Breeze, The Startup For Renting Cars To Uber And Lyft Drivers.
In this day an age its not surprising someone would create a way to sell resources back to people. who use a certain kind of resources, its how everyone manages to get a piece of the pie. Startup Breeze decided to take its chance, with its somewhat similarity of Airbnb for sidecar drivers, or Zipcar for Lyft
“There is huge demand from people who don’t own cars to be part of the ‘ride-sharing’ economy,” Breeze co-founder and CEO Jeff Pang, told the Chronicle. “We are solving the problem of getting more drivers on the road.”
Breeze has launched its services with only 25 cars currently available, all which have been booked by potential Uber and Lyft drivers in the San Francisco area.
Since purchasing cars is a n expensive enterprise, the bootstrapped startup has actually rented the vehicles from another currently unnamed company. Breeze will then rent these vehicles to share riding drivers at a very low rate of $20 a day plus an additional 25 cent per mile, which the company works out to a total of $40 to $50 per cent a day making them “effectively cash-flow positive.” Although, the commission for Breeze seems a lot like the gate fees Yellow Cab drivers have to pay just to be allowed on getting a cab out on the road, albeit in a less than half a price.
As for the Insurance loopholes and coverage problems that normally complicate things for Transportation Network Companies, Breeze has required for drivers to insure their share of rental cars with a plan that cost over $150 per month, which will only cover the driver when they are currently not on the clock with their ridesharing service of choice. For Instance, Lyft’s insurance policy will only cover for a driver who has accepted a ride request. Uber’s policy covers drivers whenever they have their application running.
While Breeze’s business model has left some auto rental industry experts a bit puzzled, the company’s three co-founders have gained some Standford degrees between that and a number of ridesharing hours notched on their belts, so there quite stubborn on the company succeeding. As Pang and his fellow co-founder Ned Ryan and Charlie Fang had informed the SF Business Journal, the company has plans of expanding towards 20 cities by the end of this year.
Even so, there are still regulations that the state of California had enforced upon the Transportation Network Companies during the previous year may cause some problems during there stay in California. As the assitsant manager of Luxor Cabs in San Francisco had bother to point out, the CPUC’s regulations define TNC’s as companies that connect riders with drivers using their own personal vehicles.