Since the ridesharing concept came into existence, it has changed many people’s life for good. Reducing the transportation costs, traffic, impact on the environment and more, ride-sharing has been a much-required innovation. Users get access to cheap transportation costs, easy mobility and the convenience of choosing payment methods. While the drivers get to be their own boss and earn what they like when they like. At least in theory… However, in the past, there have been several controversies surrounding the actual earnings of drivers and the unethical behaviour of companies charging huge commissions. Therefore, considering the drivers, there is the need for a mobility company that revolutionizes the transportation ecosystem not only for the users but for the drivers as well. Many would say, especially for the drivers…
Drivers as Entrepreneurs
There’s no doubt that companies have done an excellent job for drivers by providing them with an opportunity to be entrepreneurs. Having the freedom to work as per their convenience, drivers can now be their own boss. They can work any number of hours a day as per their requirements. This comes with the flexibility of choosing their own working shifts as well. It is in high contrast to extensive and odd working hours where they were exploited by employers for low wages. Ridesharing has disrupted the driving industry by making it a profession that even a house-maker, a student or a someone with a daily desk job can pursue for some extra cash.
The Uncertainty around Earnings
However, companies have been unethical in their conduct by exploiting the driver’s earnings and charging such commissions that some drivers earn just equal or bare minimum necessary for survival. Ride-sharing companies aggressively advertise targeting drivers by using statements like ‘drive and earn as much as you want’ and offering incentives of getting paid weekly. But in reality, drivers have been struggling to cover just the cost of gas, maintenance and a little extra for their personal expenses. The problem is not that ride-sharing is not profitable for drivers but the hidden charges and commissions charged by the companies on every ride. The issue has been a topic of conversation on the uncertainty around how much do the drivers earn on an average and what amount of total commissions are companies charging?
The Reality of Commissions and Savings
Most popular companies in the industry promise about charging around 25%commission on the total ride fare. However, there are some additional costs like booking fee, charged by the companies to the riders being included in the total fare. Therefore, when a driver gets paid for a ride, it is after the 25%commission and the booking fee charged by the company. For a fair amounting to $50 for a ride, 25%($12.5) of it goes to companies as a commission with additional charges of the booking fee. This makes the total commissions per ride more than 25%as promised by the companies and makes the actual earnings of the drivers substantially low.
It has been proven through several surveys and researches that companies are charging anywhere from 25%to even 42.5%commission on the total fare. Whether the total fare of the ride is $10 or $100, companies will be charging the same commission rate and the fixed booking fee. So, when the total fare of a ride is low, the drivers end up losing most of the earnings as commissions. This is an unethical conduct of the companies making it difficult for the drivers to earn a fair share of their hard work.
Companies in the industry calculate fares based on the miles covered and the time duration of the ride. Therefore, shorter the ride, lower the ride fare implying higher commissions for the companies and decreased earnings for the drivers. A lower fare implies higher commission, where the drivers end up paying the difference. Shorter rides are a disadvantage for the drivers as companies commissions rise up to about 42.5% for the ride. Surveys have proved that many drivers can even make less than the normal taxi drivers and even minimum wage rate prescribed by the government. In addition to this, there are several other expenses that companies ask drivers to pay for themselves. Some of them include:
· Gas prices
· Car maintenance and washes
· Insurance
The Alternative
Drivers need an alternative solution that revolutionizes their earning system and gives them the fair share on every successful ride. A platform that empowers drivers with reliability, trust and a fair and transparent marketplace. CarSmartt has been built to provide an alternative to the companies with unethical practices in the ride-sharing industry. CarSmartt provides drivers with a monthly payment system, implying drivers pay just a monthly fee. Following this, the drivers have the freedom of doing any number of rides at any hour of the day.
CarSmartt charges no commission on total earnings for each ride and the drivers earn what they see. Providing a transparent platform powered by the blockchain technology, CarSmartt gives drivers 100%of the earnings derived from each ride by charging no hidden costs or commissions. This ensures a fair and sustainable income for the drivers. The platform is aimed towards a sustainable future for road transportation that empowers drivers by changing the fee structure to a monthly subscription model, giving drivers 100%of fee from daily fares, as compared to charging them up to 42.5%in commissions. Therefore, the drivers earn what they see as the total fare for each ride.
If you are a passionate individual who’d like to contribute towards an efficient ride-sharing industry, participate in our ICO to get your share of TURN tokens. For further information, visit our website or download our whitepaper. Let’s work together to achieve a sustainable alternative for road transport that addresses the problems of traditional taxi rentals and ridesharing while working to achieve a reduced environmental impact.
Visit us on coin.carsmartt.com and join us on Telegram and be part of the TURN.
