Ryde cab. Ryde

Ride-sharing app Ryde is offering carpooling service to school children in an effort to reduce fuel costs.

Singapore-headquartered company launched a new service called RydeSchool, which aims to help parents and drivers cut costs through carpooling.

The service also provides parents an alternative to school bus, which typically requires kids to leave home as early as 5.45am.

Ryde, like bigger rivals such as Grab and Uber, are trying to mitigate competition by offering more favourable terms and services for drivers and riders.

Launched three weeks ago, RydeSchool matches parents who live in the same neighbourhood, and those with children going to the same school.

They can view each other's profiles, chat, and also negotiate the suggested fee for the carpool.

Ryde, launched in 2014 as a carpooling app, said the service is not to help drivers make a profit but to help them cut down on costs such as petrol expenses.

According to media reports, a 15km journey from Sengkang to Singapore Chinese Girls' School in Dunearn Road will cost about $11 per trip and about $220 a month for a one-way trip.

That is pricier than a one-way journey on an 11-seater school bus, which apparently costs only $150 a month.