Taxito, a digital ride-sharing service designed for rural areas, will cease its operations by the end of the year. The decision comes after a decline in usage following the COVID-19 pandemic and growing concerns about future competition from self-driving vehicles. This closure leaves some sparsely populated regions facing potential loss of their public transport connections.
Key Takeaways
- Taxito, a digital ride-sharing system, will shut down at the end of the year.
- The company faced financial challenges after a drop in ridership due to the pandemic.
- Future competition from autonomous vehicles also contributed to the decision.
- Rural areas previously served by Taxito may lose important transport links.
- Mybuxi, a different on-demand service, is seen as a potential alternative.
Taxito's Operation Model and Decline
Taxito offered a simple way for people in areas with limited public transport to find rides. Users would go to a marked stop and send an SMS to a central office, stating their destination. If a car stopped, they would send the car's license plate number to the center before getting in. This system relied on the willingness of drivers to offer rides, promoting a sense of community support.
The service started ten years ago near Huttwil in Lucerne. It expanded to cover parts of the Emmental and Entlebuch regions, including Kröschenbrunnen in the municipality of Trub. It also served areas in the cantons of Aargau, Lucerne (Seetal and Freiamt), and Graubünden, near Chur.
Taxito at a Glance
- Launch Year: 2014
- Operational Areas: Emmental, Entlebuch, Seetal, Freiamt, near Chur
- Service Model: Digital hitchhiking via SMS or QR code
- Funding: Annual fees from participating municipalities
- Closure Date: End of 2024
Over the years, Taxito saw fluctuating interest. Some communities joined, while others left. This summer, the company's management reviewed its operations and decided that the system was no longer sustainable. The digital ride-sharing service will officially end at the close of this year.
Reasons Behind the Closure
Martin Beutler, an architect and planner in Bern, developed and funded Taxito with friends. He points to two main reasons for the service's end: the impact of the COVID-19 pandemic and the expected rise of self-driving cars.
"Interest in Taxito grew steadily until the pandemic," Beutler stated. "More people were joining, and more drivers were willing to take passengers to the nearest train station or town center. But since then, everything changed. The numbers never reached their previous levels."
Before the pandemic, the system was gaining traction. However, public health concerns and changes in travel habits led to a significant drop in users. This decline directly affected Taxito's financial model.
How Taxito Was Funded
Taxito's main income came from renting out its stopping points to municipalities. Each community paid an annual fee for every location. The cost varied depending on whether the stop had a simple sign or a digital display showing the destination. The simplest option cost approximately 1 franc per day.
While users paid 1 franc for the SMS to register their ride request, this money was passed on to the driver to cover expenses. Taxito itself did not profit from these individual ride fees.
Historically, income from municipal rentals covered operating costs, including maintaining the central office and developing the IT infrastructure. Beutler explained that new technologies, like QR codes for ride requests, were introduced as fewer people use SMS on modern smartphones. However, these efforts were not enough to overcome the financial challenges.
Beutler expects future chronic deficits. "We had to anticipate chronic deficits in the coming years," he said, explaining why they could not continue operations. This financial outlook, combined with external pressures, made the decision clear.
The Looming Threat of Autonomous Vehicles
The second major factor for Taxito's closure is the anticipated arrival of self-driving taxis. Beutler mentioned a Chinese industrial giant planning to launch autonomous taxis in Switzerland as early as next year. He believes Taxito would not be able to compete against such powerful new services.
This technological shift represents a significant threat to traditional ride-sharing models. Autonomous vehicles offer a different kind of convenience and efficiency, which could make services like Taxito obsolete.
What Happens to Rural Transport?
The end of Taxito raises questions about public transport in sparsely populated areas. These regions often lack extensive bus and train networks, making services like Taxito vital for residents to access essential services or connect to larger transport hubs.
In Kröschenbrunnen, for example, this is not the first time a local transport initiative has failed. Five years ago, the "Kröbu Bürgerbus" (citizen bus) was discontinued due to high costs. Michelle Renaud, the municipal president of Trub, expressed surprise at Taxito's closure. "We were surprised," she stated. The future of transport in her community remains uncertain.
Mybuxi as a Potential Alternative
Despite the challenges faced by Taxito, Beutler sees a future for other transport providers in rural areas. He highlighted Mybuxi as a promising alternative. Mybuxi is not a ride-sharing system like Taxito. Instead, it offers on-demand courses (trips) with a mix of employed and volunteer staff.
Beutler believes that self-driving cars could integrate well into Mybuxi's system. He noted that paying for a service that is ordered, like Mybuxi, aligns with current consumer expectations. This differs from Taxito's model, which was based more on a concept of neighborhood help and shared rides.
The shift from community-driven models to more structured, paid services reflects changing societal preferences and technological advancements. As digital solutions evolve, rural communities must adapt to ensure their residents retain access to reliable transportation options.
- Taxito: Community-based, digital hitchhiking.
- Mybuxi: On-demand, paid service with staff.
The transition highlights the ongoing evolution of mobility services, especially in areas where traditional public transport is limited. The success of future models will depend on their ability to offer convenience, reliability, and financial viability.