Alphabet Inc.'s Google has quietly opened its Waze ride-sharing service to San Francisco-area users, expanding a pilot program and confirming the company's interest in the lucrative ride-hailing industry.

Smartphone users in the San Francisco area now can download a mobile app called Waze Rider to request rides to and from work from drivers using Google's popular Waze navigation app. Google in May launched a test of the carpool service for workers at several area employers, but the service has been gradually rolling out to San Francisco-area users for several weeks, Google confirmed Thursday.

The Wall Street Journal reported Google's ride-sharing plans in August.

The Waze service puts Google in more direct competition with ride-hailing incumbents Uber Technologies Inc. and Lyft Inc. But there are differences. Uber and Lyft drivers largely operate as taxi drivers, while Google wants the Waze service to match riders and drivers already headed in the same direction.

For now, Google is limiting drivers and riders to two rides a day—intended to be to and from work—and made it cheap, restricting drivers from making a living on the app. Such measures also could be designed to avoid regulatory scrutiny.

A Journal reporter took a Waze Rider trip Wednesday night from San Francisco's financial district to Oakland. The service had some bugs: the app didn't display to the rider where the driver's car was before pickup and the driver couldn't use Waze's navigation service during the ride. But overall it went smoothly.

Google paid the driver, local bar manager Mae Coates, $6.30 for the roughly 20-minute ride and charged the rider just $3, a discount as part of a promotion for the service's launch. The same ride outside of rush hour would cost $23 to $30 on Uber or Lyft, according to the companies' apps. A subway ride that distance costs $3.45.

Ms. Coates said she signed up to be a driver because it was "hassle-free." She told Waze her general schedule and her home and work addresses, but she didn't have to provide proof of insurance, send a photo of her car or pass a background check. A Google spokeswoman said the company doesn't plan to require such information because it is simply a platform to connect drivers and riders headed in the same direction.

Ms. Coates said the Wednesday trip was her first with Waze but she likely would do it again because it is an easy way to earn a few extra dollars on her commute home, she said. She doesn't drive for Uber or Lyft because she has a full-time job.

"I think it'll catch on," she said. "It's cheap and it's easy."

Write to Jack Nicas at jack.nicas@wsj.com

 

(END) Dow Jones Newswires

September 29, 2016 16:45 ET (20:45 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
Alphabet (NASDAQ:GOOG)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Alphabet Charts.
Alphabet (NASDAQ:GOOG)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Alphabet Charts.