Alexander Pershikov, the transport evangelist, founder of GetTransfer.comserial entrepreneur and a metaverse visionary.
Order a Handover is an essential part of travel for many travelers. As the competitive car rental market faces a supply shortage, it is becoming even more popular. But the private transport market has its own problems that need to be solved in order to overcome the global economic recession and satisfy customers. Problems create opportunities and market leaders can provide some necessary and promising steps towards the necessary evolution.
Crisis and Opportunities
The car rental market in the US, like many other sectors of the economy, is currently going through a crisis due to the Covid-19 pandemic. In 2020, car rental companies had to sell as many cars as possible to cut costs and survive. In 2021 car rental became dramatically more expensiveand rising prices seem to continue.
At the same time, many more American travelers are planning summer vacations than in 2020 and 2021. So people are eager to get on the road and eventually the demand for transportation services will increase. The escalation in gasoline and rental car prices may cause people to reconsider their car habits while traveling in order to cut spending. In this context, private transport services may begin to resemble a monetary solution.
The global mobility as a service (MaaS) market is expected to reach $41.6 billion by 2030. Despite economic and social changes, people will continue to turn to transport services. Transfer companies can take part in this opportunity, but the future success of any transfer company depends on its strategies.
The price problem
One of the major current problems in transportation services is the lack of price transparency, which discourages customers. Overcharging in taxis or shared cars is a common problem, even for locals who would expect a clear picture of transport prices in their city. Keep in mind that a large percentage of the fare goes to aggregators and prices can go even higher when cars leave dense areas like city centers. The price per mile from private transfer companies is significantly lower, making them competitive with taxis, but the surcharge can be as high as 300%. Tourists in particular are constantly having to pay too much.
With the current rate of inflation, many service providers are taking the easy way out, raising prices and covering excessive costs as ‘inevitable measures’. But travelers do not want to pay too much, and they are also affected by the economic situation and try to be more careful with their money. Both sides can empathize: drivers want to earn decent money and provide for their families, just like tourists don’t want to pay too much.
The solution is already here
To solve the problem of overcharging and gain the trust of customers, transfer services should consider moving to the market model (used by giants like Amazon and eBay, as well as my own company), which has been transforming the travel industry for some time. . The marketplace model allows the customer to request and then choose offers from many different suppliers (hotels, flights or drivers, in the case of transportation). With this model, customers can easily determine whether they are being treated fairly. The metasearch business model (used by sites like Booking.com) is another option that is becoming increasingly popular with travelers. Metasearch technology has been used for years to buy airline tickets or book accommodation, but it can also apply to transportation.
Building trust with customers requires a clear system for reporting additional costs (taxes, road tax, etc.). Good marketplace and metasearch business models solve this problem by displaying all costs and other data such as inventory and driver ratings before customers book. Finally, I suggest making your customers’ lives even easier by making them pay less when they book in advance. These new models have had a positive impact on the travel industry, making it more welcoming to travelers. All travel companies, especially transportation and transfer services, should consider how to ensure customers are treated fairly.