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Nick Shiftan, Goose Networks
Thumbing a ride
by Becky Brun - 10.2.07

SEATTLE

Think of it as online dating for the traffic-impaired. With a new twist on car-sharing, for-profit companies are paying people to share the fast lane.

Founded by 24-year-old former Microsoft engineer Nick Shiftan, Goose Networks sends text messages to drivers in the Seattle area that share the same route to work. Then, the company rewards those who choose to carpool — with cash.

After proving the system encouraged one out of 20 Microsoft (Nasdaq: MSFT) employees to carpool, Goose Networks earned a two-year, $111,090 contract with the Washington State Department of Transportation aimed at eliminating 322 single occupancy vehicles from state freeways daily. “When most states are spending money on asphalt and building new bridges, Washington state is spending money on text messaging and social networks,” Shiftan says. “It’s pretty innovative on their part.”

The department pays Goose Networks a baseline and rewards the company for trips it can prove it eliminated.

Meanwhile, Herndon, Va.-based NuRide is scoping Seattle for companies and government agencies that are interested in sponsoring a Seattle carpooling challenge.

Like Goose Networks, NuRide does not charge customers to use the service, yet it offers users gift certificates to major retailers such as The Home Depot (NYSE: HD), Starbucks (Nasdaq: SBUX) and REI every time they carpool. NuRide launched in Washington, D.C., in 2004 with seed money from the Virginia Department of Rail and Public Transportation. The company relies on both government agencies and anchor sponsors to fund commuter challenges in major cities.


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