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Ride-hailing Basics: What is it and How Does it Work?

Mar 27, 2024
Business Travel
An employee using the passenger collection service during a business trip

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In today's hectic world, convenience is king, and ride-hailing has become a saviour for urban dwellers. This blog post is your guide to this revolutionary mode of transportation, helping you understand how it works and how to make the most of it.

WHAT IS RIDE-HAILING?

Ride-hailing is a transportation service that allows you to book rides on demand using a mobile application. Instead of hailing a traditional taxi on the street, you request a ride through a ride-hailing app on your phone that connects you with a nearby driver. 

The service is often provided by private individuals using their own vehicles as part- or full-time drivers for the ride-hailing platform.

HOW RIDE-HAILING WORKS

Ride-hailing services are usually accessed online through a ride-hailing application and involve the following key features:

  • Mobile App: You download a dedicated mobile application provided by the ride-hailing service.

  • User Registration: To use the service, you must create an account and register your payment information within the app.

  • Real-Time Location Tracking: The app uses GPS technology to determine your location and connect you with the nearest available driver.

  • Driver Matching: Once you’ve made your ride request, the platform matches you with an available driver close to where you are.

  • Fare Estimation: You will usually see an estimated fare for your trip before you confirm the ride.

  •  Cashless Transactions: Payments are often handled electronically through the app, reducing the need for cash transactions. Payments are made through your account and the fare is automatically deducted from your registered payment method.

  • Driver Ratings: Both drivers and passengers can rate each other after a ride has been completed, providing a feedback mechanism to maintain service quality.

RIDE-HAILING VS. RIDE-SHARING: WHAT'S THE DIFFERENCE?

Ride-hailing and ride-sharing are two means of transportation that are similar in some ways but quite different in others. Here are the two main differences.

  • Driver status:

    • in ride-sharing, the driver is usually a private individual who shares their vehicle with other people and may or may not be affiliated with a ride-sharing platform

    • with ride-hailing, though, professional drivers provide transport services for a fee, either as independent contractors or employees of ride-hailing companies

  • Payment:

    • passengers who ride-share, often split the cost of the trip, making it more cost-effective for those involved, as long as they’re all going to the same place!

    • ride-hailing, on the other hand, is a professional taxi service that takes you exactly where you want to go for a fee — the advantages over traditional taxi services are the very competitive rates and the convenience and security of booking through the online platform.

BEST RIDE-HAILING APP: FREENOW

Ride-hailing apps have become very popular with people, especially for getting around cities quickly and easily. In fact, they’re springing up all over the place, as lots of different companies try to jump on the bandwagon. There’s one ride-hailing app, though, that stands head and shoulders above the others, particularly when it comes to business travel — and that is FREENOW.

FREENOW’s ride-hailing app is the best on the market for both business and personal travel. It allows you to hail rides quickly and easily — along with a whole lot more! Check out below all the benefits you get when you use FREENOW’s ride-hailing for business:

  • Different travel options: easily book a private hire car in the app and see when it will arrive and how long the journey will take; if traffic is bad or you’re just feeling energetic, why not try one of the 2-wheel options for zipping around the city!

  • Reduced carbon footprint: FREENOW boasts the largest fleet of electric and zero-emission transport in Europe, helping you reduce your carbon footprint. Its company software can also track each business traveller’s carbon footprint and provide detailed CO2 reports. This information can be used to set your sustainability targets and power your CSR strategy.

  • Reduce costs: compare the price of different travel options and create and track individual travel policies and cost centres to ensure you stay in control of your spending.

  • Expensing made simple: get detailed expense reports at the click of a button, centralise your payments and pay with one monthly invoice.

  • Streamlined administration: simplify your business travel processes by providing a single platform on which you and your employees can not only hail a ride, but also access a range of other services that even includes eMopeds and eScooters.

  •  Mobility Budget: when your employees are using FREENOW’s app for business travel, you can also give them a benefit that rivals having their own company car. They get a monthly budget to spend on their personal travel, whether that’s commuting, night’s out or holidays.

Still not convinced about ride-hailing? Here’s a summary of its main advantages.

  • Convenience

  • On-Demand Service — request a ride anytime, anywhere, through the app
  • No Need to Hail on the Street — order your ride from wherever you are
  • Ease of Use

  • User-Friendly Apps — making it easy to book, track and pay for your ride
  • Cashless Transactions — payments automatically processed through the app
  • Cost Transparency

  • Fare Estimates — see how much you’ll pay before you confirm
  • No Haggling — fair set prices mean no need to negotiate
  • Safety Features

  • Driver Ratings — choose drivers with positive feedback for added confidence
  • GPS Tracking — real-time location tracking provides an added layer of security
  • Accessibility

  • Wider Service Area — often operate in areas where traditional taxis don’t
  • 24/7 Availability — many ride-hailing platforms operate 24/7
  • Innovative Features

  • Integration with Other Services — easily mix different modes of transport
  • Carpooling Options — share rides with others traveling in the same direction
  •  Environmental Impact

  • Reduced car ownership/use — less need for individual cars
  • Electric vehicles — large electric vehicle fleets

 

Ride-hailing technology has revolutionised urban transportation by putting a personal driver at your fingertips with just a tap on your smartphone. 

Forget standing on the curb trying to get a cabby’s attention — it's all about on-demand convenience, cashless transactions and a variety of ride options. Whether you're headed to a business meeting or a hot date, a ride-hailing app can connect you with a driver, turning urban commuting into a seamless, stress-free experience. Welcome to the future of getting around!

Learn how FREENOW can help boost your business travel experience here.