How Ride-Sharing evolved in Ride-hailing Business?

All around the world, people want to get any services or product at the lowest possible cost. As they always try to spend the money in the most optimized way when it comes to daily basis. Ride-Sharing has made this thing possible on daily travelling.

Ride-Sharing is the method of sharing-based payment ride service, where the person can travel with another person by sharing their ride costs. Like, if A wants to travel to place N and B wants to travel to place M which is nearer to the place N, then these two individuals can take a Ride-Sharing.

This mode of payment for this transportation made people spend less than they spend without using the service in an optimised way. It is a method of getting the same service at less cost than the actual ride cost. This ride-sharing concept has been pioneered by Sidecar, which is a US-based start-up company founded by Sunil Paul in 2011 followed by start-ups like Lyft and big names like Uber has come into existence by providing the same kind of services “Ride-Sharing”. Lyft is having a lot more similarities with the Sidecar but the Uber is a completely different platform which enters this platform as a part of business expansion.

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In 2015, Sidecar has shut-down its business and sold its assets to General Motors.

There was an allegation that uber has made the sidecar to end its business.

There was a lawsuit which has been filed by Sunil paul in 2011, stating that “Uber became hell-bent on stifling competition from competing ride-hailing apps”. Lyft and Uber have been gaining huge profit from this Ride-sharing Service.

Gains from the point of Customers:

  • Cost-effective: Whenever a person using this ride-sharing option for transportation spending cost will be lesser compared to the normal cost.
  • Social-friendly: When it comes to ride-sharing method, the individual can be using it to build his acquaintance and getting to know people around.
  • Easy tracking: Tracking can be done with ease without any problems. This makes the person calculate the arrival time of transport and proceed accordingly.
  • No Changes in service pleasure: The service given will be the same as actual cost service without any compromise in the pleasure gained through that service.

Gains from the point of the service provider:

  • Effective Pricing: The profit of a company will be increased through effective pricing. For example, if the actual service for a particular ride cost $10 for a cab capacity of 4 members, through Ride-sharing the company can gain profit by setting the price like $4 or $5 each.
  • Increase in the Customer base: The company can increase its customer base through Ride-Sharing like if one ride-share consists of four new customers then it automatically increases its customers without spending much on the customer acquisition process.
  • Less or zero cost of promotion: The cost of promotion will be considered to be zero or less for an accomplished brand where they can gain new customers and make the existing customer use this service without much of promotional activities has the people will always come to know when it comes to reduction in price and enjoying the same service.
  • Introduction of new service related to ride-sharing New service can be introduced like ride passes which are based on the number of rides and kilometres done within a certain period along with some discounts which promote the service and also gain some profit to the company.

Travelling has been done daily by every individual all around the world. Getting the same service at the lesser cost has been made possible through RIDE-SHARING”.

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