Introduction to Changes In The Ride-Hailing Industry
It might not be an exaggeration to say that the extent of changes that happen in a decade far exceeds the magnitude of changes that have happened in the previous decade.
It would be difficult for even us when we take us back to 2010 if we were to tell that we can call a cab using our mobile phone, and the cab would be present to pick us up right in front of our doorsteps.
The business model of Uber impacted the world and brought a change in this decade.
The Ride-Hailing Market – Global
The ride-hailing market has been growing at an unexpected and unprecedented face. Goldman Sachs has estimated that the global ride-hailing industry will grow to a market value of a staggering $285 million by 2030, multiplying its current market value by over eight times.
The COVID-19 Interregnum
It seemed that the ride-hailing industry would continue its juggernaut roll with no apparent stumbling blocks and attenuating forces. However, all of a sudden, when no one expected, the COVID-19 pandemic obtained the industry, and the entire landscape of transportation came to a screeching halt.
The insistence to stay at home at the impositions on social distancing meant that people did not travel even for their everyday requirements like work and shopping.
It might have open floodgates for other on-demand businesses like grocery delivery, medicine delivery, and a lot more, but it cannot be denied that the entire ride-hailing industry suffered a massive blow, much to the chagrin of both ride-hailing business owners and taxi drivers.
There are app development companies which help ride-hailing companies to create a safe taxi app with COVID-19 safety measures.
The Present & The Future
The direct impact of the pandemic might not last for long. It will become just another brick in the long stretch of human history, just like any other pandemic has always been. However, the after-effects of the pandemic are expected to be pronounced quite loudly in the right healing industry.
Let us look at the possible impact and the trends of the future in ride-hailing after the COVID-19 era.
Ride booking is, by a considerable distance, the biggest chunk of contribution to the ride-hailing sector. Most mobility services like Uber and Olá specialize in ride-booking. It is a variant of the classic taxi system where a user can book a cab using their mobile app for private use.
In the initial days, a lot of drivers considered driving taxis to be a lucrative source of income. However, with the growing popularity and because of the cutthroat competition, certain businesses had to cut down the incentives given to the drivers.
Today, governments around the world are in the process of sanitizing the commercials and the timings of cab driving services. Today, people might not be very comfortable with the idea of being in a cab that someone else has been in.
This should be treated as a double-edged sword. On the one hand, you can expect people to not board or transport used by others. Conversely, there are also people who might prefer not to use public transport which is bound to be crowded. Therefore, most experts agree that the market for a ride-hailing post-COVID-19 will only grow in numbers.
In the meanwhile, certain measures like ensuring masks for both drivers and passengers, installing a plexiglass separator between the driver and the passenger, and provision of sanitizers have been introduced to make the ride safe for both the parties involved.
The cab companies have mandated that the passenger can only be seated in the rear seat and not in the front seat. These rules can be expected to relax in the distant future, but not anytime soon.
Rentals from one of the most utilitarian segments of ride-hailing. It gives you the flexibility of having your own car but at the same time does not present with the balance of ownership like services, insurance, and maintenance.
Rentals can be expected to go in the near future. The economic conditions mean that people might not afford a new car. At the same time, they would also be careful to avoid being in places that have been used by other people, in the case of cabs and ridesharing services.
Therefore, it is quite natural that they will opt for rental cars. Businesses like Hertz and ZoomCar have been doing good business in this segment.
The entire planet is contemplating saving the planet, and fossil fuels are surely not the way forward. Electric vehicles present a greener alternative to fossil fuels. The COVID-19 pandemic is expected to give the much-needed break to facilitate the transition.
These electric vehicles lack the infrastructure it requires to keep them running. A lot of companies that are bent on going electric have been installing charging stations across cities, and it is just a matter of time before the entire transportation landscape-shift towards electric vehicles.
E Scooters are about to get more famous after the COVID-19 pandemic due to its ease of usage.
If one person has to travel a few kilometers, it does not make an economic or environmental sense to hire a car or a bike. It is to address this market segment that micro-mobility solutions have been introduced.
Micro mobility solutions essentially bring down the cost and size of the means of transport. Micro mobility solutions, in most cases, include electric scooters which can be privately used by a user for a short commute.
They can be activated through an app by scanning the QR code, and based on the distance covered, the cost of using the vehicle can be charged digitally through the payment Instruments of the user connected to the app.
Public transport will never be the same again. Come to think of it, it was already transforming even before the pandemic had made its entry. Public transport vehicles run by the governments have slowly started to lose their place to private players.
Technology will be introduced into the process of ticketing. It will be contactless, and in most cases, be enabled through the mobile application. This reduces the possibility of human contact, and it essentially makes the system more autonomous and reliable.
They have been dedicated shuttle services that counter specifically to office goals and some of them even address the transportation needs specific to women.
There might be a few hiccups that might deter people from using public transport irrespective of it being provided by the government or from a private body.
However, when precautions like social distancing, wearing masks, sanitization of hands and the rest of them are followed, they present an economic option for people to commute.
The Business Opportunity
The COVID-19 crisis has produced mixed perceptions about transportation. On one side, it does prove to people that they do not have to essentially venture out of their homes if they need something to be done. Conversely, at the polar opposite end, it has also made people feel the pinch because transportation isn’t allowed.
People might be talking about a new normal, but even the new normal will not have an attenuated emphasis on the need for transportation. This is the best time for a ride-hailing business to make an entrance and capture the market.
If you are already contemplating launching your ride-hailing app, you have taken the right decision. However, building a nap from scratch might be a bit of a hassle. Alternatively, you can consider using a white label clone of Uber.