Between the driver and rider, the service is rendered, but Uber (which has a net worth of $60B) takes a specific percentage from the driver for each ride concluded with the company’s app.
Things have been going well for these 2 companies – till now.
Incomes a new company named as Fasten, which is trying to transform this standard in the ride-sharing world.
One of the best concepts about Fasten is that it charges only a flat $1 fee for each ride concluded with their app.
Owing to this reason, they take both riders and drivers as paying customers.
Vlad Christoff quoted – “At the end of the day, we sell a piece of information to a driver who is the actual service provider. They move them in the physical world from point A to point B. We sell a piece of information to the driver that someone needs a ride.”
Launched in October 2015, Fasten originated in Boston, U.S.
Uber and Lyft already exist in that city and Boston is considered as one of the top five ride-sharing markets. Till now, Fasten’s business is booming quite well.
It is currently recruiting more drivers and also plans to open a driver’s lounge soon.
Edvakov and Christoff aren’t looking for generating any sort of profit right now. One of the co-founder Edvakov says “Before, drivers didn’t have a choice, all those companies used to charge huge percentages from drivers. Right now, people do have this choice . . . It’s profitable on the ride level. We still charge a fee. It requires more volume, but we understand that volume will be here.”
This amazing thought process, which almost all companies need today has brought the ride-sharing game to next level.
It is not about earning revenue by charging both drivers and riders. It’s about making the drivers assured that what they are working for is worth it and they are just a helping hand.
Fasten was started with private investments by co-founders and is right now in the process of series A funding round.
Drivers are slowly but firmly shifting their focus towards Fasten, owing to the reason that it treats drivers in a much better way.
Another benefit Fasten is rendering to drivers and riders is that outside its flat flee model, this startup is not imposing a surge charge attribute like others, and instead it provides a Boost option during the high demand time-frame.
So, technically speaking, Fasten is not forcing customers to take a cab at a super high price at a time when no other alternative is left (let’s say 2 am).
Instead, it is giving a fair alternative to riders to choose whether they want to pay more to get a ride sooner during the time when demand is too much excelled.
Drivers also get some specific discounts on a flat fee ($1) in case they complete a round of 20 or 100 rides on a particular day.
This amazing business model of Fasten has surely kept the founders of Uber and Lyft, a food for thought.
Fasten has stretched its service reach to Austin at a time when both Uber & Lyft had stopped working there.
The reason for the exit of cab industry giants was the implementation of a new law asking drivers to complete fingerprinted background checks.
Their exits have left a humongous gap in the market of one of the swiftly growing cities of Unite States.
Although, Fasten was one of the small rider-sharing players, still, it has been successful in filling the void left by 2 big players of the industry.
Although clear numbers of drivers, riders, or rides concluded are not disclosed by the company, Fasten did claim that the 75% of the passengers became repeated customers.
Fasten is slowly shifting the boom of ride-sharing industry toward its bay with slow yet deep penetration of US markets.
The new venture has also incorporated some new features in their app such as Fare, which is becoming extremely popular.
The fare is currently available in Austin, and it enables riders to not only rate drivers, but also choose preferable drivers and select who they would like to ride with.
Rides can be pre-scheduled by the riders, an attribute which has been included by Uber recently.
Since ride-sharing is transportation alternative today, Co-founders of Fasten are positive that if drivers & riders are given a chance to choose which service they want to opt, they will select the one with a much affordable option.
As per the co-founders of Fasten, their company reflects what the sharing economy should be in a much efficient manner.
We all have that dream of opening a startup with a vision and expectation to earn some decent revenue, but only a bunch of us can go way beyond profit-making and growth.
It’s about giving the drivers what they really deserve; Respect and value for money.
Let’s hope more new such ventures will come up in coming time and will make the world a better place again.