“If it sounds too good to be true, it probably is.”

I was reminded of this adage when I first heard friends rave about Via and how cheap it is. Now that I signed up for Via myself, this old adage has been especially top-of-mind.

• Last week I took a Via from downtown to a friend’s house on the Upper West Side. A 45- minute ride, picking up one other passenger. It cost me a total of $5 plus tax. How can this be a sustainable business model?
• The more I use Via, the more I think about MoviePass (now on its last legs) and how they lured their subscribers in with unsustainably low prices.
• How did tech companies and their VC’s become so comfortable with such flimflammery as a business model?

Read on below for a quick summary of my Via experience in NYC. Via also operates in Chicago and Wash DC. They have recently added a new business partnership with the city of Arlington Texas, replacing the city’s bus service with 10 Via vans (ordered by riders via the Via app).

The Via Ride Share Experience.

• Free app to download
• The concept and pricing is based on ride-sharing but so far, half of my rides have been solo
• Rides in Manhattan cost a flat $5.00 fee, plus tax (whether it is a shared ride or not)
• Rides to/from Dumbo were just under $8 (Uber rides to the same destination usually run $25-$35)
• Via operates on a map algorithm that drivers must adhere to – no shortcuts or deviation allowed. The algorithm identifies riders going in the same direction with drop-offs along the way. Presumably you will never be taken out of your way because of a pick up. As a result, they will never take you on the FDR Drive or West Side Highway because it would make it more difficult to pick up an additional fare (although the route may be shorter).
• The service is not door-to-door BUT you are picked up/dropped off within a block or two of your destination. It saves time, especially in cities like New York where going around the block of one-way streets can add 15 minutes to a ride.
• Drivers have told me they only work for Via on the days/nights the company is running special driver incentives e.g. $30 an hour for them whether they have passengers or not. One driver was shocked at how little I was paying for my ride.
• Based on my limited experience, my drivers and cars have not been as spiffy as Uber’s. I definitely buckle up for safety in a Via and I am much less inclined to have a conversation with the driver.
• The experience reminds of taking a hotel’s minivan pickup service to/from the airport.

Bottom Line.

Via’s main advantage over its ride-sharing competitors is the price. And that’s absolutely MAJOR. It makes Via a competitor for taxis and for the MTA. Not that I ride the subway often but I know I will use public transportation far less now that I know I can get around town for between $5 – $7.

Can’t see how this will last (although it has been in the NYC market since 2014) but as long as it is here and they keep the rates the way they are, count me in. And thank you VC’s for subsidizing my rides.