Toyota tie up with taxi giant Uber for ride sharing
United States: Global automakers are investing in the taxi
business to enhance the ride sharing culture. The move is growing fast and
influencing other automakers worldwide. Although, the amount of investment was
not disclosed but the Toyota’s captive finance arm is set to offer flexible
leasing options to drivers in U.S by the end of 2016 to enhance its driver’s
base. The two companies plan to start joint projects probably in the second
half of the current year. The partnership is considered to be of great
potential as it revolves around two players that lead their respective spaces.
Uber’s main contender in the US, San Francisco based Lyft Inc. has
already tied up with the country’s largest automaker General Motors and almost
an investment of US$ 500 million is expected in the ride hailing service and is
also providing its vehicles to Lyft. On the other hand, Europe’s largest and
the world’s second largest automaker Volkswagen had also invested US$ 300
million in Gett, an Israel based ride-hailing start-up and BMW AG made its deal
with Scoop Technologies Inc., of San Francisco, maker of a mobile carpooling
app.
Toyota
senior managing official Shigeki Tomoyama says, “the demand for Ridesharing is
rising exponentially and it also has huge potential in terms of designing the
future of mobility. The company hopes to explore new ways of delivering secure,
appropriate and attractive mobility facilities to the customers”.
According to a recent report published by TechSci Research, “United States Radio Taxi
Services Market
Forecast and Opportunities,
2021’’ Radio
taxi services market in the United States is forecast to grow at CAGR of about
6.6%, in value terms, during 2016 -2021. In 2015, For-Hire Vehicle (FHV)
operators or the private service providers, accounted for the majority share in
the United States radio taxi services market. Southeast region of the country
comprising Florida, Georgia, North Carolina, Virginia, Kentucky, etc. dominated
the country’s radio taxi services market in 2015, followed by Northeast region.
As per TechSci Research, the strategic investment done by major auto
makers in the taxi business is anticipated to make the competition in the taxi
business more stiff. Also aligning with Uber, Lyft and Gett represent calculated
moves by the world largest automaker to have inside look into ride hailing
business as well.