Ford Testing Car-Sharing App To Compete With Uber

Uber, the ride-sharing service that has faced legal battles in several states, might have to face off against Ford. Reports from the blue oval automaker indicate they are developing their own ride-sharing app with a twist. That twist is Ford would also be providing the vehicle for the app.

Ford is working on the creation of an entire system, a vehicle, app and the resources to sustain what they are calling a “dynamic social shuttle.” Ford plans to test their ride-sharing shuttle on the streets of London later this year. Ford is examining a modification to their Ford Transit vehicle.

The move on the part of Ford is an effort to combat a very disruptive technology. Uber and Lyft are taking advantage of what the Washington Post refers to as a potential cultural shift. Their article reads in part, “Younger would-be drivers just aren’t as interested as their parents were in owning their own cars.” Uber and Lyft are marketing to millennials where they are – on their phones. For Ford, their decision to get into the ride-sharing industry is reminiscent of established automakers circling back to produce electric cars to compete with new comer Tesla Motors.

John Abernethy, Project Lead for the Advanced Product Group, at Ford Motor Company based in Britain told the Washington Post that Ford has an opportunity to seize in the market. Abernethy said, “There is a white space for a new product. Between a taxi and a bus is a space for something else.” He also pointed out Ford recognizes they need to make the customer experience good enough to balance sharing space and comfort. Abernethy told the Washington Post, “People recognize the more they share, the more value they may get out of the service. But there’s a limit to how many people they’re willing to share with. You have to get that balance of efficiency, convenience and cost.”

The goal appears to be to create something cheaper than UberX and faster than using a bus. They also want to lose the airport shuttle stigma of a cramped, multiple-stop and slow ride experience. It’s also not clear if Ford will be undertaking this project themselves or perhaps providing the vehicles to taxi or transport companies in search of an upgrade to compete with Uber and Lyft. Speaking about figuring out what the market for their product might be, Abernethy said, “Part of the experiment is to establish exactly that … within that range, we want to learn what is the right role for this type of service?” The Washington Post article on this subject further outlines the possibility of Uber drivers buying the modified Ford vehicles for ride-sharing use.