Uber, Lyft and SideCar, they are all examples of the ridesharing business model. By means of smart phone applications, these virtual taxi companies (they claim they are not) draw upon available privately owned cars to satisfy needs for city transportation. By allowing anyone to act like a taxi they disrupt the old taxi-model. How? Because private cars are not purchased on the basis of a taxi business case. Instead people own them because they need them. So, the cost side of their business case should be free of anything other than the incremental cost of the ride you share. This will make the ridesharing option radically cheaper than you regular taxi ride.
What does this have to do with commercial transportation? Well, imagine a similar system for city distribution, long haul transportation or public transportation. By using excess capacity in already existing assets, or even, bring unused assets into the transportation system, could existing systems be disrupted?
Volvo Group Venture Capital is on the look out for the Uber, Lyft and SideCars of commercial transportation. Don’t hesitate to drop us a note should you know of one..