Problem
Ride-sharing, a concept that has been with us for just over 14 years, has seen major companies leading the market but failed renewing their model.
In the evolving landscape of ride-sharing, there are prominent challenges faced by both drivers and riders, primarily rooted in the operational models of major companies in the industry:
1.High Fees : Leading ride-hailing companies charge substantial commissions from their drivers. In Europe, major players such as Uber or Bolt charge 25-30%. Over time, these commissions have only seen an upward trend.
2.Lack of loyalty: because of high fees and rising expenses drivers are switching from one app to another, looking for the most profitable rides. Therefore, cancellations increases, making it tougher for riders to find drivers.
3.Centralized Power: The decision-making process and control lie primarily with the ride-sharing platforms themselves. This concentration of power prevents drivers and riders from having a meaningful say in the system’s operation and to feel in communion with their values
4.Lack of Transparency: Riders and drivers often operate with limited information. Pricing mechanisms, fare changes, operational policies, governance are often not fully transparent, which can lead to mistrust and confusion.
5.Security and Confidentiality: With the centralization of data, there’s an inherent risk involved. Central databases can become prime targets for hacking, leading to potential breaches of personal information and financial details.
Those issues in the current ride-sharing model, result in prolonged hours for drivers, leading to fatigue and job dissatisfaction.
Consequently, there’s a decline in service quality, with drivers cherry-picking lucrative rides and increased ride cancellations, frustrating riders who seek a seamless experience.
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