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How to start a rideshare business and make a rideshare app from scratch?

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Vlad Dm

What is carpool and how does it work?

Ridesharing or carpooling is the type of a ride when a driver picks up passengers that go the same way he goes, and they reimburse fuel costs. The trip can be referred to rideshare services only if it meets the following conditions:
  • car owner doesn't provide passengers with on-demand services. It means that he or she will go to the required destination in any case, regardless of whether he has fellow companions or not;
  • car owner just saves on fuels costs but he or she doesn't earn money on it;
  • since this service implies that passengers share a ride, they must participate in the sharing of a total ride cost. In most cases, the cost of fuel is shared between all companions. But also a driver can look for companions not for financial sharing, but for people who have a driving license. When there are 2 or more drivers in the car, it is possible to have a bit rest during the trip. Moreover, a good companion is good for chatting during the long road not to fall asleep.
Enterprise rideshare
Carpool app example - how it looks
 
So what is rideshare? The main idea is to save on fuel cost and organize a group of people to go with. Owing to the Internet and GPS technologies, it is not difficult to find companions. However, you shouldn't forget about precautionary measures and nuances of this service.
Now then, a short summary of the service goal:
  • a driver fills in the form in a rideshare app and places the information about his or her destination point;
  • passengers find this route on a Web, get in touch with a driver and discuss details;
  • passengers have the same traveling route;
  • driver saves on fuel cost, and passenger feels more comfortable than in bus or train.

Advantages and disadvantages of carpooling

Nothing has only positive sides. Carpooling service is not an exception to the rule. So let's consider weak and strong sides of ridesharing services.
Advantages of carpooling:
  • The main advantage of rideshare solutions is cost saving, of course. Depending on the agreement, a ride can be twice as cheap than traveling by conventional way;
  • Don't forget that your car it is not a gas cost only. There are some cost items for the maintenance, repair, parts replacement in your vehicle. If you reduce the time of car utilization, you reduce these costs; 
  • A fewer number of cars on the road can reduce the CO2 emission in the roads and make the air we breathe cleaner;
  • Saving time. Fewer cars - fewer traffic jams. That is to say, it is possible to reach a destination point faster and find a parking place. 
  • Meeting new people. Traveling together allows you to find good friends. 
Disadvantages of carpooling:
  • Indecent passengers. Some people can try to discount the price or even ask the driver to visit the place that is not on the scheduled route. And it is important to screen out such individuals at the very beginning of traveling.
  • Indecent drivers. Unfortunately, some drivers can play an unfair game as well. For example, drivers that take 5-6 people in a small car and ask for a high price. 
  • In some cases, a driver has to pick up each companion separately. It increases the time of traveling. 
  • Passengers can be not satisfied with the driving style of a car owner. In turn, the driver can be annoyed with an excessive volubility of companions, their untidiness or lack of manners.  
App carpooling
Strong and weak sides of ridesharing
 
More about ridesharing/ carpooling in the article See how to start a rideshare business and make a rideshare app from scratch
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Vlad Dm
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