Without cars, there will be no ride sharing. However, the goal of rideshare services and ridesharing apps is to reduce the number of vehicles on the road and gradually ease out traffic in cities. This will definitely have an adverse effect on car companies.
Automobile manufactures have experienced a drop in sales as an increasing number of people have chosen to adopt rideshare as an alternative to owning their own vehicles or even driving. There are very many merits associated with using ridesharing apps. They include:
- Convenience : The entire process of taxi hailing is handled via the app.
- Options: Get to choose if to request a ride for now or later. With Uber, You can schedule a ride for later by using Kommen app that allows riders schedule Uber taxi rides from now till 30 days away. This app works hand in hand with Uber to give passengers a range of ride options. Visit www.trykommen.com to learn more.
- Different services: The rideshare giant- Uber taxi offers a number of services designed to cater to different customer needs. These services include UberX, UberBLACK and UberPOOl to name a few.
- Cheap: Rideshare services are known to be cheaper than traditional taxi services
To catch up to the fast paced trend of ridesharing, different vehicle manufacturers are changing their mission to include adapting to the future of mobility.
- In early 2016, General Motors injected half a billion dollars into the ridesharing company called Lyft;
- The cab hailing startup Gett received $300 million investment from the auto giant – Volkswagen. Auto giant – BMW first took a stab at ridesharing by working with DriveNow and is now throwing its weight behind California’s carpooling startup, Scoop.
- Automaker Toyota also entered into a partnership with Uber.
With these investments, partnerships and acquisitions, automakers can make more car sales and not lose out entirely. They also have a stake in the future of transportation rather than being left to the mercies of rideshare companies like Uber.
Ford Motor Company is the latest automaker to throw its hat into the ring of ridesharing. The auto giant acquired San Francisco-based public transit alternative Chariot in late 2016. Chariot ran 100 Ford Transit minibuses in the US city of San Francisco which allows users to get into the vans with strangers and be taken to specific drop-off points around a city.
Commuters book a seat in one of the vans, track the journey, and board the van when it arrives. In San Francisco, Chariot offers rides starting at $3 (£2.26) and runs throughout 28 routes in the city. In 2017, Ford rolled out the service to 8 more cities in the U.S but is yet to specify what cities. The service lies between ridesharing and public transportation. Riders secure seats via the Chariot app, but they still have to catch the bus at a designated time along specified routes.
In the long run, car makers and rideshare companies will have to work together to achieve shared goals. While ridesharing apps focus on developing more cost effective ways to commute and reduce the hazards of traffic congestion, automakers can ensure that there are vehicles to help reach these goals and also invest in rideshare companies.