A country’s economy depends on GDP (Gross Domestic Product); don’t worry, I will not go into deep economic terms as this is not an economics class. Just to give you a glimpse of what this term is. In simple words, GDP is the total output of all the goods & services produced in a country within a year. This includes not only the physical goods made but also the services. The service industry has massively grown in a few decades, and several services have taken place in the country’s economy. Among them are apps for ride sharing services while some worry that ride-sharing services will hurt traditional taxi companies, others argue they can provide Canada with significant economic benefits.
This blog will explore how ride share services & carpool apps have positively impacted the economy.
ALSO READ: 3 Reasons You Should Choose M-Rides Canada
What Are Ride-Sharing Apps
A service that connects drivers and passengers for a one-way commute on short notice is called a ridesharing app in this fast-changing world, where every single product and service is improving. Everyone looks for value for money, and before choosing any product, customers analyze whether it is worth it. The user just has to search for ride near me, and multiple ride sharing companies will be available for service. At this time, if any business is not improving with the changing trends of society, then people choose alternative options.
Employment Opportunities
The foremost important economic benefit of ride-sharing services is that these apps create new job opportunities in Canada. According to a recent study by the Ride-Sharing Coalition, ridesharing apps have produced thousands of new jobs across Canada in recent years. In fact, some estimates suggest that ride-sharing services have created more jobs than traditional taxi companies in many cities. Most people now need a ride as the concept of owning a car is declining.
Better Earning Option Than Traditional Taxis
The taxi apps in canada are just providing an income stream to one driver, while if we compare it with ride-sharing services, many departments are working with just connecting a passenger and rider. An operation department manages the portal where the ride is decided, and a software expert team manages the backend system. A marketing department is also responsible for the business’s advertising and social media posting. Moreover, the captains also work on profit sharing, which lets them earn as much as they work. This way, ride-sharing apps affect every segment of society positively. However, many companies have also launched their taxi apps to compete.
Avoid the Cost of Owning a Personal Vehicle
Owning a car was easy a few years back, but the increasing prices of automobiles have made it difficult for people to own and, most importantly, maintain a car. The cost of keeping a car is higher than most people think. If it were just to buy a car once, it would have been easy, but the game continues. After buying a car, there are many expenses waiting for you. The first fixed cost you will pay is the sales taxes on your purchase then there is the licence and registration cost, which needs to be paid. After getting rid of these costs, your worry will continue. Due to global fuel prices increase, petrol also burdens your pocket. Moreover, the maintenance cost, which involves oil change and insurance, takes much of your savings on just the vehicle.
You can save much of these costs by commuting with ride-sharing apps. Urban dwellers who do not need cars can also save money by using M-Ride Canada, Uber and other cab booking apps. Most people only need their own car on special occasions and weekend holidays, for which paying this high cost of a car is not a wise decision. The combination of cheap rides and online grocery delivery makes it more practical to live without a car.
ALSO READ: How Rideshare Apps Are Beneficial
Carpooling Saves Money
Car Pool Apps are the next step toward economic prosperity. Carpooling made it easy for everyone to commute at a much lower cost than ride-sharing apps. Carpooling is when two or more people unanimously decide to commute from one place to another together.
The model is that the driver is not primarily driving to earn money. Neither is signing in in the app to search for rides; rather, the person heads towards his/her destination. The person who wants to carpool with other people enters their route and destination, and the next person who wants to carpool requests to share the route with the person if the route and destination are the same. The unique part is more than one person can carpool together depending on the car’s seating capacity.
Now, the process is that as the person who is being a captain, his main aim is not to make a profit, now 2-3 people are travelling with him. They pay him/her half of the fare they pay to ride-sharing apps; this way, the individual gets the benefit as the fare gets half, and because more than one person is carpooling, the ultimate amount the car owner gets is enough to cover the cost of fuel.
Wrapping Up
The impact ride-sharing and carpooling apps have had on society, and the economy is tremendous. Contributing to the country’s GDP through taxes and improving people’s living standards because of new job opportunities. Due to the increased number of ride service apps in the market, the choice of consumers has also now increased.
