This post contains information about top TNCs (Transport Network Companies) also known as top ride sharing companies that Uber drivers should be interested in learning about. This knowledge will help Uber partners/drivers understand how well the competition is doing and how to take advantage to maximize earnings.
What are TNCs?
Transport Network Companies create a network through which drivers and commuters are connected. The TNC industry has witnessed a large influx of interested players all vying for the chance to compete fairly in the ride sharing market.
See below a list of top TNCs in the world:
Uber was founded in March 2009. The San Francisco ridesharing company was founded by Travis Kalanick and Garrett Camp. As of today, the company is valued at over $65 billion and has services running in over 400 cities across 60+ countries. In 2016, the company projected a revenue of about $5.5 billion.
Uber has not disclosed specifics of the number of drivers registered on its platform but we do know that as at 2015, there were about 327,000 active drivers in the US alone. Although pricing differs from city to city, the company’s UberX service is considered to be cheaper than regular taxis in most part of the world. Currently Uber deducts from 20 to 30% as commission from driver earning and drivers in the US can earn up to $100,000 yearly.
In most Uber cities, Uber drivers must be 21 and above and they are expected to own a very clean car with no scratch. The car must seat at least 4 people and should not be older than 10 years old. Uber drivers sign up online, undergo a background and vehicle check and they are all set. Most times, the process takes about a month (less or more) depending on your city.
Didi Chuxing is a Chinese variation of the Uber business. This business recently purchased Uber China’s business after years of stern competition between the two. The company was founded by Zhang Bo, Cheng Wei and Wu Rui. The company, founded in 2012, is estimated to have about 300 million users across over 400 cities in China. It works mostly with taxi drivers to provide rides in China. It is the top player in the Chinese market and is considered affordable enough for the people.
Ola is a top player in the Indian transport ridesaring market. The company was founded in 2010 in Mumbai, but now operates out of Bangalore. Revenue from 2014 – 2015 is estimated at 4.182 billion INR ($62 million). The company is a strong Uber competitor, working with cab drivers to build a system similar to Uber.
Drivers have to state in advance what times they can operate during the day and since they always stay connected through the GPS, they have to take up cab requests as soon as they pop up (else they get a call from their service executives). This is not exactly flexible for drivers. Drivers for Ola make about 35,000 to 40,000 rupees a month.
Lyft is Uber’s fiercest competitor in the US – and it operates only in the U.S. The company was founded in 2012 by Logan Green and John Zimmerman. In 2015, the company gathered $800m in revenue. Like Uber, it runs an app through which drivers are connected to riders who need to be picked up. As at March 6th 2016, Lyft had about 100,000 drivers in the US.
Lyft’s commission is between 20 to 30% depending on the city. Apart from being 21 or over with a driver’s license and insurance/car registration documents, a Lyft driver should own a 4-door car that is 2004 or newer.
Cabify is an international transportation network company. It provides premium vehicles for hire via its smartphone mobile app. Like in Uber and Lyft, vehicles are driven by their owners, who must pass a rigorous selection process. The service is currently operating in Latin America, Spain, and Portugal. It offers two services, one for corporate clients and another for private passengers.
All Cabify drivers must pass psychometric tests, tests for alcohol and drugs, and a city orientation test. They must show they have no criminal record or traffic violations. The service also considers itself 20% cheaper than regular taxis.
GoCatch is a service similar to others discussed above. The service was founded in 2016 and has been in competition with Uber since then. It is currently operating in Australia. Drivers are mostly regular taxi drivers, but people with private cars also drive on the platform. On an average, the service is considered cheaper than regular taxis but it is still not as cheap as Uber.
The company, however, plays strongly on the fact that it has no surge pricing feature. Uber has already made reforms to it service since GoCatch launched. This reforms even saw Uber replacing its Surge Pricing feature with Upfront Pricing.
Careem is a multinational transportation network company operating an app-based car booking service company based in Dubai. Riders can make requests for immediate or later scheduled pick-ups through the Careem phone app. This service was launched in 2012 and considers itself a major Uber competitor in the Middle East.
Careem operates through a network of 80,000 drivers in 31 cities across 10 countries in the Middle East and North Africa. Four million people have downloaded the Careem app. Uber has also spread its service across the Middle East, launching operations in nine countries. As FME writes: “The company claims it had 395,000 active users in the region in this year’s first quarter, a 500% increase over the same period last year. In 2015, it announced it was also investing $250 million to expand to different cities in Saudi Arabia, Egypt, and Pakistan.” Uber launched its service in the Middle East in 2013, a year after Careem.
There are a few facts that can be drawn from the post above:
- Uber is considered to be a global rideshare giant and an industry leader – has more drivers, riders and rides happening in over 400 cities worldwide and almost 70 countries.
- Although Uber is not winning in all its cities, other competitors listed above are still yet to hit prices as low as Uber.
- Uber is worth more than most of the companies above
Although not invincible, (the demise of Uber China is a proof of that) Uber has an edge over other rideshare services as a more global firm.
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