Recall the face of transportation say five years ago, you standing on the pavement, waiting for a cab to halt and then ride to work, right?
Remember the first time you heard about Uber? Like what was your reaction? Let me guess, you were confused and surprised, both at the same time. Confused because it was all a new venture and happy because you no longer needed to wait for hours before finally hopping in your cubicle.
Well, this is all that a user feels, how about the other end? How has the inception of rideshare apps affected the transportation sector, any idea?
Let’s start with numbers: currently, Uber along with its longstanding rival Lyft occupies 70.5% of the US travel market. The rental car service segment gets the rest 23% whereas the taxi industry is left with only 6%. Now, that’s a disruption.
A whopping decline in the popularity of taxi or the rental car services and massive growth in the acceptance rate of the taxi app sector, definitely the damage has been huge. But this is just one instance and the numbers alone cannot exemplify the effect of taxi apps in the transportation industry.
So, let’s not hover around words and move ahead to see how exactly and in what respect has similar to Uber clone apps disrupted the industry.
Five Ways Ride-Sharing Apps Interfere With Transportation Industry
- The Altering Definition Of How We Ride
The first and the most important impact of taxi apps have been in the mindset of how we commute. Taxi apps have changed the definition of riding. For one, these apps have introduced the concept of sharing rides. Earlier, people had to step out of their houses, wait for hours and then hop in a cab. Through taxi apps, users can conveniently book a cab at the desired place and the desired time.
These apps also provide ease where two people traveling to the same area can share the ride along with sharing the money. People today are more likely to hire a cab through an app instead of driving their own vehicle. Consequently, users are shifting their idea of owning a vehicle to sharing one.
- Declining Popularity Of Taxi Operators
Considering the acceptance rate of taxi apps being surprisingly high, the inception of such an economy has led to the fall in popularity of local taxi. Thousands of taxi drivers had to quit their job and find an alternative, post the penetration of apps. It is pretty obvious that users are more likely to book a cab as and when required as compared to hailing one, after hours of anticipation.
- Elimination of Unwanted Cost
Earlier, the travel and touring companies owned the monopoly over the transportation sectors. Users had no choice, but to accept and pay. They had an irregular price and would charge extra for fuel. However, after the integration of taxi apps in the transportation industry, there now occurs a standard price. Customers need not pay for hiring a cab or booking a service, instead, all they need to pay for, is their ride.
- Promoting Investment
For vehicles that have been sitting in their garage for years now, taxi apps bring employment. The ride-sharing companies schematized a scenario where the private car owners could rent their car and receive a share of profits in return. In a way, this economy turned the unused resources profitable. Additionally, the part-time drivers who would drive only when free could benefit from the above. As a matter of fact, these companies do not indulge in any kind of contract giving developers the ease to work as and when convenient to them.
- Variable Price
The fact that taxi apps are ride-sharing communities and don’t fall within the norms of taxi companies, they need not comply by the rules and regulations. With this, the ride-sharing communities can adopt any kind of pricing model and even increase them as needed. Apparently, it is seen that such services base their prices on demand. With higher bookings, the prices shoot high up whereas, in the event of decent demand, the prices remain within budget.
Such a model isn’t part of the conventional system of a taxi as its prices are determined and set by the legislation. Though few believe that these are expensive, in reality, taxi apps offer affordable rides, greater than the traditional ones. Alongside, the taxi apps are governed in a manner that prior to confirming the cab, the app showcases the approximate cost of the ride. So users can choose whether or not to hail the ride.
- Payment Methods
With digitization hitting the industrial sector, every enterprise has decided to go cashless. Similar is the scenario with the transportation industry. Finding loose cash and paying for rides have been one of the most aggravating issues faced by commuters.
To ease the same, ride-sharing apps work on a digital payment model. As soon as a user sign-ups, the app saves the billing details and every time the users hail a ride, the total amount payable is automatically deducted from the account of the users, once the ride gets completed. So, no more do you need to look around for changes or be worried if the driver would rip you off.
Cashless payments are a relief for the drivers too as they are pretty sure that the passenger cannot cheat.
- User-Friendly Experience
Driving to the office with a rude and rash driving driver? It would be the last thing you would want to witness. While the taxi drivers are king of their world, the taxi app drivers are bound by the company. The apps have a rating and review feature where passengers can share their riding experience. For drivers, whose ratings fall below the threshold value, they are removed from the service.
Undeniably, taxi services have reigned over the transportation industry is the most popular mode of commuting. But the inception of taxi app services took over the spot and today, ranks as the most efficient and convenient mode of transport. It is expected that by 2025, the overall market of on-demand transportation industry would cross $290 billion. Meaning that the industry would not only evolve but also flourish with passing time and emerge as the game-changer.
Nikhil Bansal is the CEO and Founder of Apptunix, a leading Taxi Booking App Development helping businesses in streamlining their processes with powerful and intuitive mobile apps. With extensive experience in iOS app development, he has established himself as a highly-focused Solution Architect and UX expert, the one who is always ready to make efforts in the direction where technology blends with lives.