Uber Competitor Sidecar Now Lets Drivers Set Their Own Prices With a $10 million venture capital infusion and a revamped business model, the lesser-known ridesharing app revs up to roll over the competition.

By Kim Lachance Shandrow

Opinions expressed by Entrepreneur contributors are their own.

Sidecar is gunning hard for a competitive edge over Lyft and Uber in the crowded ridesharing mobile app fast lane. The San Francisco-based startup this week announced that it's rolling out an innovative new customization model that gives riders and drivers more control over their fares and rides than ever before. And, no, adding oversized fuzzy mustaches to their cars' grills thankfully isn't part of the plan.

Uber Competitor Sidecar Now Lets Drivers Set Their Own Prices
A look at Sidecar's new, improved ridesharing app.

The company, founded by Sunil Paul and Jahan Khanna, also revealed Wednesday that it recently raised $10 million from some heavy hitter venture firms, including Union Square Ventures, which has backed biggies like Twitter, Zynga, and Tumblr. Past similarly high-profile investors include Google Ventures and Lightspeed Venture Partners.

Related: Taxi Company Weaves Out of L.A.'s Regulatory Traffic Jam

Sidecar, which began beta testing in February 2012 and has provided some one million rides since, snapped up the $10 million cash infusion over the summer. It will use the funds to offer a robust array of new rider and driver choices, to grow its network of drivers, and to expand services to additional cities throughout the U.S. Currently, Uber and Lyft serve more markets than Sidecar. The only cities Sidecar caters to at the moment are San Francisco, San Diego, Los Angeles, Long Beach, Calif., Chicago, Boston, Washington, D.C., and Charlotte, N.C. But that's all about to change.

The new, freshly revamped Sidecar app allows riders to handpick their ride's specific vehicle type, driver, and price, "tailoring every ride for every occasion." Sidecar customers can now also select a ride based on how close it is to their location.

Related: Uber Acknowledges Nasty Ploy to Sabotage a Competitor

As part of the upgrade, drivers also have more choices, ones that could potentially fatten their wallets some. They now have the ability to set their own prices, ideally wooing customers by offering rides for cheaper than the competition. According to Reuters, Sidecar drivers can also now charge premiums, up to 1.25 the base rate, for higher user review ratings and fancier cars.

What immediate impact, if any, Sidecar's game-changing choice and location expansion will have on Uber and Lyft remains to be seen.
Kim Lachance Shandrow

Former West Coast Editor

Kim Lachance Shandrow is the former West Coast editor at Entrepreneur.com. Previously, she was a commerce columnist at Los Angeles CityBeat, a news producer at MSNBC and KNBC in Los Angeles and a frequent contributor to the Los Angeles Times. She has also written for Government Technology magazine, LA Yoga magazine, the Lowell Sun newspaper, HealthCentral.com, PsychCentral.com and the former U.S. Surgeon General, Dr. C. Everett Coop. Follow her on Twitter at @Lashandrow. You can also follow her on Facebook here

Editor's Pick

Related Topics

Money & Finance

Want to Become a Millionaire? Follow Warren Buffett's 4 Rules.

Too many entrepreneurs are counting too heavily on a company exit for their eventual 'win.' Do this instead.

Business News

Renowned Federal Judge, 96, Faces Yearlong Suspension For Refusing to Retire

Judge Pauline Newman, a highly respected figure in patent law, has been suspended for one year by her colleagues due to mounting concerns about her mental fitness.

Business News

Christian Influencer Found Guilty of Defrauding Dozens, Ordered to Pay Nearly $90,000

Dana Chanel was the co-owner of two businesses that she heavily promoted to her 1.1 million Instagram followers.

Science & Technology

5 Mistakes I Learned to Avoid When Working With ChatGPT

What I learned from using ChatGPT for business purposes day-to-day across my content websites.

Cryptocurrency / Blockchain

Why the Next Crypto Bull Run Will Be Like Nothing We've Ever Experienced

We are on the precipice of what could be the greatest transfer of wealth that has ever happened in human history.

Business News

These Are the Top 10 'Mega Airports' in North America, According to a New Report

J.D. Power's annual ranking named Detroit Metropolitan Wayne County Airport highest for customer satisfaction for 2023.