The ride-hailing industry is always subject to change based on the dynamic market demands. Surpassing taxis and carpooling, bike taxis have made it up to the limelight now. In fact, the bike-sharing market which amounts to 1570 million USD in 2019 is expected to reach 5440 million USD in 2024.
Major players in the ride-hailing industry have started investing in bike taxis. Uber, which is currently operating in only 52 Indian cities, plans a major expansion to 200 Indian cities by the end of 2020 with bike taxis. Here is why bike taxis are trending at the moment.
First and last-mile connectivity
Commuters find it hard to travel from and to various public transit terminals. This situation paves the way for poor first and last-mile connectivity. Bike taxis can easily solve the problem by facilitating the passengers to move from one terminal to the other with ease.
Bike taxi rides are cheaper than taxis and carpooling. It turns out to be an economical transit option, especially for commuters who avail ride-hailing services on a daily basis. Besides being affordable, bike taxis take passengers from one location to the other at the quickest.
Reduced traffic congestion
Bike taxis promote shared mobility and are a good alternative for personal commute, especially with the rise in fuel prices. The replacement of macro mobility with micro-mobility results in reduced traffic congestion. This, in turn, makes day-to-day transit easier than ever before.
Increased employment opportunities
Bike taxi services promote the participation of both full-time and part-time driver-partners. The drivers can mark themselves online or offline based on their availability. This way, the advent of bike taxis generates numerous employment opportunities. For ride-hailing service providers, the availability of several driver-partners means more customer engagement and increased revenue.
Bike taxis are the newest addition to the ride-hailing segment and have massive scope for growth. As bike-taxi services are still in the budding stage, there are not many business competitors out there. So, service providers can make greater revenue out of the business if they make good use of the opportunity. Besides, if they act now, they can also strengthen their presence to stand their ground in the days to come.
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