Google launches car-pooling pilot in Israeli cities

Google-owned navigation app Waze is to launch a new carpooling pilot programme in Israel this week, marking the internet giant's first move to tap into ride-sharing.

The scheme will use an app named RideWith, which will incorporate Waze's GPS system, and will allow workers to share a ride with a driver taking the same journey, according to local Israeli reports.

The app will pinpoint popular routes in and around the three Israeli cities of Tel Aviv, Ra'anana ad Herzliya and then match commuters with the drivers for the journey to and from work who travel at the same times.

"We're conducting a small, private beta test in the greater Tel Aviv area for a carpool concept, but we have nothing further to announce at this time," Waze told Reuters.

Both the driver and passenger would receive alerts from the app, letting the driver know how far to travel for the pick-up and telling the passenger what route the driver is taking. Both parties can then text one another to confirm the ride-share. Payment will be made using the app.

In contrast to the ride-sharing app Uber, drivers will not make profit from giving others a ride. Drivers will be restricted to two rides a day and will be paid a small amount for the distance travelled to compensate them for petrol, Haaretz reports. Google will receive a 15% share of every ride fee.

These limitations may mean the app is viewed more favourably by taxi drivers if the pilot succeeds and RideWith is launched elsewhere.

Taxi drivers' frustration and anger against Uber for its perceived unfair competition, due to lower prices, has led to the company cancelling its UberPOP service in France after tense protests in Paris last month. French authorities also arrested two Uber executives last week for questioning regarding "illicit activity".

Ride-sharing has taken off with a number of similar apps entering the market in recent years. As well as Uber, Carma Carpooling, Sidecar and Lyft are just some of the main players in the marketplace. In 2013, car hire company Avis purchased Zipcar, which focuses on ride-sharing, for approximately €452m.

The RideWith app will only be available for Israeli Android users on the Google Play app store. Google bought Waze in 2013 for over €900m.

A Google representative was not immediately available for comment.

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Lucy is the deputy news editor for Newsweek Europe. Twitter: @DraperLucy

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