Uber is expanding its presence by launching affordable ride-sharing service in Richmond, Virginia, and it is offering five free rides to kick off its new venture.
Uber, the renowned ride-sharing service, confirmed its arrival in Richmond, Virginia, on Wednesday, allowing people of the city to connect with car owners for sharing a ride. Of course, the company takes a cut in the fares but the deal is a cheap way to cadge a ride for commuters.
Uber's deployment of the ride-sharing service comes after several obstacles. The state leaders had objected to Uber's way of operating. But the company finally received a go ahead from Governor Terry McAuliffe on Wednesday, after the ride-sharing services were made legal across the city. The green signal for ride-sharing services in Virginia also welcomes Lyft, a rival company.
"In order for Virginia to remain economically competitive, it is important that we welcome innovative companies like Uber and Lyft and provide them with the resources they need to safely and effectively operate in the Commonwealth," Governor McAuliffe, said in a press statement, Wednesday. "Technology - specifically related to smart phones - continues to advance at a rapid pace, and I am pleased that we were able to work together to find a swift solution that will provide Virginia's workers, students, and families with more transportation options."
Uber received a head-start in positioning its service in Virginia ahead of Lyft, which currently operates in more than 60 cities. But Uber must adhere to a list of regulations for passenger safety, insurance and comply with the state laws. The regulations require running extensive background checks on the drivers, who must be properly licensed and over 21 years of age.
To kick off its deployment in the new city, Uber is offering first five rides free, which usually costs up to $25 each. To enjoy the service, residents of Virginia must download the app. Uber's base fare is $1.50 and it charges $0.30 per minute and/or $1.90 per mile, the company's website states.
The car service recently agreed to limit its prices in New York City during emergency situations and natural disasters. The company has long been planning to extend its presence in Portland but regulatory hurdles have been delaying the shift. Uber currently operates in 140 cities worldwide and in major cities like New York, Boston and Providence and Rhode Island, as well as small cities like Chapel Hill, North Carolina, Fairfield, Connecticut, and Palm Springs, California.
