The market is steadily evolving. And this is a statement that can be applied at any time in human history. Industrial revolutions emerged in this way and have led to frequently improved production.
Recently, we saw the technological boom in applications. The so-called Sharing Economy takes advantage of the technology of apps to unite potential vendors and consumers in a georeferenced way. Hence, they reduce costs and provide an easier balance between supply and demand.
We can say that two of the main shared economy companies are iFood and Uber.
iFood has made life easier for consumers and restaurants by introducing an application where you can order your meal at affordable prices without the need to call the restaurant. Everything is done via the mobile screen, and the information is sent to the restaurant without errors.
And who is the major beneficiary here? The consumer directly, who has several choices available to place his order. Restaurants also gain from this, increasing their sales.
The applications themselves gain from the restaurants' monthly programs and sales commissions.
Uber is present in over 70 countries, serving about 612 cities, with over 1.5 million registered drivers. Uber arrived in Brazil, in 2014, in the city of Rio de Janeiro. Since then, the company has expanded to more than 100 cities, with more than 50 thousand registered drivers. The national market is the second largest in the world, second only to the United States.
Uber's prices are a plus when compared to conventional taxis. Although its calculation is similar (prices established by distance traveled, idle time and a minimum value for the ride), Uber's system is dynamic.
Here is where the law of supply and demand comes in: the more people looking to travel and fewer drivers, the higher the cost. And the same goes for the opposite, the more drivers available, and fewer travelers, the ride is cheaper.
Even with Uber’s dynamic pricing, rides are cheaper than taxi rates". An important factor in Uber's price is that there are no taxes or fees from government regulatory agencies, unlike taxis.
The lower rates have forced taxis to be more competitive in order to stay in business. As a result, the public is the major winner. Competitive services need to adapt to customer demands, such as affordable prices, comfort and good service in order to stay in business. In addition, the flexible working relationship allows the application drivers to have more efficient earnings compared to conventional taxi drivers
The impact of Uber, iFood, and similar companies, in the lives of the population, is clear. They are people who offer services to others, with the help of a technology that enables supply and demand to meet. Consumers are winning, and so are deliverers, generating drive in the economy and improving the way the market consumes the services offered.
In both cases, we see that startups provide improvements to their markets. More than ever, this type of company appears to make life easier for everyone involved in the process: customers, companies, and workers.
Startups and fintech have been growing and gaining incentives over the years because they are companies that seek to solve situations in an innovative way, transforming the market in which they aim to operate, benefiting the population and the economy.
At WePayOut, we think a lot about how to innovate our market. We seek differentiation in the services rendered and in the solutions offered. We also think about how we can make life easier for our population when it comes to accessing their own money. It is a driving challenge every day, and we love it.
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