By: Daniela Navas
In many countries, the taxi industry has been experiencing its biggest shake up in decades. Data and technology are completely changing the game.
Ever since ridesharing services arrived a couple of years ago, traditional taxi companies have stated their concerns because such services are significantly, more lightly regulated. Indeed, the use of contemporary internet-based mobile technology to connect customers and drivers has resulted in increasing competition for traditional taxis. Nevertheless, some studies have found that the new taxi industry has created more jobs than it has destroyed, rooted in the overwhelming growth of self-employment.
Nowadays, all services are competing against each other, and although it has brought difficulties for drivers and taxi companies, it has resulted in great benefits for both consumers and drivers. Passengers can benefit from a competitive market that allows them to find the option that better fulfills their needs, and taxi companies have room for generating and developing innovative services and business models to better serve their customers.
On the other hand, some drivers seem to be enjoying better conditions than others. According to the study ‘Disruptive Change in the Taxi Business’ by the American National Bureau of Economic Research, on average, private drivers have a passenger in the car about half the time that they have their app turned on. In contrast, traditional taxi drivers have a passenger in the car 30 to 50 percent of the time they are working, depending on the city.
When it comes to miles, numbers seem to benefit private drivers, too. As stated by the same study, in Los Angeles, taxi drivers have a passenger in the car for 40.7 percent of the miles they drive, while private drivers have a passenger in the car for 64.2 percent of their miles, which means a 58 percent higher capacity utilization rate for private drivers.
As you already know, at EYESAFE, we constantly develop tools that have people’s needs at their core, always aiming to deliver a seamless and holistic experience. We are aware of the changes that are shaping the mobility landscape and taxi industry. Therefore, we are building an ecosystem where
Why is the industry changing?
- The new taxi industry uses technology in order to match drivers and passengers, making it possible for both to fulfill their particular needs.
- Technology allows safer rides for customers, and at the end of the day, safety should always come first.
- Car-pooling services that allow customers to be able to share a ride and split the cost of their trips.
- Customers now have access a variety of services such as EYESAFE’s where they can Book Taxis, Mini Cab, MEyeShare, Eco, XL and Executive services that allow them to choose what they really want.
- A higher number of drivers are available as a result of the growth of self-employment.
- Available data allows flexible rates due to the analysis of supply and demand.
In conclusion, the taxi business is not going to escape the technological revolution. Actually, it is one of the industries that can benefit the most from it. Not just because of the customer’s rewards, but also because of the driver’s incentives. Technology has definitely increased the size of the mobility market. It has created more jobs than expected and it is definitely changing the game.
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