Uber and the next big rideshare platform, Lyft, are both expected to announce a new service in the coming months that promises to make their ride-sharing services more affordable.
The new platform, called UberX, will be a mobile app that will allow riders to rent cars to take them from point A to point B. The ride-share service will also offer a suite of new features that make it easy to schedule rides.
For example, the company said, drivers will be able to track their trips with Uber and provide a map of the trip, as well as check their status with Uber’s mobile app.
Lyft, the ride-sharer that is owned by Uber, has already started to launch its own ridesharing service in partnership with the California-based ride-to-home service Lyft.
“Lyft has a long history of building driver-owned companies,” said John Rauch, the chief executive of ride-service company Otto, who was speaking at a panel discussion about the future of rideshipping.
“And the new UberX will add even more value.”
The service will be available to customers in major metropolitan areas in the U.S. and will be rolled out in early 2018, Uber said in a blog post Monday.
The service is also expected to be launched in the European Union.
The platform is not currently available in Australia.
It will also allow customers to hail a vehicle to go anywhere in the world within minutes.
“It’s not a taxi, but it’s not really a car,” said Paul Diamandis, an associate professor of marketing at the University of Minnesota.
“We’re going to see UberX come to the U., in a way that is a bit different than taxi, where you have a couple of hours to make a reservation.
UberX lets people have the flexibility to take rides from point B to point A in a matter of minutes.”
Raucl told CNBC on Monday that he thinks the company will be profitable, but that the company has not determined whether it will be as profitable as traditional taxi companies.
“The revenue model is there, and it’s very, very, successful,” he said.
“But it’s still not clear how we’re going in terms of profitability.
It’s something that we’re looking at internally.”
For Lyft, Rauche said the company is looking to bring in as much as $100 million in revenue over the next five years.
For Uber, Diamantis said the platform is expected to bring $100 billion in revenue by 2021.
Both companies will need to raise capital in order to get their new services to market.
For Lyft and Uber, the funding is a major hurdle.
While ride-booking platforms such as Lyft and TNC have historically been much more expensive than traditional taxi services, those companies are expected to raise tens of billions of dollars in funding in the next several years.
And because they are not regulated as traditional taxis, ride-books are not subject to the same regulatory scrutiny that taxis are.
That means that they are subject to higher regulatory scrutiny and are therefore subject to more scrutiny by regulators.
The Federal Trade Commission in November launched a new consumer protection rule designed to help curb the predatory practices of ride sharing companies.
The rule was approved by the commission in December and sets up a system to help consumers make an informed decision about ride-tracking services.
Uber and TNR are currently fighting to get the new rules approved by regulators, and Lyft has sued the FTC in an attempt to overturn the rule.
“This is an industry that has a very large amount of consumer confusion about how much they are paying for rides and how they’re getting paid,” Rauches said.
Lyft is also seeking to launch in Europe, which will allow it to sell rides in a new European market, he added.
“In the U to U space, we’ve been able to grow as quickly as we have,” Ruches said.
The next generation of rideshare companies are also expected for the next few years, he said, citing the success of Lyft’s services in the United Kingdom, where the company operates its own fleet of vehicles.
In Europe, rideshare services are still considered too expensive, but Raucher said that the companies will be much cheaper than taxis in the near future.
“They will be more affordable than Uber in the same timeframe,” he predicted.
Lyft and Lyft will also be able make payments through their smartphone app.
Uber is currently available on Android phones, but the company announced on Monday it will soon launch a standalone app for iPhones.