Why Ride Sharing Is Better than Taxi Hailing and How SpotnRides Can Help for It?

What do you think will be the next revolution in the transportation sector? It is none other than ridesharing concept. Already taxi hailing companies like Uber and Lyft introduced this as a part of their operation, but now the demand for dedicated ridesharing/ shared mobility is rising globally. Ridesharing platform is much less capital intensive than the on-demand taxi hailing.

Ridesharing concept operates on zero inventory model similar to taxi hailing. Uber, Lyft, Bla Bla Car, etc are some popular players in the ridesharing platform.

It is estimated that global vehicle ownership will reduce and shared mobility will take the dominant form of transportation in five years. Between 2019-2025, the ridesharing market is expected to increase by 20% CAGR. By 2025, this market will reach a total value of $220 billion. These stats tell us the potential of ridesharing and the scope for ridesharing startups.

Two types of platform based ridesharing models

The platform based ridesharing has two business models. One is the carpooling concept offered by Uber and Ola. Here, ridesharing is done in the taxis attached to the startup. After the ride, the fare is split between the riders.

The second model is like a marketplace for carpooling. Here the ridesharing platform connects car drivers and passengers willing to travel together between cities and share the cost of the journey.

The carpooling marketplace model is exciting because it is said that 95% of the cars are either sitting idle or moving empty and this model makes the car more productive.

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Why ridesharing?

Trust and safety issues

We can see numerous reports of harassment and abuse in ride hailing taxis like Uber and Lyft. Even female drivers are at the receiving end of abuse. All these continue to happen even if strict measures like two way rating system, panic button are taken. 

Frequent riders too are skeptical about ride hailing because of trust issues. Female drivers who constituted a small share in ride handling market are leaving the firms because of poor safety.

In ridesharing/carpooling, the issue of safety and trust is not completely regained but it is there at a comfortable level. Even in carpooling marketplace also, the drivers are admitted based on thorough background checks. These drivers should maintain a rating threshold and will be terminated incase of breaching the threshold. 

Sharing inventory improves overall operating efficiency

This is another reason to choose ridesharing. Even though ride hailing taxis boasts of zero inventory, all their drivers should have own cars. But here in carpooling marketplace you can borrow a car from someone else and use it for ridesharing. 

Also, shared mobility has come as a boon to riders who want to travel comfortably at very low cost. What riders want to do is to simply search for available drivers nearby and book a seat in the car after entering the destination, pick up location, and other details.

It aids in improving the environment     

Ridesharing means fewer cars on the roads. This drastically reduces greenhouse gas emissions.  

So, in all ways, ridesharing comfortably surpasses taxi hailing. Be it in trust or safety issues or environmental improvement, carpooling is a notch higher than other transport types.

As an entrepreneur, if you are keen to enter the on-demand taxi market, then app based ride sharing startup is the best for you. The working of the app is more or less similar to that of a typical taxi booking.

The type of ridesharing whether it is carpooling marketplace or taxi sharing should be decided by you and both of these models are getting a great reception from the market. 

You can also start a taxi hailing startup and steadily add carpooling feature with it because the customer behavior has to change to accept the new concept and that transition will not take place immediately.  

How SpotnRides can help you?

Like any app based taxi booking startups, you need an app solution which should be promising since it makes the vital connection between you and the users. The solution must be devoid of flaws, issues, and have a brilliant design.

I hope our SpotnRides taxi solution can do it. SpotnRides is an on-demand taxi booking solution specially developed for entrepreneurs who want to venture into the taxi market.  

We are always ahead of time and sensing the demand for carpooling/shared mobility, we added this feature to our solution to cater new startups in this domain. Not satisfied with our ready-made solution? You can get a custom-made app solution by adding extra features, designs, etc from us. 

We do the development, testing, revision, deployment, and post sale assistance for the app diligently so that it is always a notch higher than what it has to be.

Like you, we are also keen to be a part of the ride-sharing market and partner with us to launch your startup with our app. Connect with us through [email protected]. Feel free to ask any doubts regarding the features and development of the app. 

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About the author


I am working as a Senior product developer and have developed and delivered Web and Mobile products for numerous clients.

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