Google to Expand Ride-Share Service to San Francisco

This autumn Alphabet Inc.’s Google unit plans to expand the Waze ride-share service it has been testing near its Mountain View, Calif., headquarters to cover the entire San Francisco Bay area, a source tells The Wall Street Journal.

The service uses a smartphone app to connect drivers with potential passengers who are heading in the same direction. In the pilot test, Waze charged riders no more than 54 cents per mile to cover fuel and vehicle maintenance, and Google collected no fee.

The Waze app also provides its users with real-time driving directions that incorporate traffic reports from other drivers.

The Waze model is similar to that of ride-hailing rivals Lyft Inc. and Uber Technologies Inc., in that drivers are not Waze employees. It differs in that its primary function is to match commuting drivers with riders who are going in the same direction. Lyft and Uber drivers function as cabbies, using their own cars to fetch and deliver riders at a profit.

Still, the service competes for riders with Lyft and Uber. The conflict prompted Alphabet executive David Drummond to resign from Uber’s board on Monday.