We need to crowd-source taxicabs and usher an age of peer-to-peer transportation (cont.)

Addendum: Unbeknownst to the authors of this post, a San Francisco startup Uber has recently secured additional VC funding and announced plans to expand to New York with its own variation of a next gen ride service. Wired’s done a nice job of describing an initial user experience with Uber, which allows SF users to hail one of 100 city drivers from their mobile phones. Drivers come from non-taxi “sedan services” that partner with the company. While Uber’s business model does not yet constitute the wholly networked solution to the cab industry we envisioned, it does mark a step in the right direction. Convenience comes at a cost, however; there is a minimum price of $15 per ride. Hopefully the founders of Uber read this blog and steal the rest of our idea(s).

Addendum 2: The call for more peer-to-peer transportation gained strength again two weeks ago at TechCrunch Disrupt, where car-sharing service Getaround was officially launched. Getaround lets mobile users peruse the gallery of available cars to borrow, and notably, allows owners to rate their renters, creating a nice incentive to be a responsible member of the network.

We need to crowd-source taxicabs and usher an age of peer-to-peer transportation (cont.)

Problem: While the services listed in our last post offer worthwhile alternatives to conventional modes of getting around, several less laudable features of our urban and suburban transportation environments remain unchanged. Taxicabs, for instance, still crowd the streets of most cities, yet they benefit company owners more than either consumers or drivers. How can we change the inefficiencies of the taxicab industry in a way that: a) increases access to ground transportation in city and suburb, and b) caters to Americans’ penchant for driving by continuing to build a sellers’ market for ride-sharing?

1) Taxi Cab transportation is a highly regulated market with enormous barriers to entry.  As a result there are too few cabs in most places and prices tend to be pretty high.  This is mostly because of the steep cost of purchasing a medallion required to run a taxi, particularly in New York City: “Because of their high prices (often over $400,000) medallions (and most cabs) are owned by investment companies and are leased to drivers (aka “hacks”).”

 2) In order to drive a cab, you must work for a large corporation, which is responsible for ensuring quality and safety.  While these are essential regulations, there are also better and more efficient ways to solve this issue in the 21st century.  We’ve seen the proliferation of couchsurfing.  Why not more digital hitch hiking?

Citation: Andrew Magliozzi and Nathaniel Levy

We need to crowd-source taxicabs and usher an age of peer-to-peer transportation.

“In my country there is problem, and that problem is transport.”

Leaving aside one’s opinions about the grand provocateur known as Borat, one finds these words unmistakably true. With an average occupancy of 1.3 people per vehicle in America, transportation is an issue of increasing personal, political, and ecological importance in our society. How we move in and among town and country, exurb and suburb affects our happiness, our checkbooks, and our environment.

Context: Zipcar is one of the most visible and successful transportation initiatives to target all three. Zeroing in on the city dweller’s appetite for occasional car access rather than full-time ownership, Zipcar has become the first company to extend the principle of sharing among consumers to the transportation market while still appealing to Americans’ enduring taste for cruising behind the wheel.  With more than 350,000 members and a fleet of 6,000 vehicles in the U.S. and London, Zipcar is changing the landscape of urban transportation.

Even with the all the conveniences Zipcar affords the occasional urban driver, any member could tell you the access it provides is not without limits. Boston startup  RelayRides* is trying to improve on access and convenience by shifting the paradigm from sharing to neighboring. Car owners post their vehicles’ available time slots, and nearby members sign up to go for a spin. While RelayRides takes a cut, owners can earn fast cash while they sit at the office, take a vacation, or even sleep.  Essentially, RelayRides creates a sellers’ market for automobile access.

Citation: Andrew Magliozzi and Nathaniel Levy

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