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Zero Commission Model for Travel Operators! A Blessing !

Corporate giants have dramatically changed the personal commute services of the travel industry in recent years, Which has resulted in both benefits and drawbacks for customers and drivers.

These organizations have made structural changes to an old industry that functioned the same way it did decades ago. Individuals in need of a cab had to mostly physically visit a travel operator. Or they could call a local car service to reserve a car at least half an hour prior to the pickup time.

E-hail services have made it possible to secure a car or taxi via a smartphone from any location. A drawback, however, is that this disruptive technology has reduced the market share of traditional taxi services and lowered the overall profits of drivers.

Though there are hardly any downsides for customers the drivers and small business owners end up facing several disadvantages. Some of them are:

  • Low Fares

Low prices negatively affect drivers’ earnings. Some drivers still rent cars weekly from third parties. They bear most of the costs associated with the service, such as fuel and repairs. Drivers contribute greatly to the service but hardly get any returns.

Initially, drivers used to rely on the surge charges to make up for low fares and infrequent trips. However, with price competition and the continued intake of new drivers by corporates and its competitors, drivers’ average earnings are being pushed downward. This means that drivers have to work longer hours to earn an income. In comparison to what they would have earned a year or two ago.

While this means that there is a larger supply of drivers. Leading to long hours behind the wheel, jeopardizing the safety of both drivers and passengers. These conditions coupled with customer trip cancellations can cause a driver to miss rides. Leading to money-making opportunities during the busiest hours, affecting a negative impact on drivers’ earnings and morale.

  • Price Competition

Price competition can be destructive for any industry. Increasingly, established corporations and other e-hail services are engaged in an intense battle to provide the cheapest service. They are directly competing with existing traditional taxi services. This has led to a drop in taxi medallion and black car prices in some places. This might be good for drivers, but bad for other traditional travel operators and car service groups.

  • Why Zero Commission for Travel Operators & Drivers?

All drivers and travel operators currently work with corporate giants on a commission-based model. Hence not promising a stable income.

The fluctuating income ends up leading the drivers with unstable incomes and dissatisfied lifestyles. Moreover, they largely impact the small cab aggregators as well by getting them out of business. New service providers flooding the market have created a level of competition that has reduced market share for traditional taxi services and lowered the overall profits of drivers.

The solution to all of the above is an unbiased platform that provides quality service to customers. Which has to be at the power and as smooth as the current corporate cab service providers. A major perk that could make the solution impeccable is to not cut from the income of drivers or small cab business owners. As much as this sounds like a play of words, this in fact is a reality in making with Beep.

Beep’s zero commission model for outstation cab management solution is real. Beep provides digital business solutions to both drivers and travel operators. Its online platform helps them achieve the digital transformation needed in businesses today. By taking cab service on an online platform, cab owners and drivers can run their business smoothly. It also helps them grow their income by reaching out to a very huge customer base. As Beep’s zero commission model for rides, it makes the platform a fair medium of income.

Beep builds a relationship of digital trust between the service providers and the customers. It improves the communication and deliverance of their services. It’s a digital platform that empowers small cab business owners and independent drivers. Beep’s ZERO Commission model is the need of the hour in the travel industry.

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Challenges Of Tour Operators and Trips To Overcome

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September 21st, 2020