Problem with Ride Austin, as with all other ridesharing taxi platforms is that they all depend on percentage of fares. That type of model is inherently flawed against companies like uber that with vast amounts of capital from VC can artificially lower fares and inevitably bankrupt competitors.It’s been done,
When Uber/lyft were kicked out of Austin it thrived,
Then Uber paid the state of Texas to get back in and undercut ride Austin decimating it.
Then each individual driver made the choice to take Uber/lyft pings because that’s what most of the pings were, even thou they paid less.
Quite literally in the face of competition Uber/lyft will lower the price and steal all the customers.
And the drivers follow because bad rates are better than no pay at all.
Even models like Tryp that charge drivers upfront fess also are flawed. Why would a driver pay upfront without guarantee of riders. That's an MLM scheme.
Nevertheless, the only type of model that can be indefinitely sustainable is one that does not depend on capturing any percentage of fares.
Imagine uber lowering prices to compete against a model that doesn't rely on fares. Regardless how low uber can drop fares, the competing model provides 100% of fares to drivers. Uber cannot compete against such model. We call it Ecosystem.
A digital ecosystem structure that enables the millions of people creating the capability for others to move around to have an equitable relationship with those benefiting.