A competitor to Uber and Lyft has appeared in New York City: it promises more money for drivers and lower prices for passengers.

In New York City, where the ride-hailing market is largely dominated by Uber and Lyft, a new service, Throo, has emerged. It offers a different operating model: passengers pay less, and drivers earn more. Ny1 tells in more detail.

Kay Wu said he has attracted more than 53,000 drivers to his licensed app Throo.

Wu is the CEO of Throo's Singaporean parent company, TADA. He visited the zone expectations for drivers at LaGuardia Airport, where he tried to convince drivers to sign up for the app. Wu promised them a higher earnings, than when working with Uber and Lyft.

Drivers are dissatisfied with the commission

Drivers like Stefan Joseph believe Uber and Lyft take too much commission.

"You buy your own car. You pay for your own insurance. Then you pay taxes. And then you watch others take it all. It's not fair," Joseph said.

According to Wu, Throo doesn't charge drivers a commission. However, rides through the app are cheaper than those offered by the other two services.

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"We charge drivers $1 per ride. That's it," Wu said. "First, we build a network of drivers. Then, when we reach the necessary volume, we can make a profit."

According to Wu, Throo is already profitable in other markets. The service operates in Singapore, Vietnam, Hong Kong, and Thailand after launching in 2018.

"As a platform and technology service, we essentially consider drivers our clients," he said. "We help them run their businesses using our software."

So far, the new service is significantly inferior to the market leaders

Since its limited launch in June, 2,047 drivers have completed a total of 2,547 trips on Throo.

However, the service has a long way to go to compete with Uber and Lyft. In the same month, these two platforms combined provided over 20 million rides.

Throo promises open communication to drivers

Throo boasts another advantage for drivers, according to the company: open communication between drivers and the company to resolve conflicts and handle passenger complaints.

Uber and Lyft are currently pursuing legal action to stop the city law from taking effect. This law requires drivers to follow due process in situations like this.

Other services have already tried to compete with Uber and Lyft.

Other apps have also attempted to break the Uber-Lyft duopoly, including Via, Gett, and Revel.

However, according to former New York City Taxi and Limousine Commission Chairman Matthew Daus, they didn't have a suitable business model.

"None of these companies had the resources or the necessary knowledge," Dawes said. "This is a genuine Singapore company. It's well-funded."

According to Daus, if the service becomes popular and appeals to drivers, other platforms could also offer a subscription model. In this case, the plan is to charge $1 per ride.

Uber said fair competition makes the industry better.

Wu believes his app will be a game changer.

"We may need to think differently to change the current market," he said. "But if we continue down the same path, there's no chance."