Topic: BusinessCase Study

Last updated: February 25, 2019

Customer to Customer Lift ServiceAbstract – In today’s generation, ride sharing has become usual way of travelling, however the cab services are expensive since the drivers are full time drivers, hence to avail passengers a ride sharing service at reasonable fare, carpooling has been introduced. The passenger can take lift from any person who is driving via. the same route as him/her using the application and by providing his pickup and drop location. Thus, the vehicle owner will be able to save cost on fuel. There will be a reduction in traffic, air pollution and noise pollution. The passenger can either make cash or online payment according to his convenience. Ride Sharing applications are using their own server with Google map API, whereas, Google Map API is highly compatible with Firebase Storage since it’s provided by Google.

Firebase also provides built-in Mobile number, Google, Facebook, Twitter, LinkedIn login options for authentication of the user. Efficiency in tracking of the vehicle and passenger is viable because the longitude and latitude positions of the users are stored which are efficient performance-wise. In the existing ride sharing application, passengers can login using mobile number which are available online for temporary use, hence the passenger can take multiple discounts using fake mobile number, this can be overcome by use of Adhaar API for verification of passenger using his/her biometric fingerprints. Introduction – The passengers find it really difficult to find a cab which is ready to head towards their destination.

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(Sophia Sanders, 2015). Drivers find it difficult to find the passengers instantly. People aren’t aware of the cab stands around them. Once the driver has dropped a passenger, they have to drive to the cab stand in empty cab which results in monetary loss. There’s a difficulty in finding shared cabs since passengers don’t know if the seats are available in a cab or not. Single occupancy vehicle use has led to severe traffic congestion, environmental degradation, and mobility problems in many urban and suburban areas. (Brishen Rogers, 2015)The research deals with the information regarding the ride sharing application.

There is an emphasis on different implementations of the ride sharing concept, impact on different factors like evolution, economy, environment, security, advantages, disadvantages of the ride sharing application. There is also an information about the features whih will be used in the application which will be execptional from the existing applications which will be ensuring security for all the users.Literature Review -Evolution –Ridesharing is not new. It began during World War II.

In 1942, the U.S. government required ridesharing arrangements in workplaces when no other transportation options were available in order to save rubber during the war (Chan and Shaheen, 2012). In the 1970s, the oil crisis and spike in gasoline prices encouraged another period of ride sharing. However, today’s ridesharing revolution was made possible by the development of GPS, smart phone technology, and electronic payments.In the early 1990s, Kowshik et al. (1993) envisioned a future of ridesharing similar to what exists today that would use better matching techniques to provide dynamic ridesharing.

Early real-time ridesharing projects began in the 1990s, but they faced obstacles such as the need to develop a user network and a convenient means of communication. Gradually the means of arranging the ride shifted from telephone to internet, email, and smartphone; and user networks were developed around major employers and universities. As of 2006, the goal of taxi-like responsiveness still generally eluded the industry; “next day” responsiveness was considered the state of the art. More recently taxi-sharing systems that accept taxi passengers’ real-time ride requests via smartphones have been proposed and studied.The first such service to appear on the market was the San Francisco–based company Sidecar (launched in 2011).

Transportation experts have called these services “ride-sourcing” to clarify that drivers do not share a destination with their passengers; the app simply. (Robert Hahn, Robert Metcalfe, 2017) Impact on Economy –Ridesharing creates benefits for consumers of approximately $81 million per year.Ridesharing is growing the point-to-point transport market, with more than 60% of rides new to the point-to-point transport market.Ridesharing services are, on average, just under 20% cheaper than equivalent taxi fares, including dynamic (surge) pricing.In 2014, one and a half year after the company launched UberX, which allowed anybody to join Uber and ride people using their own car, total revenue was $2.9 billion. In 2015 that number skyrocketed to 10 billion and in 2016 Uber managed to double its annual gross revenue.

(Farshad Kooti, Marina del Rey, Mihajlo Grbovic, Luca Maria, Nemanja Djuric, Vladan Radosavljevic, Kristina Lerman, 2017)In a visit to India in January 2016, Kalanick had said Uber could double its pledged investment of $1billion if it sees more than five times the return. The company ramped up the pace of investments in India after exiting China in August last year. (Artyom Dogtiev, 2017) Employment generation has increased, the study found that 14% of drivers were female, exceeding the percentage of women drivers. 71% of ride sharing drivers have family at home and prefer the flexibility that ride sharing allows them. (Shashwati Shankar, Madhav Chanchani, 2017)Ola, launched a ‘pink cabs’ service, driven by women drivers and which will only allow female passengers to board them.

(RedSeer, 2014)Impact on Environment –Reduction in Traffic – The vehicles are being shared among the passengers, thus the driver doesn’t has any vacant seats which eventually decreases the traffic. (Roland Berger, 2016)Lower Air Pollution – Due to the ride sharing application there has been tremendous decrease in the carbon dioxide level which has benefited the environment because the driver doesn’t has only one passenger in the car. (Magnus Ofstad, 2017)Decrement in Noise Pollution – Since there is a sharing of the vehicle, there is reduction in the number of vehicles on the road.

Due to less traffic the noise pollution is also reduced to a certain extent. (HyreCar, 2017)Saving of Fuel – The driver can get the passenger around him without going to the cab stand. Also, the passengers travel in the same vehicle which decreases the need to have separate vehicles for each customer. (Elena Nechita, Gloria-Cerasela Cri?an, Sergiu-M?d?lin Obreja and Constantin-Sebastian Damian, 2016)Law ; Safety-Convictions of theft or property damage for the previous seven years. Drug or driving under the influence charges in the previous seven years.

Severe driving violations such as hit-and-run, driving over 100 mph, driving on a suspended or revoked license, or driving on the wrong side of a divided highway.Driving without insurance or with a suspended license charge in the previous three years. (Federal Trade Commission, 2015)Ride sharing application conducts background checks on all drivers and maintains a zero-tolerance drug and alcohol policy. (Paul Frisman, 2014)Vehicles cannot be more than 12 years old. (Centennialco, 2016)If you want to join your car to Ride Sharing Application , you need to have the following documents :Commercial license for the whosoever drives the car .

(Originals)Another identity of the DriverA Police Verification Certificate of the driver .A residential proof of the Car ownerOriginal Car documents . (RC / Permit / Insurance / Fitness)Bank Passbok of the Owner .Cancelled cheque of the beneficiary account number .(Ankit Singh, 2017)Author Advantages DisadvantagesAmber Levofsky, Allen Greenberg, 2001 Employment Generation – Millions of drivers has been benefited due to the efficiency of the process in getting the passengers. Ruchika Malik, 2017 Social Bonds – Social bonds represent personal ties between the organization and the partners. Ride sharing companies has attempted to build social bridges with its driver partners with a host of special schemes for the drivers and their family. This includes insurance, scholarship for children.

Skill development for women-family members of drivers, health check-ups ; physiotherapy sessions for drivers. Alejandro Henao; Impacts of Ridesourcing, 2017 Affordable – The passengers are able to find comfortable means of transport at a reasonable rate. Moreover, the fare is split among the fellow passengers.Time Saving – Neither the driver nor the passenger has to wait at a cab stand in order to find a passenger or driver because of the GPS service.KNM Rao, 2017 No hassle of finding Parking – Passengers say because of ride sharing application they are more likely to travel on their own schedule, avoid the hassle of parking, spend less time commuting, and feel empowered to visit areas of their city that are not easily accessible. Puranjan Pathak, 2017 Convenience of location – The passengers can call the vehicles at their door step without waiting for the vehicle to appear in their area Onesimo Flores, Lisa Rayle, 2017 Online Payment – The drivers and passengers don’t have the hassle to carry the change or worry about the availability of cash since they can pay online.Discounts – The passengers get enormous amount of offers to choose from. They can opt for a discount plan according to their need.

M. Keith Chen, Judith A. Chevalier, Peter E. Rossi, Emily Oehlsen, 2017 Security – Unlike traditional taxis, ride sharing application provides more security due to the rigorous procedure of registration of the drivers which ensures security of the passengers.

The details of the driver and vehicles are provided which can be shared by the passenger with others in case of emergency.Feedback – After the completion of the journey the driver and the passenger can rate each other which is very helpful for the ride sharing company to track the drivers or passengers who are getting multiple low rating to ban them. Centennialco; Uber App, 2016 Unfair Fines – The passenger is charged fine if he cancels the ride although the driver denies coming at the pickup location.Low profit margin for the drivers – The ride sharing application deducts nearly 25% of the amount as a commission apart from fuel charges which is not really beneficial if the distance is short.Matthew L. Kessler, Yu Zhang, 2017 Surge Pricing – Sometimes the fare charges are extremely high for passengers due to surge pricing which occurs because of high demand and less supply of cabs during traffic congestion.

Jay O’Toole, Brett Matherne, 2017 Discourages active transportation – Studies have emerged indicating a correlation between a person’s health and the type of transportation used. If fares become too cheaply, it may spark reliance on TNCs as opposed to jogging, bike riding or walking on a brisk sunny day. Long term it could negatively affect a person’s health.

Thor Berger, Chinchih Chen, Carl Benedikt Frey Effect, 2017 Navigation apps require periodic updates – Drivers who do not possess the latest software version may not know their way around town, so it may take longer than anticipated for the Driver to arrive, and requiring the passenger to play backseat driver as warranted. Privacy – Ride sharing application’s use of rider data has also sparked concern, especially after widespread coverage of its possible plan to spy on journalists. The New York Times ran a story days after that plan was identified recounting that some users had ceased using the service.Loss of customers – Due to ride sharing application, the local yellow taxi drivers have faced loss in number of customers.Challenges –Driver Satisfaction – Low driver scores can mean drivers are forced to take remedial classes where they learn about safe driving techniques and driver etiquette.

Those who fail to increase their scores risk suspension or permanent deactivation. (Daniels Ethics, 2015)Low Wage – Ride sharing companies will often lower fare rates in order to gain a competitive advantage in different markets, which cuts into driver earnings.Lack of information of the individual – There’s a scarcity of the information between the driver and passenger. Neither the driver nor the passenger are aware of each other’s criminal records, tobacco consumption habit, etc.Legal Challenges – The companies need to make sure that the information given by drivers are authentic and they don’t have any legal issues.

Few riding companies have been banned in certain countries.Global Expansion – Even though it is successful in some countries, many countries have regulatory hurdles that have caused trouble for the ride sharing company to successfully operate in these areas. Perhaps the biggest is failure to obtain licenses even though they offer many of the same services as a taxi. (Andrew Amey, John Attanucci, 2011)Application Name E-Wallet Surge Pricing Fine(within 1 hour) Multinational Rating Vehicle Options User’s Photo Carpooling Self Driving Car ChopperServiceUber Yes Yes Yes Yes Yes Yes Yes Yes Yes YesOla Yes Yes Yes Yes Yes Yes No No No YesLyft No No No Yes Yes Yes Yes Yes Yes NoSidecar No No No No No No No Yes No NoQuickRide Yes No No No Yes Yes Yes Yes No NoGoCatch No Yes Yes No Yes No Yes No No NoBlaBlaCar  No No No Yes Yes No Yes Yes No NoInGogo No No No No No No No No No NoYandexTaxi Yes No No Yes Yes No No No No NoHailo No No No Yes Yes No No No No NoGett Taxi No No Yes Yes Yes No Yes No No NoDiDi  No Yes Yes Yes Yes Yes Yes No No NoLIFT RIDE SHARING APPLICATIONFeatures –Register: The driver will have to register by submitting his and his vehicle details. Once he is verified then he will be able to give lifts. Users will have to register using their Adhaar thumb biometrics.

Login: The users can login using their Google, Facebook account or mobile number.There are different ridesharing application who provide the same sort of service, however the policies and rules of these applications varies. Some of the applications provide E-wallet facilities that means the customer can purchase the application money which he/she can use for booking rides. Surge Pricing is a system wherein the fare is calculated based on the supply and demand of the vehicles. If the traffic is high then the fare for short distance is high. Based on the duration of time the ridesharing organization charges cancellation fees. Chopper Service is provided by helicopter in few countries where people can book a helicopter.Provide start & destination Location: The driver will provide his/her start & destination location along with departure time so, the passengers can see the route of the driver.

Book a cab: The passengers will give his/her pickup and drop location, he/she will get the list of vehicles going from the same route. He/she will send the ride request.Accept/Reject ride: The driver can accept or reject a ride request given by the customer.Cancel a cab: If the passenger doesn’t wants to take a lift hen he can cancel the ride by paying cancellation fees.View Profile: The passenger can see the driver’s details along with his/her vehicle’s details.

The driver also be able to see the passenger’s details.Feedback: Once the ride is complete the driver and passenger will be able to rate each other.Report: Incase of irrelevant behavior either by the driver or the passenger, they can report the matter to the company.Functioning –Driver will provide his/her start and destination location along with his/her departure time.

Passenger will provide his/her pickup and drop location along with his/her departure time.Passenger will get the list of drivers who will be travelling via. the same route. He/she will send the ride request to the driver.Once the driver has accepted the ride request. The passenger will receive notification regarding the booking.The passenger will board the driver’s vehicle and the driver will drop the customer on his/her destination.

The passenger can choose to either pay in cash or make online payment.The users will be able to rate each other out of 5 stars after the ride is finished.Technical Specification – Thumb Biometrics for Adhaar Id verification – The application will not only verify the driver but also the passenger. Since many passengers use fake mobile number to get discounts and hide their identity.Android Application – The application will be built on Android Studio using languages: Java, Xml and NodeJS. It will be supported by Android devices having API higher than 22.

Google Map API – The application will be using Google map which is the most efficient web mapping service which supports real time GPS location.Cloud Storage – Firebase Cloud Storage is also provided by Google, hence it is highly compatible with Google Map API.Storage of longitude and latitude of the user – The physical location of the user is stored in longitude and latitude format in the cloud database which provides high accuracy.Social Media Support – The user can register/login using their Google, Facebook accounts. Hence, the application will be affiliated with those social media sites with the help of firebase login API.Advantages –Reduction in Traffic – Any vehicle owner will be able to give lift to other passengers either on two wheeler or four wheeler. The number of vehicles on road will tremendously decrease because most of the people are commuting alone to their offices/colleges.Transparency – Due to Adhaar ID biometrics verification, the identity of the passenger won’t be hidden unlike other ride sharing application wherein the passengers can simply login using fake mobile number which is easily available and can be used for getting discounts for first ride.

Security – In other ride sharing application, when the lift is shared the identity of the passengers are anonymous which can hamper the security of co-passengers and the driver. It can be overcome by the use of Adhaar biometrics verification. Saving cost – The vehicle owners will be able to compensate the cost incurred on fuel since they will be earning just by giving lift to others. Also, the passengers will find it cheaper in terms of fare because of low fare since the drivers are common people not full time drivers.Low air and noise pollution – According to a survey in Pune, the number of vehicles are more than the number of people. Most of the people travel alone which results in high number of vehicles on road which harms the environment. Cloud Storage – Firebase Cloud Storage is real time and is highly compatible with Google Maps API which are provided by the same company. Firebase also provides instant login APIs for Google, Facebook, Twitter, LinkedIn.

Limitations –Portability – The application is supported only on Android devices. Apple or any other operating system users won’t be able to use it. Smartphone Support – The application requires a smartphone for GPS tracking, it won’t work on PC since it’s difficult to track the longitude and magnitude of the user. Time Constraint – The passengers may not find a lift at night because the number of vehicles are less at odd hours.No instant verification of driver – Once the driver has submitted the documents, it will take some time to verify the authenticity.

Conclusion –There has been enormous growth in the ride sharing industry due to the technological boom. Due to ease of entrance and many benefits, many drivers have affiliated with ride sharing companies. However, there are certain loop holes like uneven pricing, low profit margin for drivers, less authentication of passengers which can be overcome.References –Sophia Sanders; Cases In Management- Ole, Ole, Ola, 2015( Levofsky, Allen Greenberg; Organized Dynamic Ride Sharing: The Potential Environmental Benefits And The Opportunity For Advancing The Concept 2001(

edu/home/wp-content/papers/GreenburgLevofsky-OrganizedDynamicRidesharing.pdf)The Social Costs of Uber; Brishen Rogers, 2015( Hahn, Robert Metcalfe; The Ridesharing Revolution: Economic Survey and Synthesis, 2017( Kooti, Marina del Rey, Mihajlo Grbovic, Luca Maria, Nemanja Djuric, Vladan Radosavljevic, Kristina Lerman; Analyzing Uber’s Ride-sharing Economy, 2017(https://astro. Revenue and Usage Statistics; Artyom Dogtiev, 2017( Shankar, Madhav Chanchani; Ola’s revenue surges seven-fold, but loss widens to Rs 2,313.

66 crore in FY16, 2017(; Taxi market in India: Driving into the future, 2014( Berger; Benefits Of Ridesharing For Mobility In Myanmar, 2016(https://www.rolandberger.

com/publications/publication_pdf/roland_berger_leapfrogging_ahead_benefits_of_ridesharing_for_mobility_in_myanmar.pdf)Elena Nechita, Gloria-Cerasela Cri?an, Sergiu-M?d?lin Obreja and Constantin-Sebastian Damian; Intelligent Carpooling System, 2016( Ofstad; The Rise of Ridesharing Platforms, 2017(

pdf?sequence=1)HyreCar; The Environmental Benefits of Ridesharing, 2017( Frisman; Uber’S On-Demand Car Service, 2014(

pdf)Federal Trade Commission; What is Lyft, 2015( Pathak; A study on Business model adopted by UBER to disrupt the Taxi Industry, 2017(https://www.; Lyft App, 2016( Singh; What kind of driving license do you need to drive for Ola, Uber, TaxiForSure, etc. in Bangalore?, 2017(https://www. Levofsky, Allen Greenberg; Organized Dynamic Ride Sharing: The Potential Environmental Benefits And The Opportunity For Advancing The Concept, 2001(

pdf)Ziru Li, Yili Hong, Zhongju Zhang; Do Ride-sharing Services Affect Traffic Congestion?, 2015(

io/conference/Uber Effect on Traffic Congestion.pdf)M. Keith Chen, Judith A. Chevalier, Peter E.

Rossi, Emily Oehlsen; The Value Of Flexible Work: Evidence From Uber Drivers(

chen/papers/Final_NBER17.pdf)Ruchika Malik; A Case Study on the Cab Aggregator Giant: Ola, 2017( Henao; Impacts of Ridesourcing, 2017(https://www. Rao, QuickRide, 2017 Trade Commissions; What is Lyft?, 2015(https://www.ftc.

gov/system/files/documents/public_comments/2015/05/01715-96144.pdf)Onesimo Flores, Lisa Rayle ; How cities use regulation for innovation: the case of Uber, Lyft and Sidecar in San Francisco, 2017( L. Kessler, Yu Zhang; Transportation Network Companies: What does the Future Hold?, 2017( Berger, Chinchih Chen, Carl Benedikt Frey; Drivers of Disruption? Estimating the Uber Effect, 2017(; Uber App, 2016( O’Toole, Brett Matherne; Uber: Aggressive management for growth, 2017( Ethics, Uber Technologies Inc.: Managing Opportunities and Challenges, 2015( Amey, John Attanucci, Rabi Mishalani; “Real-Time” Ridesharing – The Opportunities and Challenges of Utilizing Mobile Phone Technology to Improve Rideshare Services, 2011(


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