Ridesharing is another option for those who want another means of local transport. There have been lots of companies who are now into this kind of service and among those that are greatly known today are Uber and Lyft. These two companies dominate the ridesharing scene and there are many startup companies who are following their footsteps. If many other companies are also putting up their ridesharing business, then this just means that there is really money to be made in this industry. Let us discover how these ridesharing companies make their money.
A ridesharing company works by being the organizer or mediator between the drivers and passengers. They can either organize a specific route that occurs repeatedly or just in a one time basis. Most of them can be easily accessed through your smart phone by using an app. The app makes use of the GPS on your phone to pinpoint your current location. Drivers also have a similar navigational device so that they can locate their passengers and drive to where they are supposed to go. The passengers use the app to request their drop-off location.
The app doesn’t only locate the driver and the passenger but it also provides the drivers with information on how to go to their passenger’s destination. In this way, drivers wouldn’t get lost and the time as well as the fuel expenses will be optimally used. This all happens in real-time and is a very useful alternative for those who are in areas where there is limited public transportation. Ridesharing was made to help decrease the density of the vehicles in an area to avoid traffic or congestion.
When the ride is over, Uber, Lyft or any other ride sharing company will charge the passengers, just as taxi drivers would when you ride a cab. Rather than directly paying your driver, the ride-sharing company would be in charge of all these and the passenger would be able to pay the ride through the use of the app. There would be no need to bring cash because the payment would be charged in your credit card. The ridesharing company is in charge of paying the driver and they make money by getting a percentage of the total fee paid by the passengers.
The charge of the ride also varies and it could also increase during holidays or days that have severe weather conditions. There are also times when prices will increase when it is the busiest time of day. These increases would also mean that there would also be an increase in the amount that drivers will get. This attracts the drivers to go and apply for them. The more drivers there are, the shorter the wait period is for the passengers and this would in turn attract more passengers to use their services. With this, the company grows and is able to branch out to various areas not only within the United States but also all over the world just like what Uber does.