BMW’s Seattle On-Demand Ride Service Goes FTE

BMW’s new ReachNow Seattle-centered service experiment turns on quality and differentiation of service. But it also will use full-time employees contracted from a local vendor. Differentiation of service relies on more than commodity workers, it involves an eye for customer preferences — ReachNow includes in-app preferences, such as “Quiet ride” and air temperature. These preferences are expected to justify a higher price, yet they depend on a human to do the work of changing the air conditioning and tuning the radio.

In non-driving settings, workers add far more value and will eventually be treated as providing value and not solely a commodity service. This move represents a decision to have trained, familiar employees represent a brand. That can be accomplished in an on-demand arrangement with workers, too. It’s just a matter of time and economic conditions.

BMW is contracting them from a company called Ecoservice, according to The Seattle Times. While Uber and Lyft incentivize drivers to make as many trips as possible, with pay coming from a cut of each fare and bonus opportunities tied to overall volume of rides given, the ReachNow ride-hailing sounds like it will emphasize quality over quantity. Drivers are paid $14.25 per hour and have set shifts, will be eligible for benefits, and can even bring in a 5 percent bonus each week if their rating stays between

Source: BMW is testing an Uber competitor in Seattle – The Verge

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Author: Mitch Ratcliffe

Mitch Ratcliffe is a veteran entrepreneur, journalist and business model hacker. He operates this site, which is a collection of the blogs he's published over the years, as well as an archive of his professional publishing record. As always, this is a work in progress. Such is life.