General Services Opinion

The scourge of surge-pricing limiting rideshare’s potential to fix transport chaos

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Surge-pricing limiting rideshare’s potential to fix transport chaos

It comes as no shock to Sydneysiders to hear that, despite our ability to compete with other major cities across the world in almost every area, the function of and our access to transport is woefully inadequate.

Not only is public transport in our major cities widely and inexcusably unreliable, but also slowly increasing in cost. Owning a car, likewise, is increasing in cost, is overly expensive and not available to all. Furthermore, people are waiting up to two years for a vehicle, with even second-hand car options now severely limited and overpriced.

The transport issues that plague Sydney are not limited to this city alone; they impact metropolitan, regional, and rural destinations across the country.Short of industry-wide change and a magical lowering of cost-of-living, there are few options that remain, at the very least, achievable.

One such option is rideshare, a relatively new concept in the transportation industry, but one that has exploded in popularity in recent years.

However, despite the promise of revolutionising the way people travel, as we’ve seen recently, it often comes with the burden of surge pricing, unfair dividends for drivers, and safety concerns in some cases.

Accessibility is key

Where issues such as traffic congestion and inadequate public transport infrastructure are prevalent, there is the potential for rideshare services to play a starring role in addressing the problems if and when the issues are addressed.

It could fill the gap with a more convenient and accessible option for those without access to public transport, or those who find it too time-consuming or difficult to use, such as individuals with disability or those struggling with mobility.

It could also function as a complementary service to existing public transport by providing last-mile solutions to help people get to and from points of transit more efficiently.

One obvious benefit to major cities would be the reduction in congestion of both roads and public transport. With more people able to take advantage of rideshare, there would be a decrease in the number of single-occupancy cars on the road – one of the primary causes of traffic congestion. Not only would this make strides in the nation’s desire to lower emissions, but it would also reduce traffic chaos during peak times, travel times, and the overall environmental impact of transportation.

Having on-demand access to rideshare vehicles equipped with features to enable accessibility is an invaluable tool for those who need it. Also beneficial is the ability to travel door-to-door with rideshare, eliminating the need for additional, time-consuming, or sometimes near-impossible steps to complete the journey. All of these benefits result in easier access to destinations that may not be served by traditional public transportation.

For many, public transport is not a viable alternative to a car, but rideshare, when done well, can be. It is more affordable than owning a car, particularly for those people who only travel by car occasionally or who are more able to access public transport.

One of the advantages of being a digitally native industry is the ability able to track journeys and identify drivers and passengers through account and financial information. This implies a level of safety not traditionally included as standard in other transport options.

Fortunately, the rideshare industry is closely monitored by state regulating bodies, with clear policies and codes of conduct in place to guide action around poor behaviour. And these policies are regularly reviewed and updated.

Despite these advantages, the industry is not immune to safety issues. However, its bears mention that some rideshare applications have systems in place for reporting and monitoring, as well as a function built into the app allowing drivers and passengers to contact police, fire, or ambulance immediately.

What’s the roadblock? (Pun very much intended)

It sounds like the perfect solution, doesn’t it? Then why hasn’t it solved the transport problems we face daily?

Two words: surge pricing.

What’s the point in having an option to address these problems is it falls into the category of prohibitively expensive?

Surge pricing has become so commonplace that it’s less and less shocking to hear of instances where people are left stranded or significantly out of pocket. The recent train shutdown impacted the whole city of Sydney for hours, with many rideshare organisations and taxi companies seizing the opportunity to gouge prices to an almost comical level.

This is to be expected when cost is decreed by algorithms based on demand. But the days of impersonal algorithm-based pricing are numbered. It’s becoming clearer by the day that Australians are reaching their tolerance threshold when it comes to skyrocketing, unfair pricing for basic needs such as transport.

The entire rideshare industry needs to adjust in order to be part of the solution, not another part of the problem

Mike Chuahan is Australia’s Country Manager for international ride-sharing and mobility platform, inDrive.

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Mike Chauhan is the Australian Country Manager for revolutionary global ride-sharing service inDrive. Mike is an experienced development manager with a broad history within the e-business, IT, and service industries. Mike joined inDrive from FoodByUs where he grew the company’s presence in the region through the forging of successful relationships, having previously worked with Uber Eats launching the food delivery giant into new markets across Australia and New Zealand.

About inDrive:

inDrive, with more than 150 million downloads of the platform in 47 countries, is shaking up the rideshare experience through its unique model, which allows riders and drivers to negotiate fares. Instead of manipulating prices through impersonal algorithms, often leading to unnecessary and crushing fees, inDrive brings transparency, and most importantly, fairness, through its process.

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