Uber phenomenon and what makes the transportation industry to change its face?

17/08/15
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San Francisco - based ride-sharing app Uber is rapidly growing and changing the surface of the industry. The app that "connects dots" creates lots of opportunities: on the one hand it gives people one more transportation option, and on the other hand it makes possible for occasional drivers to boost their income.

However, Uber has been facing legal issues in several countries where the main problem is a growing grudge of taxi drivers and authorities. Unprecedented power Uber has demonstrated in the battle with New York Major, Bill de Blasio, where the sides agreed not to cap for-hire vehicle company growth in New York. But in Germany Uber services have been outlawed as there are rules such as a ban on car-hire services accepting a new order while a passenger is in the vehicle, severely hamper Uber’s ability to match drivers with customers.

Despite Uber’s lion share of the market and growing impact on the on-demand transportation space, there are quite a number of companies that differentiate themselves from Uber. Lyft is one of the Uber alternatives and its main rival in the US market. These two services do not have a lot of differences between them, but they do use different approaches while hiring drivers and communicating with clients. Lyft prefers to focus on personal characteristics and makes the ride “fun” (the Cookie Lyft, the Karaoke Lyft, the Trivia Lyft and the Harry Potter Lyft). While Uber drivers dress well and more likely to open the door for you, Lyft drivers greet clients as friends with fist bumps.

When it comes to B2B relationships, taking into account companies specializing in a service that involves frequenting customers’ offices, it’s more convenient for businesses to have partnerships with several ground transportation companies. However, in these cases accounting issues can limit flexibility. For example, a business may require the car service provider to integrate with their proprietary accounting system – or at a minimum send aggregated billing in a special format. SummitQwest offers management consulting and customized business and information technology services that helps solve this issues for businesses. The company designed the SummitLink product, a real-time online reservation solution, that not only supports all online reservation channels including as a self-service tool (desktop, mobile apps), but also captures transaction details, automates critical business processes and reduces the need for paper and audits.

Services that involve pre-booking a taxi for a particular date and time are gaining popularity among travelers and business people alike. Companies like Mozio and Blacklane provide users with a feeling of comfort and safety among the huge selection of cars and company options now available on the market.

The competition between Uber and its rivals continues to accelerate facilitating the industry to be more open to innovation and to accept the new way of thinking.

If you’re interested in talking to us to see how we might help your company grow & succeed, email travelsales@dataart.com.

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