Business and Revenue Model of Long Distance Ride Sharing and How SpotnRides Can Help for This Startup Idea

Ride sharing also known as carpooling is an interesting and popular concept in the on-demand taxi hailing market. Entry level taxi startups can try this concept and be a part of the change in the shared mobility market. The carpooling works by sharing a taxi ride by multiple persons between two points of travel. The cost is split between the riders at the end and most carpooling rides are offered within the city limits by the taxi firms.

What is Long Distance Ride-Sharing App?

Long distance ride sharing

Carpooling can also be extended to long distances mostly between cities called as long distance ride sharing. Here individual car owners share extra space in their car to others for a cost. People can travel long distances at low cost with utmost comfort and in a short time. For car owners, this can be an additional source of income. 

Entrepreneurs trying to enter the shared mobility market can launch a long distance ride sharing platform. In the online ride sharing platform, car owners can list details about their travel and extra space available. This is a peer to peer model without any business interface.


The obvious benefit of ride sharing over long distances is the reduction in greenhouse gas and the cost of owning a car comes down drastically. The total no. of cars that ply on road comes down which improves traffic condition.

Many taxi companies and entrepreneurs have started to explore the ride sharing market. BlaBla car is the market leader in long distance car sharing.

Let us now see the business and revenue model of shared mobility get a good understanding before you step into it.

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Business model

  • The long distance shared mobility platform has a mobile and web app for customers and an admin dashboard. The drivers/car owners register their details in the customer app and create a profile. The driver now lists any future travel and seats available with cost, date, destination, and location of departure.
  • Riders who want to get to a particular destination registers in the customer app with all the details. Next, he gets the list of car rides available for that particular place. The rider places the request if the price and conditions are agreed.
  • For every space booked in the car, the operator of the online platform gets some commission.
    Riders can have in-app chat with the driver to get any additional details. All the transactions are monitored by the admin from the dashboard. Drivers/car owners need to fulfill some conditions laid down by the company before creating a profile. The admin has the sole right to accept or reject a profile.
  • This startup is based on no ownership model which means there is no inventory or infrastructure is required. 

Revenue model

There is not one but many revenue generating models in the long distance ride sharing business.

Paid connections

Getting connections to the drivers can be made free or charged as a subscription. You can first allow free connection to the drivers and then charge them for getting connections.

Commission per booking

A commission of 10-15% needs to be charged for every space that is booked. The commission is charged on the cost per seat specified by the driver. The commission is the main revenue generating source.

Open advertisements

The space available on the owner’s vehicle can be used to show advertisements with assistance from the ride sharing company. Money from the advertiser is split between the car owner and the company. The ride sharing company can also show their ads and provide a discount on the commission charged.

PartnershipsYou need permission

Car drivers can be made to join with corporates and MNCs for a long time commitment. This gives a fixed income to the driver and the startup. For example, BlaBla car has partnerships with IKEA and Carrefour.

There can be many other revenue models which you can apply based on the region of operation.

App development for ride sharing by SpotnRides

We at SpotnRides, we already have a basic app solution for new startups using the long distance ride share model. The app can be tweaked to any shape as per your expectations and any kind of addon features can be integrated.

What you need to do is to bring the complete business and revenue model to us and our team will analyze it and suggest the type of app it needs. Then we will undertake the necessary modifications to the existing solution and present it to you. Our developers and designing team can also deliver an app that is very much similar to BlaBla car in every aspect.

I can assure that you will get the app for your startup that gives an international feel with features on par with top apps. With this solution, expanding to new markets will not be difficult for you.

For more details, drop a message to [email protected]. We are looking forward to joining with you.

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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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