FAQsFrequent Misconceptions about Texxi andthe DRT Exchange
But this has been done beforeActually, prior to 2006, "it" had not been done before.Anywhere.And not through lack of trying.It was deemed as an insoluble problem by many transportacademics such as Jim Morris of CMU.Even in April 2009 and later in 2010, key figures intransport research were still claiming it was impossible.We have proof that we achieved the "impossible"
There are lots of taxi hailing start-upsYes there areHailo, Kabbee, GetTaxi, Uber, Weeels,(just so you know we know)Since we enable GROUPED TRAVEL, the hail by (smart)phone is just one thing.And it does not have to be just a car or a taxi - any vehicle.It is a bit like saying you have invented the automobile justbecause you have invented the wheel. Sure the wheel ispart of the solution, but it is not the solution in and of itself.
There are lots of taxi hailing start-upsHailing a cab by smartphone, the web or SMS just isnot interesting and that particular problem was solvedas far back as 2002 - 2005.We saw an example in Prague in 2005 for instance.While a subset of our system could replicate any offunctionality the afore-mentioned companies, fortunately itis not (only) what we do.The most impressive getup we have seen is Limores /Groundlink by Alex Mashinsky. That man is somethingelse.
There are lots of taxi hailing start-upsIt becomes interesting when combined with● a grouping mechanism● a social network to give people a measure of control over who they do share with (ratings feedback)● a way to rate the vehicle service provider and the overall user experience (ratings feedback)● a mechanism to dynamically price seats in a vehicle based on time of day● a way to congestion charge by ride seat priceThe key things are the "grouping", "social network", "dynamic pricing"and the "futures exchange" concepts.
So is Texxi the Exchange or thehailing app?It is both!The hailing mechanism branding is "The(Shared) Taxi You Text"The DRT Exchange branding is "TransitExchange for the XXI Century"
So is Texxi the Exchange or thehailing app?Sometimes we have to double (or triple) as the liquidityprovider, marketing agent AND interface applicationprovider.And thus we use "Texxi - the Taxi you Text" as themarketing hook for the "hailing" bit.If we were to white-label, only the "Transit Exchange for theXXI Century" branding would be visible, since we would beusing generic other hailing technologies.
How do you get people to share ?By making the whole price per seat per ride significantlycheaper than it is currentlyBy allowing people to book rides ahead and recoup someor all their money if they cannot make the trip.To give people assured rides in the future (something fewtaxi firms do), much like an airline, train company or longdistance coach company doesTo allow people to buy "ride insurance" to protect them inthe case of illness or other emergency.
And what if someone does not wantto share?They do not have to if they do not want to.We believe inchoice. And the attendant consequences.They can either try and get a ride the good old fashionedway (tough at periods of high demand) or not ride at all.Or they can buy all the seats in a vehicle, much likepeople can charter a boat or an aircraft all to themselves.At periods of peak demand, e.g. Paddington cabsharescheme, getting a ride at all in 30 mins has a significantvalue all in itself.
But buying all the seats would betoo expensiveActually - at periods of high demand (like Paddingtonstation at morning rush-hour), rather than tell people theycannot have a cab by themselves, just charge them thetrue demand price.People will then make the decision themselves to sharewhen it is £5 vs £30.The market will tell us how badly people want to ride alonewhen that price comparison exists.If corporations then start buying many whole cab rides fortheir people, then the cab fleet can dynamically expand tomeet the demand (as long as the market is allowed towork)Places such as Kings Cross (where cabshare has failed)could be tried again with the Market Maker ideas.
How do you get to critical mass?By using the idea of a Market Maker to dodynamic ride-matching in real-time.Matching supply and demand through anexchange construct is one of the reasons wewere able to demonstrate a working systemwhen all others had failed.We use the Market Makers to provide liquidityto the exchange to facilitate the trading.
But what about security / safety?A shared taxi is no less safe than a shared busor train rideAnd since there is *some* way to find apassenger who is in the cab (not the case withbuses or trains), it is no more dangerous.If people dont want others to see where theylive they can be picked up / dropped off at abus-stop near to where they live
But rich people dont want to shareOf course they dont.But they still do. Look around a first or businessclass cabin of an airline. Many people sharingthere.Or private jet charters.With the social network, people can choose amaximum number of co-riders (from no-one tothe full capacity of the specific vehicle)
But rich people dont want to sharePlenty of people who are not rich (the majority)would still use the system.We heard that no-one would share and thenwatched those very same people consent toshare with strangers.
But 25% is a lot to take from thedriversThink of it, instead, as the cab driver makes 75% of thetotal.Well if we make a cab driver 3 times the money he wouldusually make (z), then taking 25% of the 3*z leaves 2.25*zfor the driver. We get 0.75zThat is hardly greedy. We make 25% because we increasehis earnings.Normal booking firms take 5% - 15% for no extra moneymade for the driver.
What does a licence buyer get?A 50% share of the 25% revenue cut in the locale wherethe licence is operating, MINUS operating costs - perhaps30% - 50% of this amount.Our "knowhow" and contract staff (supplied from CraneDragon)Knowhow is operational methods, experience and use ofpatents.What we offer is a set of tactics to make the system worksince it is NOT trivial.