Car-pooling service see growth in demand as Uber, Ola push for shared mobility
While people are attracted to the cheaper rates of car-pooling services, for drivers it has helped improve their ride efficiency with more riders per trip.
- Car-pooling witnessed a 22% growth in Q2 2017 from the previous quarter
- In Q1 2017 car-pooling had witnessed a 9% growth
- Car-pooling has helped to improve ride efficiency for drivers with more rides per trip
Car-pooling seems to be growing at a fast pace in India as in Q2 2017 it witnessed a 22% growth in comparison with the previous quarter. Taxi-hailing app services such as Uber and Ola had introduced their car-pooling services such as UberPool and Ola Share in order to cater to large demand but low supply of cabs in large metros.
This large growth in car-pooling is mostly driven by the huge discounts offered by the online players, according to a RedSeer Consulting report.
Source: RedSeer Consulting
This rise in demand for car-pooling services is helping these companies as there has been problems with the supply of cabs due to drivers going on strikes due to reduced incentives and their services being affected.
But given the discounted fares of car-pooling as compared to normal rides, is it worth the effort?
The report says yes as car-pooling has helped to improve ride efficiency for drivers with more rides per trip and also helps to reduce the need for more drivers on the platform.
Overall, it's a win-win for all as customers get discounted fares and drivers and the platform can handle more rides and hence earn better, it added.
A report last month by RedSeer Consulting too pointed out this growth in car-pooling as it had seen an about 9% growth in Q1 2017 from the previous quarter.
While monthly active users of both the players have been declining in the past, the growth in car-pooling rides has been steadily increasing due to the lower fares.
For drivers of Ola and Uber too it is an added advantage as they can generate more revenues from a single ride due to each rider paying a separate fee. A reason why many drivers are opting for car-pooling rides these days.