Who’s Craftier Than Uber: New Juno Taxi Service Will Go Ahead in the Competition for the U.S. Market

The startup Juno, according to its founder, is the most promising competitor to Uber. In spring 2016, Juno plans to launch in New York City. Representatives of the startup are confident that they will be able to lure many Uber drivers to them. They plan to “restore justice” by offering more favorable financial terms of the partnership, as well as their shares. Juno will charge drivers lower commissions than Uber.

“In building their company, Uber completely forgets about the people who actually do the main work, the drivers. Imagine a company where all the employees treat the management poorly – you don’t want to stay in such a company,” says Talmon Marco, founder of Juno.

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The announcement of the entry of the competitor Uber in New York coincided with a wave of protests by U.S. drivers against changes to the financial terms of cooperation, introduced by Uber in January. The disgruntled complain that the fare cuts imposed on them are hurting their earnings.

Taxi-call services are using rate cuts and bonuses to attract customers. At the same time, however, cab services are losing qualified drivers to competitors.

Marco promised that Juno would try to avoid the price wars commonplace in the segment so far. “Every time Uber or Lyft lowers their rates, it’s at the expense of the drivers,” the Juno head explains.

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Drivers who agree to work only with Juno will be treated as employees of that company, not as independent contractors, he said.

Juno is trying to build relationships primarily with Uber drivers by requiring them to have a high rating in the Uber system. Juno is paying some Uber drivers $25 a week, requiring them only to keep the Juno app running during their regular rides with Uber. Marco said this will allow the company to learn more about user behavioral patterns, urban traffic patterns and other data needed for the startup to be successful.

However, competition in the New York passenger transportation market is fierce, and one of Uber’s rivals, the service Hailo, has admitted defeat.

Lyft, which successfully competes with Uber in the U.S. market, attracts drivers with a tip system and reduced commissions for full-time cab drivers. A few days ago, Uber decided to follow its competitor’s lead by also introducing reduced commissions for full-time cab drivers.

General Motors, one of the largest automakers in the world, has entered the transportation market from a slightly different angle. GM has launched Maven, a ridesharing and carsharing service. Customers will be able to use 4G LTE, Apple CarPlay, and Android Auto in their cars.

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Maven will initially feature 21 General Motors Chevrolet Volt and Spark vehicles. In order to use the services of Maven, users do not need to make a paid subscription. This is a fundamental decision of the creators of the service.

Leading automobile concerns do everything to accelerate the transition to production of completely self-driven cars which, according to the idea of a number of companies, will completely displace cab services from the market in the near future.

Its gross rates in New York City, which were $26 per hour in 2012, rose to $39 per hour in 2015, according to Vedomosti, citing Uber data. However, the amount of commissions charged by Uber also increased. But how the net revenue of drivers changed is not specified.

Uber is the most expensive startup in the world – its value is estimated at $62.5 billion.