The emerging “sharing” economy where people rent cars, hotels and other assets over the internet directly from each other has received criticism and praise in almost equal measure. In the transport industry, the rideshare services have a very big impact on the economy. The major players in the rideshare business include Uber, Lyft, and Taxify.
There are many other rideshare services emerging as well. You can find additional information on RideshareApps through online research. Rideshare platforms are a good way to easily connect drivers and riders. In fact, it is an important aspect of the growing economy.
Here are 4 reasons that rideshare services are important to the economy
- Creation of new services
Traditional means do not meet the demands for growing services in the transport industry. This is mainly due to the massive capital investment required to meet the demands. The fleet of taxi services in all major rideshare companies are massive. But due to the platform provided by rideshare service providers, the service delivery has been achieved so easily with a minimal single capital requirement.
- Workplace flexibility
Flexibility in the workplace is becoming a feature in the wider workforce and this also positively impacts on the economy. Some of the many advantages of Rideshare services are that offering such services does not require too much-skilled labor. It is, therefore, a lifeline for people who do not have credentials for other skilled jobs. In addition, people working in the transport industry also get time to pursue other passions and this leads to economic growth.
- Lucrative business opportunity
Most rideshare service providers such as Lyft, and Uber aim to make sure that their drivers earn at least nineteen dollars per hour. This is much more than what the minimum wages set in various countries are. It is, therefore, one way through which livelihoods are enhanced and this leads to higher standards of living, which is a major boost to economic growth.
Through ridesharing platforms, customers have access to transportation options such as carpooling for cheaper rides, or luxury cars. This encourages the use of available car resources and has an effect on economic growth. Ridesharing also has an effect on congestion and reduction of emissions which have a big impact on the economy as well.
Ride sharing is a trend that is likely to last for a long period of time. There are many critics of this, especially on the surge pricing aspect and remuneration of drivers. These are some of the research topics and how the two aspects can affect the economy. But clearly, when evaluated, there is more consumer surplus when ride-sharing option is chosen for transport needs. This means that customers’ standards of living can be enhanced due to the savings they get from opting for ridesharing services. There is likely to be a big impact on the economy due to ridesharing especially if target consumers know more about the benefits of such platforms and how to take advantage of them.