In the business world, regulation has limited the number of monopolies. But in the rideshare business, Uber and Lyft are a duopoly. Uber accounts for 69% of the market, Lyft 30%.
Nonetheless, the growing industry remains a tempting target for competitors like Alto. Currently a $61 billion business worldwide, ride hailing is projected to grow to $220 billion by 2025.
That is where Alto, a ride hailing service started in 2018, comes in. Based in Dallas, Alto says it is the first ride-hailing provider to hire W-2 employee drivers. Each must pass background checks and get days of training. Alto also manages its own fleet of company-owned “elevated SUVs,” which Alto currently buys from General Motors and Volkswagen.
The service is now available in Dallas, Houston, Miami, Washington DC, and Los Angeles. Alto also will soon launch in the South Bay of SF and Silicon Valley. A spokesperson described Alto pricing as “midway between UberX and UberBlack.”