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Ridesharing Platforms Use Technologies to Make Taxi Services Cheaper

Yandex.Taxi has launched Order Chaining in Tbilisi. This machine learning-based technology allows drivers to receive their next order before finishing a current one, with a pickup point for incoming orders nearby the drop-off point of the current ride.

Yandex.Taxi first developed and set order-chaining technology at the end of the year 2016. Orders, distributed by chaining, operate in many cities where ridesharing platform is activated. It helps drivers to minimize vacant car run, and thus lowering per-trip costs.
In Georgia, Yandex.Taxi operates in Tbilisi, Rustavi, and Batumi.

The advantages, which obtain the drivers of Yandex.Taxi collaborating taxi-parks

Unlike the standard cab companies, ridesharing platforms, wherein drivers work shifts on schedule, Yandex.Taxi service allows drivers a flexible work plan. The imperative indicator for a driver is his or her Paytime that is a proportion of total time spent on the passengers’ rides and earnings. Recently, suboptimal order distribution, when drivers receive the client order that was called in first, as opposed to the nearest client, or long wait times between orders (when working as a gypsy cab on a street) resulted in a total Paytime of about 10-20%. Paytime of drivers using ridesharing platforms is 60-70% or higher. It means that majority of worktime the driver spends carrying passengers, and thus earning.

It results from a huge number of calculations. Online aggregators use a whole range of solutions that optimize Paytime, Yandex: maps, traffic jam information, weather forecasting etc. Order chaining is one of these technologies. It allows a driver to receive a constant stream of orders that are as close as possible to their location – for example, an upcoming drop-off point. Yandex.Taxi estimates that about 15% of orders in Tbilisi are chained.

It is important to mention that order-chaining technology functions only when the users indicate a drop point location in the app. Otherwise, the system will not be able to determine where the driver is going to finish the ride and the system can offer him to start a new order at that location.

The advantages that new technology offers to the app users

When a gypsy cab driver asks for 5-6 lari to drive from the Freedom Square in the center of Tbilisi to the Vake Park, it is not because he is trying to cheat his client. Such driver was looking for a client during few hours; therefore, included the waiting time in the cost of the ride. He demands a fair price for his services due to a low Paytime. A trip with such driver must be quite expensive. For comparison’s sake, the same trip by Yandex.Taxi will cost the user no more than 3.8-4 lari.

The less time a driver spends waiting and doing dry runs, the higher is his Paytime, so the lower becomes the cost of idle time included in what a client has to pay due to fares. High-tech solutions, such as chaining orders, lower a final cost for passengers while allowing drivers to make more money.

Yandex.Taxi operates in Georgia, Armenia, Russia, Kazakhstan, Kyrgyzstan, Belarus, and Moldova. The service integrates more than 280,000 drivers from partnered taxi companies.