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

2020 was a tough year for the transportation industry. COVID-19 changed the way of travelling with shared and public spaces becoming a threat zone for regular commuters. Nearly every business suffered from reduced operations, decreased revenue production and a steep economy. The transportation industry was no different – before the pandemic, it was cruising towards smart mobility solutions. COVID-19 forced many modes of transportation to a standstill. Many taxi companies completely shut down because they were unable to meet their operational costs and demands.

The strong blow of the pandemic forced the transport industry to mend its ways. There has been significant disruption in transportation industry with consumers reluctant in using public (shared) transport because of the COVID threat looming over their heads. Shared and smart mobility appears to be a thing of the past. People prefer private cars because isolated traveling is considered more hygienic amid the COVID wave.

The important question remains: Where is the transport industry heading in the next five years?

COVID’s impact on the transportation industry

The global pandemic is bound to have far reaching implications. The stakeholders of the transport industry will have to improvise. They should look above and beyond the conventional rule book. The pandemic has equally affected the consumers and the players of the automotive and the mobility market. The policy makers have the biggest role to play since they can ensure the growth of the transportation industry.

COVID-19 has forced the transport industry to change its course of operations. This is how the industry will have to respond to cater to the latest trends, reformed requirements and competitive factors:

Increase health, security and reliability standards

Before the pandemic, consumers decided their mode of transportation based on cost, time effectiveness and convenience. COVID, however, has altered the norms with commuters now preferring the safest mode of travel by choosing an option that has a minimum threat of infection. With the lockdown ending in most parts of the world; consumers feel inclined towards walking, riding or using private cars to go about their day. According to a recent survey; almost 70% of the shared mobility users will now prefer to walk or ride to their destination, causing significant disruption in transportation industry.

In these circumstances, meeting the required safety standards is important. Transport companies can survive only if they are meeting the quality benchmark. They will have to ensure social distancing, sanitized spaces and other safety requirements. Smart mobility solutions such as micro mobility, self-driving cars or autonomous vehicles and the ride hailing industry are expected to boom. The growth of the transportation industry will now be determined by different factors. Entities adjusting well and quick to the “new normal” will be able to survive and grow.

Adjust to the changing policies and regulations

The outbreak of the global pandemic has brought the transportation industry to a standstill. At the peak of the virus; mobility was strictly restricted. Disruption in transportation industry forced the introduction of new guidelines and regulations. States all around the world took measures to help bring back the industry on track. However, the business is not expected to reach the pre-pandemic figures soon.

There is immense pressure on governments to come up with effective policies that will ensure safety of the consumers and will also keep the economy afloat. It is expected that governments will introduce policies favoring ride-hailing companies, e-scooters and bikes. Cities such as Milan, Paris, Brussels, Seattle and Berlin have already started working on transforming car lanes into bike paths.

In today’s times, shifting to smart mobility solutions is the most sensible approach for taxi companies. Policy makers will be coming up with schemes supporting and influencing micro and smart mobility solutions. States across the globe are partnering up with micro-mobility players to promote sustainable and safe mobility solutions. E-scooters and bikes are expected to rule the transportation industry in the foreseeable future.

Leading agents of the transportation industry

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

Micro-mobility

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

Autonomous Vehicles

Autonomous vehicles are also known as self-driving cars seem to be the most appropriate choice of travel post COVID. Even before the pandemic, self-driving cars were expected to lead the transport industry by the year 2023 and generate estimated revenue of 173 billion US dollars.

With cost, convenience and comfort taking a back seat, safe, hygienic and isolated traveling is what matters the most now.

Ride-hailing

COVID-19 has revolutionized the world, our lifestyles and preferences. Under this new era, the ride-hailing platform does not seem to be the best available option but it cannot be completely ruled out either.

Earlier, merging technology with convenient travel was all the rage. Currently, the idea of shared vehicles might be daunting for some but it is still the preferred choice of travel for many consumers. It avoids public spaces and busy transit stops. The smart booking options and the ease of payment and usage has made ride-hailing survive the pandemic. Smart mobility can very well be the future of the transport industry. It is sustainable, comfortable, cheap and convenient.

Build a reliable future with CabStartup

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

By cabadmin 0 Comments

Notable Shifts in Transportation Industry Trends

Ridesharing industries are redefining the means of transportation for years. The success of objective aimed at facilitating the customers by providing ride at one’s doorstep brought huge fortunes for companies. Transportation industry trends for the current year indicate that the upcoming developments will further strengthen ridesharing industry.

Transportation industry in 2019 is mainly focused on introducing the variety in types of vehicles. Companies aim to entirely replace the existing vehicle types with autonomous and hybrid vehicles. Bike taxi is making massive gains in all parts of the inhabited world. However, paratransit is the area where most transport entrepreneurs are taking a significant interest.

Redefining Paratransit

Paratransit currently serves as the bridge between public transit and ridesharing systems. It boosts the element of inclusiveness so that every section of society may acquire decent transportation. For instance, paratransit is the top solution for disabled individuals and people trying to create a balance between time and cost.

Furthermore, analysts also forecast that paratransit will fuse distinct industries of ridesharing and public transport into one. Consequently, a passenger will be able to book a bus and a taxi from same mobile app. In an era where transportation industry is striving to facilitate travelers as much as it can,

Level Four Autonomous Vehicles

For over half a century, the manufacturers are trying to enable autonomy in vehicles. The degree of “self-driving” varies considering the expert opinion of previous decades. In the last two decades of past century, researchers failed to achieve a breakthrough in AI. Consequently, the pace of research in AI significantly reduced.

The turn of millennium brought a landmark achievement by the development of efficient machine learning algorithms. Besides, the parallel developments in computer vision also enabled the manufacturers to classify objects from a considerable range and with impressive accuracy. Since the limits of autonomy keep expanding with innovations, the analysts have defined various levels of autonomy.

As a standard, researchers consider automatic transmission systems as the first level of autonomy in vehicles. The two subsequent levels include cruise control and limited self-driving. This limited autonomy at level-three also includes maneuverability and speed adjustment.

Level-four autonomy is the focus of transportation as the transportation industry trends 2019 suggest. Waymo already kicked off level-four autonomous ridesharing cars in Arizona at the end of 2018. Many existing ridesharing companies and emerging startups will follow in the footsteps of Alphabet Inc. to incorporate autonomous cars. With such a degree of autonomy, a vehicle is entirely capable of decision-making under all circumstances. However, Waymo keeps a driver only to intervene in extremely unusual situations.

Entirely driverless vehicles may not be the last level of autonomy – unlike widespread belief. The understanding of customer behavior will enable the manufacturers to customize the car’s environment as per passengers’ wishes.

Shoot with a Scooter

With excessive traffic, regulators are facing a tough challenge of streamlining the traffic – notably, during peak hours. Many industrialists consider scooter as an appropriate alternative. The scooters remained the first choice of courier delivery companies which are now transforming to adopt drones. However, drones are highly unlikely to start commercial ridesharing operations before 2023. Thus, transformation toward scooter is sustainable development.

The scooter services introduced by some transportation giants managed to sustain despite strong opposition from various segments of society. One of the primary concerns of critics is the absence of dedicated bike lanes. These bikes manage to drift between cars and trucks, but often slow down the traffic.

Nevertheless, bike-taxi service will flourish because it facilitates users. Some of the metropolitan administrations in the US are arranging to regulate bike traffic by allocating fixed lanes. The regulations will not only assist administration but passengers and service providers too.

South Asian countries with massive population densities are facilitating scooter ride startups. For an intense insufficiency of MaaS infrastructure, scooter service is the best bet.

Championing Biodiversity with Electric Vehicles

North America and Western Europe are leading with activities for preserving biodiversity. Environmental protection is becoming part and parcel of corporate laws. Administrations encourage businesses, often sponsor the ones, which travel extra miles for maintaining ecosystem.

The transformation toward electric vehicles is attaining a remarkable pace. Travel and transportation industry trends highlight that the major ridesharing and commuting firms in developed world are aiming to adopt electric vehicles completely. In developing nations, the under-availability of electric cars and poor legislative framework allow companies to continue with same thermal vehicles.

The rapidly growing competition is pushing ridesharing companies to introduce electric vehicles before rivals. Passengers also want quick transformation toward electric cars. A survey indicates that up to 85% of passengers can tolerate slight delays in return of environment protection through electric vehicles.

Toyota’s one billion dollar investment in Grab is intended to introduce its Fuel Cell Electric Vehicles in ridesharing. This introduction will also motivate other services to acquire electric cars.

Mobility as a Service

The apparatus for smart transportation system is almost complete. Vehicles offer an adequate amount of connectivity and autonomy. Electric vehicles are already commercialized since long. Now, the ridesharing and commuting companies are waiting for implementation of a comprehensive framework which regulates a network of mobility. A shared network of transportation with mutual control center will emerge soon.

Analysts expect that some cities may feature a limited version of shared Mobility as a Service before 2019 concludes. Governments are welcoming the recent startups as well as established companies to start shared mobility in businesses’ capacity.

In the long run, shared mobility will also include drone taxi. The air transportation industry trends indicate that 2019 and a couple of subsequent years may not see a flying taxi. Nevertheless, they are inevitably going to extend MaaS in the upcoming decades.

Future trends in transportation industry – particularly the ones in 2019 – indicate some drastic changes. The major shareholders in the industry are already preparing to implement one or more of these trends. However, the probability of success for startups is remarkably high due to the demand for these services.

Move ahead of your competitors by incorporating one of these futuristic technologies. Start your free trial with CabStartup today to customize our framework to your business needs.

By Shahrukh Satti 0 Comments

10 Most Profitable Transportation Business Ideas at Low Cost

Note: The article was updated on January 14, 2020.

Are you looking for transportation and Logistics business ideas? If Yes, read below 10 most profitable transportation and logistics ideas with a low investment that can increase your profit margins manifold.

50% lack of digital culture and training is the biggest challenge that transportation and logistics companies are facing. Technology is leading to new business models, often driven by start-ups that enter the logistics industry. Technological advancements are improving transportation businesses. Data analytics show improvements in customer experience and bring efficiency in operations. New cloud-based transportation business platforms are emerging that are resulting in increased productivity.

Compelling Statistics and Opportunities for the Future:

On-Demand Services Stats

  1. In the on-demand world, 51% of global retailers offer same-day delivery.
  2. In 2019, the order value of same-day delivery merchandise is predicted to reach more than $4.03 billion from $0.1 billion back in 2014.
  3. 49 percent of customers account for millennial generation while 30 percent customers are between the ages of 35 and 54.
  4. 72% of Americans have used on-demand services.
  5. More than 50% of online businesses plan on providing same-day delivery in the next 3-5 years.

On-Demand is Here to Stay:

The on-demand economy will persist because it has already changed the way consumers buy goods and services. Technological innovation is consistently revolutionizing buyer expectations.

Technological innovation in the field of transportation, delivery, and logistics is the most significant development in the area of the on-demand economy.

Like most other industries, transportation and logistics are showing immense change, which brings both risks and opportunities. New technology, new market entrants, new customer expectations and new business models are rapidly changing the way on-demand businesses operate.

There are many ways the transportation and logistics ideas can develop to meet these challenges. In this article, we will discuss the possible startups that can help you in earning a remarkable profit and explore the future of the industry.

Transport business opportunities are emerging globally nowadays. Transportation is the world’s largest industries in the world. Different types of demands have introduced several innovative and profitable startup opportunities in the transport industry.

Transportation and logistics sector is overgrowing all across the world. The success of transportation and logistics companies depends on the education and efficiency of the employees. Aviation, shipping, and ports, land transportation, road freight, and logistics are the major transportation and logistics sector that is overgrowing worldwide.

Over recent years, globalization has increased demands of transportation and supply chain sector. There is no other industry than in the logistics that can improve business performance and serve customers better with on-demand logistics startups. There are vast opportunities to improve performance and help customers better. Adding machine learning and artificial intelligence techniques to data enable bringing improvement in the business. Combining artificial intelligence techniques to information can deliver truly dynamic routing.

There are three modules of an on-demand startup solution. One is a service provider, 2nd is a customer, and the 3rd is admin panel. Service providers can manage and streamline their business operations using the mobile app. The required features can be added to the app that can facilitate in your business running.

Customers can get the required services through the customer app which allows them to make an account and use the services by sitting at your home. Customers can order request which is sent to the relevant person to fulfill that demand. Admin panel can manage various things that are essential for maintaining a business successfully.

Cost to build Taxi App Like Uber

Profitable Transportation and Logistics Business Ideas:

Ridesharing

No wonder rideshare makes the top of this list. A world with widespread shared mobility systems is nearer than most of us forecast. The decade of 2010s belongs to on-demand taxi services that disrupted traditional taxi businesses. Upcoming decade will ensure widespread adoption of ridesharing that would supplement on-demand industry.

Micromobility

The growing congestion in urban areas is occupying public spaces with car parks, wide roads, and multi-tier bridges. Commuters in most developed cities are switching toward micromobility – the mode of transport involving bikesharing services. This business idea does not only save money of end users but service providers also get a cost effective source of revenue.

Ambulance Service

Ambulance services can be initiated in urban and suburban areas. Proper marketing plans are required to get more customers. The ambulance service business provides emergency and non-emergency transportation of people to hospitals, clinics, and medical centers. Business owners can manage ambulance service using the on-demand transportation software.

Auto-Body Store

As the number of vehicles is growing, the business opportunity for an auto-body store is also increasing globally. It is the business of providing services for auto body repairing and bodybuilding as well as selling accessories related to the vehicle body.

Car Rental

A person living in a high population area having a strategic location with business centers and entertainment facility can have a more successful car rental business. Car rental business can be a lucrative and profitable venture for him. Its operation would involve scheduling customer reservations and supply rental cars.

Private Drivers On-demand

People back in the days were reluctant to seek private drivers because they had to pay services cost for an entire day or at least half day regardless of how long they wanted services. However, the arrival of on-demand economy has changed the game in favor of both service providers and customers. On-demand private drivers get multiple times more requests than it used to be while customers have a cost-effective solution.

Double-decker Bus Tour

Double-decker bus tour is beautiful for fun-loving tourists. You can start a double-decker bus tour company with required facilities. The key to success is that it will be suitable in a busy tourist area. The on-demand software solution will be helpful in managing double-decker business.

Driving Service for Seniors

It is one of the most innovative transportation business ideas for startups. Driving service for seniors or paratransit services provide specialized vehicles loaded equipment that assists seniors during traveling. It might involve taking them shopping, to the doctor’s appointment, and attending the social events.

Logistics Company

The logistics company is one of the most profitable transportation business to start with moderate capital investment. The area of operation is vast. Logistics business is generally a particular business and implementation of a complicated process. On-demand platforms can help in managing the logistics company successfully and increasing the revenues manifold.

Car Wash

The on-demand car wash is another smart business to make money at low cost without taking much risk of capital investment. Customers can schedule a wash via mobile app. One of the representatives of service provider would pick the car from customer’s location and drop it off once washed.

There are lots of business startup ideas that you can start using the on-demand solution. It is a quite effective way of managing the business efficiently.

The Bottom Line:

The success in the transportation industry is changing consumer expectations. Transportation companies that fail to implement new technologies and become part of the on-demand economy risk are being left in the dust.

Lots of companies are providing on-demand software solution all over the world. However, the need is to find a reliable company. We offer outclass on-demand white label solution for your transportation business. It is a cost-effective solution that can increase business revenues manifold. If you are interested in on-demand white label solution, Sign Up today.

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