Google Versus Uber In The Ride-Sharing Game

(RTTNews) - Google reportedly plans to expand a car-pooling program to commuters in San Francisco, edging closer to a potential clash with ride-hailing service Uber Technologies Inc.

Google, a unit of Alphabet Inc. (GOOGL, GOOG), commenced a pilot car-pooling program around its California headquarters in May this year.

The pilot program, operated through Google's navigational app Waze, is currently limited to a select group of employers and their commuters around Google's headquarters. In the fall, Google reportedly plans to expand the program to Waze users in San Francisco, where Uber is based.

Waze promotes the service as Waze Carpool, noting that the service will enable to connect drivers with fellow commuters heading in the same direction. This is unlike Uber and its crosstown San Francisco rival Lyft Inc., which each largely operate as on-demand taxi businesses.

Waze was acquired by Google in 2013 for $1.1 billion. The service, which is a GPS-based geographical navigation application program for smartphones with GPS support, offers real-time driving directions based on information from other drivers.

Waze's current pilot program charges riders below the federal standard mileage rate of 54 cents a mile, thus discouraging drivers from making a living by operating as taxi drivers.

Nevertheless, Google's expansion into ride-sharing could intensify its rivalry with Uber. In 2013, Google had invested $258 million in Uber when the two companies were allies.

But earlier this week, Uber said that a longtime Alphabet executive has left its board. David Drummond, senior vice president of corporate development of Alphabet, stepped down several weeks ago as concerns over conflicts of interest between the two companies mounted. Drummond joined Uber's board in 2013 when ride-sharing was still nascent.

Both Google and Uber are also involved in a race to develop driverless cars. In mid-August, Uber said it has acquired Otto, a startup that focuses on self-driving technology, along with its team.

Uber will start testing its first self-driving taxis in Pittsburgh this month, according to media reports. The company is teaming up with Volvo for this venture. The self-driving taxis will be supervised by a driver initially, as he would be able to take control if required.