Over the past ten years, the transit landscape in cities has dramatically changed, and one of the major reasons for that change is due to ride-sharing apps like Uber, Bolt, and Lyft. These apps provide an attractive alternative for passengers looking for efficient, cheap, and simple rides. But with the emergence of ride-share apps has come the decline of traditional taxi services. So in what ways have ride-share apps changed the taxi industry?
A New Way to Book A Ride
The most significant change that ride-share apps added was convenience. With a few taps on a phone, users can now book a ride, see their driver in real-time, and even have payment made automatically. Many users did not want to go back to hailing a taxi or calling a dispatch to get a taxi, and they also balk at waiting for cab!
Price Competition and Flexibility
Ride-share apps can often provide lower fares for passengers than traditional taxi fare. This is primarily due to different business structures; ride-share drivers are independent contractors using their own car. Also ride-share apps employ a dynamic pricing model, where increased expenses can occur when demand is at the highest demand; but lower fares are applied often when things are quiet.
Difficult Times for Conventional Drivers
Many conventional taxi drivers are dealing with fewer riders, and increased competition thanks to ride-sharing apps. In some locations, licensed taxi drivers have serious regulations to follow, costs for permit fees, and difficult testing to complete. Rideshare drivers have far fewer requirements, which makes some people in the taxi industry feel like there is an imbalance in the system, and some drivers may leave altogether.
Transitioning Customer Expectations
Ride-sharing has also changed customer expectations. Customers expect GPS tracking, driver ratings, easy and reliable in-app payments, and promo codes. Conventional taxis that fail to keep up with customer expectations risk falling behind. Some taxi companies are attempting to stay relevant by creating their own app, and using other forms of improving customer service.
A New Taxicab Landscape
Conventional taxis are not going away (at least in some cities), they will remain the choice for many airport trips, picking up passengers from a street corner, and other types of compulsory counties regulated services. The transport landscape in many cities is not returning to a single model of operation. Hopefully, in the near term at least, it will be a mix of both alternatives to give passengers the best of both worlds to suit their needs: rideshare apps or taxis.