Web-Based Carpooling Startups

They're wooing the enterprise market, matching riders and drivers from the same company or office park, and throwing in mobile apps and other extras

by Celeste LeCompte

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As gas prices have soared, more commuters have made the switch to carpooling, and they're turning to a host of free Web-based services—from government-sponsored transit programs to iPhone apps and widgets—to meet their needs. But the plethora of options can be a mixed blessing: More options mean your perfect carpool match is more likely to be signed up with a different service. That's not only a problem for you, the commuter, but also for the companies hoping to capture your business; to succeed, ride-match sites have to be able to guarantee that they can get riders where they want to go, when they want to go there.

So a growing number of ride-share startups are following in the footsteps of other Web 2.0 applications providers by targeting the enterprise market. Catering to businesses gives Carpool 2.0 startups both a captive pool of riders with a shared destination (and often similar schedules) and corporate execs who are increasingly willing to pay for customized services, like hosted Web sites and mobile apps.

Goose Networks, a Seattle ride-share company, got its start offering a ride-matching service for residents of King County, Wash., and employees of Microsoft (MSFT), whose headquarters are in the King County city of Redmond. But it didn't take long to realize that the opportunity in the enterprise far surpassed that of the public service market—particularly as gas prices began to climb. "Somewhere around $3.25, $3.50, a switch went off," CEO Charlie Crissman recalls, and suddenly businesses started contacting Goose Networks, citing the need for an affordable way to improve employee retention and recruitment.

Nearby Offices O.K., Too

In Essex, Conn., NuRide counts companies among its customers as well, but its ride-matching service is employer-agnostic, allowing it to capture an even larger share of the commuter market—and match even more riders. Commuters are just as likely to catch a ride with someone who works in a nearby company as they are with someone in their office, CEO Rick Steele points out. "There's no sense in locking them into a walled garden," he says.

Many startups also offer free ride-sharing widgets, so why buy the cow when you can get the milk for free? To differentiate, ride-share companies offer enterprise customers an added level of service. A key offering has been the ability to verify users' identities, helping ensure that a company's workforce arrives at the office safe and sound. While mass-market tools have some strategies for safety—GishiGo uses 99¢ PayPal transactions as a screening tool, and ZimRide's Facebook application lets users find rides within their opt-in network—enterprise clients expect more. To that end, Goose Networks segregates its users by employer to ensure accountability, and NuRide verifies unaffiliated users' companies and e-mail addresses before approving them.

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