The TaaS or transportation as an industry is going to revolutionize our world as we know it. It might be even more significant than the smartphone revolution, and its annual sales can also stack up to $8 trillion eventually.
Over the years, we have seen a rise in ride-sharing services. A large part of this industry revolves around transporting people and delivering food. The company Uber started small but quickly gained worldwide recognition. It started off from a small apartment, but in seven years, Uber has made more bookings than the United States Taxi industry.
With more companies like Uber, Lyft, Facedrive, and Grubhub entering the market, it is only a matter of time before they can be optimized to create a more flourished industry.
And that is precisely what TaaS aims to achieve by creating a multi-modal transportation system.
The Initiation Of TaaS industry
In 2016, CEO of General Motors, Mary Barra, made a statement regarding the auto industry and believed that the entire auto industry would change more in the coming five to ten years more than it had changed in the past fifty years.
Yes, it’s indeed a lot of change, but it is real. With the advancement of technology, more effective and efficient ride-sharing companies are popping up.
What started with cars quickly partnered with motorcycles and made the industry even more significant. With the help of high-speed internet and the upcoming 5G connectivity, it will become even more instantaneous..
The beginning of TaaS will significantly impact other major industries as well. For starters, there will be a significant downfall of personal ownership of automobiles. TaaS will be more affordable and available to people.
Which will make them reluctant towards ownership of cars since cars and all it’s maintenance are not relatively cheap. TaaS will be a more eco-friendly solution for the mass people fighting against pollution. We also would not need large parking lots to take up potentially one-third of the city’s entire infrastructure.
All this can and will become true. The trend of TaaS has already begun, and investing in it will give back a hefty profit. That’s what leading analysts and Whitney Tilson founder of Empirical Financial Research believe.
You can check out the BizReviewed blog post on TaaS to know more about what Whitney Tilson has to say.
Four Macro Trends Leading To The $8 Trillion Megatrend
When Uber first started rising, it quickly became appreciated by everyone and was globally introduced. The costs were low, and the service was available. But as more people began taking an interest in it, the more economical congestions began.
TaaS, however, aims to excel in a place where Uber and most other transportation industries could not.
TaaS wants to implement a more carbon-neutral form of ride-sharing experience to make it an even broader industry.
The four large industry that will help TaaS to emerge fully are-
1. Electric Vehicles
2. Faster Connectivity
3. ESG(Environment, Social & Governance) Industry
4. Ridesharing industry
All four of these industries are running at their all-time high and have immense potential. TaaS or transportation as a service is the idea that combines all four components that will eventually create the $8 trillion megatrends.
First of all, electric cars are going to bring in the next change pretty soon. Electric cars play a very crucial part in reducing the ever-growing pollution from emissions. These cars can be a greener solution to many of the current world problems.
Therefore, electric cars will be a significant part of ESG investments since ESG’s goal is to provide solutions to environmental problems.
Next comes the connectivity part. 5G is going to make the entire world go faster. Connectivity will be enhanced, and with limitless control, the transportation industry will change even more. Driverless cars will become a thing. We already have self-driving vehicles. But the activation of 5G will make these driverless cars more efficient, and roads will become safer.
Combining all that with the ride-sharing gig is the final piece of the puzzle- making it an affordable, available, safe, and eco-friendly service, everyone will be willing to use.
The ride-sharing industry has already reduced private ownership of cars. In 2019 the global car sales already contracted 4%. And there are obvious reasons for it.
Owning a car is just too much trouble for a lot of people. Notwithstanding the price tag, most personal vehicles are barely used more than 5% of the time. Then there are the insurance fees, maintenance, fuel cost, and whatnot. So, when people find a better alternative, they will take it.
Another factor that plays an important role is people’s perspective. People’s attitude towards cars has changed quite a lot, and truth be told, it is not regarded as a symbol of adulthood anymore as it used to be around the world.
People are now more cautious about their surroundings and want a more stable, eco-friendly, and economically viable solution regarding most cases.
Most people will be reluctant to buy a $20,000 car and add more maintenance and insurance fees every year, costing thousands of dollars. Instead, they would choose to invest in a $200 monthly subscription for a 24/7 transportation service that arrives with a tap on the mobile.
TaaS is more than just a fleet of uber drivers. It is a multi-modal transportation system that will change the way we use transportation forever. With proper reach and investment, the service will be ten times cheaper and 40 percent more available for the mass people. One of the biggest global revolutions is heading our way fast in the form of TaaS and will entirely change the world as we know it.