They do a pretty good job of explaining it in the FAQ - but this app is not exactly the same as Lyft and Uber. The biggest thing is that the Waze doesn't collect a fee, and the fee drivers collect is currently set not to exceed the IRS defined limit on per mile transportation deductions.

Also only in CA, TX, and Israel for now. If it comes to my state, this would be cheaper than a bus for my commute.