UPDATED 20:52 EDT / JUNE 17 2020

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Uber starts offering its booking software to public transport providers

Uber Technologies Inc. is moving into software, signing its first deal to provide its booking technology to a Californian public transport provider.

Under the deal, signed today with Marin County on a software-as-a-service basis, the county north of San Francisco will use Uber’s technology for its Marin Connect service. The service, set to launch in July, provides wheelchair-accessible vans to local residents.

In addition, the service offers public transit schedules and discounts for Uber services within the local area along with vouchers for riders traveling the last mile to their destinations from transit stops. Fares are $4 per mile or $3 for Marin Access riders. Marin Access operates between 6 a.m. and 7 p.m. along the Highway 101 corridor.

Uber does not take a cut from any bookings made via Marin Connect, with the county paying $80,000 to use Uber’s technology for a two-year period.

“This is not a one-off. This is a new product and a new business,” David Reich, head of Uber Transit, told Bloomberg. “Together we want to make car ownership a thing of the past.”

The move by Uber to offer its app could well be lucrative for the company. But even if it doesn’t, given the software already exists, it’s a no-brainer to license it to others, particular public transport providers that don’t compete directly with Uber.

The potential for a new revenue stream is also a positive for Uber following the COVID-19 pandemic. Uber’s core ride-hailing service was hit hard by lockdowns and other travel restrictions imposed because of the pandemic. Ride-hailing volume was down 80% in April, though booking numbers started to recover in May. Uber Eats surged over the same period but not enough to counter lost revenue from the ride-hailing business.

Because of the impact of the COVID-19 on its business, Uber laid off 6,700 employees worldwide to cut costs — an initial 3,000 May 18 followed by a further 3,700 June 6. In an effort to find new revenue streams, Uber launched a new service called Uber Hourly in late May that allows people to book a driver on an hourly basis.

Photo: Marin Transit

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