Yellow Cab adopts tech to challenge Uber
Ride-sharing services such as Uber have taken business away from traditional taxis. To better compete, Yellow Cab has begun using Verizon’s Share Solutions to automate the cab-reservation and payment process for its Ohio fleet.
The Verizon technology, which Yellow Cab began using on Thursday, is designed to allow taxi drivers to more easily locate and rent available cabs, creating an on-demand, self-service approach to gaining access to vehicles.
Normally, drivers lease vehicles from Yellow Cab, and they can do so on a daily, weekly or longer basis. But electronic paperwork is involved each time they do, which takes up drivers’ time and adds to wait times for passengers awaiting pickup. Verizon’s technology saves Yellow Cab’s drivers time and money by enabling fleetsharing citywide.
The new technology is “facilitating easier vehicle reservation and tracking across the board,” said Morgan Kauffman, CEO of Yellow Cab, in a statement.
Yellow Cab’s move makes sense, said David Smith, an associate vice president at digital-marketing agency Mindstream Interactive.
“The average person won’t necessarily care that the partnership with Verizon streamlines back-of-house administrative tasks,” Smith said. “But they will care about the fact that Yellow can promise faster, more reliable, more easily-accessible service. It’s unlikely to convert Uber or Lyft devotees, but It might be enough to get semi-regular Lyft and Uber riders to try, which could motivate a switch.”
The growth of ride-sharing services and internet-connected applications, coupled with changing demographics, have encouraged cab companies, fleet managers and transportation providers to innovate in order to compete. In the past few years, for example, Yellow Cab has launched an app that allows customers to book a cab with a tap of a button, and it also has heightened its presence on social media.
“If you combine great technology with hyperlocal advertising, this can win back the millennials,” said Jason Parks, owner of digitalmarketing firm the Media Captain, which has worked with Yellow Cab. “Millennials like to support local businesses, and if social media is deployed correctly, this can definitely win them back.”