San Francisco

New Year's Eve a Showdown for Ride-Share Companies

Starting at about 12:05 a.m. New Year's Day, the biggest question for many people was how to get home.

Some will turn to ride-share companies but that could cost passengers quite a bit New Year's Eve. But a local company is hoping its deal will get people to think taxi instead.

The latest battle is underway in the war between taxis and ride-share companies like Uber and Lyft. It comes on the busiest night of the year for all of them.

Redwood City-based Flywheel is offering $10 flat-rate rides in their contracted taxi drivers. The goal is to get people thinking taxi, instead of Uber.

It comes as Uber and Lyft will be increasing prices due to demand.

"We also want to change the perception on what New Year's is about," Flywheel Head of Growth and Engagement Ryan Nobrega said. "And turn it back to what it used to be, not about getting gauged at the end of the night, or really going out on both ends of the night. So, that's what tonight is about for us."

Those who choose Uber can expect to pay more than usual. It costs roughly $100 for the average ride between 12:30 a.m. and 2 a.m., according to the company.

"I appreciated them giving me a heads up, but at the same time it's like, really?" San Francisco resident Meagan Von Feldt said.

Flywheel's offer is attracting taxi drivers like Corey Lamb, who said the app is expands his customer base.

"So what flywheel does is it allows drivers another avenue or another tool to be successful, and to tap into people who need a ride anyway," Lamb said.

Under the deal, riders pay a $10 flat rate. If the meter goes above $50, the passengers pays the difference.

And Flywheel will pay the cab drivers double the "real" metered rate.

"Passengers can get around on $10, and a driver can make a living and then a little extra," Lamb said. "That will build good will between the passengers, and then flywheel, and then the drivers and flywheel."

So far, the marketing push is paying off. But some riders said they will switch back after the new year.

"So for me, it's about being in the comfort of someone's nice car, even if it's a Prius," San Francisco resident Jeremy Gailor said. "It's just so much nicer than a taxi."

Uber and Lyft defend their prices, saying the surge prices are needed to attract drivers to big events. But when the clock struck midnight, the fight for riders and drivers began.

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