Transportation services in the cities have been in acceleration mode as the coronavirus stricken societies are coming back to their travelling habits. And with this shift up, Uber is now offering public transit systems, to sell them its software expertise in order to make alliances with such systems.
This will allow passengers to book a trip with urban transportation authority of an allied county through Uber app, but the difference would be that they will ride wheelchair-accessible public vans of that authority instead of a private car.
In the past couple of years, from Salt Lake City to St. Louis and Jersey City, more than 120 transit agencies in the United States have came to alliance with companies from the likes of Uber, according to a data analyzed by Reuters.
Service like selling software generates revenue with higher-margins for the company. Uber is getting benefit of the technology which it has been developing for years, said head of transit at Uber Technologies, David Reich.
Uber is talking about implementation of software-based projects with dozens of worldwide transit agencies, he added.
The crisis created by the pandemic has brought the ride hailing firms like Uber and Lyft Inc near to public bus and train services. All of them were in competition with each to get the chunk of commuters’ revenue, but now these are leaning on each other to cope with their urgent search of ways to save costs while exploring new business opportunities. To better survive the impact of crisis, many cities are planning expanding or even permanently implementing on-demand services to be operated through or with the assistance of ride-hailing companies.
Cities are in hope that this strategy will not only help them save costs, but will also improve their access to business hubs and convince the customers like shoppers and transit-wary commuters to ditch their cars for transit services.