Startup Uses Tech to Upgrade the “Dollar Van” Experience

For many of us, hailing a car service in the 21^st century means a couple of smartphone taps to hail an Uber or Lyft vehicle. But for poorer inner-city residents in places like New York, those services at not exactly cheap, forcing them to wait for unreliable buses or trains or worse, take van services called “dollar vans” that have been largely had the image of using dirty, unsafe vehicles and outdated service systems.

Enter Su Sanni, co-founder and CEO of a rideshare service called, appropriately enough, Dollaride. Sanni launched the company to provide a 21^st century, smartphone-based service to connect riders and drivers of low-cost rideshare services more efficiently. But he did not stop there. Dollaride was subsequently awarded a $10 million grant by state agency NYSERDA (New York State Energy Research and Development Authority) to develop a plan to convert dollar vans to electric, as part of an effort to subsidize the struggling dollar van sector in inner New York City neighborhoods.

During the recent BMW Climate Week event in New York City, Sanni spoke to the audience about his company’s efforts to bring dollar van services into the 21^st century.

Familiar with dollar vans

Sanni, a Nigerian-American born is no stranger to low-cost van services, having used them growing up in Brooklyn, New York. Such van services have long served large swarths of New York City neighborhoods outside the central business strict where mass transit is either non-existent or not practical, particularly at night where residents must commute to overnight or early morning jobs.

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The dollar van services in these areas have long been underfunded and have cut corners in areas such as vehicle comfort and safety. What’s more, a number of them have been unlicensed, prompting city agencies to crack down on illegal operators. That, the rise of Uber and other ride-sharing services, along with rapidly rising insurance rates, have forced many of these services out of business.

Sanni, through the efforts of his company and funding from NYSERDA is trying to make the dollar van service a legitimate, safe, and reliable service for inner-city residents that still lack public transit access. NYSERDA has launched a commuter van stabilization program that provides insurance subsidies to help the dollar van services address rapidly rising insurance rates. According to the commuter van stabilization program website, eigible applicants can receive up to $40,000 to help offset the cost of annual commuter van auto insurance policies. The program also reimburses van operators for specific vehicle safety upgrades, including Advanced Driver Assistance, Dash Cams, Safety Belts, GPS Tracking, Safety Signs and Emergency Supplies.

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Sanni’s efforts also include replacing older, combustion engine-powered vehicles with up-to-date, electric vans that emit zero emissions, thus also helping to reduce greenhouse gas emissions in underprivileged urban areas. This is accompanied by installation of electric vehicle charging stations, GPS vehicle tracking systems, and an app that dollar van users can access to book rides and track vehicles.

The program not only reinvigorates the dollar van market, will also give a boost to the labor market in the same inner city areas, by providing jobs not only for drivers but also those maintaining the infrastructure for modern electric vehicles.