How the Ridesharing Business Is Changing the Game

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If our ancestors learned about the multitude of options available today to passengers wanting to get from Point A to Point B, they would be amazed. The duo of driving your own car or getting a taxi has been supplemented by dozens of new and innovative models, with ridesharing being the most prominent.  

Ridesharing typically refers to carpooling (when a group of people coordinate a mutual trip), or another kind of arrangement where a service connects a passenger and a driver/vehicle for an organized trip. Thus, the passenger can be driven around or do the driving using someone else’s car. Ridesharing models are having a truly disruptive effect on the transportation industry and city life in general, and we want to dive into the various changes taking place.

1.   Moving towards personalization

The ridesharing industry is extremely competitive, with dozens of companies vying for superiority on a global scale. Initially, many of the companies offered a similar service, but the competition has forced them to adapt and offer more personalized options.

Thus, users are gaining more control over their interactions with the companies, whether it means choosing their favored cars and drivers, setting expectations for their interactions in the car, or leaving feedback that must be responded to by the other side.

2.   Accelerating the switch to apps

Ridesharing services that involve phone calls, paperwork, and filling in web forms had a good run, but their time is coming to an end. The favored choice of the average ridesharing passenger (which tends to be young and technologically proficient) is mobile apps. Most businesses in this field already offer functional apps for different platforms, but those that don’t are often struggling to keep their business running.

3.   A new view of ownership

In many countries (and the U.S. in particular) owning a car is a rite of passage and a must-have in the list of life accomplishments. However, the rise of ride-sharing services is making passengers who use them rethink buying a car one day. These consumers are quite happy with the service they get and the low costs involved, and see no pressing need for such a big investment.

4.   Making electric vehicles popular

Considering the numerous issues our planet is facing, many people make of point of making the most environmentally-friendly decisions possible, and this applies to transportation. Eco-friendly ridesharing is experiencing a boom, and even companies who mostly rely on internal combustion engine vehicles are adding a segment of electric cars to their fleet. All of this contributes to an increase of EVs on the road and a shift in public perception about the cars they want to drive.

5.   Pushing taxis to obsoletion

It is arguable whether this is a positive change, but the change is undeniable. With the current dynamics of the industry, taxi services are set to go the way of the dodo. Taxi services are being outmaneuvered on a global scale by innovative startups and big ridesharing companies that provide better support, more flexible terms and pricing, as well as a more personalized experience. To stay afloat, taxi agencies must emulate the success of the newcomers.