By Melissa Dobstaff
The transportation industry has virtually transformed within the past decade, city residents are no longer fully dependent on taxicabs to get around ever since ride-sharing services such as Uber and Lyft created their monopoly. These ride-sharing services are a cost effective way in which people can get around the city without having to call or hail a cab. Convenience is a major factor these days and companies like Uber and Lyft, which allow users to request and track their rides have sufficiently managed to capitalize on the transportation needs of those travelling within city limits.
When looking to escape the busy city for a day or a weekend however, residents are forced to rely on major bussing companies or expensive car rentals. The success of ride sharing left the market ripe for someone to step in and tackle ride sharing on a larger scale, which is where Skedaddle made its debut. With its sights set on reinventing mobility beyond city limits, its founders desired to make travelling outside the city more convenient and less costly. Through its app, Skedaddle allows users to grab a seat on an existing route or create their own. Once a minimum of nine people have signed onto the route, Skedaddle will arrange for a shuttle, van, or bus to run the route. The company saves users money by offering a free ride to the individual that creates the route, but it also offers twenty-percent off of the standard seat price to the first nine riders who buy a seat. After the creator and the first nine riders, everyone else is set to pay the standard fare, but these fares are set to undercut other longer distance trip providers.
Essentially Skedaddle is entering the market and allowing users to electronically charter a bus, but unlike Uber and Lyft who hire their own drivers, Skedaddle has tapped into an underutilized market. Instead of hiring their own drivers in every city, they use professional charter companies that are operating under DOT regulations, are properly maintained, and insured. When coming up with this idea, the founders realized that they could put these underutilized vehicles to work, and that is precisely what they did.
As this company continues to grow and gain traction in the market, it is likely that we will see existing companies try to push back against the new competition in one way or another. Currently east coast based, the Skedaddle is looking to expand westward with its sights set on eventually replacing companies like Peter Pan and Greyhound. This intended takeover will require a fair bit of time and investment as companies like Greyhound currently serve the entire country whereas Skedaddle is just getting its start in the Northeast. With technology and the popularity of ride sharing, the market is likely going to shift, which is where existing companies will face some challenges. While it is unlikely that the existing transportation giants are going to back down without a fight, they may need to get creative when it comes to strategy.
Since Skedaddle is utilizing existing charter bus companies to offer their service, they really are not skirting around having to comply with industry regulations. The vehicles being used are properly insured and in compliance with DOT regulations, which shows that Skedaddle was smart with their business model. Skedaddle has learned from the ride sharing companies that preceded it such as Uber who faced a lot of resistance from competitors who were forced to comply with stricter regulations, which is why Skedaddle will likely continue to grow.
Convenience and cost are often enough to sway customers, and Skedaddle’s use of technology is making escaping the city less of a hassle. Consumers want choices and this is going to prove a tempting one, which means that existing transportation companies will need to adjust in order to compete. If Skedaddle is properly regulated as all transportation providers should be for the safety of consumers, then competitors might just have to compete the old fashioned way or evolve. Technology is making waves in the industry and existing companies will need to adapt or they could see themselves phased out in the future.
Student Bio: Melissa Dobstaff is a Staff Member of the Journal of High Technology. She is currently a 2L at Suffolk University Law School. She holds a B.S. in International Business Management with a minor in Spanish from Youngstown State University and a Post Baccalaureate Certificate in Paralegal Studies from Kent State University. Melissa is the Vice President of the Business Law Association for the 2016-17 academic year.
Disclaimer: The views expressed in this blog are the views of the author alone and do not represent the views of JHTL or Suffolk University Law School.
