Unlike Uber and Lyft, Alto classifies its drivers as W-2 employees and supplies them vehicles from its fleet. The venture capital-backed Alto, which has raised $20.5 million, wants to become 'the Starbucks of ridesharing,' co-founder and CEO Will Coleman told dot.LA.

These two Texas startups offer starkly different employee models. The two, along with other gig companies, have sunk millions into backing Proposition 22, a November ballot measure that would exempt them from a new state law that requires them to classify their drivers as employees.

Meanwhile, Uber and Lyft remain mired in a heated battle in California to keep their drivers classified as independent contractors, a business model that, if upended ,could damage their road to profitability. They will be joining other apps already trying to steal away market share such as Wingz and Swoop. And the Austin collective Arcade City will start marketing its ride-hailing app in Los Angeles Tuesday. This year, two Texas-based companies are going after one of rideshare giants Uber and Lyft's biggest markets: Los Angeles.ĭallas-based Alto plans to begin their services by the end of October. Frustrated, she's ready to leave her part-time gig, but until now there have been few options. Lyft driver Nicole Moore has watched her paychecks shrink as her hours have grown.

Lyft v uber in dallas