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What will the post COVID era mean for the transport industry?

2020 was a tough year for the transportation industry. COVID-19 changed the way of travelling with shared and public spaces becoming a threat zone for regular commuters. Nearly every business suffered from reduced operations, decreased revenue production and a steep economy. The transportation industry was no different – before the pandemic, it was cruising towards smart mobility solutions. COVID-19 forced many modes of transportation to a standstill. Many taxi companies completely shut down because they were unable to meet their operational costs and demands. The strong blow of the pandemic forced the transport industry to mend its ways. There has been significant disruption in transportation industry with consumers reluctant in using public (shared) transport because of the COVID threat looming over their heads. Shared and smart mobility appears to be a thing of the past. People prefer private cars because isolated traveling is considered more hygienic amid the COVID wave. The important question remains: Where is the transport industry heading in the next five years?

COVID’s impact on the transportation industry

The global pandemic is bound to have far reaching implications. The stakeholders of the transport industry will have to improvise. They should look above and beyond the conventional rule book. The pandemic has equally affected the consumers and the players of the automotive and the mobility market. The policy makers have the biggest role to play since they can ensure the growth of the transportation industry. COVID-19 has forced the transport industry to change its course of operations. This is how the industry will have to respond to cater to the latest trends, reformed requirements and competitive factors:

Increase health, security and reliability standards

Before the pandemic, consumers decided their mode of transportation based on cost, time effectiveness and convenience. COVID, however, has altered the norms with commuters now preferring the safest mode of travel by choosing an option that has a minimum threat of infection. With the lockdown ending in most parts of the world; consumers feel inclined towards walking, riding or using private cars to go about their day. According to a recent survey; almost 70% of the shared mobility users will now prefer to walk or ride to their destination, causing significant disruption in transportation industry. In these circumstances, meeting the required safety standards is important. Transport companies can survive only if they are meeting the quality benchmark. They will have to ensure social distancing, sanitized spaces and other safety requirements. Smart mobility solutions such as micro mobility, self-driving cars or autonomous vehicles and the ride hailing industry are expected to boom. The growth of the transportation industry will now be determined by different factors. Entities adjusting well and quick to the “new normal” will be able to survive and grow.

Adjust to the changing policies and regulations

The outbreak of the global pandemic has brought the transportation industry to a standstill. At the peak of the virus; mobility was strictly restricted. Disruption in transportation industry forced the introduction of new guidelines and regulations. States all around the world took measures to help bring back the industry on track. However, the business is not expected to reach the pre-pandemic figures soon. There is immense pressure on governments to come up with effective policies that will ensure safety of the consumers and will also keep the economy afloat. It is expected that governments will introduce policies favoring ride-hailing companies, e-scooters and bikes. Cities such as Milan, Paris, Brussels, Seattle and Berlin have already started working on transforming car lanes into bike paths. In today’s times, shifting to smart mobility solutions is the most sensible approach for taxi companies. Policy makers will be coming up with schemes supporting and influencing micro and smart mobility solutions. States across the globe are partnering up with micro-mobility players to promote sustainable and safe mobility solutions. E-scooters and bikes are expected to rule the transportation industry in the foreseeable future.

Leading agents of the transportation industry

With the majority of the daily commuters working from home and the rest avoiding public and shared spaces; future of the transport industry looks bleak. However, these alternate modes of transport abiding by the new SOP’s might prove to be a ray of hope for the transport industry:

Micro-mobility

Micro-mobility solutions such as e-scooters and e-bikes will be the preferred choice among the masses. They are easy to operate, making navigation easier. Moreover, they are light on the pocket and help avoid congestion. With consumers avoiding public transport and shared spaces; micro-mobility comes like a breath of fresh air to them. It is safe, isolated and a convenient mode of transport.

Autonomous Vehicles

Autonomous vehicles are also known as self-driving cars seem to be the most appropriate choice of travel post COVID. Even before the pandemic, self-driving cars were expected to lead the transport industry by the year 2023 and generate estimated revenue of 173 billion US dollars. With cost, convenience and comfort taking a back seat, safe, hygienic and isolated traveling is what matters the most now.

Ride-hailing

COVID-19 has revolutionized the world, our lifestyles and preferences. Under this new era, the ride-hailing platform does not seem to be the best available option but it cannot be completely ruled out either. Earlier, merging technology with convenient travel was all the rage. Currently, the idea of shared vehicles might be daunting for some but it is still the preferred choice of travel for many consumers. It avoids public spaces and busy transit stops. The smart booking options and the ease of payment and usage has made ride-hailing survive the pandemic. Smart mobility can very well be the future of the transport industry. It is sustainable, comfortable, cheap and convenient.

Build a reliable future with CabStartup

The growth of the transportation industry will be determined by new policies, reformed trends, alternate modes of transport and smart mobility solutions. We, at CabStartup can help you build a reliable future and adjust to the changing requirements of the transport industry by helping you survive the pandemic and come out of it as leaders and pioneers of the new market.
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Launch a ride-hailing dispatch system in Australia

In the past 5 years, CabStartup has been able to expand and grow. It has attracted a significant client base by successfully including startups and established ride-hailing companies alike under its banner. A ride-hailing dispatch system registers different cab owners and drivers under one platform. This software allows users to hire a taxi or a private car to reach the desired destination; all through their mobile phones. It is extremely easy and convenient because it provides door-to-door services. Numerous taxi services all around the world have switched their mode of functioning and have transitioned from conventional taxi stands to mobile applications and online service platforms. These ride-hailing platforms are used by customers to book rides, track them and even make payments for them- all online. Automation and improvisation is the way to go in today’s world. Talking about the taxi industry; the new way of dispatching taxis and booking rides is the online way. Changing the old school taxi stands into mobile apps and dispatch software is what the new ride-hailing business model is about. It can revolutionize the operation methodology and create waves of change within the automotive industry.

The existing ride-hailing companies in Australia

With the advent of the ride-hailing dispatch system; competition and market saturation have also reached the skies. Taxi services are no longer localized and everyone has access to them 24/7. Therefore, emerging in the taxi industry as a leader (given the number of competitors) is not easy. Our ride-hailing business model is specially designed to help you emerge as the market leader and catalyze your performance by evolving your just-another taxi company into a top-class service. Let’s look at some of the leading ride-hailing companies in Australia.

Water Taxis Australia

Water Taxis Australia is a Smartphone application that can be used to book water taxis to Sydney Harbour, Palm Beach, Pittwater, Gosford, Hawkesbury River, Brooklyn, and Whitsundays. Water taxi service based in Sydney, Australia, and is one of the most successful CabStartup clients. Water Taxi app has helped us expand our client base to every corner of the continent all while adding incredible flexibility to the services. Water Taxis Australia has a ready to use mobile app. It also provides an online quote for people not having access to a Smartphone. What has made the Water Taxi app emerge as the industry leader and first choice of the customers is:
  • Easy Passenger Bookings: It is a fairly quick and easy process and involves just a click on one’s Smartphone. Download the app and book a ride.
  • User-friendly mobile app: One does not need to be a tech-savvy genius to operate the app. It is simple and everyone can navigate their way through it.
  • All payments through the phone: Once the ride is booked; all payments can be made online, through the Smartphone. Just scan and store the credit/debit card and be free of all payment hassles.
The Water Taxi app is leading the Australian market because of its time and cost-effectiveness. Customers have the ease to avail this service in all notable coastal areas.

MooV (Online ride-hailing platform)

MooV is another online ride-hailing platform based in Perth, Australia. This CabStartup client collaborates with taxi drivers and cab operators and allows customers to look up for a ride and book one for the desired time and location. This rideshare software app allows consumers to track their drivers in real-time, rate them and also make payments online. Any driver can register with this platform by submitting the required information and credentials. MooV is one of the best rideshare software app examples. Anyone who owns a taxi or a taxi service can join the platform and offer their services to a massive client base.

The ride-hailing industry challenges

The ride-hailing business model has witnessed a massive boom in the last 5 years. Majorly because of the ease and cost-effectiveness that it offers. Experts are of the view that in the post-COVID world the ride-hailing industry will experience regression owing to several daily commuters working from home now and avoiding rides shared by multiple customers. The biggest challenge faced by the ride-hailing industry in the current (COVID) times is to ensure public safety by following all the sops. But the question remains: is it all fun and games? Let’s look at some of the challenges this industry is facing:
  • Market Saturation: For companies operating in the ride-sharing industry one of the biggest hurdles is to win over their competition. The domestic competition has grown bigger and brighter in the ride-hailing industry with each passing day. Many companies, therefore, find it hard to expand locally and globally.
  • Government Regulations: When the ride-hailing industry was growing to see the light of the day, governments all around the world were not prepared for its impacts across the globe. Now, however, they are slowly but surely catching up, implementing rules and regulations which restrict the movement of the ride-hailing platforms in certain areas and at certain times. The governments find themselves taking on extra responsibility by ensuring public safety, reduced crashes, and protection of city policy goals, fraud prevention, and labor exploitation along with the fulfillment of the taxicab regulations.
  • Price and Profitability: Price war is one active battle that exists amidst ride-hailing companies. To gain market share, many companies slash their prices which results in popularity and customer base but pushes the company back in the profit race. Uber recorded a loss of $2 billion in 2018 as a result of adjustments, stock-based compensations, and driver rewards. Becoming popular, successful, and the market leaders all while being profitable is the biggest challenge being faced by ride-hailing companies.
  • Self Driving cars: Autonomous vehicles are coming and as the experts suggest; self-driving cars will be driving people around, dropping off orders, and making deliveries. This near-future advancement is a big threat to the business model of ride-hailing companies. They will need to invest in a big fleet of autonomous vehicles to survive and compete.
  • Lawsuits: As easy and golden as it appears to be, the ride-hailing industry has its share of legal issues. The majority of the big names in the ride-hailing industry have faced massive lawsuits. The ride-hailing giant, Uber, for example, has 70 pending federal lawsuits to date.

Australian Taxi Market- Trends and Forecast

The Australian Taxi market is expected to project a growth rate of 9.61% from 2020 to 2025. Taxis are a big component of the Australian Transportation Network. Owing to the numerous benefits offered by the taxi services; the demand for taxis is ever increasing in Australia. The user penetration in the ride-hailing segment will be at 21.1% in 2021. The prime factor that makes a company grow popular and grow big is the accessibility provided by the ridesharing software app. This app then provides benefits such as:
  • Booking Convenience
  • Multiple Payment Options
  • 24/7 effective customer support program
  • GPS enabled and safe vehicles
  • Electrically operated fare meters
  • Cost benefits
For a newbie to enter the market successfully; the aforementioned characteristics are exactly what is needed. The Australian Taxi market has had glorious progress in the past and promises the same for the future as well. For any new vendor or company to penetrate the extremely saturated market; it is important to:
  • Come up with a better and efficient business strategy.
  • Make sure that the customer is being provided the best services at an affordable rate.
  • Target the area where the minimum amount of ride-hailing companies are operating and where revenue generation is maximum.
  • Provide ease of usage and payments.
CabStartup has been able to successfully turn its vision into a reality. We have created opportunities to pave the way for developing successful mobility networks. The number of successful names under the CabStartup banner speaks for our commitment to achieving our goals and targets. We would love to work with you and help you launch your ride-hailing project. Join us for a free 2-week trial and see for yourself how we work, grow and conquer!
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How UBER makes money? (Hint: It doesn’t!)

The ride-hailing giant, Uber with a net worth of US $100 billion, took the transportation industry by storm after first setting foot into the marketplace. Since then, it has evolved to make headways into many diverse fields like Uber Eats for food delivery services and Uber Freights for the trucking industry. The previous article helped us gain insights into how Uber works. Now, let’s look into the business aspects of the company to understand how Uber makes money. One of the fastest-growing, controversial companies to ever emerge from Silicon Valley, Uber is apparently struggling to stay afloat in an otherwise steady marketplace. Contradictory to common belief, the modern mobility giant is heavily dependent on investor funding. The business revenue that it generates is not sufficient to cover the costs, therefore, it requires investors to bridge the gap.

Why is UBER an attractive ground for investors?

Not every marketplace allows businesses to grow. UBER learned this the hard way while exploring China. Even with many big names failing to survive in the region, UBER took its chances – it created a separate unit for China, collaborating with the local tech giant Baidu back in 2013. The company faced challenges from the beginning, and soon after investing millions of dollars, they saw their business model failing – it just wasn’t made for the Chinese market. Therefore, after a few short years into the country, with substantial losses in terms of money and reputation, UBER China was sold to its biggest competitor – Didi. UBER, however, still has a 19% stake in Didi. Whether it was a well-crafted, strategic move or a humiliating defeat is still open to debate. So, the question is, why a startup, founded in 2009, still turbulent more than a decade down the road, is an attractive ground for investors? Here’s why:
  • Big stakeholders in the game make it to the executive board at Uber. Now, this is critical for businesses because it gives them the power to influence important decisions of a leading ride-hailing company. This is how the founding CEO of UBER, Travis Kalanick was voted out and had to step down from his role in 2017.
  • Purchasing equity for a company like Uber helps businesses stay part of the organization even after leaving the company due to any reason or a turn of events, like what happened in the case of Travis Kalanick.

Uber’s sustainability plan

Becoming self-sustainable for a company like Uber is essential to its success. So, how does Uber plan to do it? To understand that better, let’s briefly look at how UBER makes money with the existing system. Fare for each ride is divided among three stakeholders. The exact ratio varies from region to region. Generally, however, the driver and the owner take 70% of the share, with the remaining 30% going to UBER. The existing percentage of share that UBER has is not sufficient enough for it to pay the bills. Therefore, it is working on plans to achieve sustainability in the future. So, how does UBER make money?

Autonomous Vehicles

UBER’s CEO Khosrowshahi intends to get the startup profitable by the year-end 2021. One of the biggest keys to attaining profitability for the transport giant is by UBER establishing its influence in the world of autonomous vehicles. Even though the program has been under execution since 2015, under the then-CEO Travis Kalanick, with plans to launch a pool of self-driving vehicles by 2020 but, this had its share of disruptions including a test vehicle drive that led to a fatal accident. This created hurdles for the company since UBER began losing trust among the masses therefore, it recently sold its self-driving unit to a startup, Aurora. This seems like a strategic move by UBER because they don’t want to lose their influence on the world of autonomous vehicles. Reality will, however, soon unveil itself a few years down the road.

Abandoning Private Vehicles ownership

Since UBER works by collaborating with the vehicle owners, a substantial amount of the fare goes to them. This significantly reduces the profit margin for UBER therefore, it has planned to abandon private vehicle ownership by introducing its very own vehicles.

Electric Cars

As part of the clean air initiative, UBER has decided to completely switch to electric vehicles in the US, Canada, and Europe by 2030 and in the rest of the world by 2040. One of the major hurdles in making this switch is cost. Therefore, to encourage drivers to change vehicles, Uber drivers owning a hybrid vehicle will charge 50p extra for each trip, and for those running completely electric vehicles, this additional charge will be $1.50. This is already operational in several US and Canadian cities.

UBER’s M&A (Merger and Acquisition)

UBER is the most dominant ride-hailing company world-wide. Ever wondered why? It’s because they don’t let competition stay in the market for long – they acquire it. In the recent past, UBER completed the acquisition of Postmates Inc. for $2.65B in the US, which is a food and grocery delivery company. It has its food delivery service, UberEats. Both of them will run side-by-side supported by a combined, more efficient delivery network. UBER also acquired the Dubai-based ride-hailing service, Careem for $3.10B. It is now entirely-owned by Uber, preserving its brand name. Careem’s co-founder, Mudassir Sheikha will continue leading the business, reporting to an executive board consisting of 3 members from Uber and 2 from Careem. Both the businesses will be operating in the regions as independent brands, offering their services. Apart from this, there is an entire array of diverse businesses that UBER has acquired or plans to do so. By adopting this strategy in the marketplace, UBER is no more limited to the ride-hailing industry. It is making a mark across the globe in a multitude of industries.

The way forward

The main focus for UBER to date is to attain self-sustainability. There, however, have been talks regarding the startup’s plan to introduce deliveries via drones and flying UBER as taxi services. The buzz around drone deliveries has subsided so far, but in 2019, there had been talks regarding UBER’s plan on launching drones for food and other delivery services especially in the densely populated cities to reduce delivery time and cost. UBER elevate does, however, meet once yearly to discuss its progress regarding their flying UBER venture. Like most businesses across the world, UBER had its fair share of hits due to the global pandemic which forced it to take a step back from its dream of flying high into the air. Therefore, Joby Aviation of California will take over UBER elevate after an intricate deal in which UBER will invest $75 million in the startup. This, similar to the autonomous vehicle unit, seems like a long term strategy by UBER. One of the fastest, controversial companies of its times, UBER has made a significant impact upon the ride-hailing industry. It continues to do so, expanding across the globe, offering market-appropriate services in a multitude of diverse fields. Struggling to stay influential in a significant portion of the world, UBER has learned from its mistakes in China, and other regions, trying to make intelligent, strategic moves to strengthen its roots within the industry. If you are looking to explore the ride-hailing industry, reach out to us and let our experts help you out!
By Ammama Gill 0 Comments

How UBER works: Under the hood

Uber is a ridesharing software solution that completely revolutionized the dynamics of the traditional taxi industry. Established in 2009, the company rapidly gained popularity as an attractive transport alternative to conventional taxi services by offering a seamless user experience at an affordable price point. CNBC ranked Uber as the second most disruptive company of 2018. Though it has since fallen off the list, Uber still dominates the transport market significantly. Over the years, it has expanded exponentially, making headways into many diverse fields, introducing UberPool for ride-sharing services, offering peer-to-peer rides through UberPop, and establishing luxury travel options like UberLux. Uber is also working to develop flying taxis for fast travel. In this article, we will gain insights into how Uber works, understanding the challenges it faces and Uber’s strategies to build a workaround for them.

Uber system design

Uber’s application is designed to look simple. But, when a rider requests a ride, an entire intricately connected backend ecosystem activates to deliver a smooth experience for its users. Like most web-based applications, Uber started as a monolithic system architecture with a few application servers and a database. The initial system worked fine for providing services within a few cities, but, as its presence within the world swelled, Uber shifted to a service-oriented architecture, consisting of numerous services.

Basic Algorithm

The dispatch system design of Uber acts as a real-time marketplace where it matches the demands with the supply using smartphones. how uber works So, the entire system has three broadly categorized services:
  • The Demand Service
  • The Supply Service
  • The DISCO service
In the subsequent sections, we will talk about all these services briefly.
The Demand Service
When a rider books a ride, it gets connected to the demand service of Uber, accessing the GPS location of the rider to track the pickup point along with other specifications that the rider has requested for in the particular ride. This demand then matches with a cab within the supply pool.
The Supply Service
All the active drivers registered with Uber, periodically send their geolocation to the Supply Service with other details like the status of the drivers, for future reference. This way, whenever demand arises, the supply service has the latest information and can match with an appropriate supply. Now that we understand the basic working of these two services, we will move on to the matching service, known as DISCO in Uber.
DISCO (Dispatch Optimization)
DISCO or Dispatch Optimization is where a series of events are activated in real-time to match demands with the supplies. Efficient location tracking is pivotal for applications like Uber. Therefore, to enhance system output, Uber uses Google’s S2 library, which divides the entire system into small, equal-sized cells. These cells are labeled uniquely for ease of identification. When demand arises, DISCO matches all the available supplies within the vicinity of the rider’s cell ID, matching the best possible cab with the rider based on the existing roadmap. This is critical because the road infrastructure and the traffic conditions determine the ETAs of the driver candidates. The supply service then matches the best driver available for the trip. The DISCO algorithm aims to decrease the trip ETA by reducing:
  • Overall wait time
  • Driving time and distance

Uber’s challenge – Providing a seamless user experience

Now, since we have formed a basic understanding of how to design Uber backend, let’s look at the various technical challenges a real-time system faces and the workarounds Uber has found for them. Dispatch systems like Uber are required to provide an uninterrupted and seamless user-experience. Matt Ranney, chief systems architect for Uber says:

“Another challenge is that Uber cannot afford a system failure. Ever. If a Uber customer cannot get a Uber car, then they will switch to another app. There is no brand loyalty. The systems must always work.”

To enhance system performance, Uber chooses technologies that are steady and can deliver results rapidly. It ensures that the entire infrastructure works independently of each other by carrying out extensive testing. So that, even with partial systems crashing, there is no down-time.

Scaling the dispatch system

Dispatch system-based applications like Uber require effective, scalable architectures to accommodate fast information processing in real-time. Uber addresses these challenges by using various standard technologies combined with their in-house solutions. The dispatch system is written in Node.js, a platform built for real-time distributed systems. It has an asynchronous and event-based framework that aids the sending and the receiving of messages over WebSockets. But, according to the system architecture at Uber, Node.js and Python have performance issues therefore, Uber might switch to IO.js, a branch of Node.js, further enhancing system performance. Uber also needed a mechanism to scale and distribute the data to multiple servers, for which it uses its RingPop technology, similar to Riak and Amazon’s Dynamo. Uber’s RingPop solution also manages cluster membership using SWIM (Scalable Weakly-consistent, Infection-style Process Group Membership Protocol). Uber has also modified its communication channel, calling it the TChannel which is similar to Twitter’s MUX but, since Uber supports more languages compared to Twitter, it had to transform the standard RPC communication protocol to adjust to its requirements. According to Ranney, Uber is also replacing HTTP and JSON with Thrift.

“We are even looking to replace HTTP+JSON, a typical REST API, with Thrift, as our tests are showing that it is 20 times faster. We need all the speed we can get.”

The use of these modified technologies significantly aids in improving system performance at Uber, a key factor to its success.

Data management

Real-time applications like Uber have a significant dependency on reliable data access at all times. Traditional database system architectures may act as a single point of failure for the entire system. Therefore, Uber uses Big Data stores as the infrastructure for its technologies, using tools like Redis and Postgres. Uber considers smartphones portable minicomputers, using driver’s applications to distribute data. This way, the pressure of data replication across servers is relieved. As mentioned earlier, all the drivers check in with the supply service periodically, to receive an encrypted digest in return. If at some point, the driver does not receive a reply, it automatically connects to the backup server. To handle these periodic driver updates, Uber works with a Kafka Cluster which logs all the incoming data traffic. This information is then sent to different worker nodes and persisted to the database asynchronously.

The way forward

Uber system design continues to evolve to match the rising user demands. It has made its mark on the transportation industry, revolutionizing the dynamics of the existing infrastructure completely. The key to its success is performance, therefore, this is how Uber works to expand its ecosystem, providing a swift user experience. Uber’s model has set the bar high for enterprises that aim to produce fast, distributed, and scalable services for its consumers. If you need a dispatch system similar to Uber, contact us and let our experts help you out!
By Ammama Gill 0 Comments

All You Need to Start Your On-Demand Water Taxi Business

In the past few years, the taxi industry has been completely revolutionized and has changed the market dynamics. After the introduction of the Uber model, on-demand technology has continuously improved and has reformed the ride-hailing services. These not only include the taxi services but also paratransit, airport shuttle, bike, chauffeur and water transport. CabStartup is a cloud-based software that provides ride-hailing solutions to taxi companies solving all their taxi service problems. Cabstartup helps automate the ride dispatching process and location tracking all the while giving the customers ease in ride booking with ingenious passenger mobile apps. Water Taxi is one of the many services provided by CabStartup and has been successful in sustaining water taxi entrepreneurs with advanced technology. It is a major boon in the coastal areas and people who have adopted the on-demand model have started earning more profits.

Why On-Demand Water Taxi App is a brilliant idea

Water taxis do not only provide a quick, cheap and unique experience to tourists for sightseeing but can also become a daily source of transportation for commuters to catch a ride to their workplaces. These people will more likely prefer a fast water taxi service instead of struggling to get on time through the heavy traffic at rush hour. Another reason why providing on-demand water taxi services is a good idea is that the target market is very broad. Tourists, commuters, leisure seekers; all use water taxis. Thus, a water taxi business provides such a service that is always in demand and is used every day resulting in daily revenue generation.

What does it take to start a water taxi business?

A successful business must have a sound business plan. Thus, it is crucial to consider the following points to devise a successful water taxi business plan.

What are the start-up costs?

You must have the budget and funding required to cover the initial costs. The primary components to start a water taxi business are:
  • Passenger boats/vessels to get you started.
  • Fuel; It is more profitable to invest in electric vessels powered through solar panels.
  • Signage of the vessel
  • Marketing and advertising cost of the water taxi business
  • Development of the water taxi app

The Target Market

Although a large portion of the water taxi demographic is comprised of tourists but water taxi service can be more than just for tourism. Incorporating water taxis into the public transportation system can garner skyrocketing profits and more riders. Consumers all around coastal areas have realized the benefits of utilizing the on-demand water taxi services and consider it an economical commuting option.

Revenue Generation and fares

The primary source of revenue regeneration is from the rides the water taxis transport. The fare calculation depends on the location and the specific service offered.

Market and Competition

Make sure to check out the competition in the coastal area and find out how strong it is. If the competition is too tough with already established loyal customers then it would be wise to start the water taxi service in another area or try to come up with a unique value proposition that makes you stand out.

Establishing a legal entity

For starting a water taxi business, it is very important to establish yourself as a legal business to prevent you from being personally liable in the situation if the service is sued. Moreover, it is also very crucial to obtain all the necessary permits and licenses. Getting Business insurance to protect the financial wellbeing of the water taxi service is also beneficial to recover if a loss occurs.

What is the growth potential and how to make more profits?

Fuel costs and vehicle maintenance costs are rising everyday due to which consumers are seeking out alternative transport sources. An on-demand water taxi app solves these problems and will only grow with the future as the customer needs increase. Once the business has started, you can make the water taxi service even more profitable:
  • Adopting hybrid-electric powered boats which can reduce expenses.
  • Hosting dinners or sunset cruises
  • Offering transportation services for materials when there is a lull in customer activity.

CabStartup ’s White Label Water Taxi Solution

Cab Startup offers a taxi dispatch platform in the form of iOS and Android applications affixed with various features so that the user gets the maximum benefits.

Driver App

The Driver app allows the driver to sign up, create an account and login. A driver can review information regarding the previous water taxi rides and determine safe routes.

Passenger App

Passengers can easily book the rides right at the harbor and the cloud-based solution offers passengers a trouble-free smartphone booking process. Passengers can select the drop off locations and send requests to a nearby water taxi. Promos and referral codes allow passengers to avail discounts and share their referral codes.

Admin App

Admin is provided with all the required information for monitoring the ongoing water taxi rides and the business activities. It includes driver tracking and filtering. Admin can manage the promo codes offered and also set up different fare rates for different coastal areas.

Dispatcher Panel

It is designed to keep the water taxi business owners informed about all the alerts and updates in real time. The option to regulate the water taxis, drivers and passengers at the same platform enhances the dispatch method. Moreover, there is a choice between auto dispatch framework and manual ride dispatch.

Water Taxis Australia – Our Water Taxi Success Story

Water Taxis Australia provides on demand water taxi service all across Australia and can process hundreds of requests per second using cloud hosting. Today it is trusted by more than 1,780 passengers and the numbers are still growing. The reason for this success is that Water Taxis Australia is not just a ride-sharing service rather it is simply a clever smartphone booking system. This seamless and trouble-free smartphone booking process is the reason that Water Taxis Australia is a success story. Now that you know what it takes to start a water taxi business, you can launch your own on-demand water taxi app using the tried and tested CabStartup platform. Start your two weeks trial today and stand out from the crowd with the best on demand cloud dispatch system in the Taxi industry.
By cabadmin 0 Comments

Realizing the Future of mobility: Electric, Autonomous, and Shared Vehicle

A couple of months ago, we envisaged the future of mobility in one of our articles. A world of autonomous and electric vehicles, where private ownership is being replaced by mobility-as-a-service (MaaS), is gaining momentum. From faster, more affordable electric vehicles to an autonomous shopping cart-mobility was on everyone’s mind at CES 2020. It was not only about the vehicles but the CASE (Connectivity, Autonomy, Shared mobility, Electrification) technology that is shaping this on-demand mobility industry.  What global consumers feel about CASE? How does the auto industry transform itself to adopt CASE technologies for integrating them into vehicles? Are global consumers willing to pay a premium to accomplish automaker’s investments using innovative technology based on CASE models? All these subjects were discussed at the CES 2020 show. Here are some brief details: Paying for CASE: As consumers have become used to stylish new technology that’s integrated into their new vehicles at no extra cost, therefore, consumers think they should not charge a premium for high-value gadgetry. Research from Deloitte released at the show 2020 backs this up. According to the research, 70% of consumers in Japan and Germany would not like to add a $500 to the retail price to get Tesla-style autonomous vehicle functionality. In the US, 75% of customers would not show willingness to pay an extra $500 for additional features, regardless of its innovation. Similarly in Korea, the stats showed 60% people refusing to pay extra for connectivity features. These stats indicate that transformation of vehicles to adopt CASE technology is expensive for end customers. But demand remains high because it is precisely these features that can still differentiate brands and models. Now, the question arises: What is the solution then as high development costs are one of the key reasons automakers are showing lower financial results. According to Deloitte, carmakers acquired technology startups and set up joint ventures to tackle the CASE challenge. Yet even these essential steps may not be sufficient. So what else can automakers do? Innovative Processes for CASE Challenge Accomplishment: At CES 2020, the buzz was not only about connectivity, mobility, autonomy, and electrification, but CASE manufacturing processes and technology were also points of discussion. One way to lower costs and increase efficiency is possible by making light weight vehicles using less heavy components, which is possible using lighter materials and innovative AI. The industry’s primary focus is to use less innovative lightweight material to lower production cost, increase profitability and bring efficiency. Deloitte agrees from a General Motors Source who claims that light weighting is essential to meet fuel-economy regulations and achieve longer ranges for our electric vehicles. To fulfill lightweight criteria, automakers need to use advanced design tools using IoT, Artificial intelligence, and machine learning to explore innovative designs and material. Another way that car makers are adopting is additive manufacturing which is mainstream these days on the production floor and also ready to scale. The Bottom Line: The CASE (Connectivity, Autonomy, Shared mobility, Electrification) was on full display at CES. The innovation, ideas, and prototypes are available. Now, the need is to collectively leverage the power of design-driven light weighting and cost-effective additive manufacturing to bring these ideas into reality for consumers at an affordable price they can embrace. Challenges may occur to accomplish these objectives but the concept is very much realistic and achievable. Moreover, it can make lives easier than before. CabStartup provides on-demand cloud based solutions. Whether they are autonomous vehicles, on-demand ride-hailing services providers or enterprise mobility solution providers, CabStartup mobility solution caters the need of the transportation industry with their user-friendly solution that enables organizations and enterprises to streamline their business operations efficiently.  Our on-demand cloud based white label solution enables passengers to connect with drivers. It is suitable for a range of mobility industries including pedicab, limousine, SUV, Water taxi, three-wheeler, Paratransit, or black/yellow cab. In addition, CabStartup shared mobility and ride-hailing ecosystem caters the needs at large scale, connecting passengers and drivers at low cost efficiently. Our customized mobility solution features vary depending on clients’ requirements. Feel free to contact us to learn details in developing your solution.
By Syedah Mahtaj 0 Comments

Uber and Hyundai make Headway into Flying Taxi at CES 2020

The ride-hailing industry is off to a remarkable start to the decade as Uber teams up with Hyundai for flying taxis. Though the official announcement came at CES 2020, both businesses shared their ambitions regarding flying cars years ago. Hyundai is believed to be working on this project for quite some time now. They signaled the unveiling at CES only a couple of months back but announced what they call “Project Elevate” over a year ago. Uber is publicly working on upping their game in skies since 2016 when they first announced Uber Elevate. Hyundai is not the first manufacturer to collaborate with Uber on aerial mobility services. Bell joined forces with Uber at CES 2019 to announce their air ambitions using Bell’s Nexus Vertical takeoff and landing (VTOL) aircraft.

The long road to reaching the flying taxi

Uber remains the top stakeholder in the global on-demand services industry since its inception in 2009. A decade of absolute dominance allows the business to define and shape the sources of future mobility. We are yet to witness an Uber flying taxi though and it may take a few years. Uber officially announced 2023 as the year to publicly launch aerial service. This ride-hailing giant is not only one of the pioneers of flying taxi but stands among pioneering autonomous cars as well. Uber is working on self-driving taxis for more than half a decade. However, their autonomous taxi campaign was hit with a serious blow in May 2018 when one of the vehicles fatally hit a pedestrian. Uber executives are still struggling to build confidence in public and pass through regulatory phases since the incident. Prior to collaborating with Bell, Uber partnered with a number of VTOL aircraft manufacturers including Bell and Aurora Flight Sciences in the major manufacturers and Embraer, Mooney, and Karem among the smaller ones. Jaunt and Joby are the latest additions in Uber air taxi manufacturing partners. The struggle in making considerable progress with autonomous cars is one major hurdle on their way to rule skies. This is why the business is collaborating with a large number of UAV manufacturers. If one manufacturer fails to satisfy their business requirements, they will have plenty of other options to work with.

Uber begins to set rules for aerial taxi service

Uber is in the process of setting up the rules of the game that it is going to play for the next few decades. In the absence of any notable competitor, the company is trying to ensure that regulators come up with rules that best suit the ride-hailing prodigy. Uber Elevate Summit is an annual conference and exhibition organized by Uber as part of its Elevate project to identify the challenges in flying taxi and come up with the most promising solutions. Uber executives take this conference as an opportunity to intensify their relationship with other stakeholders including influential bodies responsible for air taxi regulation. The company introduced the eVTOL common reference model (eCRM) in 2016 with a few amendments in the subsequent years. The model serves as the set of standards for manufacturers and designers to ensure compliance with safety regulations and operational efficiency. Although eCRM originally emerged for vehicles controlled by pilots, Uber reuses it for UAVs as well. As per eCRM, each vehicle should be capable of cruising at 150 mph and continue operations of 25 miles and less with a charge time of as low as 7 minutes. Moreover, the eVTOL should be able to fly for 60 miles before switching on to reserve energy and should be almost noise-free. The efforts toward succeeding at flying Uber taxi is not limited to collaborations with VTOL UAV manufacturers and influencing the regulators. Uber also went into partnership with NASA to develop air traffic plan for the times ahead. As per the company’s executives, Uber flying taxi would be operating in the urban areas with individuals needing to go farther than a vehicle’s range would require hops.

How exactly does Uber Flying Taxi work?

Uber aims to build what it calls Skyports. These ports would essentially be the platforms where a vehicle would take off and land. Besides, the port would also have an infrastructure for charging. Like vehicle manufacturers, Uber also partners with architects to develop the designs for Skyports. The company claims that Skyports would be capable of handling 1,000 landings per hour while occupying the least possible space. Since hundreds of vehicles would be aerial in a region as small as having a radius less than 5 miles, Uber air taxi or for that matter any aerial taxi service would need to have highly sophisticated software that enables each drone in the network to complete operations seamlessly. Elevate Cloud Services is the model that Uber is aiming to use to ensure seamless activity. This cloud-based operation would allow information sharing in real-time between aircraft and network operators. It is notable that operators would only be used for monitoring as the entire operation would remain automated. Video below is a depiction of Skyports, the kind of drones and operations. An individual aiming to get a ride on Uber drone taxi would need to schedule via mobile app. Similar to what passengers do while booking a traditional Uber taxi. However, passengers would need to travel to the nearest Skyport. Instead of an Uber plane landing on the driveway of passengers’ homes.

Competitors of Flying Uber Taxi

Although Uber introduced flying taxi in partnership with manufacturers earlier as well, yet their collaboration with. Bell was the first instance of UAV based aerial taxi. A couple of service providers are operating in various parts of the world using human-controlled VTOL aircraft before Uber. Volocopter in Singapore is performing operations on a commercial scale for many years. It has also introduced the service in Dubai recently. However, Volocopter only operates aircraft controlled by humans. Boeing is also aiming to play a central role in the flying taxi industry. Although Aurora Flight Services – one of the subsidiaries of Boeing – is currently in partnership with Uber to mass-produce Uber Flying Taxi. Yet Boeing is likely to become one of the top competitors of Uber after large-scale commercialization.

Are you planning to get into flying taxi business?

Uber plans to launch demonstrator flights in Dallas and Los Angeles on a limited scale. In mid-2020 and gradually increasing the scale up to 2023 where they plan to launch commercial operations. The demonstrations are likely to occur around the time when the 4th Elevate Summit would be underway in June 2020. Thus, Uber Flying Taxi is expected to take to the skies very soon. The demonstration at successive CES events, first with Bell and now with Hyundai, indicates its commitment toward flying taxi ambitions. Although more competitors may emerge in the future, yet Uber is currently facing no serious rivalry. This would be the most suitable time for new players to jump in and grab a significant market share. CabStartup provides ride-hailing solutions to businesses that wish to introduce unparalleled transportation services. Our cloud-based solution is being used not only by ground-based but aerial and marine-based ride-hailing providers too. Contact us today so that our expert can guide you further.
By Shahrukh Satti 0 Comments

Nigeria Possesses Huge SUV Ride-Hailing Market

Nigeria is among the top four African countries attracting most startup investment. The growing middle class and an incredibly low median age of 18.4 years are resulting in a highly suitable environment for on-demand business. The current generation is more tech-savvy than ever. Consequently, consumer trends are rapidly changing to adopt mobile based service acquisition. The growing local demand along with a massive influx of tourists indicates that SUV on-demand business would make extraordinary gains. The country is 7th most populated in the world with over 200 million people. Total addressable market (TAM) for ride-hailing and SUV service in particular is not as big as its population. Nevertheless, Nigeria is making sharp progress in pulling its population out of poverty.

How is Nigerian market attractive for investment in Ride-Hailing?

The country’s middle class currently stands at around 20% of the total population which amounts to approximately 40 million people. The number of smartphone users in the country are also estimated around 35-40 million indicating huge opportunities for ride-hailing businesses. Moreover, the largest city Lagos and capital Abuja have huge communities for households with significantly better socioeconomic conditions. Lagos population of 17.5 million carries the highest percentages for middle and upper socioeconomic classes.
A flashpoint for tourists
Abuja population at around 2.4 million is nowhere near Lagos but the capital city is one of the most sought after places for tourists to stay in the region. The northern region includes southern edge of Sahara desert while the presence of three national parks with abundant wildlife pushes tourists to stay in Abuja. The stay in this city does not only make safari parks and Sahara accessible to tourists but offer considerably better security. An improved security framework is enabling the country to attract substantially high number of tourists in recent years. The percentage increase is also notable. Official statistics indicate that country witnessed almost 400% increase in tourism between 2012 and 2016. More than 1.8 million tourists made their ways in Nigeria in the year 2016. Unofficial figures reveal that the number is well above 2 million in 2018.
Investor-friendly Business Environment
A robust reform strategy is resulting in producing one of the best business environments in the region. It was not the same prior to 2016. The country was plagued with widespread corruption and terrorism. The process of registration and evaluation for unnecessary and lengthy regulations discouraged investors and entrepreneurs. Nevertheless, the creation of Presidential Enabling Business Environment Council (PEBEC) in 2016 caused a huge shift. Since then the country climbed 39 places in The World Bank’s index for Ease of Doing Business. The analysis from reputed global firms forecast that the country would further improve the rank and drift into top 100 in the next two years. A major hurdle in the past was the complication in getting visas. The government introduced visa on arrival policy in 2017 to ensure seamless tourism and business activities. The policy promises to increase tourism and startup development manifold.

Why tourists prefer SUVs in Nigeria?

A significantly large proportion of tourists landing in Nigeria requests SUV services. The tourists seek comfort as well as security. However, there is barely any business that provides such services apart from Estonian ride-hailing service provider Bolt. Besides travelling within the cities of Abuja and Lagos, the tourists also seek SUV for travelling to safari parks. Nigeria is home to some of the finest wildlife parks particularly in the western region of the country with Yankari Game Reserve, Jos Wildlife Park, and Okomu National Park being the most notable ones. SUVs are suitable to tackle the tough terrain in these parks. Lagos city shows drastic improvement in lifestyle. It offers a number of luxurious five star hotels and posh living spaces. However, it barely has a ride-hailing service with spacious and luxurious vehicles. The existing services including Bolt offering deluxe and executive class vehicles are too less to address the considerable proportion of high socioeconomic classes. Lagos alongside Abuja also receives the highest number of foreign tourists. Besides, very small number of services providers offer vehicles with real-time surveillance and monitoring system. Although the security situation has markedly improved, yet travelers consider real-time tracking as an advantage.

State of Existing Taxi Businesses

Ride-hailing companies avoided Nigeria before 2015 due to largely poor security and business environment. Even the local entrepreneurs were opting Europe or North America despite higher cost of operations in those regions. However, the entrepreneurs and investors started to flock in after 2016 business reforms. Three years down the road, Nigeria is among the most favorite destinations for investors. A massive $120 million Series B funding of OCar in November 2019 presents just one instance out of dozens. Uber started operations in the country in 2015 at Lagos. It expanded to Abuja in 2016 and currently operates in eight Nigerian cities. The ride-hailing giant also launched boat service in July 2019 at Lagos. However, no major ride-hailing company except Bolt currently offers SUVs. Recently announced OCar is expected to offer SUV but these two existing services would still be far from sufficient to fulfill demand.

Nigerian ride-hailing market is up for grabs

Nigeria is demonstrating huge potential for startups for the past few years. The 2016 business reforms are enabling the country to attract investments from all corners of the world. In the midst of this growing on-demand economy lies a huge but largely unexplored opportunity of SUV on demand services. Considering the volume of tourists, the growth in tourism, and growing middle class, SUV ride-hailing service would bring great fortunes for the stakeholders. CabStartup is the software solutions provider for ride-hailing startups. Over 30 countries from every inhabited continent use our cloud based ride-hailing solution. Do you intend to start a ride-hailing startup in Nigeria or elsewhere? Start using the two-week long free trial of our ride-hailing platform today before we rebrand the platform for you.
By Shahrukh Satti 0 Comments
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