The Global Adoption of Ride-Hailing/Sharing Services

Once upon a time, hailing a taxi or cab meant standing on a street corner and hoping for the best, or calling a company/service as time went by to dispatch one to your location. However, all that has changed in more recent years because with only just a few taps on a smartphone – a car will arrive within minutes! And this new-ish dispensation is irrevocably here to stay as it’ll only alter slightly, the main idea will forever remain.

Welcome to an all-new world of Ride-Hailing/Sharing services, the unfathomable dark-horse of a revolution in urban transportation that has dramatically transformed how we move from point A to point B and according to this overview of the number$ from Statista, it sure is a money spinner! And the Nigerian market is anticipated to generate a revenue of $252.7m for 2024.

Now let us take a journey through the history, evolution, and future of this game-changing industry:

The Early Days: From Carpools to Technology-Driven Solutions

Pre-2000s: The Humble Beginnings

Just as with with the flight of birds giving inspiration to the invention of aeroplanes, before ride-sharing became synonymous with apps and smartphones, it had a much simpler form – carpooling.

The concept of sharing rides has been around for decades, particularly during times of economic hardship or energy crises. Take the 1970s for example – when carpooling surged in popularity globally in response to the oil embargo. Families and colleagues would share rides to save money and fuel.

2000-2009: The Seed of Innovation

The internet is the main pioneer, the main driver (pun intended), and was the very first domino to have fallen – leading to other discoveries and endless possibilities. To side-step a bit, AI could likely do the same – nature often repeats itself…

Now back to the thematic revelation at hand: The early noughties (2000s) saw websites like Craigslist starting to play a role in ride-sharing, they offered ride-matching services – where users could post and find rides. However, these solutions lacked the higher levels of convenience, safety, and efficiency we’ve all come to associate modern ride-sharing services with.

The real game-changer though was the rise of GPS technology and smartphones. These advancements provided the foundation for real-time location-based services thereby greatly enabling a simple yet formulaic approach to e-hailing a taxi or cab, also ensuring continuity and setting the stage for the eponymous ride-sharing revolution experienced – as even our colloquy has now been transformed as well; just like the transposition of “Google” with “online search” – Uber, the first entrant into the market has been verbified also, it isn’t uncommon to hear things like “I Ubered there.” or “Let’s get an Uber.” these days. The legit name for when that happens is called anthemeria.

The Ride-Sharing Revolution: Uber and Beyond

2009: Uber’s Entry

In 2009, two friends, Garrett Camp and Travis Kalanick, were frustrated by the difficulty of hailing a cab in San Francisco which led them to envision a service where you could request a ride with just a tap on your phone. This idea gave birth to UberCab, later renamed Uber.

Uber’s model was simple yet revolutionary: it connected riders with drivers through a mobile app, offering a seamless and cashless experience and yes they did gain and enjoy that “first-mover advantage” thoroughly, consolidating their position as the first few years went by.

Also, I can’t exactly remember which conference or interview it was but a few years after Uber was launched, then CEO Travis Kalanick was asked about autonomous cars in the future and how they would affect the drivers in terms of loss-of-jobs to which he replied that there would be training programs available for drivers to pivot into other careers (agriculture was strongly suggested) but he was almost certain that the next technological wave was coming as he said explicitly that reason an Uber seemed expensive was due to paying for “the other dude” in the car, and if that dude wasn’t there – the trip would be significantly cheaper. An unfortunate but truthful reality nonetheless in my own opinion; an industry will often cannibalise itself. “Adapt or die.” – as they say.

2012: Lyft Joins the Race

Hot on Uber’s heels, Lyft entered the market in 2012. Founded by Logan Green and John Zimmer, Lyft distinguished itself with a more community-oriented approach. With its iconic pink mustaches and emphasis on friendly, casual interactions, Lyft aimed to create a fun and social ride-sharing experience.

Prior to that however, as Computer Programmers – they had founded a long-distance intercity carpooling company focused on college transport in 2007 after Green shared rides from the University of California, Santa Barbara campus to visit his girlfriend in Los Angeles.

2013: Bolt (Formerly “Taxify”) Enters the Fray

One thing that always stood out in my mind about Taxify (now Bolt) was that it was set-up by a kid from Estonia and I would often joke with my mates back then in our local parlance – “see persin wey we senior O, see im doings nah” loosely translated to look at what someone younger than us has been able to achieve.

So, in 2013 – then 19 year-old high-school student Markus Villig founded Taxify after receiving a sum of €5000 loan from his family. He then went on to build a prototype of the app and went out to the streets of Tallinn to recruit drivers personally. That determination would eventually bear fruit as within a year the service was up and running and even became operational outside Estonia.

2013-2016: Expansion and Competition

The mid-2010s saw explosive growth for Uber, Lyft, and Bolt. Uber expanded aggressively, launching in cities worldwide with Uber coming in strong into Nigeria in 2014, whilst Bolt started their operation as Taxify still “young and fresh” – entered in 2016 (global rebrand to “Bolt” happened in March 2019). They both went on to launch their services in other major cities across the country.

Uber branched off, introducing services like UberX, UberPOOL, and UberEATS which is currently the name sponsor of the top tiered Football League in France – Ligue 1. Bolt also eventually launched Bolt Food, albeit in 2019. Lyft wasn’t left out, they also grew rapidly – expanding their footprint across the United States and Canada. Lyft however didn’t start-off in Nigeria.

This period was marked by fierce competition, with these companies offering promotions, subsidies, and innovations to capture market share. The ride-sharing model became increasingly popular, appealing to consumers across multiple demographics mostly due to its convenience, affordability, ease of use which naturally led the way for other ride-hailing entrants like inDrive who now seem to garner more and more market-share by the day – with their conventional pricing model differentiating themselves as opposed to the traditional ride-hailing dynamic pricing model. I opine that the market is large enough to absorb and accommodate more “players” especially in a heavily congested city like Lagos, there would always be opportunities abound so much so that even the state (public-private partnership just as with the BRT mass transit service) hasn’t been left out and have joined-in with the launch of LagRide service in March 2022.

Challenges and Controversies

Regulatory Hurdles

It hasn’t all been smooth sailing all the way – as ride-hailing services grew, they faced significant regulatory challenges. Traditional taxi companies and metropolitan city governments pushed back, arguing that ride-hailing companies were operating without proper licensing and safety standards. This led to numerous legal battles and regulatory changes worldwide. I remember Bolt even briefly ceasing their operations in London before reacquiring the necessary licence(s) to continue offering their services again in that city.

Driver and Labour Issues

Another major controversy is centered around the classification of drivers. Ride-hailing companies classified drivers as independent contractors, sparking debates over labour rights, wages, and benefits. This issue remains contentious, with it being partially resolved in a few regions whilst ongoing legal and political battles continue to plague ride-hailing services in many regions to this very day.

Safety and Trust

Safety has always been a critical concern. Although the major ride-hailing services have implemented various safety features such as background checks for drivers, in-app emergency buttons, and ride-tracking – incidences of assault and other crimes have slipped through notwithstanding, and this has led to calls for more stringent safety measures.

The Present: Ride-Sharing Today

A Ubiquitous Service

Today, ride-hailing/sharing services have become an integral part of urban life in many cities around the world. Companies like Uber, Lyft and Bolt have become household names, and new players like inDrive, DiDi Rider, and Grab have emerged in international markets. The convenience, flexibility, and affordability of these service-offerings have made them the preferred mode of transportation for millions globally.

Technological Integration

Modern ride-hailing/sharing services leverage advanced technologies to enhance user experience. Features like real-time GPS tracking, dynamic pricing, and in-app payment systems have streamlined the process for both riders and drivers.

Additionally, services like ride-sharing for special needs, bike and scooter rentals, and even helicopter rides have now improved and diversified the offerings further.

The Impact of COVID-19

The COVID-19 pandemic, a dark chapter in our recent history already becoming a distant memory – posed significant challenges for the ride-sharing industry.

With lockdowns and travel restrictions, demand plummeted, and many drivers faced economic hardships. Companies had to adapt quickly, introducing measures like mask mandates, vehicle sanitisation, and even delivering essential goods in order to stay afloat.

The Future: What’s Next for Ride-Hailing/Sharing Services?

Autonomous Vehicles

One of the most exciting prospects for the future of ride-hailing/sharing as mentioned earlier is the advent of autonomous vehicles. Companies like Uber and Lyft amongst others who aren’t even currently offering ride-sharing such as those in the online shopping and deliveries industry are also investing heavily in self-driving technology.

Autonomous vehicles promise to reduce costs, improve safety, and increase efficiency. While fully autonomous ride-sharing fleets are still a few years away, pilot programs and testing are already underway. City planners, architects and designers are already reimagining a future whereby the parking lots in large buildings would be repurposed and retrofitted to include apartments and or offices since optimal riding-sharing services will cause car ownership to drastically reduce in future for if autonomous vehicles continually pick-up and drop-off different people and or items to and fro, it’s only logical that a significant decline ensues.

With the idea of a subscription based Mobility-on-Demand (MOD) and Mobility-as-a-service (MaaS) already happening with e-bikes and e-scooters in North-America and some major cities in Western-Europe where you meet an already charged e-bike docked in a station – you make use of it and dock it in another station when you arrive at your destination, then some other subscriber makes use of that particular e-bike you docked when they are ready to leave – leaving you to use another when you’re through with whatever business you were involved with – and that cycle continues.

Sustainability and Environmental Impact

As cities worldwide grapple with climate change, the ride-sharing industry is focusing on sustainability. Many companies are committing to greener fleets, including electric and hybrid vehicles.

Additionally, initiatives like ride-sharing for e-bikes and e-scooters as mentioned above contribute to reducing the carbon footprint. However, e-bikes have also brought their own problems as there have been a few unfortunate fatal accidents where these machines have caught fire in buildings whilst charging overnight.

Expanding Services

The future of ride-sharing isn’t limited to cars alone. Companies are exploring various modes of transportation, including bicycles, bikes, scooters, boats, and even flying cars. The integration of these different transportation modes aim to provide a comprehensive and seamless urban mobility solution in the future.

Enhanced Safety and Regulation

In response to past controversies, the industry is likely to see stricter regulations and enhanced safety measures. Improved background checks, AI-driven safety features, and collaboration with local authorities will be essential to maintaining trust and security. Take the data-sharing agreement between Uber and the Lagos State Government which raised a few eye-brows back then, for example.

Global Reach and Local Adaptation

As ride-sharing continues to grow globally, companies will inevitably need to adapt to local cultures, regulations, and infrastructure. Tailoring their services to meet the unique needs of different regions will be crucial for sustained success.

The rise of ride-sharing services has been a remarkable journey, transforming urban transportation and redefining mobility. From humble beginnings as a simple idea to the global phenomenon that it is today; the industry has indeed come a long way. As we look to the future, the potential for innovation and growth remains immense. Whether it’s through autonomous vehicles, sustainable practices, or new modes of personal-transportation or otherwise, ride-sharing is poised to continue shaping the way we move for years to come.

Also, I’d like to use this opportunity to appeal to all folks out there, yes – there might be a lot of money associated with this industry but it doesn’t trickle down as much to the drivers who are at the lowest rung of the ladder. Plus, we have the tendency to be condescending and belittle those who we perceive to be beneath us. So please, be kind and courteous in your interactions – same goes for the drivers as well. And the next time you tap a button and hop into a ride – remember that you’re part of a revolution that’s only just getting started.

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