Increasing resource sharing and improving the balance between supply and demand have improved the overall efficiency of the market. Almost 97 million short journeys are made in China every day, each costing an average of about 10 yuan. Market value is about 970 million yuan. On the other hand, the new reality has led to a number of problems, such as sharp competition, price warfare, and so on. The arrival of a large number of private vehicles has hit the victim on the traditional taxis market, and traditional cabs and car riders increase conflicting interests.
This led to a recession of the traditional tax market, a drop in revenue from taxi drivers and numerous incidents of violence due to discrepancies. It all affected the industry. For example, in Beijing in 2015, taxis completed 588 million trips, 81 million less than last year. According to the data of the Beijing Research Center for Traffic Development, growth rates and travel numbers are equal to a minimum of 10 years.
Competition and changes in the tax market are fueled by the redistribution of market revenues. It is therefore necessary to have a clear understanding of the structure of the distribution of market revenues in order to achieve good leadership and management. Traditional maxi cab services and driving are the main bodies of the market.
The income of two is counted in different ways. In the traditional taxis model , the main driver’s income depends on how far and how long they drive. With the advent of travel services, the traditional taxis model is no longer suitable for calculating the income margin.
Existing models will have difficulty in accurately balancing the differences in driver’s tax revenue, Internet-related services (since then are called carpooling) and online driving services (then called ride riding). To get an accurate measure of the market situation and understand the profit margin that distributes revenue, it is important to create models for each Internet + taxi service and calculate their margin revenue.
While online taxi services have become a very popular mode of transportation in many countries of the world, services have recently been launched in Pakistan. Dubai Careem was launched in October last year. Since then, two new players have appeared on the Pakistani market: Turkish company Albayrak (A-Taxi) and Uber based in the United States.