Savings

"Ride sharing can introduce lower prices to the taxi industry while being more convenient and potentially leading to better service." - CANADIAN COMPETITION BUREAU

LOWER PRICE PER FARE

On average Uber fare rates are 40% cheaper.

This can be used as a benchmark for what rideshare apps will require.

SURGE PRICING

There is also what’s known as surge pricing which is glorious both for passengers and drivers, to help adjust supply to meet demand. Think New Years Eve in Halifax.

To get a taxi after midnight can mean a wait time of up to 3hrs – and that’s not the taxi drivers’ faults – there simply are not enough taxis allowed on the road to meet the demand. Surge pricing means increased fares in relation to the demand, which attracts more drivers to ‘sign on’ and accept fares. More income for the drivers,
quicker safe rides home for passengers.

LOWER COST BLENDED TRANSPORTATION OPTIONS

Ridesharing complements public transit beautifully “for the first and last mile” of a trip. For example, rural residents could take an Uber or rideshare to the nearest public transit hub and commute to work, and this has been growing in popularity in other cities. The option to leave your car at home and rely on public transit is more appealing when you have a backup option like ride-hailing in case you are running behind schedule or have another urgent situation or change of plans.

Some cities have even gone as far as subsidizing this type of trip in order to encourage the use of public transit – and have saved millions (really, read the article for true innovation).

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