The emergence of ride-sharing apps led by Uber, Lyft, and Didi has changed the form of personal mobility. It is estimated that by 2025, the global rideshare industry will have a market value of $218 billion.
The Architecture of Ride Sharing App
When a passenger sends a trip request, the “pricing module” offers a quote that passengers can accept or reject. After the acceptance, the “matching module” assigns the request to available drivers. Depending upon the availability of the driver pool, the request may have to wait in the system until he gets a successful match; pre-cancellations may occur during this time. The assigned driver then picks up the passenger, during this time post cancellations may occur. After the driver drops the passenger at the drop location, he receives the fare and becomes available again. The “repositioning module” comes into play here; it guides idle vehicles to specific locations, where there are chances of fulfilling more requests.
Top Ride Sharing Apps
Well-known names comprise the list of top ride sharing apps. Uber, Lyft, DiDi, Ola, Grab, Bolt are the top taxi booking apps. The success of Uber was a motivation for one and all, and it gave rise to the development of app like Uber.
US Taxi App Market
Uber is a pioneer in the ride-sharing model. Lyft stands on the second spot after Uber in the US. The aim of both of these apps is to introduce self-driving vehicles in the future.
Uber was launched in March 2009 and has headquarters in San Francisco. The revenue of Uber has been rising; in 2015, the revenue generated was $3.7 billion, in 2020, it was $5.5 billion and in 2021, it was $4.4 billion. In 2020, there were 100 million taxi app users in the US.
Uber and Lyft have been rivals from the very beginning and Uber always had a convincing lead.
In 2021, Uber had more than five million drivers globally, and last year Uber completed around 17.4 million trips per day. The taxi giant is available in over 900 cities around the world.
Normally, when Uber leaves a region, where the market is highly competitive and existing ride-hailing services leave it behind, Uber sells its services to the largest competitor in the country and asks for a stake in the company in return. For instance, in China, it owns a 15 percent stake in DiDi, and in Russia, Uber owns a 37 percent stake in Yandex Taxi.
Lyft was launched on 9 June 2012 and is headquartered in San Francisco. In 2017, Lyft generated $1 billion in revenue, and in 2020, it was $2.3 billion, in 2021, the total revenue generated by Lyft in 2021 was $3.2 billion. There are more than 12.5 million Lyft users worldwide and it operates in 644 US and 12 Canadian cities and towns.
In the US, the market share of Lyft is 29 percent and over two million drivers work for Lyft. As per Indeed, the average salary of $29,627.
Average Transaction Value of Uber and Lyft
In January 2022, the average transaction value of Uber increased by 11 percent while Lyft’s average transaction value increased by 31 percent compared to one year ago.
Few Customers Use Both- Uber and Lyft
The majority of customers are loyal to one ride booking app, only 10 percent of US customers used both Uber and Lyft as of January 2022. A whopping 66 percent of customers use only Uber and only 24 percent use Lyft. Out of people that use both Uber and Lyft, spend more with Uber.
Uber and Lyft Vying for Scooter and Bike Sales
Uber and Lyft both are vying for scooter and bike sales. In September 2018, Lyft launched a scooter fleet. However, it had to pull scooters out of six US cities because of a lack of riders. Lime received funding from Uber in 2020 and acquired Jump Bikes, which was bought by Uber in 2018. Scooter and bike sales witnessed a jump in 2021.
Deciding factors that Trigger the Growth of Ride-Sharing:
The ride-sharing adoption in the US in 2016 was 38%, which increased to 53% in mere two years in 2017 as per a survey conducted by Shares Post. The main reason for this increase is city dwellers, millennials, people who don’t own a car, and individuals who don’t know how to drive a car.
Ridesharing highly depends upon technology. It’s with smartphones that individuals can download ride-sharing apps and connect with drivers. Thanks to technology, network connectivity, e-transactions, GPS navigation devices are available. New-age features of taxi booking apps provide convenience to both customers and drivers.
The biggest challenge of app like Uber is traveling with strangers. Thanks to regulating the whole journey by tracking the driver, vehicle details, and GPS devices, it’s safe to share rides with others.
Flying Taxi in Next Three Years
Uber and Boeing are in the process of developing eVTOL (electric vehicle take-off and landing). As per a report, by the year 2040, there would be 430,000 such vehicles operational worldwide. This brings us to delivery drones- they have been increasingly tested and the global market for the same is expected to be $5.6 bn by 2028.
To handle future demands, where flying taxis and drones would be common, and they have to share airspace, cities will need to build many “skyports”, also called mini airports.
Ride-sharing apps are rising in popularity, city-dwellers need them for their daily commutes. Popular apps like Uber and Lyft are doing great and their revenue depicts the same. These giants have truly changed the way people go from one place to another. Thanks to their success, many entrepreneurs dive into the ride and rental car business. If you wish to create an app like Uber or Lyft, share your requirements and get ready-to-use, fully customizable solutions.