CRED Business Model and Its Revenue Generation

 

CRED is a free app that assists users with multiple credit cards to pay their bills on time. 

You earn rewards in the process and there are several other interesting features.
CRED business model has so far gained a huge base of 6 million high spending clients. RBI’s latest data shows that India has issued around 60 million credit cards. CRED claims is processes 20% of all credit card payments in India - which is substantial.

Most credit card users experience frustration in handling multiple cards, performing timely payments and clear dues through arduous processes. CRED is a fintech startup providing a one-stop solution to all such concerns by simplifying and making the process seamless.

CRED FUNDING

With a $215 million fundraise at a valuation of $2.2 billion, fintech startup CRED declared itself a Unicorn. This funding round was led by existing investor Coatue Management LLP and new investor Falcon Edge Capital.

Kunal Shah-led CRED’s Series D round (the latest) comes a couple of months post, having raised $81 million at a $806 million valuation.

CRED has 6 million users, but experts cannot fathom if a firm can be built focusing on the elite. Which is 3% of the Indian population using credit cards.

What does CRED do?

CRED is a fintech startup providing clients a platform to pay their credit card dues, rent and other bills. All this is done in one place and you earn rewards for completing it on time. The firm also provides users opportunity for instant credit and enables a channel for P2P lending between high trust individuals. The interest rate of such transactions are nominal compared to traditional lending firms charge.

CRED Business Model

CRED was launched 4 years back to the month by Kunal Shah. The idea was to capitalize on the reputation high trust individuals garnered and could be rewarded for their commendable financial behavior.

CRED aims to create a closed ecosystem of credible high trust individuals so that they may connect and bond. This credit-based ecosystem provides a safe space for individual lenders and financial institutions to loan money to reliable individuals.

The creditworthiness of individuals is taken from credit scores to measure and filter the community. These customers are then retained and rewarded through CRED coins when they make timely payments through the platform.

CRED’s Customers

CRED’s customers are 3% of the Indian population who own and use credit cards. They specifically scour the wealthy, affluent, and trustworthy individuals to create a win-win situation for everybody involved. The closed community of loyal and credible individuals can build instruments so as to connect and expand on several possibilities.

CREDs Value Proposition

CRED’s business model aims to provide excellent user experience and resourcefulness for providing value to its clients.

• The CRED application helps users by credit card dues, rent and other bills within five taps. The hassle of using multiple credit cards is diminished as the process is simplified, convenient and rudimentary.
• Users are provided with an instant credit opportunity and promotes P2P lending at 9% to lenders. This is way higher than what is paid in savings accounts or deposits.
• Loan caps are recorded, hidden costs and overall expenses of users are analyzed. Due dates are tracked and timely reminders are sent to make payments.
• CRED coins are rewarded to users who make timely payments that can be redeemed on the platform. Users can ‘Discover’ and avail discounts on various products offered by CRED partners.
• Credit scores can be calculated freely by users or CRED will help to maintain a good credit profile by helping make commendable financial decisions.

But what’s imperative is CRED is a niche and close-knit community of trustworthy and creditworthy individuals. CRED aims to help people make timely payments and earn substantially in several ways. It is a social network that helps connect similar people with umpteen possibilities.

How CRED Operates

At first the user would have to download the app and enter their mobile number. The app now checks for cards that have been registered to this mobile number and the account gets configured. A person is allowed to use the app if their credit score is more than 750. Otherwise he is transferred to a waiting list.

Once the app receives access to mail identification, it would read and scan credit card receipts for due dates, payment and service statements.

Key Activities

The key activities offered by CRED to its users are CRED travel, Credit management, CRED Stash, CRED Mint, RentPay, and CRED Store.

CRED Travel

CRED makes it possible for users purchase flight tickets, book hotels, and manage restaurant expenses through the app. Users are rewarded with CRED coins that can be used to purchase various products from the CRED store.

Credit Management

CRED provides a UPI to their users so that they can pay their credit card or other bills through the app. For this they receive rewards in the form of CRED coins, but the payments would have be timely. These vouchers can be used to get discounts on products that CRED has tie up with. Reminders are sent for payments before the due date.

CRED Stash

CRED Stash offers instant credit for clients with ease at one-third the rate of interest offered by credit card firms. The credit amount is limited to Rs 5,00,000. The tedious process of verification and application process associated with availing loan is by-passed. CRED has tie-up with banks like IDFC to provide these loans.

RentPay

CRED’s RentPay ensures users can pay recurring expenses like household expenses or rent through the app. Users get reminders to ensure the payments are made timely. And paying through the app garners rewards to avail products at a discount.

CRED Mint

CRED Mint is a P2P lending product in partnership with Liquiloans, an RBI registered P2P non-banking financial corporation (NBFC). Users can lend their money and earn up to 9% interest. They can invest anything between ₹1,00,000 and ₹10,00,000, to earn returns.

The investments in CRED Mint are disbursed via CRED Cash specifically for high trust individuals. Until now regulated partners have loaned around Rs 2415 crores.

CRED Store

CRED has partnered with over 2000 brands in domains such as health, travel, and ecommerce. Users are allowed to use CRED coins earned by them to avail discounts/offers while purchasing products or services through CRED. Affiliated brands off exclusive prices that can be accessed via CRED store. The brands gain and enhance their sales.

Key Channels

CRED has a website and an app for users to take advantage of.

Key Partners

• CRED has partners with over 2000 brands offering exclusive prices.
• They have tied up with 34 banks. Users are offered cheap credit in partnership with the IDFC bank. P2P lending is available through collaboration with Liquiloans (a NBFC registered with RBI). Payments are facilitated through Axis Bank.

Cred Revenue Model

As of now CRED is aiming to scale and expand their customer base before targeting profits. The CRED is a free app. This is what most internet-based startups do early on.

Sources Of Revenue For CRED

Affiliate Income

CRED partners and ties up several firms who offer their products on ‘Discover’. CRED users have options to redeem coins earned. Businesses gain visibility and user attention. Firms pay a fee to CRED for business generated.

Revenue From Advertisements

CRED’s target audience are high-net-worth individuals and having such data regarding their spending can help optimize ads to encourage spending which in turn gains commissions on sales.

Transaction Fees

There’s a processing fee of 1 to 1.5% on transactions.

Revenue From Loans

P2P lending helps lenders earn interest of 9% and loans are disbursed at 10–12%. CRED also lends customers loans on which it earns interest at rates lesser than the market rate.

Costs Incurred

CRED’s marketing costs have gone up drastically after they pitched in for IPL sponsorship. But this has helped create visibility for them. Even as they increased employees it added to their expenses.

Conclusion - CRED Business Model

CRED has marketed themselves in a pioneering and creative manner. They deliver gifts to users to offices to enhance awareness and visibility. The company is creating a reputation for themselves.

As clients pay via the app, CRED gains valuable financial data they can monetize later on. This data can be used to enhance and personalize UI of the app.

CRED aims at building a fenced community and executing their plans before expanding and earning profits.

Zepto Success Story: Rise Of Quick Commerce Apps

 

The Indian online grocery market size was valued at $2.9 billion in 2020. It is now expected to grow at a Compound Annual Growth Rate (CAGR) of 37% in between 2021 and 2028.

This is due to prevalence of social distancing due to COVID-19, the acceptance of contactless delivery and a large work force having settled for (WFH) work from home. It is here we take you through the Zepto success story, wherein you realize how quick commerce firms are making a run for the money.

The grocery market has gained immense adhesion in the recent past due to the changing lifestyle of the consumers, urbanization, and a tech-savvy generation preferring to buy products online. The growth of disposable incomes and a busy lifestyle is making people seek personalized and convenient online platforms for grocery shopping instead of visiting brick and mortar shops.

These reasons have provided a developmental route to the quick commerce market which is expanding significantly. Zepto is one such company making a kill upon these growth avenues. But will the growth of Zepto wipe out the Kirana retail stores?

Zepto Success Story: Rise Of Quick Commerce Apps

The preference for online delivery of grocery products became the norm due to the COVID-19 outbreak. Social distancing standards compelled consumers to focus on online grocery shopping, which is not only convenient but safer.

The demand for apps like Zepto increased more after the lockdown instructions. People wanted safe contactless deliveries and quick commerce apps came to their rescue. Zepto, which promises 10 minutes delivery to customers, is banking upon the following reasons to drive its growth:

• Urbanization and changing consumer preferences
• Increased internet penetration and digital payment boost
• Time saving, safe deliveries

How Zepto Success Story Helped All Involved

Zepto could emerge as a unicorn because of its innovative business model. Let's try to understand the various aspects involved.

1. Merchants

Zepto uses dark stores, meaning that the supply chain, and the stock is under their control. This helps them control wastage (especially the perishable grocery products) as they are able to predict demand on the platform.

The margin over each product ranges between 7-22% depending on the product. The average delivery sizes range between ₹100-₹400. As soon as early users start trusting Zepto, the delivery fee could go up.

A lot of consolidation will happen and the basket size will shoot. That would generate roughly ₹20-₹50 commision on every order! Now add whitelabeled products (Zepto's own grocery product line) and there is a lot of profit that can be earned.

2. Delivery Partners

The success of Zepto won't be possible without great help from delivery partners. Let's see how Zepto makes 10 minutes delivery a reality.

Zepto divides every city into clusters/zones. One delivery partner only serves a 2 km area (cluster). There is one dark store established in that cluster.

So, if you do a little maths, you'll deduce that each delivery partner may be able to make 3 deliveries within an hour (approximately). This would add up to a total of 30 deliveries per day, considering the agent works a 10 hour shift.

So if we settle for ₹30-₹70 delivery fees per order, and estimate that the delivery partner gets a good 70% of the delivery fee. This would add up to a healthy ₹18000-₹24000, which turns out to be a lucrative job opportunity for blue collar workers.

3. End customers

Zepto is targeting users who value time over money. Furthermore, the discounts offered in the start are very lucrative for some users. Another interesting insight suggests that senior citizens and pregnant mothers will reap the benefit of Zepto's 10 minute delivery.

Quick commerce may not succeed in smaller cities and towns as the customer demands and reviews drive their business in metro cities are not the same in smaller cities. In small towns, people may not even care if they receive their delivery a day later instead of the same day.

Zepto Success Story Will Make Retail Stores Relevant

There is no doubt that Zepto will put pressure on retailers to compete for their position. However, retail stores will still be relevant, (at least in the coming decade) due to the following reasons:

Customers prefer monthly or weekly bulk purchases. The number of orders coming to Zepto and other quick commerce apps clearly indicate impulse purchase. They are mostly "Oops, did I forget something?" purchases.

About 80% of grocery purchases are done through Kirana stores in India. E-grocery hardly takes a 3% space in this space. The establishment of the new standard in India has pushed every sector to acclimatize and embrace ways that are effective on hygiene as well as safety.

People have to follow social distancing at public spaces and even at retail grocery stores, that eats away time. While consumers realized online grocery shopping, along with contactless delivery, saves time and is also safe.

Conclusion: Zepto Success Story

The market is projected to witness substantial growth in the future. Initiatives such as contactless delivery and online payment have fascinated consumers to buy groceries from online platforms, like Amazon, BigBasket, Grofers, and more.

The urban youth is looking for instant solutions and Zepto is providing it to them on a platter. However, Zepto will need to innovate on quality and SKU( stock keeping unit). They will also need to solve the issues with basket size or their margins will dwindle.

It is hard to say that the current model used by Zepto can beat the local retailers. But it would be interesting to see how more hyperlocal players emerge in this new age market.

 

Celebrities Investing in Startups: A Wise Move?

 

Startups are companies looking to develop a unique product or a service.

Due to high initial costs and limited revenue, most startups today turn towards venture capitalists for funding, besides other sources, such as crowdfunding and business loans.

There is understandable risks involved in founding startups, and many such ventures fail to do well or generate the revenue required to keep it afloat within the first two years of inception. However celebrities investing in startups do so due to unique solutions they offer to existing problems, not to mention learning opportunities.

There’s no doubt about the risks involved in investing in startups. Even with the multitude of risks, venture capitalists, angel investors, and other organizations continue to trust and invest in businesses. But why do we find many people and organizations taking the risk to invest in them? Find out possible reasons why investing in startups is a smart and wise financial move.

Startups And Their Prominence

Startups have several benefits to offer. For instance, employees can take on more roles and responsibilities than in a large organization. Moreover, most startups tend to have a relaxed work culture and flexible schedules. Besides this, they also let their employees bring innovation to the tables, allowing them to grow personally and professionally. So why do people and organizations find startups an attractive investment?

Some Famous Startups

Over the years, several successful startup ventures have sprung up across the country, including CRED, Pharm Easy, Meesho, and Swiggy. These ventures operate in different verticals, such as finance, e-commerce, medicine, sports, and technology.

For instance, CRED is a unique platform based on a new business model that lets you pay your credit card bills with ease. As per TechCrunch, CRED is the youngest Indian startup established in 2018 and valued at over $2.2 billion.

Likewise, Urban Company, another venture founded in 2014, acts as a marketplace for service providers from different domains. Over 16 investors have supported the company by funding about $4 billion.

Celebrities Investing In Startups

Entrepreneurs come up with unique ideas, and venture capitalists invest in them if they feel it has enough potential to offer something of value.

While most venture capitalists do invest in startups or large organizations, celebrities also fancy to invest in such companies.

Much research and innovation go into making these ideas successful, and investors capitalize on them to achieve higher returns. However, not all investors do it for monetary incentives. Many venture capitalists also fund startups for the adventure they offer or to support a noble cause.

Several celebrities investing in startups have turned into venture capitalists by investing in potential startups, including:

1.   Anushka Sharma

Anushka Sharma is a brand ambassador and key investor in the alternative meat startup Blue Tribe Foods. Collaborating with Blue Tribe Foods has helped the actress let people know that they can become more planet-conscious by adopting a plant-based diet.

2.   Akshay Kumar

Akshay Kumar’s backing of the fitness brand, GOQii, is an excellent example of a celebrity investing in the tech space. The Palo Alto-based startup established by Vishal Gondal, founder of the game development company, India Games, has raised $70 million in the Series C round. As the brand ambassador, Kumar is also one of the key investors in GOQii, besides Paytm and Tata Group.

3.   Alia Bhatt

Alia Bhatt is another celebrity venture capitalist who has invested in several startups, including Phool, a D2C company founded by IIT-Kanpur alumni, and Nykaa, a well-known fashion brand.

Phool began in 2017 as a flower recycling and waste management company. Besides this, the company also caters to other health and wellness sectors.

4.   Ayushman Khurrana

Actor Ayushman Khurrana is not only a brand ambassador of the premium men’s grooming products startup, The Man Company but also a major investor.

The company operates several health and beauty stores, e-commerce stores, and large retail stores.

The Man Company also has financial support from other notable players, including Emami, Redcliffe Capital, and Smile Group.

5.   Deepika Padukone

Deepika Padukone’s investments span several industries, including power and energy, aerospace, education, and FMCG. Padukone has helped several upcoming startups, including Atomberg Technology, Front Row, Blu Smart, Epigamia, and Supertails.

6.   Pankaj Tripathi

Pankaj Tripathi is another renowned actor who has financially backed the agriculture startup Krishi Network. With a network spanning more than 30 lakh farmers, Krishi Network leverages the power of the Internet to help farmers gain access to valuable insights and reap greater benefits from their cultivation.

7.   Malaika Arora

Malaika Arora is a celebrity-turned-investor who has supported the Mumbai-based D2C Ayurvedic products startup, Kapiva. Aveme Sharma, chairman of the Indian Chamber of Commerce and a former consultant at McKinsey & Company, founded Kapiva, which offers over 40 food products based on a 100-year-old tradition.

Besides this, through her venture firm, Malaika Arora Venture (MVA), Malaika Arora has also invested in the yoga and wellness startup SARVA.

Why Should You Invest In Startups?

1.  Early Investment Is Greater Rewards

The best time to invest in a startup is around its inception. With crowdfunding being an all-time favourite, the barriers to being an early-stage investor presents itself. Hence, lower overhead capital and the potential of high rewards during an exit strategy attracts investors.

2. Diversify Your Portfolio

During investment do not put all your eggs in one basket is the mantra to follow. Investors prefer portfolio diversification so as not to lose out due to big investments. That’s portfolio diversification.

This reduces financial risks. Startup investment is different from traditional assets, bonds, and stocks. Startups are not affected by market fluctuations.

3. Impact Investment

Startups help in job creation and it powers innovations. In 202 startups created over 3 million jobs. Additionally, startups usually develop products and services that addresses pressing needs. Supporting startups in supporting innovations. Startups into green tech, medical industry, and sustainability are attractive to socially conscious investors. The ideas get their funding and investors get good ROI.

5. Potential for Buy-Outs

Large companies look out for interesting startups. Companies buy them because firstly, they could be potential competitors in the future. Secondly, being in the field of innovation, they develop new technologies. So large firms can leverage these technologies to further grow.

Risks When You Invest In Startups

Higher Risk

There is always the risk while investing in a startup that it could fail.

Wrong Valuations

Startups usually provide optimistic valuations. Startups also try to align their business with some industry to make it attractive to investors such as VCs, angel investors, and others. Therefore, pay due diligence to study the startup you want to invest in.

No Liquidity

There is no option to trade your startup investments as in public stocks. Hence you got to wait for it to go public or be acquired. You can’t cash out your investment.

Conclusion - Celebrities Investing In Startups

As per a study, 90% of startups fail and little over 50% of them successfully reach their fifth year. The US economy took a hiding due to the Coronavirus pandemic. Yet, investments in startups shows signs of bouncing back as per the second quarter of 2021.

Today, there is a positive outlook for startups. Such ventures are thriving as they get the support they need from people from different walks of life. Thus, by investing in these companies, celebrities have shown that there is a need to bring forth new, innovative ideas to solve existing problems.

 

Money Spinning Dating Apps: How Does Bumble Make Money?

 

Stanford University conducted a study and comprehended that 39% of couples met online.

The world’s first-ever dating site Match.com was developed in 1995 and Tinder the famous dating app - darling of the masses, stormed the industry in 2012.

Since then, entrepreneurs and software development companies have created several notable dating applications for Android and iOS platforms. Bumble is also one such application that comprises of a unique business model.

However, the question is, how does Bumble make money out of this unique business model? More importantly, how does Bumble work?

Today, technology helps us ease our lives through technology by helping us to learn, shop, hail a ride, purchase medicines or food or grocery, carry out business and more. People spend most of their time online, shopping for stuff, selling stuff, ordering food, watching videos, dating, or working. An integral part of society leverages the power of technology, particularly the internet to add luxury to life.

[caption id="attachment_38167" align="aligncenter" width="1024"] Global Dating Apps Revenue[/caption]

How Does Bumble Work?

Bumble consists of three components: Bumble Date, Bumble BFF, and Bumble Bizz. The primary component, Bumble Date, matches people with probable partners. However, the prerogative is on the woman to send the first message.

The second component, Bumble BFF, is a platform where users can find and befriend others in the vicinity.

Similarly, you can use Bumble Bizz to find potential business prospects, mentors, and other work related opportunities.

Finding a match on Bumble is simple. Swipe right on a profile, and the platform matches you up when the other user does the same. However, do note that the match needs to be contacted within 24 hours. So, you only have as much as 24 hours to decide, act and send out your first message.

How Does Bumble Make Money?

Bumble is free to download and is available on the Play Store and Apple Store. So, how does Bumble make money? The dating app allows users to unlock special features by paying a fee.

For instance, Bumble offers an in-app currency called Bumble Coins, which you can buy after having gained premium membership. Likewise, Bumble has four other business models that it relies on to make money.

[caption id="attachment_38168" align="aligncenter" width="1024"] Global Dating Apps Users[/caption]

1.  Bumble Premium

You can pay a one-time fee to access Bumble’s premium features that includes, Spotlight and Super Swing. Spotlight boosts your visibility on the app, while Super Swing lets you know about users with similar interests.

The online dating app also lets you purchase a premium subscription that has features such as advanced filters, swiping in different directions and an incognito mode.

Bumble’s premium subscription model is four-tiered, including weekly, monthly, three-months, and lifetime. The fee for each tier varies. For example, you will need to pay $17.99 to access Bumble Premium for a week. Likewise, you would be paying about $32.99 for a month of Bumble Premium, $66.99 for three months, and $199.99 for lifetime membership.

2.  Subscription Model

Bumble also has a subscription model that lets you access its premium features such as Boost, Spotlight, and Super Swipe. Boost is a recurring subscription that costs between $7.99 and $47.99 and offers benefits like:

• Backtrack for undoing an accidental left swipe.
• Extend the time allotted to send your first message.
• Unlimited swipes.
• Access to one Spotlight every week.
• 5 Super Swipes every week.

The Spotlight feature is a one-time purchase that costs between $5.99 and $49.99. You can buy Spotlight independently or as part of Bumble Boost or Bumble Premium. The feature allows you to get your profile to the top in two ways: Using one Spotlight for a half-hour or two spotlights for an hour and a half.

Like Spotlight, you can also subscribe to the Super Swipe feature by paying a one-time fee. Super Swipe lets you get to know users better and costs between $5.99 and $39.99.

Turning this feature on notifies other users of your interest in them.

3.  Bumble Coins

Bumble coins helps you purchase premium features like Spotlight, Super Swipe, and Boost. Each Bumble Coin costs $1.99. However, Bumble also lets you buy these coins in bulk which significantly reduces its costs.

For example, while you would be paying $7.99 to purchase five Bumble Coins, you must pay between $14.99 and $24.99 to buy 10 and 20 coins.

Bumble IPO

In February 2021, Bumble went public, offering its shares at $28 to $30. Bumble’s share value later increased to $37 to $39, with several notable players investing in the company. The dating app also trades on NASDAQ at $76 for each share. With a market value of $14 billion, Bumble is currently one of the most successful online dating platforms. 

Key Takeaways: How Does Bumble Make Money

Bumble primarily operates on the freemium revenue model. However, it has also adopted the Software-as-a-Service (SaaS) and transaction-based business models, using which the online dating service was able to generate $542.2 million in 2020.

Also, Bumble’s users grew significantly from one million in 2015 to 42 million by 2020, and its revenue increased from $10 million to $337 million in the same period.

Bumble’s business and revenue models are rather traditional, where the company offers a free platform coupled with subscriptions and other such in-app purchases.

The online dating app was at the right place at the right time and in the process quickly gained traction. Bumble amassed 75 million users in over 150 countries in quick time and continues to do well even though there are a plethora of apps in the dating domain.

 

Emerging Trends In The Ride Sharing Mobile App Industry

 

The ride sharing mobile app industry has witnessed significant growth in recent years, and this trend is expected to hold its course.

This growth is driven by the convenience and affordability that ride-sharing services offer in comparison to traditional taxi services.

According to a recent report by MarketWatch, the global ride-sharing market size was valued at USD 64,144.69 million in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 13.65% during the forecast period, reaching USD 138,230.11 million by 2027. This indicates the ride-sharing industry will continue to grow in the coming years.

Introduction: Emerging Trends In The Ride Sharing Mobile App Industry

Additionally, there is a growing trend towards shared mobility, which includes not just ride-sharing, but also car-sharing and peer-to-peer car rentals. McKinsey reports that the shared-mobility market, which includes e-hailing, accounted for the largest share of global consumer spending in 2019, at $120 billion to $130 billion.

In this article, we will discuss some emerging trends in the ride sharing mobile app industry.

Personalised User Experience

Ride sharing companies are focusing on providing a more personalised user experience to their customers. This includes features such as enhanced navigation and routing, multiple payment options, and integration with other apps.

• Enhanced Navigation and Routing

Enhanced navigation and routing features can help riders save time and get to their destinations quicker by providing the drivers with real-time traffic updates and alternative route options.

This can be particularly helpful in areas where the traffic is substantial or when unexpected road closures and accidents occur.

• Multiple Payment Options

Offering multiple payment options can also enhance the user experience by giving riders more flexibility and convenience. For example, riders may prefer to use a specific payment method or may want to split the fare with other riders in their group.

Having multiple payment options can make the process of paying for rides more seamless and hassle-free.

• Integration with Other Apps

Integration with other apps can also be beneficial for riders as it could provide them with a more comprehensive user experience. For example, integrating with a music streaming app can allow riders to listen to their favourite songs during a ride.

Or ride sharing companies can integrate their platform with food delivery apps that allow riders to order food that can be delivered at the destination or to a location of their preference.

Electric and Hybrid Vehicles

With increasing concerns over climate change, ride sharing companies are shifting towards electric and hybrid vehicles. This trend is mainly driven by government regulations and incentives that encourage the adoption of sustainable transportation options.

One emerging trend in the ride-sharing industry is the increasing adoption of electric vehicles. According to McKinsey, the number of electric vehicles in ride-sharing fleets is expected to increase from about 100,000 in 2017 to over 1.5 million in 2025.

• Government Regulations and Incentives

Government regulations and incentives can play a crucial role in encouraging the adoption of sustainable transportation options. For example, some governments offer tax incentives or rebates to consumers who purchase electric or hybrid vehicles.

Additionally, governments may impose stricter emission standards for vehicles, which can incentivise companies to shift towards electric and hybrid vehicles that produce fewer emissions.

Safety Features

Safety is a top priority for ride-sharing companies. To ensure the safety of riders and drivers, ride-sharing companies are investing in advanced driver screening, real-time monitoring and feedback, and integration with emergency services.

Another trend is the continued emphasis on safety, both for passengers and drivers. Ride sharing companies are investing in new technologies and protocols to ensure the safety of their users, including real-time background checks, biometric identification, and in-app safety features.

• Advanced Driver Screening

Advanced driver screening involves thorough background checks, driving history checks, and regular vehicle inspections to ensure that drivers meet the safety standards set by the ride-sharing company.

This process can help identify potential safety risks, such as drivers with a history of reckless driving or criminal offences, and prevent them from becoming ride-share drivers.

• Real-Time Monitoring and Feedback

Real-time monitoring and feedback can also contribute to ensuring the safety of riders and drivers.

By monitoring factors such as driving speed, route deviation, and sudden braking, ride-sharing companies can identify potential safety risks and provide immediate feedback to drivers to encourage safe driving habits.

• Integration with Emergency Services

Integration with emergency services is also an important safety feature offered by ride-sharing companies. In the event of an emergency, riders and drivers can quickly access emergency assistance through the ride-sharing app.

This can include features such as the ability to call 911 directly from the app, share real-time location with emergency responders, or contact the ride-sharing company’s safety team for assistance.

Artificial Intelligence and Machine Learning

Artificial intelligence (AI) and machine learning (ML) are increasingly being used in the ride-sharing industry. This includes predictive analytics, dynamic pricing, and smart matching.

• Predictive Analytics

Predictive analytics involves using historical data and algorithms to predict future rider demand and allocate resources more efficiently.

For example, a ride-sharing company may use predictive analytics to determine which areas are likely to have higher demand at certain times of the day and allocate more drivers to those areas accordingly.

This can help to reduce wait times for riders and increase the efficiency of the ride-sharing service.

• Dynamic Pricing

Dynamic pricing is another application of AI and Machine Learning in the ride-sharing industry.

This involves adjusting prices in real-time based on supply and demand, allowing ride-sharing companies to provide riders with more affordable pricing options during low-demand periods and ensuring drivers are paid fairly during high-demand periods.

By using dynamic pricing, ride-sharing companies can balance supply and demand and create a more efficient marketplace.

• Smart Matching

Smart matching is a third application of AI and machine learning in the ride-sharing industry. This involves using data and algorithms to match riders with the most appropriate drivers based on factors such as driver experience, vehicle type, and rider preferences.

By using smart matching, ride-sharing companies can provide more personalised and efficient service for riders while ensuring that drivers are matched with riders who are most likely to have a positive experience.

Partnerships and Collaborations

Ride-sharing companies are increasingly partnering with other companies to provide more comprehensive transportation options to their customers. This includes multi-modal transportation options, strategic alliances with businesses, and joint ventures with other ride-sharing companies.

• Multi-Modal Transportation

Multi-modal transportation options are becoming increasingly popular among ride-sharing companies.

By offering riders the ability to seamlessly switch between different modes of transportation, such as ride-sharing and public transit, ride-sharing companies can provide a more convenient and efficient transportation experience.

This can aid in a big way to promote sustainable transportation and reduce traffic congestion.

• Strategic Alliances with Businesses

Strategic alliances with businesses are another way that ride-sharing companies can expand their offerings and provide additional benefits to their customers. For example, a ride-sharing company may partner with a restaurant chain to offer riders exclusive discounts or promotions on their rides.

This can help to increase customer loyalty and drive additional revenue for both the ride-sharing company and the partner business.

• Joint Ventures with Other Ride Sharing Companies

Joint ventures with other ride-sharing companies can also be an effective way for ride-sharing companies to increase market share and improve services.

By partnering with other companies in the industry, ride-sharing companies can expand their reach and offer riders a more comprehensive transportation experience.

Joint ventures can also help ride-sharing companies share resources and reduce costs, leading to a more efficient and sustainable business model.

Conclusion: Emerging Trends In The Ride Sharing Mobile App Industry

In conclusion, the ride-sharing industry is expected to continue its growth trajectory, with emerging trends including the adoption of electric vehicles, an emphasis on safety, and a shift towards shared mobility.

Trends in the ride sharing mobile app industry shows rapid evolution as new technologies and features emerge at regular intervals.

Personalised user experiences, electric and hybrid vehicles, safety features, AI and ML, and partnerships and collaborations are just a few of the emerging trends that are shaping the future of this industry.

As ride-sharing companies continue to innovate and improve their services, we can expect to see even more exciting developments in the years to come.