Ridesharing, also known as carpooling or shared taxis, connotes a means of transportation which allows a number of persons to make use of the same car, truck, van or vehicle to get to the same or nearby destination.
People have been doing this for centuries, actually since 1605 when horses and carriages were booked to be shared by rich individuals.
What is new is the rise of transport network companies (TNC) which are introducing new digital technologies; ride sharing apps. Ride Sharing App services help riders arrange one-time shared rides on demand usually through mobile apps.
At the heart of ridesharing services are three key technologies; Global Positioning System (GPS) navigation, which enables drivers to connect to prospective passengers, devices such as smart phones or tablets, and mobile application software which ensure the system works flawlessly.
There is no doubt that the ridesharing app industry has destroyed the taxi business as we know it. Globally, the market is dominated by Uber and Lyft, with others such as Juno and Via ascending.
Not to be overpowered, local taxi companies are creating ride sharing apps for localised services to compete with these global giants and are using legal and regulatory mechanisms to protect their market share.
How does ride sharing work ?
Ridesharing Apps are premised on real time, on-demand requests for transportation using mobile apps. This request containing the riders name, current location and destination is then transmitted to registered drivers on the system.
Ridesharing Apps are premised on real time, on-demand requests for transportation using mobile apps. This request containing the riders name, current location and destination is then transmitted to registered drivers on the system.
Once a driver accepts the request, they are connected to the passenger and upon picking up the passenger, the online billing system kicks in, providing the exact fare to be paid upon completion of the trip. Most ridesharing company’s fares are hugely discounted in comparison to traditional taxi services. Some companies even offer a flat rate for rides within a particular geographical area.
Also one can connect the ridesharing app to their mobile wallet, credit card or other forms of electronic payments meaning they do not need to carry cash on them making it safer for both passengers and drivers. More importantly, this is a peer-to-peer transport service where a driver is connected to a passenger without any special commercial license in place.
Legal And Other Challenges
The ridesharing industry has challenges and has been engulfed in controversy across the world. Lack of effective regulation, labour issues, insurance and pricing are all examples of the controversy. Businesses offering ride sharing have been accused of worsening the plight of low level workers such as drivers who they deny employment benefits, because they are treated as contract workers.
The ridesharing industry has challenges and has been engulfed in controversy across the world. Lack of effective regulation, labour issues, insurance and pricing are all examples of the controversy. Businesses offering ride sharing have been accused of worsening the plight of low level workers such as drivers who they deny employment benefits, because they are treated as contract workers.
Furthermore, there are reported cases of serious security breaches in which passengers have suffered crimes such as rape, harassment and theft, due in part to poor licensing and screening procedures for drivers registered on the app.
Ridesharing Apps in Ghana
Easytaxi was one of the first ridesharing companies to set up shop in Ghana in 2014, although the company had to exit Ghana due to lack of traction on its services. Uber’s successful entry into the Ghana market in 2016, paved the way for other ridesharing apps including Taxify, Uru, Hellorides and Ghanaian companies such as Yenko, Enshika, Dropping among others.
The ridesharing industry, albeit well-established is an urban-based phenomenon with only major cities covered. It is yet to reach rural areas nor are there options of having rideshare for water transport, especially along the expansive Volta River. However, there is an evolution in the industry with delivery becoming one of the areas the ridesharing concept is being utilised.
Companies such as Okadagh, Hellodelivery, My Parcel Services and others are using it to deliver services rather than transport people.
In Ghana, rideshare passengers complain that the vehicles used by ridesharing companies are old, sometimes unkempt and have no air conditioning in a country where outside temperatures are very high.
In Ghana, rideshare passengers complain that the vehicles used by ridesharing companies are old, sometimes unkempt and have no air conditioning in a country where outside temperatures are very high.
Also, there are reported cases of some drivers refusing to or not knowing how to use the inbuilt map application and so having to call passengers for directions which defeats the whole concept of convenience. Occasional cases of drivers trying to game or cheat the system, resistance to the use of card payments since most drivers prefer cash. The Ghana Private Road Transport Union (GPRTU) the mother union of traditional taxi companies in Ghana, in fighting back, raised concerns about ridesharing companies flouting Ghanaian road laws which instruct that commercial vehicles must be branded in special colours.
In conclusion, ridesharing is a good example of how technology is disrupting traditional ways of doing things, reflected in growing new economy. With incoming innovations, including driverless cars which will take the driver out of the ridesharing equation, individuals and authorities in the transport industry have to start thinking of new strategies to stem unemployment and ensure sustainable equitable growth.
The writer is the Director of Innovations at Penplusbytes.org e-mail: kwami@penplusbytes.org
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WhatsApp : 0241995737
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