How The Subscription Business Model Could Change The Automotive Industry

How The Subscription Business Model Could Change The Automotive Industry

The industry of car transportation has been changing since the 2010s with an advent of numerous online aggregators, freeing customers from the necessity to rush to the street to catch a cab or to spend minutes on the phone, calling transportation companies to order a taxi. Nowadays both customers and drivers are in a much better position: whereas the first now can order everything online and in advance, the second benefit from not being obliged to specially train as taxi drivers and work fixed shifts. Nevertheless, certain problems remained. Due to high commissions, lots of drivers feel underpaid and unhappy with their job experience. The wage they earn on a daily basis must also be spent on side expenses, including insurance, parking, and other costs. All of these contribute to drivers' burnout and general dissatisfaction with their work.

Alexander Pershikov, the founder of GetTransfer.com, suggests a brand new approach to drivers' experience in the car sharing industry with the launch of his own ride-hailing company in 2016. He stresses the importance of attending to drivers' needs to make the working environment friendly and comfortable for all the parties involved by installing moderate commissions and eliminating the chance of any hidden payments. Now Alexander's company is aimed at building a marketplace which ensures that drivers are fairly paid what they earn. As he says, it is vital to "shift our gaze away from the benefits of “now” and pay attention to people". 

Read the full article here.

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