The popularity of ride-hailing services has grown rapidly and had a huge effect on traditional transportation, but with substantial losses, can they be profitable?
It is estimated that 65-75% of ride-hailing revenues go to pay the drivers, promoting the idea of eliminating drivers all together with automated vehicles.
“Transitioning to automated vehicles would eliminate the need to pay drivers, but it could potentially create a slew of other logistical challenges and questions. Would ride-hailing companies be willing to buy, register and insure their own fleet of vehicles? Who would refuel, maintain and make sure the vehicles remain clean, especially if a passenger left trash in the vehicle?”
Read the article at J.D. Power.
The post Automated Vehicles: Cure or Curse for Ride-Hailing Companies appeared first on Fleet Management Weekly.
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