CEO and co-founder Will Coleman said Alto was created as a solution to the challenges riders and drivers face with commonly used apps such as Uber and Lyft.
“Some of the decisions that they had made around structuring their business left passengers and drivers, investors and cities really looking for a better solution and I wanted to create that solution,” Coleman said.
Drivers face uncertain wages, a lack of safety and inconsistency, Coleman said. Riders face similar issues, he said.
Riders “are forced to choose between two commodities, two apps, that have the exact same product that’s inconsistent,” Coleman said.
Alto’s employment model “boils down to a single point, which is control,” Coleman said. Alto can maintain its vehicles and interview, select and train its drivers, he said. That means the company can offer a better, more consistent experience, he said. W-2 employment also means drivers are certain of their pay, access to health care and benefits, and workers compensation.
Managing its own fleet also has benefits, Coleman said.
“As a fleet operator, we can acquire and dispose of vehicles much more efficiently than individuals can,” Coleman said.
Coleman said Alto’s unique employment model also gives the company pricing power.
“We’re able to charge more and our customers are willing to pay more for that differentiated product,” Coleman said, adding that Alto is comparably priced.
Customers don’t have to play “rideshare roulette,” which is how Coleman describes the loading screen as a ride-hailing app populates a driver and pickup time. At Alto, the rider can expect the same clean car with a uniformed employee that will arrive in 10 to 15 minutes every time. In most locations, a rider must be an Alto member to hail a ride. A monthly subscription costs about $13 per month and gives members priority and ride discounts of about 30 percent, per Alto’s website.
