Since its inception, the ride-hailing concept has transformed the taxi industry to the core that can even be called a taxi reformation. However, traditional taxi companies have affected badly, and they are forced to take up the business model to sustain in the taxi industry. Besides, the taxi drivers who drive for ride-hailing companies have faced a lot of hardships and has been compelled to take up trips for a low fare because, in this online taxi-hiring model, they have to pay a certain percentage to the aggregator for whom they are driving.
In recent years, we have been witnessing a huge range of protests by taxi drivers across the globe against ride-hailing companies. In a few countries, traditional taxi drivers oppose the intrusion of such business concept fear of losing business. In order to increase the booking rate, such ride-hailing companies offer their customers with plenty of offers and free ride, which will ultimately affect the profit of the taxi drivers.
- Low trip fare
The driver has to pay a certain percentage of the trip fare to the taxi aggregator as commission. In most regions, the commission percentage is usually very high that will ultimately affect the income of the ride-hailing driver.
- Risk of being blocked
The aggregator holds the right to block driver in case if he/she rejected any trip requests due to some unavoidable circumstance where the drivers may have to lose the income of a few days till they are resumed to work.
- Technology adherence
During the adoption stage, drivers find it difficult to use the mobile app provided by the service providers. Only a few can understand the functionality and features of the driver app. So, technology adherence is one of the serious problems for taxi drivers to take up ride-hailing service.
This problem can easily be rectified by using a taxi dispatch software like Tagmytaxi that offers a user-friendly driver application in order to help drivers take trips with no hassles.
- Company policies and governmental regulations
For safety purposes, governments of various countries are implementing strict rules for taxi driving, especially for drivers. Besides that, the drivers will also have to comply with company policies to drive under their brand name. If a few traditional drivers may not satisfy a few criteria in the sector, they cannot take up this type of service anymore.
- Life-threatening risks
Safety becomes a major concern across the ride-hailing industry. Even though there are plenty of precautionary measures taken by online taxi companies, all goes in vain. The drivers are also becoming victims in most incidents.
There are also pros in being a ride-hailing driver. It is a pool of opportunities where they can have access to plenty of trips but for a meager turnover. If anyone prefers to become a ride-hailing taxi driver, connecting themselves with the app-based taxi companies would be the right choice to get more business where the trip flow will be much better while comparing with the traditional way of booking.