Can a Toronto-based ride-hailing startup compete with Uber and Lyft?

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Harrison Amit, CEO of the new ride-hailing app Hovr hopes to compete with Uber and Lyft and win over drivers with a different pay structure. Here he poses with the company's promotional car.

A new ride-hailing app promising fair pay to drivers is launching today, starting in the Toronto area, to take on Uber and Lyft. The company believes it will attract drivers by paying them 100 per cent of fares and charging only a membership fee to work for the service.Harrison Amit, CEO of the new ride-hailing app Hovr, hopes to compete with Uber and Lyft and win over drivers with a different pay structure. Here he poses with the company's promotional car.

That price is an introductory rate that Amit says will rise as the business grows, but a fixed cost means drivers don't pay more for working more.Hovr says it will make the costs of each ride transparent, giving riders a bill that shows the fare or driver's pay , and includes what the passenger is being charged for insurance, city fees, a transaction fee plus a $1 "platform fee" from the company.

Kam Phung, an assistant professor with the Beedie School of Business at Simon Fraser University in Vancouver, says the ride-hailing industry is in need of change. He said the remaining 91 cents is split between insurance and other fees, but most of it goes to the driver.

 

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