The rideshare industry began initially operating in Canada at a slow pace, mainly dominated by one large company that originated in France. Since that fateful time, ride-sharing has overtaken the use of personal vehicles for daily commutes. It has become a trend that shows no signs of stopping.On average, the global ride-sharing industry generates a revenue of up to $73.5 Billion. Of all the companies we will be talking about today, Uber currently holds the largest share at 11.3 Billion in Canada. In short, ridesharing is very likely here to stay, and many concerned parties believe it is useful.
This is because ride-sharing brings several key advantages to the world, making it a better place filled with more collaboration. Aside from being beneficial in terms of reducing traffic on roads, ride-sharing allows people to make valuable connections. These connections can be made between passengers and interesting characters that can drive them around.
This presents the opportunity for your ride-sharing experience to be positive because of the interesting conversations you can have with different people. Though perhaps one of the biggest advantages is that ride-sharing allows people to commute at far more competitive prices than normal public transport.
Price Competition, A Double-Edged Sword?
Thanks to a minor thing called free-market economics, prices can fluctuate depending on demand and supply. And this principle has been very aggressively applied in the business model of a Canadian Ride sharing Company known as Bide.
This company allows you to search for a ride by letting nearby drivers check your ride details and place a bid of their choice to give you the lowest price. This is one way that price competition has helped make ride-sharing cheaper in Canada and across the world with the help of other apps.
On the other hand, there are also a few detriments that can be seen with price competition. Take Uber, for example, known around the world as the Ride-Sharing Giant. Uber allows people to commute reliably with high-quality customer services. But here is the part where this price model becomes a disadvantage.
During rush hours or peak traffic times, this particular company places a surge price on your commute, essentially because of a lack of drivers around you. This means that if there is only one driver within a 5-mile radius, they will be charging extra to come to you. Of course, there are more factors involved in the unfairness of surge pricing.
But there is one final way that ride-sharing affects the price and makes it cheaper than other options. This can be better explained and defined with the example of Carpool Canada. As the name implies, this Canadian Ride sharing Company takes the words “ride-sharing” very seriously. Instead of assigning dedicated drivers, users get matched with drivers who are already on a commute for their reasons and have the facility of bearing half of their expenses for the ride.
Despite all these benefits, the amount of impact that a particular ride-sharing company has on the world depends on many factors such as their price, customer service, social responsibility, and ease of access. It would be up to every user to choose the ride-sharing company of their choice.
