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.
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!
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!
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.
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!
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 mobilityindustry.
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 providersor 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.
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.
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.
The evolution of the ride-hailing industry might have changed fate in favor of passengers but the rise in security vulnerabilities is constantly haunting the stakeholders. Major operators including Uber and Lyft are trying to calm riders, drivers and regulators by placing some cosmetic modifications to their software systems but the incidents compromising security continues to increase. The industry requires comprehensive driver identity verification in their system.
This article shares how facial recognition technology capacitates ride-hailing operators to ensure that only the registered drivers can accept the ride requests.
Why do ride hailing operators require facial recognition?
The authority responsible for regulating transport in London banned Uber from operating in the city for shortcomings in its software system. The primary issue is the fact that unregistered drivers were able to use the account of registered ones to accept ride requests.
Regulators also revealed that the drivers once barred due to excessive complaints managed to register new accounts. People from around the world have protested on multiple occasions to push governments for strict regulations.
However, Uber had to face decisive backlash after one of the students in South Carolina was murdered allegedly during her ride with Uber. London is the first major metropolitan to ban Uber. Lyft and all major ride-hailing companies face the same challenges.
Privately owned ride-hailing companies rarely disclose any security incident unless it manages to get viral through some other channel. Uber and Lyft are bound to share the reports after going public. The recent report from Uber reveals an alarming 3,000 harassment cases in 2018 occurring in the US alone.
Ride-Hailing Safety with Facial Recognition Technology
Ride-hailing business operators have tried a range of measures to ensure security. None of them, however, seems to work. The primary problem with this lack of effectiveness is the irresponsibility of both drivers and passengers to follow newly defined procedures.
Facial recognition is suitable because such a software solution would leave no other choice for drivers but to reveal their identity – and that too at multiple times while the status is active.
How facial recognition works?
The technology integrated by CabStartup in its cloud based ride-hailing platform involves sophisticated pattern recognition algorithms. Regulators can ensure that the driver is the same person as shown in driver ID.
The computer vision algorithm performs 3-Dimension recognition by identifying the shape of the face. This identification also includes details in eyes, nose, forehead and cheeks. The system compares even the minute details of an image with another picture of the same individual in the database and generates a score of confidence. Verification remains successful only if the score is above a predetermined benchmark.
The earliest attempts for facial recognition at the beginning of the 21st century failed because there were very few parameters collectively responsible for generating this score. Nevertheless, the advancement in the algorithms now provides the ability to verify a person with an extremely small probability of error.
Experts at CabStartup integrate facial recognition features in the platform once a client requests for it. The number of requests for this integration is markedly increasing since the South Carolina incident.
The success is evident from the use of this technology in a range of other cases. Smartphone unlock remains the most notable case. Apple added the face unlock feature with iPhone X. This feature generated a massive response as customers shared largely encouraging reviews. Almost all major smartphone manufacturers have successfully introduced face unlock in their products.
Moreover, face recognition is now widely used by security agencies and metropolitan administrations around the world to maintain law and order. China has implemented the largest city surveillance scheme with over a billion cameras.
Previous attempts at ensuring ride-hailing safety
Uber and Lyft have introduced a number of software features and policies in the past to increase safety of drivers and passengers. The industry is witnessing a wide spectrum of features, policies and standards introduced over the past few years.
The riders get in-app reminders to verify license plate and car type with the information available in driver’s details. They receive this reminder as soon as the driver changes status to “arrived” at the rider’s location.
The riders can share trip details and real-time location with anyone in their contact list. This feature enables the receiving body to track the ride as long as the GPS location of rider is active.
Uber made it mandatory for drivers to take snap selfies from an option available inside the app. These selfies are then shared with the admin panels to ensure Uber driver identity verification.
There are automated software systems that alert passengers when a vehicle goes significantly off track from paths that lead to the destination.
Uber announced a feature that would allow both drivers and passengers to report unwelcoming behavior in real time so that the administrations can take action in time.
There are panic buttons already integrated in Uber and Lyft that allow riders to call 911 instantly. An action of pushing this button shares the details of the ride including the identity of driver and vehicle. It also shares a real-time location with the authorities.
Notable policies and standards
Lyft suggests riders to compare pictures on ID and driver license. However, this policy is not likely to work because the picture on the license is usually old and the current appearance of the driver might markedly vary.
Lyft also recently announced driver education prior to registration. The company executives state that the courses included in the training are vast enough to educate drivers about their role and limitation on the job.
Both Uber and Lyft claim to perform background checks for drivers’ track record. They state that each driver’s record is also verified for the criminal free background.
The companies check in with riders and drivers to find if they need help. This development usually occurs if the administrators feel an unexpected behavior of ride. For instance, the passengers and drivers in a vehicle going off track from destination often receive check-in calls.
Be sure your riders and drivers are safe
The ban on Uber in London was an unfortunate development. You need to be sure that your taxi business or ride-hailing startup does not meet the same fate in any part of the world.
The facial recognition feature integrated with CabStartup provides remarkable precision. The technology has been tested by our development team in a large number of cases including blur images and snaps from various angles.
You can test the CabStartup platform right now and continue to use it for two weeks without being charged. Start your free trial today.
Transport for London (TfL) – the authority responsible for transport regulations in London – refused to renew license of Uber this past Monday. Consequently, a massive ride-hailing market in the metropolitan, currently dominated by Uber, is set to become an open field for new operators to jump in.
London makes up the biggest market for Uber on the east of Atlantic and fifth biggest in the world with its 3.5 million users. One of the company’s executives in August 2018 stated the number of registered Uber drivers at 45,000 in London.
Uber applied for five-year long license in 2017 to operate in the city but the application was turned down stating lack of fitness of software and vehicles. Instead, the company was able to get an 18-month long license. This renewed license was scheduled to expire in past September but the TfL extended it for another two months.
Get ahead of your potential competitors and grab the opportunity created by Uber’s imminent exit from London. Here is a guide to starting an on-demand taxi business.
Causes of ban as stated by the TfL
Row between TfL and Uber began in 2017 when regulator highlighted loopholes in safety measures. The TfL refused to renew license but London Magistrate decided partially in favor of Uber in 2018 allowing ride sharing prodigy to continue operation. A two-month long grace period ended past Monday after the 18-month long license expired in September this year.
Following are the reasons that, according to the TfL, are primary causes of banning Uber:
Unauthorised drivers using accounts of registered drivers. Transport for London claims unauthorised drivers completed 14,000 trips.
Many of the suspended drivers are still operating with new accounts. Uber, though guaranteed earlier, did not work on developing the mechanism that would have identified unverified users.
Some drivers did not have right insurance. An appropriate insurance plan is mandatory for every private hire and rideshare driver in London.
The TfL is reiterating on these causes for over two years. However, there are some unstated reasons as well that might have impacted the decision. Following are the most likely causes other than the ones stated above.
London Mayor hinted at making ride-hailing reforms last year in the wake of court’s decision to grant 18-month license. The current mayor is critical of Uber even before he took the charge and believes that the absence of limitation on the number of drivers is causing traffic congestion in the city.
Environmental bodies are calling on Uber to reconsider its vehicle eligibility by making electric cars and HEVs essential. Statistics indicate that air pollution increased by manifolds since Uber arrived in the city in 2012.
Local taxi association in London repeatedly called for a ban on Uber since they believed that the playing field was not level. The mayor explicitly stated his plan of providing level ground for both established business owners and new entrants.
Although Uber was banned two years back for more or less the same reasons as stated on Monday by TfL, yet they are less likely to get another acquittal. The company managed to satisfy the court last time by reshuffling the top executives. The extension was renewed again two months back on conditions that the ride sharing company would demonstrate strict measures against drivers’ violation.
However, they are not expected to be able to pacify judges this time around because they city has now other ride-sharing options as well. Uber also revealed a plan of making London operations entirely based on electric vehicles. The company is yet to demonstrate its progress in this regard.
Opportunities for entrepreneurs and taxi companies
London Free Press in 2018 reported Uber taking half of the total trips conducted by all private ride-hailing operators. This implies an enormous market share is up for grab as Uber is forced to halt operations after three weeks of license expiry date.
New players are already flexing their muscles to fill the major part in the impending void. Indian ride-hailing provider Ola announced to launch service in the next few weeks while Bolt from Estonia is aiming to expand operations.
However, the market share of Uber is so big in the UK capital that multiple small and large operators can jump in to replace the San Francisco based ride-hailing giant.
Although it is still debatable whether Uber is able to make its way back in London any time soon, yet we believe that the company’s business would not be the same even if it manages to return. The regulators have all eyes on this ride-hailing company that has so far failed to implement a fair deal of surveillance system.
Today, a number of new and established operators are aiming to fill in the void. The city administration is all set to provide opportunities to new entrepreneurs and existing taxi business owners. Thus, the Magistrate is less likely to show flexibility this time around.
If you are aiming to launch a ride-hailing service that would partially or entirely replace Uber, it is recommended that you start the pre-launch ride-hailing marketing as soon as possible. Create the hype and spread the proposed name of your startup.
Meanwhile, you can work on developing the requisite infrastructure including mobile apps and admin panels. Using this approach, you would be able to launch your ride-hailing startup in less than month.
Place the hook right now to catch ride-hailing fish
Uber ban is unfortunate for the company and its loyal users. However, the ban is a blessing for entrepreneurs and taxi company owners as they would be able to establish. Consolidate their businesses in the absence of their top competitor.
CabStartup enables ride-hailing startups to establish, expand and sustain businesses around the world. You can re brand our ride-hailing platform with the design of your choice and customise it with additional features. The platform includes native mobile apps for customers as well as drivers. Besides, it also includes an admin panel for administrative tasks.
Our cloud based on-demand ride-hailing software solution is enriched with insightful dashboards and a range of features that assist your drivers and passengers. The dashboards share valuable business reports that enable you to identify areas of improvement.
We would help you prevent the problems that outlawed Uber. CabStartup can integrate the feature upon request that triggers facial or fingerprint recognition of driver before starting a ride. This feature would turn down any unverified driver from conducting a trip.
Another suggestion is to register hybrid and electric vehicles only to promote electric car taxi. Since you will be accessing third-party vehicles. The cost of operation would be the same as that with combustion engine vehicles.
Test CabStartup free of charges for two weeks trial period. Contact us to share your ride-hailing business plan and our experts would take you from there.
Ridesharing industry is disrupting traditional taxi industry for over a decade. Numerous rideshare model have played part in replacing conventional modes of transport with more cost-effective ones. Nevertheless, the incorporation of taxi dispatch software in taxi businesses is enabling service providers to reoccupy the lost share.
CabStartup provides ride-hailing solutions to taxi companies that are struggling to counter rising rideshare industry. We review the solutions at every quarter of the year and decide upon adding additional features and modules as required.
We have emphasized more on IoT integration in the past few months. This follows from the fact that urban mobility is rapidly adopting Connected, Autonomous, Shared, and Electric (CASE) vehicles. The integration of these devices would facilitate the “Connected” component of these vehicles.
Instant Taxi Device Integration
Instant Taxi is one of the devices integrated with CabStartup. The device enables passengers to acquire taxi services at hotels by tapping a finger on scanner embedded on the device. This action triggers a request to taxi companies using CabStartup cloud-based taxi dispatch software and one of the nearest drivers can accept the ride.
The device facilitates passengers who do not often use ridesharing services. It entirely eliminates the need to book a vehicle with smartphone. Although Instant Taxi is initially installed at some of the partner hotels of CabStartup, yet we are all set to ensure that the device is available at restaurants, libraries, arrival lounges at airports and subway stations, corporate workplaces, and shopping malls.
The taxi companies in CabStartup Client Network have more opportunities than ever to get rides because Instant Taxi device makes ride requests to only those service providers that use CabStartup ride-hailing solution.
If you own a taxi company or a ride-hailing startup, get CabStartup automated taxi dispatch software today to attain an amazing rise in the number of rides. Scroll down for pricing structure of one-time paid enterprise solution.
Bluetooth Invoice Printer Integration
Taxi industry is using paper-based invoice for decades. The invoice generating device was usually embedded inside the taxi fare meter. However, the ride-hailing companies using on-demand economy model replaced taxi fare meter with smartphone based apps. Instead of paper-based invoice, these companies share digital invoice through text message and email.
Digital invoice feature is also integrated with CabStartup taxi booking and dispatch software. Considering the diversity in our clientele, we have introduced Bluetooth Invoice Printer as well which instantly generates a fare receipt once the ride ends.
As soon as the driver ends ride using driver app, the app sends information regarding fare to Bluetooth Printer. In response, the printer generates fare receipt. This printer comes in handy in the regions where internet access is not sufficiently good. Nevertheless, passengers can choose not to get the paper-based invoice in the countries where internet speeds and availability is not a problem.
Bluetooth Invoice Printer is not only used by taxi and on-demand car service providers but hyperlocal transport companies as well. Although you can get an amazing range of benefits by joining CabStartup mobility network, yet you may also acquire the device independently for your existing taxi company.
Transition toward Shared Mobility Ecosystem
CabStartup mobility network is spread across all inhabited continents. Ridesharing companies, taxi companies, hyperlocal startups, car rental providers, water taxi, delivery and logistics services providers and a range of businesses in 32 countries until now are using CabStartup taxi dispatch software.
We envisage a future where all modes of transport are combined to form a shared mobility ecosystem. Under this model, the passengers would be able to access the most optimized mobility solution. They would book once to travel by car, bike, and shared rides where needed. Similarly, they would no longer need to pay separately for each of these rides when the destination is same.
Moreover, this mobility network would work in every country where CabStartup solution is being used. Thus, the passengers would not need to look for apps of local ride-hailing startups.
Shared mobility is not merely a concept anymore. CabStartup has already developed the necessary infrastructure. Now, we are in the process of developing ecosystem by integrating companies providing various modes of transport under single platform.
The development and integration of Instant Taxi and Bluetooth Invoice Printer devices is also a part of transition towards shared mobility ecosystem. These devices are penetrating deeper in the ride-hailing industry while shared mobility is resonating very well with service providers. A widespread adoption of shared mobility would enable taxi owners and ride-hailing startups to attain sustainable profit-making.
Taxi Dispatch Software Cost
CabStartup an enterprise solution for both small and large fleet. The price varies depending on the size of fleet and customization in the base features.
The cloud-based taxi dispatch solution includes standalone apps for passengers and drivers apart from admin and dispatcher panels. Each component offers a range of features. The acquisition of this solution also enables you to get free maintenance and updates.
The cost of one-time paid enterprise solution widely varies because the customers want a number of additional features to fulfill their business needs.
For each of these payment plans, you can also get a custom payment gateway for $3000. Moreover, our world-class designers can render a unique brand identity by rebranding the apps with attractive logos, icons, and snippets.
Do you want to get cloud-based taxi dispatch software for your taxi business or intend to launch a ride-hailing startup? CabStartup can assist you from nurturing of ideas to deployment and integration of system. Start using a two week-long free trial of CabStartup today to evaluate its effectiveness.
The past couple of years enabled CabStartup to widen the global client-base by attracting ride-hailing startups and established taxi companies from various regions of the world. The projects in Australia including Water Taxis and MooV expanded our client-base to every inhabited continent. The diversity of projects allowed us to restructure CabStartup white label taxi app platform adding incredibly higher flexibility.
Although there are dozens of established businesses which are leveraging CabStartup technology, yet this article specifically shares the projects that we worked on since the start of 2019. Most of these businesses are up and running successfully while a couple of them have launched recently. MooV is expected to launch soon.
CabStartup Subscribers Network
CabStartup offers subscriptions as well as one-time payment solution. Following are the companies leveraging our platform through subscription-based model.
Many CabStartup case studies suggest that our client-base predominantly belongs to metropolitans. However, BlackStar Taxi is one of the instances reflecting clients in smaller regions.
Mykonos – one of the famous Greek islands providing scenic beauty to travelers – lacked a ride-hailing service. While the absence of competitors is beneficial, it also carries a disadvantage of absence of a similar case.
BlackStar offers three types of vehicles including Standard, SUV, and Van. The customers are able to view the precise fare during scheduling. This company quickly moved on top of all the ride-hailing options available on the island. BlackStar enables its customers to pay by cash as well besides credit card or e-wallet.
2. eDriverz LLC – Tucson, Arizona
eDriverz started only seven months back in February 2019 with a goal to address the growing demand of rideshare services in Tucson, Arizona. The efficiency in operations allowed this company to emerge as one of the top choices for Arizonans.
With the remarkable growth in the first few months, the leaders felt motivated to expand into other states. CabStartup also assisted in scaling up the taxi dispatch software platform to accommodate more drivers and sustain more traffic. Consequently, eDriverz is one of the fastest growing startups in the US.
The companies uses entire platform of CabStartup including separate apps for drivers and passengers, a dispatch panel, and an admin panel. This cloud-based platform enables eDriverz to effortlessly scale-up as much as they want.
3. KinderCarGo – Calgary, Canada
The widespread success of Ride-hailing services like HopSkipDrive and Zūm in the US encouraged entrepreneurs of KinderCarGo to introduce a similar service in Canada as well. The service currently available in Calgary would be expanded soon in other cities.
KinderCarGo required extra bit of security features since it is particularly branded as transportation for children and families. Thus, CabStartup developers ensured that this white label taxi app does not only provide features for surveillance of drivers but also enable parents to verify once the children reach destination.
Parents can also communicate with children during the journey. The app provides verification to administrators once a driver picks up and drops off the passenger.
4. Lady for Lady – San Tiago, Chile
This is an all-women service recently uploaded on app stores. The development was not as challenging as branding because the client wanted this service for a specific niche. Our designers and developers collaborated to make multiple prototypes. Each prototype offered a range of options for app design, theme, and logo.
Lady for Lady uses entire taxi management software including driver and passenger apps and admin modules. The administration staff is able to view business insights in an interactive form featuring graphs, tables, and charts.
This innovative idea is expected to grow bigger due to the shortfall of women-only ridesharing services. One major reason for limiting it to women is to ensure security. Thus, CabStartup developers ensured that each driver gets registered after a significant amount of verification.
5. Let’s Drive – New York City
The growing needs rideshare market in New York City encouraged Let’s Drive leadership to introduce this startup. CabStartup is in contact with Let’s Drive executives for the past few months. Our developers worked in close collaboration with their leadership so that white label taxi app for driver and passenger can be rebranded precisely as per the client’s requirements.
The app was uploaded on App Store and Google Play two weeks back in September 2019. Apart from usual features including real-time tracking, route optimization, profiles of users, user analytics among others, the app also carries some unique features.
Proximity search is one of the notable features that allowing drivers to find the nearby drivers. Besides, it also enables them to find the areas where demand is excessively higher than number of available vehicles. Using this ability, drivers can move to a nearest region where the probability of finding a passenger is higher.
6. Mobili360 – Conakry, Guinea
With a turmoil-filled history and low human development index of just over 0.459, it is fairly challenging to successfully introduce a ridesharing service. Like BlackStar, Mobili360 project also lacked a similar case. Thus, CabStartup experts performed a wide-scale research to understand geographic and demographic differences before rebranding software.
The results of this research revealed a poor public transit system. Moreover, it also pointed out huge flaws in local taxi system which remained the only choice for commuters. Population with low per capita income had no or little option to pay higher taxi fares.
CabStartup branded its white label taxi app platform for Mobili360 in a way that it corresponded to the native requirements. Mobili360 after beginning in the capital Conakry is prepared to expand in the neighboring countries as well.
7. Money Cabs – San Antonio, Texas
Money Cabs made its way into the Mainland US when Uber and Lyft were operating in every stretch and corner of the country. It was challenging to pitch against the existing giants of ride-hailing industry.
Nevertheless, CabStartup white label taxi dispatch platform enabled Money Cabs to attract a massive customer-base. The membership options for users allow them to enjoy exclusive benefits if they continue to use Money Cabs services regularly.
Apart from on-demand taxi services with varying rate, Money Cabs also offers pick and drop services to airport on flat rates. Customers can also access SUVs and luxury class vehicles.
An incredible growth in the US followed by decent mark in the UK enabled Money Cabs to earn a price tag as high as $20 million when estimated by independent auditors.
8. Roadrunner – Los Angeles, California
Roadrunner slightly varies from other ride-hailing services in that it provides shuttle services whose destinations are public areas only. The company initiated 28 years back to facilitate passengers with shuttle service. It remained one of the primary choices for commuters during all these years until the arrival of on-demand services.
As Roadrunner started to fall out of favor, the company leadership sought assistance from CabStartup for technology acquisition. Our experts rebranded the taxi management software to enable Roadrunner in starting on-demand shuttle service.
The company strengthened its ground in Los Angeles and surrounding cities including Ventura and Santa Barbara. Now, it is starting to offer services in other US states as well. Apart from shuttle service, it also provides minibuses, luxury cars, and sedan with private drivers.
9. Water Taxis Australia – Sydney, Australia
Each of the previous cases along with the ones not mentioned in this article present the effectiveness of CabStartup platform for land-based taxi and ride-hailing services. This case of Water Taxi Australia demonstrates the flexibility of CabStartup to work as good for water taxi startups as for land-based ones.
Passengers can seek this service in all notable coastal areas. The booking process is as simple as scheduling a ride on Alianza or any other efficient ride-hailing service. Moreover, the app also enables passengers to pay via digital in-app wallet.
Water Taxi Australia pushed CabStartup white label taxi app platform to new limits. This case also indicates that you can expand the nature of your startup by offering more kinds of services using the same taxi dispatch software system.
Enterprise Solution Clients
Apart from companies acquiring our white label platform on subscription basis, many startups and enterprises acquire it through one-time payment. Following are the cases from 2019.
1. Alianza Taxi – Tucker, Georgia
Taxi companies acquired CabStartup Taxi dispatch software in the past to compete the rising on-demand ride-hailing startups. However, Alianza Taxi is one of those few companies which branded itself as a taxi company despite the fact that ride-hailing companies appeared more lucrative.
The companies initiated in an already severely contested market of Tucker, Georgia in 2015. Nevertheless, the efficiency of CabStartup platform combined with effective marketing strategy of our team enabled Alianza to grab a significant market share relatively quicker. In a small period, the company introduced services to other cities in Georgia including Lawrenceville and Decatur.
Now, the company is all set to hit the ground in Atlanta and other US states. CabStartup continues partnership with Alianza Taxi to provide taxi software technology. Learn more: Alianza Taxi Service
2. MooV – Perth, Australia
The development of this startup concluded recently. The launching of this service is expected in October 2019 in Perth. MooV is not only going to be an on-demand taxi service. Rather it will offer shared mobility and car rental as well.
There are multiple options to choose from while booking a ride. The riders can order a compact car or an extra-large one with separate space for luggage. Besides, it also enables passengers to acquire luxury vehicles.
Prior to this project, CabStartup developed on-demand car rental apps from scratch. However, the developers enabled white label taxi booking app platform to allow integration of car rental services as well.
3. Rapid Taxies – Colombo, Sri Lanka
The emerging ride-hailing market in Sri Lanka requires immaculate service and extensive marketing to ensure that customers prefer your services above others. This island country might be small in terms of area but its population of 21.4 million individuals provides a strong market.
Unlike usual ride-hailing businesses which hire gig workers, Rapid Taxies offer full-time employment with benefits. Thus, the company implements an extensive recruitment criterion before getting a driver on-board.
The driver app ensures all the features regarding security and background verifications. Moreover, the app also facilitates drivers with medical insurance acquisition and credit card integration.
CabStartup is successfully realizing its vision of assisting startups and governments in developing shared mobility networks. The success and sustainability of these recent case studies and the ones prior to 2018 reflect our commitment toward goal achievement.
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Micromobility is rapidly replacing the traditional means of commuting particularly in densely populated urban areas. Apart from avoiding congestion, people are also able to reduce cost of traveling and time consumption. A number of bike sharing business models have emerged as a result with dockless and stationed bikes being the most prominent ones.
The types of bike also vary as users can seek motorbike, bicycle, or scooters. Regardless of the underlying business model, the acquisition of efficient technology and execution of effective marketing strategies are essential to start bike sharing business.
The first part of this article shares the factors that make bike sharing a highly sustainable business. Later in the text, the appropriate technologies and marketing strategies associated with this business are discussed. Meanwhile, it also mentions modules and features of CabStartup platform.
Why is On-demand Bike Sharing Business Highly Effective?
There are numerous reasons causing sustainability of bike sharing. Following five are the most significant ones.
Cost of Bike Sharing Operations
Before the advent of bike sharing services, the urban dwellers faced of dilemma of choosing between public transit and taxi services. While former takes excessively greater time in most circumstances, the latter is considerably expensive.
Bike sharing provides a decent alternative particularly to cover distances less than five miles. It is highly popular among the residents living in a 5 mile radius of a bus or subway station. By utilizing a bike, they can cover the distance between their residents and nearest station notably quicker. Besides, they also save money otherwise spent on taxi services.
An extensive study exploring reasons for using bike share reveals that 73% of Washington DC residents acquire services to save time while 25% for saving costs. Another research from the UK demonstrates contrasting yet still encouraging results. It notes 66% residents saving costs while an impressive 78% for time saving.
Excessive Security Features
A decade back, bike sharing was widely perceived as impractical due to the inability of startups to offer security framework. The problem persists in some areas where modern bikes are unavailable. Baltimore Bike Share in the US, Gobee in France and Hong Kong, Wukong in China, and oBike in Singapore present some of the notable examples of Bike sharing services shutting down due to vandalism.
Fortunately, the significant enhancement in design and software has resulted in remarkable drop in stealing and vandalism incidents. For instance, the top bike share operators ensure that the GPS remains inside the frame of vehicle so that it cannot be detached and remains on at all times.
The manufacturers have also introduced bike whose bolts and nuts cannot be removed since the removal requires screw drivers of unique shape. They ensure that bell and headlight remains integrated and fixed within the frame.
Encouraging Bike Sharing Statistics
Statistics from around the world in general and the US in particular indicate that bike sharing industry is growing rapidly. Although each year saw an increase in the number of users, yet 2018 remained incredible after the arrival of e-scooters. Following information compiled by NACTO shows 240% annual increase in the number of trips in 2018.
Dockless bike share companies could not attract sufficient users in 2017. However, they also managed to attain a decent user-base in 2018. One noteworthy reason for these admirable statistics is the fact that bike share companies are incorporating mature technology. The results include a reduced cost of operations and more sustainable revenue generation sources.
Western Europe demonstrates even more encouraging results. The Netherlands was already the leader in utilization of bike sharing with a rate of 1.3 bicycles per person – most in the world. The next ten countries in this list are also Europeans sitting above Canada and the US.
Flexibility to Expand Business Model
It does not matter much whether you start with a dockless bike or a stationed one. Bike sharing business allows expansion of business model in the future provided the underlying dispatch platform is flexible enough. In fact, you may also add bike-taxi and three wheelers in future. However, the vehicles in these business models require gig workers to operate them as in on-demand taxi businesses.
Dockless bike share is the best bet if you want to keep the initial cost at minimum. This model saves cost otherwise spent on the installation and maintenance of stations. Moreover, it also prevents cost for service agents’ share.
What you need to ensure at the beginning is the efficiency of entire business process regardless of its scale. Investors are more interested in economic sustainability. Thus, they want you to gain a considerable user-base in the opening year.
Bike Sharing is Crucial in Urban Areas
Urban congestion predominantly emerging from excessive number of cars is one of the most challenging problems. Governments in all states of the US, Western Europe and beyond are convinced that bike sharing is crucial toward decreasing this congestion. Many national firms and welfare organizations are funding startups that aim at providing promising services.
The statistics demonstrating survey results indicate that users are also interested in micromobility for its ability to save time and cost. One credible survey confirms 61% people taking shared bikes while traveling to work to avoid congestion. Following image from NACTO visualizes the presence of bike sharing across the Mainland US.
While congestion is a major reason, it is not the only driving force of micromobility. Environmental concerns also provide a significant cause. The city administrations in most US states are aiming to reduce car ownership and encourage commuters to use means of share mobility.
How to Start a Bike Share Business
Launching a bike sharing startup requires extensive research and acquisition of the most appropriate technology. Following checklist enables you to implement this business model with significant efficacy.
Demographic and Geographic Segmentation
A range of reasons govern public’s decision to choose one mode of transport over another. The age groups, socioeconomic situations, geography, and law and order among others participate in this decision making process. Some of the specific factors include:
Amount of traffic congestion in urban areas.
Cost of traveling by taxi or personal vehicle.
Time consumed while traveling by public transit.
Crime rate to measure the probability of bike robbery.
Population density or student density in cases of operating in colleges.
Demographic segmentation implies classifying regional population in terms of social norms, financial situations, and probable age groups among which bike sharing would be popular. Geographic segmentation involves circumstances which are specific to a region.
For instance, the quality of law and order, temperature variations, and amount of population concentrated in a square mile area. Knowing these parameters ahead of launch is vital to align business strategy with regional limitations and opportunities.
Behavioral and Psychographic Segmentation
The interests and motivational factors of potential users vary inside a geographical region too. However, there is no practical way to find the interests as long as your bike sharing business does not kick start. Thus, these segmentations are performed later unlike demographic and geographic ones.
You would require data analysis by collecting valid and current data from a range of reliable sources including forums, rating platforms, user feedback, and social media. While behavioral analysis reveal the current shortcomings in marketing and technologies, psychographic segmentation allows projecting future trends by considering current statistical patterns.
“To succeed in business you need to be original, but you also need to understand what your customers want.” (Richard Branson)
The Data Science Department at CabStartup performs a comprehensive data analysis for clients to determine success factors and blockers. Careful segmentation is crucial for building reputation of your bike sharing startup. Besides, you can introduce promotional campaigns that are most relevant to the targeted niches.
Competitor Analysis
If you are planning to launch bike share services in an urban area of developing or a developed country, you are likely to face a competition. Although it would be challenging in one perspective, yet you need to perceive it as one of your advantages. Having similar businesses already operating in the same market allows you not to repeat the mistakes they did. It also enables you to find a range of revenue sources employed by existing players.
Working with the clients, CabStartup knows most of the frequently occurring challenges posed by their competitors. They would provide discounts through subsidies in the areas where you operate so that consumers stay loyal to them.
The experience of this industry also enabled us to learn that collaborations with businesses become a decent source of revenue. For instance, DoorDash collaborated with McDonald’s to attain a significant increase in the number of customers. Besides, it also gained profits by promoting advertisements from McDonald’s.
One of your best bets is to go ahead and shake hands with a competitor while keeping your business identity intact. This practice would turn a potential competition into an effort toward mutual growth.
Bike Sharing Technology Acquisition
The more you understand the customer, the better you would be able to decide about the kind of technology you would intend to access. Bike sharing app and associated technologies can have a range of features. These features in turn allow implementation of various business models including bike-taxi, dockless bikes, and stationed bikes among others.
Regardless of the underlying business model, some of the components are essential to every on-demand bike sharing software. CabStartup platform already includes each of these essential components shared below. You may choose to add more modules as per your business need.
Bike Sharing App Customization
CabStartup platform includes a comprehensive app which already includes the essential features required for bike sharing app. Each user has to have a separate profile to seek bike sharing services. Distinct profiles enable users as well as administrators to keep a track of each ride and payment records. Besides, profiles also enable you to block users or place limitations who do not comply with the rules.
Two-tap booking implies the ability to book a ride as quickly as two clicks on one’s smartphone once the app is opened.
Proximity search enables users to find the nearest bikes, scooters, and bicycles.
Encrypted chat ensures that the conversation remains private between the two connecting parties.
Real-time tracking is applicable in cases of bike-taxi to track the location of agents.
The app provides fare estimation and, in many cases, shares the precise fare ahead of trip beginning.
Customers can rate the ride and also receive push notifications wherever applicable.
Trip history enables them to access record of any previous trip.
Moreover, you can customize the app according to your business requirements. CabStartup offers complete branding identity including logo, colors, icons, snips, promo codes for only $50.
This cloud-based platform also includes admin and dispatch panels to ensure quality assurance and automating repetitive tasks. Dispatch panel serves you in the following ways.
It ensures security of riders by tracking them wherever they go. The panel generates an alarm as soon as bike moves out of the designated area called geo-fence.
The dispatch panel is capable of automatically dispatching a bike once an eligible user makes a request.
Disputes often occur for a range of reasons. You can settle disputes with users by verifying records.
Bike sharing business requires more surveillance than bike-taxi services. Dispatch Panel provides you a significant competitive advantage in bike sharing market.
Admin Panel Customization
Since hundreds and later thousands of users would use your app to seek bike sharing services, the app would generate huge amount of data. You can use this data to develop meaningful insights using analytics tools. CabStartup offers comprehensive dashboards in its platform to share business insights. Apart from business analytics, Admin Panel also provides following administrative capabilities.
If you offer bike-taxi services, you can approve, block, or temporarily suspend any gig worker.
You can simply drag-and-drop to modify or entirely redefine geo-fence. Besides, you can also update fare calculation policy easily.
A tool integrated in admin panel automatically calculates the commission of each stakeholder at the end of each ride.
You may define access hierarchy within the organization to hide data from irrelevant employees.
Admin panel enables you to comfortably compile and send promotional discounts and referral codes.
Top stationed and dockless bike sharing companies provide multiple payment choices to users. Apart from credit card, they can choose to pay via other online payment systems or, in some regions, through hard cash. CabStartup uses Braintree, a subsidiary of PayPal for payment besides credit card.
You can also choose to have a custom payment gateway. In essence, the users would be able to pay via a payment service branded under the name of your choice. The payment gateway name may also be the same as your bike sharing business name. CabStartup offers custom payment gateway integration with platform for $3000 only.
Backend and Cloud
CabStartup cloud-based platform enables you to comfortably scale up the business adding more regions and accommodating more users without performance shortfalls. The platform allows real-time update of data. For instance, the changes made to passenger app would reflect immediately reflect in admin and dispatch panels.
Cloud-platforms are better than on-premises servers because you have to pay for only as much space as you use. Moreover, the platform can seamlessly process hundreds of requests per second.
The backend of apps and both panels is powered with the most trusted and credible technologies. CabStartup experts use frameworks and tools that are extensively tested. Apart from this platform for car and bike sharing business models, CabStartup provides backend-as-a-service (BaaS) to multiple organizations.
Branding and Marketing
Final but a crucial set of steps on the path to start a bike share business is to perform branding and marketing. Branding is significant to associate unique identity with your business. Your business logo, color scheme, icons, and snippets tell your company apart from competitors.
You need to reach as many users as you can to make business sustainable. An extensive bike sharing marketing campaign including both digital and traditional strategies helps in doing this job.
When it comes to digital marketing, social media and top search engines are the crucial. You need to expand your digital presence by attracting more followers offering social media channels. For search engines, you can write blogs which redirect potential users to your app.
Are you up for this?
CabStartup has powered on-demand startups and assisted traditional businesses in 18 countries until now with most of the projects underway in Mainland US. We are pushing are boundaries into the seas as well by raising water taxi startups in Australia. Our professionals are not only assisting with platform and developing brands but also provide consultation services.
We love to work on new ideas and reinventing traditional ideas with new developments. Would you like to test our platform before subscribing it? Here is a free trial of entire platform for as many as two weeks. Moreover, there are no charges for first two drivers registered under any business. Start right now!
In the midst of the on-demand revolution where numerous traditional services have been transformed into their on-demand parallels, car sharing is making impressive progress. This industry emerged in the closing years of the past decade when Enterprise – one of the pioneers of rent-a-car service in the US – introduced CarShare. The success of this car-sharing business model encouraged investors to introduce multiple startups.
Although the industry is demonstrating notable expansion, yet some entrepreneurs carry the fear that this model may not be a sustainable one. This article reveals why car sharing is sustainable before exploring the marketplace and requisite technology that ensure success.
Why is Car Sharing Business Model Sustainable?
The car-sharing industry is growing steadily. It is bound to pace up significantly in the next five years for undeniable reasons. The following are the two most notable factors which would attract large-scale adoption of car-sharing services.
Vehicle Ownership Regulations
Vehicles are being manufactured and sold for over a century. Until now, the number of consumers buying vehicles is still growing annually. However, the percentage increase is slowing down for a range of reasons.
Ride-hailing and car-sharing businesses are eliminating the need to keep private vehicles.
Public transit and carpooling are becoming more efficient and cost-effective than ever before.
Governments are increasing the amount of taxes on purchase of private vehicles to implement sustainable urban planning.
The concept of shared mobility is attaining realization in many cities around the world providing space for implementation of car sharing business models.
Inefficiency of Traditional Car Rental Businesses
In the wake of successful adoption of on-demand economy, traditional car rental businesses would soon lose their market share. Consumers tend to embrace comfort – especially when it is coupled with cost-effectiveness.
Unlike traditional businesses, car-sharing companies facilitate customers by providing rental cars at their doorsteps. The customers can schedule a car on rent with only a few taps on their smartphones. There is no need to go through a lengthy verification process.
Moreover, on-demand car rental also ensures the security of vehicles since you can track the location of every vehicle in real-time. Car sharing model is far more flexible than traditional vehicle rental businesses because the customers can rent a vehicle for as low as 30 minutes. You can choose to make variations in the time limit.
Independent observers are certain that traditional car rental business would be obsolete by 2022. One notable indication is the adoption of on-demand services by major industry players including Enterprise Rent-A-Car and Zipcar. Besides, many startups offering car share services are also demonstrating great successes.
Exploring the Car Sharing Marketplace
The traditional car rental business offers only a B2C model. In essence, the rental company owns every vehicle in a fleet and rents them out for at al least 12 hours. Their customers comprise the general public.
However, the advent of on-demand economy and development in shared mobility also introduced B2B and C2C or commonly referred to as P2P models. Following is a brief introduction to each of the car sharing models.
B2C Car Sharing
In terms of on-demand industry, this otherwise traditional rental business facilitates customers by enabling them to acquire a rental vehicle easily. The leading car rental companies ensure that customers are able to access the vehicle, unlock, and drive around without needing human assistance.
One notable innovation in this model is the facility to drop a vehicle at a different location from where one started. This is significant because customers in conventional circumstances had to drop vehicles to fixed locations designated by service provider.
B2C rent-a-car services mostly employ the same charging criteria as in ride-hailing services. The number of miles and time consumed are the two primary factors affecting rent charges.
P2P Car Sharing
This peer-to-peer model is highly sustainable for its ability to reduce costs and facilitate customers simultaneously. It is inspired by the idea of dockless bike sharing where customers leave bikes anywhere inside the designated operational region. Although urban administrations do not allow the same for cars, yet customers can leave them at parking spaces.
The peers in this model can either be members of the general public or employees of the same or different companies. A number of startups including Turo and Getaround employ this model. One noteworthy factor is the use of personalized cards. Users can unlock vehicles using the RFID tags inscribed on these cards. The receiving sensors are mounted mostly behind the windshield.
The most attractive factor associated with peer-to-peer car sharing is the flexibility in charges. Customers do not necessarily have to schedule a ride for at least 12 hours. Instead, they can acquire it for as low as 30 minutes.
How Does P2P Car Rental Work?
The users request a vehicle from a mobile phone app. Top service providers offer a range of features in their apps but ensure that users attain flawless experience. The integrated software in response shares the location of the nearest vehicles.
At times, the requesting user is able to connect the peer who currently holds the vehicle. The two peers can communicate to decide about the drop-off point. Once the customer reaches vehicle, s/he can unlock it by holding a personalized card parallel to the sensor on the shield. In the same way, the customer can lock the vehicle using the card.
Software Essentials for Car Sharing Business
Technology plays the most crucial role in the success of a startup. The same is the case with car sharing industry which heavily relies on user and dispatch panels. The software systems of such startups are evolving for over a decade with innovative approaches. CabStartup with its multiple case studies in car sharing industry incorporates following components in customer app and admin panels.
App for Customers
The efficiency of some of the performance-intensive features including app speed, in-app user experience, ease in navigation to various tabs, and app size should go without saying. Such features are essential regardless of the business model.
However, there are features specific to car sharing business model. The following are some of the most features indispensable for the success of such a startup or transformation of the traditional rental business to on-demand equivalent.
Car Type
There is a wide range of choices for users regarding the selection of vehicles. Like Uber or Lyft where users can choose UberX, Black, SUV, or other region-specific option, car sharing should also segment registered vehicles in various categories.
One drawback of this segmentation is the fact that it reduces the number of vehicles available in the vicinity. For instance, if there are a total of 10 registered vehicles in one kilometer radius, only two or three of them would offer the luxury class.
You can tackle this challenge by offering the vehicles from alternative classes. Thus, the customer can decide about the selection depending on the available time.
Rent Estimation
Both traditional and modern car rental businesses either adopt a fixed price model or variable model for rent estimation. Some of them are utilizing both approaches depending on what works best for business.
In a fixed price model, the cost of hiring a vehicle would be predetermined. In essence, there would be fixed time slots offering multiples of 30 or 60 minutes. The charges double once the user enters the second time slot. Many companies adopting this model offer discounts on acquiring vehicles for a greater number of time slots.
The variable charging model resembles the fare criteria of Uber and Lyft. Like these companies, the charge primarily depends on the number of miles traveled including the fractions up to one decimal point and the total time consumed.
The top service providers ensure that the booking process remains as simple as Uber. The users should be able to schedule a time when they want the vehicle and tentative time when they are going to end. Besides, the design of the app should allow users to comfortably select vehicles and available time slots.
Booking a ride using the business-to-customer model is plain straightforward. The customer schedules a ride with all the details that one wants to add. A worker of the company drops the vehicle at the place of the customer’s choice as long as it remains within the designated fence. Later, customer can abandon the vehicle and pay via credit card or an e-wallet once the ride is over.
However, P2P car sharing is different in that it involves ride sharing between two peers. You may choose to offer customers a facility to pick the abandoned vehicle and drop it at their doorstep for an additional charge.
Payment Gateways
Any ride-hailing app including rideshare, carshare, carpooling, and others should include multiple payment options. While credit card remains most prevalent, in-app wallets provide considerable flexibility to users.
The personalized membership card should be integrated with mobile app and admin panel software so that customers and administrations remain aware every time this card is used to unlock or lock a vehicle.
Dispatch and Admin Panel
Dispatch panel would assist you while ensuring that the customer gets the requested class of vehicle in time. You can place reminders and view all the available vehicles in a region. Although the panel is automated and does not require human input, yet it aids in quality assurance.
The admin panel is a car share equivalent of the executive information system. It comprises data regarding business growth, loopholes, and monitoring of real-time operational activities. The following are the three most notable car sharing features in an admin panel for car sharing companies.
Vehicle Surveillance and Management
Administrators can view every vehicle in real-time. Although this kind of surveillance did not draw any criticism in the case of ride-hailing businesses, yet some critics consider it unethical to know the location of a vehicle. They believe that such surveillance breaches privacy.
However, knowing the location is crucial for the safety of the user and the vehicle itself. The city administrations in most urban areas also recommend tracking the car share vehicles in real-time. Thus, you may choose to implement real-time tracking or otherwise.
Management of vehicles implies the distribution of cars as per the demand in a region. High-income areas are likely to attract more vehicles from the luxury class. The distribution should ensure that you can cater to the request of the customer in the desired time.
The customers should not only be able to get quick assistance with instant messaging or calling options but also review and rate each time they request a car. This feedback would allow you to improve services by evaluating every vehicle and response time of staff. Moreover, you would also win back the trust of a user by responding to them at their feedback.
Customer support would also allow quick assistance if a car breaks down during booking. The users can ask for a reevaluation of their charges if they believe that they were wrongly charged. An admin should have the power to approve or block a user based on poor ratings. Similarly, the work status of drivers can also be changed.
Business Analytics
A dashboard enriched with data regarding progress toward business targets is crucial for tracking objectives. It enables businesses to find the notable areas generating revenues and those which are pulling more money out of the owners’ pockets with meager returns.
The companies in car sharing industry reward bonuses to top performing gig workers. Thus, the dashboard should also track the achievements of gig workers and automatically pick ones that are eligible for bonuses.
CabStartup Admin Panel uses robotic process automation and data mining techniques to ensure that visualized statistics on the dashboard remain flawless.
Redefining Geofence
You would surely be operating in a predetermined region and would not want the vehicle to move out of this designated area. Geofence defines the boundary of this region. It is visible on app for users as well as admin panel. Any vehicle moving out of geofence would alert administration since the location of every vehicle appears in real-time.
Administrators can redefine geofence easily by simply dragging and dropping the points on map. The changes update in apps as well as admin and dispatch panel on the next day because a vehicle might be outside the updated fence but inside the old one.
User Authentication
Every user should have a distinct profile so that they can be recognized when unlocking a vehicle. The existing startups offer membership for users. There is a base amount for becoming a member. The profile syncs with membership details.
Cloud-Based Platform for Car Sharing Business Model
Car sharing businesses scale up with time. They also require incorporation of more features as the competition progresses. It is unwise to operate the entire business using local servers. Instead, you can acquire cloud-based car sharing platform for uninterrupted operations. Such a platform enables you to ensure high speeds and provides scalability almost effortlessly.
The emergence of new businesses is increasing the magnitude competition in this industry. Thus, companies are coming up with more innovative ideas to facilitate customers and aid in business operations. Thus, CabStartup also incorporates multiple innovative features apart from these indispensable ones.
One notable example is the sharing of signal strength. There are often cases where either driver – who drives the vehicle to the customer’s indicated location – or requesting users have poor internet signal strength. Consequently, they fail to connect and one of them cancels the ride.
CabStartup platform alerts the user if the person they are dealing with has unstable internet connection. Therefore, they can either wait or seek assistance from customer support.
Get Started Today
The car sharing industry is flourishing with emergence of new startups and the transformation of traditional companies. The high sustainability associated with this business model enables it to become one of the top investment grounds for entrepreneurs.
CabStartup is assisting ride-hailing startups around the world with car share and taxi management platforms. Our experts also help companies with traditional business models to adopt advanced technologies and get ahead of competitors in the process.
We would like to work with you for the development of your car-sharing business model. Take a free trial of CabStartup platform so that you can evaluate it.
Taxi management software and rideshare platform are redefining taxi business landscape for over a decade now. An efficiently built and marketed rideshare software app is likely to generate revenues as well as attract funding from investors. However, some cities are way too much saturated with ride-hailing businesses that there is barely any room for more. Nevertheless, the presence of rideshare businesses in large number can be put to your benefit by offering a taxi comparison app.
Such an app serves to facilitate users by enabling them to compare services of various providers. These apps do not only compare ride fares but frequency of vehicles in a region, discounts offered from various providers, and a one stop-shop for booking rides from any company.
Rideshare Comparison App Use Cases
Following are some of the most notable use cases of taxi comparison app each of which should be considered while developing such an app.
1. Vehicles in Proximity
Passengers are able to approximate the arrival time of a vehicle when the apps like Uber and Lyft show all the idle vehicles in the vicinity. However, a taxi comparison app can depict vehicle from Uber, Lyft, other rideshare companies in the same app.
You may use different colors or another scheme to distinguish vehicles of one rideshare company from another. Each of the vehicles, regardless of the company they are registered at, appears in the map in real-time.
A problem would arise when a vehicle is registered for two or more services. For instance, drivers often use a vehicle for Uber as well as Lyft. In such scenarios, the app displays single vehicle after verification from license plate number.
The app should show the nearby vehicles to not only the passengers but to drivers as well. This ability enables drivers to relocate themselves to a location where the demand is higher due to lower number of vehicles.
Such drivers can avoid the mess of playing around multiple apps. Instead, they can accept rides, and estimate saturation of vehicles in an area from a single app.
2. Rideshare Fare Estimator
This is one of the most crucial features because the decision of passengers to take a ride rests big time on the estimated fare. The passengers usually open multiple rideshare apps to compare the fare and take the one which is relatively inexpensive.
A taxi fare comparison app would require a passenger to input pickup and drop-off locations. The app would estimate the fare for each rideshare app depending on the factors which affect the change in fare.
A basic fare which is the mimimum amount to take Uber ride irrespective of the distance you cover.
Distance traversed and time consumed from starting point to destination.
Surge pricing if the demand is higher due to fewer number of vehicles available in an area.
Considering these parameters, Uber provides a range of estimated fare. In many cities, both Uber and Lyft share the exact fare upfront before a passenger confirms a ride. However, the factors affecting fare remain as above.
Apart from these essential factors influencing the fare, there are some occasional factors as well. For instance, toll fees, cancellation or no-show fees, and airport fess are notable.
3. Single App for Booking
A taxi comparison does not only necessarily be limited to estimating the fare and knowing the number of nearby vehicles. You can also schedule a ride with any rideshare provider using one app.
It is notable that booking a ride requires the passengers to already be logged in to the account of actual service provider. Conversely, you cannot book a taxi service with Uber or Lyft unless you have a profile for them and you have already given access of these profiles to comparison app.
Thus, when a passenger schedule a ride, say on Lyft using the comparison app, the request would be redirected from comparison app to Lyft. In essence, the passenger would be scheduling a Lyft ride using a different platform.
Similarly, a driver accepting the ride from comparison app would actually be accepting a request from a particular rideshare customer of Lyft, Uber, or another service provider.
The ratings and feedback shared by passengers and drivers would end up at the corresponding service provider only. Moreover, the app can also be used to make payments. However, paying through taxi comparison app would take additional service charges because this app would serve as middleman between passenger and service provider.
4. Drivers’ Availability for All Online Taxi Services
Rideshare companies allow drivers to make them available or unavailable to accept rides at any given time. Some of the taxi companies employing gig workers also offer this flexibility to part timers.
Many gig workers of taxi and rideshare companies work for more than one company. While serving passenger of one service provider, they stay unavailable over the other companies that they serve.
For instance, a person might be registered as driver at Uber, Lyft, and Via simultaneously. However, s/he would serve customer of only one of these companies at a time – unless one is picking carpool customers for each company.
In such scenarios, drivers do not have to keep multiple apps. Instead, you can provide them a single but comprehensive rideshare comparison app.
In cases where an online taxi service only works with full-time workers, you may still facilitate rideshare passengers. and drivers with comparison app. Such drivers need to stay available at all times. Thus, the passengers can schedule a taxi ride through estimator app as well.
5. Unlimited Rideshare Collaboration
Being a comparison app owner, you can add as many apps as would want. The integration of more apps would require more space at servers to accommodate dedicated processors.
You can either choose to collaborate with rideshare companies or remain independent. In the former case, collaborations provide you with the ability to perform entire scheduling activity through your comparison app. In return, you might need to pay your partner.
Such partnerships facilitate customers by scheduling a ride without needing to install the relevant app. However, very few companies – mostly nascent startups – allow such collaborations. Top rideshare providers like Lyft and Uber do not need a third party to market their business.
If you do not find a partner, taxi comparison app would still work. You can allow passengers to compare fares with rideshare fare estimator or enable them to view all the idle drivers in the area. Similarly, the drivers of rideshare and taxi companies can use your single app to manage accounts on multiple apps.
6. Ride History Retrieval
If the user gives permission to view data, a comparison app can also share records from previous rides. This works because you can only view a user’s data from particular rideshare company when you log into user’s account.
The app can take permission by requesting the user to log in. However, the app should not view the login credentials because doing so would breach the data privacy policy of the US and GDPR in the EU.
The aim of getting access to many accounts of same user is to provide them a single source of managing all of their accounts.
7. Discounts from all Rideshare Providers
One significant use case of a taxi comparison app is to share the discounts from all rideshare companies. The discounts vary for customers. In essence, some customers may get 20% off on all kinds of rides while others may get 30% discount on a specific kind of ride.
A comparison app should compare every category in one rideshare company with its equivalent category in another company. For instance, the rideshare fare estimator software in your app should compare Lyft XL with Uber XL. Similarly, the fare for Uber Pool should be compared with Lyft Shared.
The comparison app should also provide the fare after application of available discounts from various taxi booking app service providers. This is significant because the fare from one service may not necessarily be less despite the availability of discount. Surge in fares during the times of high demand markedly change fares. Thus, passengers should be able to compare fares from same categories after the application discounts.
Revenue Models for Taxi Comparison App
There is a range of earning models when offering a comparison app. You should be aware of these models while working on taxi comparison app development. Some of the most significant ones are as under.
Collaborate with rideshare and taxi companies to market their business through your app. These companies would share a part of their earnings as long as they use your app for promotion.
Take a small subscription fees from drivers and facilitate them in getting more rides in return.
Sell paid subscriptions to customers and getting them abreast with promos and all the news that they should know.
Use advertisement videos, images, and banners. Be sure not to annoy users with excessive ads because user satisfaction is crucial to success of this business model. As a reference, you may consider the amount of ads used on Uber Lite app. The quantity of ads is fair enough not to cause annoyance at user’s end.
CabStartup develops software systems for rideshare startups as well as established taxi and transport companies. Apart from software development team, we also have experts from rideshare industry which enable us to create the most promising technologies for rideshare, logistics, and delivery industries.
We have also successfully developed a platform that provides a comparison of existing taxi and rideshare services. We invite you to take free trial of CabStartup rideshare platform for two weeks before partnering with us.
The success of consumer apps largely relies on in-app user experience. There is often a case when taxi companies struggle to increase the number of users or worse lose the existing ones despite offering discounts. A range of reasons affect the behavior of consumers to seek or discontinue using an app for taxi service.
This article reveals the most essential factors which influence user experience on taxi apps. It also makes suggestions for improving each of these factors.
The foremost aspect of ensuring high user experience is to develop user persona. It refers to the hypothetical sketching of most ideal passengers. Persona identification determines the kind of users that download and use your app.
Developing a user person requires market analysis including the needs of users and what competitors are currently offering them. The demography of consumers using app for taxi service widely varies. You can determine the ages, socioeconomic conditions, and cultural limitations of passengers. The design of app should correspond to the technical understanding of users.
Craft a User Journey Map
A range of reasons push users to abandon your app. Some may find it difficult to use while others see it excessively time consuming. Again others may find it taking more space in your phone. Similarly, there are many factors which attract users to use some mobile apps for taxi services above others.
It is vital to determine the causes that retain or lose users. Crafting a journey map in app for taxi service requires quantitative as well as qualitative research. The former is intended at collecting reviews, ratings, and feedbacks of users from various channels. Latter aims at determining the reliability, currency, and validity of information.
The map is immensely helpful when compared with the outcomes of user persona. You can realign your marketing strategy to target the most pertinent potential users first followed by the less preferred ones. Studies indicate that developing a correct user journey map increases the revenue by 52% on average.
Design App Navigation Blueprint
Prior to taxi app development, it is essential to sketch a blueprint of the app. In essence, a flowchart should be developed indicating the root pages and each of the subpage. For better user experience, it is advisable not to go beyond fourth level of hierarchy.
The design should be interactive enough to facilitate the non-technical users. At the same time, it should be pleasant as well with attractive color schemes and unparalleled branding.
It is advisable to come up with various designing options and choose one of them later. To evaluate each design, you can develop wireframes and prototypes of app. Wireframes are static images which show the appearance of pages once the app would be developed. Prototypes demonstrate the behavior of buttons, links, and other elements.
Ensure Uniform Driver Distribution
One of the most prevalent problems with Uber clone app systems is the deficit of uniform vehicle distribution in geofence. Some regions have more vehicles than required whereas others have a shorter availability.
Consequently, a considerable proportion of passengers struggle to find a vehicle on time. Besides, shortage of drivers in an area also results in price hike due to increased demand.
The driver side app should show nearby drivers so that each driver can relocate to an area where the demand is relatively higher. Moreover, depicting the areas in the vicinity with higher demand is also vital. It is notable that drivers do not have to travel miles for relocation. Instead, a distance of up to 500 meters is sufficient in most cases.
Provide Real-Time Features
Time is a crucial factor for on-demand services. Many consumers adopt on-demand models to save time otherwise consumed in getting services traditionally.
An app for taxi service should ensure provision of real-time features including vehicle tracking for passengers and route optimization for drivers. Moreover, it should also reveal the location of drivers in the proximity in real-time as mentioned earlier.
The option for real-time messaging is indispensable so that drivers and passengers can communicate if needed. A choice to call driver should be available too but most passengers are comfortable with communicating through messages.
Furthermore, push notifications also enhance user experience in mobile apps for taxi services. They keep passengers updated with estimated arrival time and promo codes. Drivers also attain better user experience by staying updated with pending and ongoing rides.
Prototype Development and Testing
While you develop the app, it is immensely important to test it in parallel to development with small prototypes. The testing should not be confined to the business owners and employees. Rather you should acquire services of a group of potential customers who could take independent audits. You should test following aspects.
Users should be able to navigate easily to the desired page of the app.
App for taxi service should not take more than 15 seconds to schedule a ride.
Latency time – the time an app takes to load after user opens it – should be minimal.
Efficiency of real time updates including tracking, route planning and messaging.
Appearance of app should be pleasant to users.
Meet Standard KPIs
There are undeniable performance indicators which influence the success of mobile apps for taxi services. Most independent evaluators believe that app loading time is one of the most crucial aspects.
Research indicates that around 70% of users would quit an app which takes over six seconds to load. This test takes greater significance when tested for peak usage hours.
Another major factor is the size of an app. A proportion of users prefer to keep lightweight app for taxi service. For this reason, Uber offers Uber Lite – the lightweight version of main app with limited features.
Even this Lite app for passengers ensures to provide essential features including unique profiles and ETA. The map is not real-time but updates approximately every 10 seconds. The developers should ensure that passengers should be able to schedule a ride in at most three clicks.
CabStartup is a proud technology partner for dozens of startups and established businesses around the world. You can rebrand our Ride-hailing dispatch platform including white label taxi app for drivers and passengers. The platform also features cloud-based dispatch and admin panels. Start the free trial right now to build your ride-hailing business.
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