A new business structure enhances the ability of ride-hailing drivers to offer lower prices, attract more riders, reduce empty-vehicle driving time, and enhance utilization.
Smartphones interact with the other pillars of the sharing economy—excess capacity and urbanism—to facilitate the use of ride-sharing and other services in cities.
Proximity and density are the key variables for the sharing economy, by lowering costs and raising volumes enough to make services both affordable (for riders) and profitable (for drivers).
The sharing economy is built on three pillars: Excess resource capacity; mobile internet; and urbanism.
At an event this week in Washington, DC, Uber’s CEO announced a number of new initiatives and partnerships, reinforcing the company’s strategy of expanding beyond its core business as a ride-hailing service.
Transportation revolutions occur every 50 years. Could the world now be experiencing the beginning of a new paradigm with ride-sharing, autonomous vehicles, electric vehicles, and similar emerging technologies?
Ride-hailing’s popularity has prompted some consumers to delay or avoid buying their own personal vehicle. The rapid growth in ride-sharing, along with the potential of AVs, may have a profound effect on fuel consumption.
Factors other than ridesharing carry more weight behind the surge in VMT. Lower pump prices, economic growth, and rising household income are underpinning increased travel.
The suggested dramatic reduction in urban vehicle purchases is not corroborated by U.S. Census data on household vehicle ownership.
Critics may argue that the self-driving car phenomenon is premature, but as choices for drivers and commuters grow, attitudes will eventually shift, particularly with new technology expected to ease congestion, boost efficiency, and reduce traffic accidents.