Are Buses for the Poor? Many Students Now Use Uber to Get to School
By Robert Channick
Forget the big yellow bus or even mom's taxi. This fall, more and more kids will be heading back to school via Uber and other ride-hailing options.
From car pools to practices, a growing number of families are relying on the services to schlep kids to and from school, after-school activities and other destinations. Demand is strong enough that several startups have launched, backed by millions in venture capital, specifically to meet the market for transporting children.
Whether the "can you pick me up" call will be fully replaced by an app remains to be seen.
"Ride-sharing companies will look for any opportunity to demonstrate to people that they can be an alternative for any situation that they encounter in their life, including back-to-school," said Thilo Koslowski, lead automotive industry analyst at technology research firm Gartner.
While Uber and Lyft require users to be at least 18, that hasn't stopped some parents from letting their children use the services on a regular basis, creating a gray market for UberBLACK and other ride-hailing offerings, according to industry analysts and media reports.
The practice was neither confirmed nor condoned by either company and technically violates their terms of service.
"We do not allow unaccompanied minors on the Lyft platform, per our terms of service," said Katie Dally, Lyft spokeswoman. Uber spokeswoman Brooke Anderson declined to comment on the practice.
The nascent ride-hailing industry, which is dominated by private companies Uber and Lyft, has grown exponentially over the past few years on a network of private drivers as an urban alternative to taxis and public transportation.
Founded in 2009, market leader Uber is valued at more than $50 billion after closing its latest round of funding, according to a report last month in The Wall Street Journal. Numerous reports indicate that the San Francisco-based company is bleeding red ink as it pushes to rapidly expand.
Uber has introduced uberFAMILY _ a $10 upcharge for a car that arrives with a child's car seat _ in New York and Washington and is "exploring the possibility" of launching the service in Chicago, according to Anderson. The service is not designed for children to travel alone.
Several new competitors, including Shuddle and HopSkipDrive, are actively offering rides to children using a staff of mostly female drivers who double as caregivers, with safeguards aimed at getting parents over the hump of putting their kids in cars with strangers. Both services are looking to expand to other markets by next year, executives said.
Unlike Uber and Lyft, ride-hailing services aimed at children are more likely to navigate suburban expanses than city streets, with most rides scheduled in advance. They feature more thorough vetting of drivers, specialized insurance, tracking apps to monitor progress and responsibilities that extend beyond transportation. Drivers are trained and empowered to sign kids out of school and help them check in at after-school activities.
"We call them 'caredrivers' because they are caregivers first and drivers second," said HopSkipDrive co-founder and CEO Joanna McFarland, 39, a Stanford MBA and one of three moms who launched the service in March. The added layers of security and service come at a price. Shuddle and HopSkipDrive ride fees average about 15 percent higher than Uber or Lyft, executives said.
HopSkipDrive provides rides to children 7 and over. The service now operates in its home base of Los Angeles, with 150 drivers signed on. More than 96 percent of HopSkipDrive's drivers are women, all with at least five years of child care experience.
The concept for HopSkipDrive grew out of the founders' frustration over getting their own kids to conflicting activities on a daily basis. They morphed from chauffeurs to entrepreneurs with $3.9 million in seed money.
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