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SEATTLE - Think of it as online dating for the traffic-impaired. With a new twist on car-sharing, for-profit companies are paying people to share the fast lane.
Founded by 24-year-old former Microsoft engineer Nick Shiftan, Goose Networks sends text messages to drivers in the Seattle area that share the same route to work. Then, the company rewards those who choose to carpool — with cash.
After proving the system encouraged one out of 20 Microsoft (Nasdaq: MSFT) employees to carpool, Goose Networks earned a two-year, $111,090 contract with the Washington State Department of Transportation aimed at eliminating 322 single occupancy vehicles from state freeways daily. “When most states are spending money on asphalt and building new bridges, Washington state is spending money on text messaging and social networks,” Shiftan says. “It’s pretty innovative on their part.”
The department pays Goose Networks a baseline and rewards the company for trips it can prove it eliminated. Meanwhile, Herndon, Va.-based NuRide is scoping Seattle for companies and government agencies that are interested in sponsoring a Seattle carpooling challenge. Like Goose Networks, NuRide does not charge customers to use the service, yet it offers users gift certificates to major retailers such as The Home Depot (NYSE: HD), Starbucks (Nasdaq: SBUX) and REI every time they carpool. NuRide launched in Washington, D.C., in 2004 with seed money from the Virginia Department of Rail and Public Transportation. The company relies on both government agencies and anchor sponsors to fund commuter challenges in major cities. “If we can build a system that provides real value to commuters while providing a valuable marketing service for sponsors, that’s a win-win for everyone,” says NuRide CEO Rick Steele. The company recently concluded the Chevron 5,000,000 Mile Rideshare Challenge in the capital city. Over a 12-month period, NuRide persuaded 5,000 people who would have otherwise driven an estimated 5 million miles on their own to carpool. Employees from more than 720 organizations shared rides an average of 3.4 times a week, according to NuRide. “About 60 percent of the people that use the service have never shared a ride before,” says Steele. “That’s a major change in behavior.” With either private or public funding — or a mix of both — NuRide has launched successful challenges in New York, Connecticut, Minnesota and Texas. Steele says the company is investigating funding opportunities in five more U.S. cities, including Seattle. NuRide’s Web-based car sharing model could soon be outdated, as cell phones and Blackberry devices allow riders to communicate from anywhere, including the side of the road. Yet Shiftan, who based Goose Networks’ business model around text messaging, says there is room for both companies in the Seattle market. “There are more commutes taken each day than there are Google searches, so there are plenty of trips for us to share,” he says. Source: Becky Brun, Sustainable Industries |