The deal about ride sharing
Taxi rides at a fraction of the usual costs
This week we break the NUMBER 1 RULE in commuting:
“sharing is not caring-keep it to yourself!.” Remember the last time you had to share a carriage with a bunch of fellow commuters ? Everything was going smooth and silent until the passenger in front of you starts arguing loudly on the phone with what is presumably their spouse on the other side of the line. All the veteran commuters will roll their eyes in agreement that this type of situation is best avoided. This is a clear example of sharing is not caring.
But what is the exception?
In our previous blogs posts we pondered the viability of rides sharing as a solution to the inevitable delays that commutes deal with regularly. In this article we will go into more details on the subject by looking at a specific company operating on the market -and how they plan to lure us on board their rides.
The economics of rides - what’s the big deal?
One of the best ways to predict the future of any market is to start by painting a picture of the main factors influencing it. This is a broad statement but it encapsulates the essence of what economists actually do in order to make predictions.
Since we aim to deliver useful information to you, in digestible doses, we will skip for now the whole “supply and demand” theories that you are by now overly accustomed to and jump to the point (bullet points that is):
Prices go up because
- Rides haring is a growing market (especially in the US and UK)
- Increasingly more customers demand rides and few companies supply them thus the price of rides goes up.
- Gas prices go up and so do ride prices eventually (granted this is a slow increase in price over time)
Prices go down because
- New companies enter the ride sharing market and force old competitors to remain appealing by reducing their high rates.
- Specialized companies also offer tailored services targeted to specific public needs. Ex: cheaper rides for people who don’t mind sharing their car with other passengers.
Introducing better options for commuters
Let’s face it, we make hard choices regarding our time and money on a daily basis. It’s the choice between going to work on your bike or taking a cab-because it’s raining outside. Or the choice between cooking at home vs a convenient food delivery -because it Saturday and you can’t be bothered.
The point is that by understanding the decisions we make daily and the reasoning behind them, companies can create better services that cater to our needs.
One such company is Commuterhive who, in their words
'offer Taxi rides at a fraction of the usual costs by connecting groups of passengers who are traveling to the same destination.'
By using complex machine learning and ride sharing algorithms, Commuterhive is able to anticipate surges in demands for public transport services by monitoring interactions between mobile devices and various sensors on train platforms. They then deliver the most cost effective ride for the commuters by splitting the fare price between the total number of passengers.
We hope that this information will help you see the potential value of the people surrounding you, on your commute home, even if they are at times a bit rude and loud on the phone with what we can only assume is their spouse. And the money you’ll save from ride sharing you can now enjoy buying that fancy new chocolate you’ve always wanted to try.