjoy.
The service’s head does see it partnering with existing ride-share providers, but he doesn’t anticipate Uber will be one of them.
Reportedly, the first rollout of the service will take place in 800 cities in 120 countries, and accommodate 20 languages and currencies, with the goal of rising to more than 40. The mobile app will launch early next year.
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Rich Duprey has no position in any stocks mentioned.
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