A Ride Along With the Only Rideshare Company Treating Its Drivers As Employees

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

A Ride Along With the Only Rideshare Company Treating Its Drivers As Employees
Courtesy of Alto

Since dot.LA covered its launch two years ago, Santa Monica-based rideshare company Alto has hired 300 staff members to join its growing team of drivers. But unlike its competitors, Alto classifies every driver as a W-2 employee.

“They're not gig economy workers that show up whenever they feel,” general manager Sevag Konialian tells dot.LA, “they have hours that correlate with the schedule they signed up with.”

Applicants that are interested in joining the Alto family, as Konialian puts it, must fill out a form online with their desired schedule. Once the application is complete, an Alto member reaches out to the applicant for a remote interview. After the interview, the potential driver will receive a driver training course list that they must complete.


Konialian says the course load is robust because, “it includes what your expectations are, what the app navigation looks like and what the culture is all about which is all getting embedded before you show up here (Alto headquarters), so we're not starting from zero in person.”

Because Alto drivers are classified as employees of the company, they have access to a 401k, guaranteed hourly pay, company sponsored health benefits, professional training and dispatch support and opportunities for advancement within the company.

The startup dubs itself as the “safer” ride sharing option, so last week, I took a ride in one of Alto’s SUV’s to Santa Monica pier for a test run to understand how it all works.

How Alto Works

Service agents getting ready to clean Alto cars before they head out for the day. Photographed by Decerry Donato

As I was waiting at the Alto depot, there was a line of pearly white SUV’s parked ready to be wiped and disinfected by the company’s service agents (this is what Alto calls their cleaning crew). Service agents clean all Alto vehicles before and after every shift, but drivers will clean the car between every ride to ensure each passenger has the same clean vehicle as the previous person.

Similar to other apps, you must enter your credit card information to set up a ride and while Alto is a membership-based ride hail service, the company allows non-members to request rides, like myself.

Alto’s annual membership costs $99, but those who don’t want to commit to a full year can pay a monthly fee of $12.95. Being a member allows passengers to save 30% on every ride and unlocks priority booking during peak hours.

Members also have access to exclusive offers with Alto’s partners including a 50% off membership with Soho Friends, $250 in booking credit with Wander, $30 off your purchase with Mizzen + Main and many more.

Once your ride is confirmed, the app will provide you with a bio of the driver, along with the license plate of the car.

Within ten minutes, my ride came and the driver, Chauncey Dennis, opened the car door and welcomed me in. He asked if he could take any of my bags to the trunk and I was shocked at this gesture because the hospitality I received was drastically different compared to other ride services I’ve experienced.

Alto car waiting for the driver. Photographed by Decerry Donato

The Ride

Similar to other ridesharing apps, Alto gives the passenger the option to select a do not disturb button. If the passenger has it on, it notifies the driver that you want a conversation-free ride. But if the feature is turned off, you can expect to learn a little more about your driver.

My fare to Santa Monica cost $24 and Konialian confirms that Alto rides are 30-40% cheaper than other luxury ride hail options.

“In a five day work week, I’ll get at least 75% repeat customers.” Dennis says who has been driving for Alto for a little over a year now.

“As a driver, I observe first time riders and see how shocked they are with what they're getting,” Dennis says.

Some of the comments he receives include everything from how safe it feels to ride with Alto to the cleanliness of the cars.

During the car ride, I learned that I could control the temperature and music and volume from the app. The app currently has a set of eight different vibes you can select from which are Latin, Yeehaw, Reverie, Quest, Fizz, Liftoff, Sanctuary and Void. Each vibe is associated with a genre of music or selection of sounds you can enjoy during the ride. I chose Reverie and the songs that were playing had a lo-fi feel to them and still allowed me to talk to my driver.

An inside look of an Alto vehicle. Courtesy of Alto

The Safety Factor

Aside from the plexiglass barriers and air filters that are installed in each Alto car, the company also equips each vehicle with a cloud based camera that allows management to monitor the drivers when they are out in the field.

Konialian adds that, “it helps us keep a more accountable system of our drivers and make sure that they are at the top level of safety and the footage can be used in liability cases when it comes to any sort of accidents that occur.”

In the case of a flat tire or a battery issue on the road, the driver must contact dispatch where they will relay the message to Alto’s fleet coordinator, Wayne Gretzky (not the hockey player) or the driver lead on duty. Then Alto will get a fleet roadside assistance to go out and pick up the vehicle.

When Alto first came to Los Angeles, consumers that had access to the ride hailing service were from cities including Santa Monica, Venice, Marina del Rey and West Hollywood. Now, the startup has expanded its services into the Valley, Studio City, North Hollywood Arts District, Sherman Oaks and Van Nuys.

Next year, the ride-hailing service will add 600 more vehicles to its fleet that will be divided across its six markets: Los Angeles, San Francisco, Dallas, Houston, Washington DC and Miami.

LA’s Data Center Supply Crunch

🔦 Spotlight

Happy Friday Los Angeles!

The Los Angeles data center market is experiencing a significant supply crunch, ranking 12th in growth among top markets since 2020 with only 265 megawatts of colocation inventory (data centers where businesses rent space to store their computing hardware and servers). Despite this, demand is surging, driven by AI, cloud, and hyperscaler needs, with AI accounting for 20% of new data center demand nationally. This scarcity is creating a highly competitive environment, with vacancy rates at a record low 3% and asking rents rising 13-37% year-over-year. For Los Angeles, this presents both challenges and opportunities in the big picture. The city's strategic position as a global entertainment hub and its connectivity to international markets through subsea cables make it an attractive location for data centers. However, the limited inventory and rising costs could potentially hinder growth and innovation in the tech sector. To maintain its competitive edge, Los Angeles will need to address these constraints through new developments, such as GI Partners' 16 MW addition at One Wilshire, and by focusing on high-connectivity, high-power capacity submarkets. The city's tech community should prepare for a landscape of increased competition for quality data center space, higher costs, and the need for innovative solutions to meet growing demand, particularly in AI and cloud services. While Los Angeles faces a challenging data center supply crunch, its strategic advantages and ongoing developments offer a promising path forward.


🤝 Venture Deals

LA Companies

  • Daisy, a one-year-old startup that designs and installs smart home and office technology systems, raised a $7M Series B co-led by Goldcrest and Bungalow, with previous investors Bullish and Burst Capital also stepping up. The company has raised a total of $13.3 million. - learn more

LA Venture Funds


    ✨ Featured Event ✨

    LA TECH CEO SUMMIT

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    🌐Decentralizing Data & Vacations: Sony's Web3 Leap and Sensible Weather's KOA Partnership

    🔦 Spotlight

    Happy Long Weekend Los Angeles!

    Sony Group is making a significant push into the blockchain and Web3 space, leveraging its Sony Pictures and Sony Music divisions along with a new global incubator. The company has developed the Soneium blockchain through Sony Block Solutions Labs, a joint venture aimed at accelerating Web3 innovation. Sony is launching the "Soneium Minato" public testnet and a developer incubation program called "Soneium Spark" to foster ecosystem growth and adoption. The initiative includes strategic partnerships with Web3 companies such as Astar Network, Circle, and Optimism. Sony aims to create a fan community centered on creators and connect diverse values through Soneium, with the ultimate goal of integrating Web3 services into people's daily lives. While the company acknowledges the challenges faced by Web3, including limited user adoption and the need for mainstream use cases, it remains committed to decentralizing the concentrated power of the current internet landscape.

    In completely unrelated and more digestible news Sensible Weather, a leading weather protection provider that we’ve featured many times, has partnered with Kampgrounds of America (KOA) to offer Weather Guarantees at over 450 KOA Campgrounds across the United States. This collaboration allows campers to purchase weather protection for their outdoor experiences, providing peace of mind and potential reimbursements of up to 100% of their nightly rate if weather conditions exceed predefined parameters. The partnership comes at an opportune time, as camping has seen a significant increase in popularity, with active campers growing by 68% over the past decade. If you are looking to do some camping this fall make sure you look into Sensible Weather protections to ensure that unpredictable weather won't dampen (nailed it) your camping experience.


    🤝 Venture Deals

    LA Companies

    • Space and Time, a blockchain data warehouse developer, raised a $20M Series A led by Framework Ventures. - learn more
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    LA Venture Funds

    • Fika Ventures led a $4.55M Seed Round for Revenew, a San Francisco startup that aims to help digital platforms and marketplaces manage their payments and optimize financial operations. - learn more
    • Bonfire Ventures participated in a $25M Series A for Supio, an AI platform for personal injury law firms. - learn more
    • Amplify LA participated in a $2M Seed Round for Pryzm, a startup that provides tools and data to help businesses navigate government contracting more efficiently. - learn more

      ✨ Featured Event ✨

      LA TECH CEO SUMMIT

      LA’s tech leadership is set to reunite after a long break! This two day summit will focus on building strong connections, sharing insights, and fortifying the local tech community.

      Learn More Here

      Register Here


      Download the dot.LA App

      Personality Assessments Improving Workplace Dynamics

      Misunderstandings can have significant and sometimes severe impacts, far beyond the hilarious cake pictured above. Many organizations are increasingly using personality assessments to improve team dynamics and productivity. Tests like the Enneagram, Myers-Briggs Type Indicator (MBTI), and DISC assessment are valuable tools for developing existing teams in addition to hiring new employees. These assessments provide insights into team members' motivations, communication styles, and work preferences, helping colleagues understand each other better. By highlighting the different personalities within a team, these tests can enhance communication, resolve conflicts, and optimize task assignments based on individual strengths. As companies aim for greater efficiency and collaboration, the Enneagram, MBTI, and DISC assessments are becoming essential for transforming established teams into more effective and cohesive units.


      Image Source: iEQ9

      Enneagram

      The Enneagram test is a sophisticated personality assessment that categorizes individuals into nine distinct personality types, each defined by unique motivations, fears,and behavioral patterns. This holistic approach enhances team dynamics in a business setting by fostering self-awareness, improving communication, and facilitating conflict resolution among team members. By understanding different personality types, teams can optimize their composition, tailor professional development, and create a more empathetic and collaborative environment. This framework not only helps leaders adapt their styles to better support diverse team members but also promotes inclusivity and effective collaboration, ultimately leading to improved team performance, productivity, and retention.

      Resources:iEQ9. We recommend getting an Enneagram coach to get the most out of the results.

      Key Features: Focus on core motivations. Accounts for personality shifts under stress or growth. Offers practical, actionable guidance for personal growth. Uses a dynamic, adaptive questioning approach. Claims 95% accuracy rate through advanced techniques.


      Image Source: DiSC Profile

      DiSC (Dominance, Influence, Steadiness, and Conscientiousness)

      The DiSC assessment is a widely used behavioral analysis tool that categorizes individuals into four primary personality types: Dominance, Influence, Steadiness, and Conscientiousness. For businesses, DiSC provides valuable insights into employees' communication styles, work preferences, and motivations. By understanding these behavioral tendencies, teams can improve collaboration, reduce conflicts, and enhance overall productivity. Implementing DiSC in a business setting can lead to more effective leadership, tailored communication strategies, and optimized task allocation based on individual strengths.

      Resources:DiSC Profile.

      Key Features: Designed specifically for workplace applications. Focuses on observable behaviors rather than psychological traits. Widely researched and validated over 40+ years. Provides practical strategies for improving interactions.


      Image Source: The Myers-Briggs Company

      The Myers-Briggs Type Indicator (MBTI)

      The Myers-Briggs Type Indicator (MBTI) is a widely used personality assessment tool that categorizes individuals into 16 distinct personality types based on four dichotomies: Extraversion/Introversion, Sensing/Intuition, Thinking/Feeling, and Judging/Perceiving. For businesses, the MBTI provides valuable insights into employees' communication styles, decision-making processes, and work preferences.This helps promote a more productive workplace, and enables employees to become involved in more meaningful ways, all while leveraging everyone’s unique strengths.

      Resources:The Myers-Briggs Company.

      Key Features: Focuses on preferences rather than traits. Focuses on how people perceive and judge information. Widely used in business and career counseling


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