High competition in the ground transportation market around the globe

The transportation industry is a gigantic ecosystem. It covers everything related to the key modes of transport namely air, road, rail, and water transport. This industry also includes passenger as well as goods transport. When you consider transit and ground passenger transportation market, you will find that it includes sales of transit and ground passenger transportation services by sole traders, organizations, and companies run via partnerships, etc. that provide a range of passenger transportation services like chartered buses, urban transit systems, school buses, and even luxury limo services.

By 2022, the global market of transit and ground passenger transportation is anticipated to touch almost $684.68 billion, with a significant growth at a CAGR of 10.1% for the period of the forecast. This growth is expected because of several factors, the key ones being government investments in transit systems (rural, inter-urban, and urban) as well as strategic partnerships between the government and private transit service providers throughout the globe. When it comes to ground transportation, there’s a tough competition between private service providers, including those offering limousine services.

1- Ground transportation in San Francisco

Ground transportation in San Francisco

According to a 2018 report by San Francisco Municipal Transportation Agency, San Francisco had a population of 883,000 and boasted of 720,000 jobs in total, all of which were within 49 square miles. The report said that since 2010, San Francisco’s population grew by 9%. The city’s employment grew by 32% while vehicular traffic entering the city got a boost by 27%. There was an increase of 6% in vehicle registration within the city. Between 2018 and 2040, San Francisco is expected to add another 150,000 new jobs and 200,000 new residents. The city is anticipated to make additional investments in the sustainable modes to help it achieve its new goal of 80% of all trips being taken by sustainable modes by 2030 and bringing the net greenhouse gas emissions to zero by 2050.

Since 2010, San Francisco residents have experienced an abundance of multiple transportation options to match its growth. Most of these have been primarily enabled by the modern smartphone technology, are privately operated, and are usually driven by real-time demand. From station-less and station-based bike share services and powered scooters to TNCs (Transportation Network Companies) such as Uber and Lyft, and private vehicle operators including luxury limo services in San Francisco, CA, you will have options galore.

2- Private limousine service in San Francisco, CA vs. other services

Private Limousine Service in San Francisco, CA, Chevrolet Suburban

Some may think the price of towncar from San Francisco to SFO to be pretty steep and affordable only by the uber-rich. If you too belong to this league, think again. That’s because luxury limo service in San Francisco, CA has become quite affordable now for everyone. Some of the most attractive segments for which there’s a steady demand for limos include sightseeing, airport transfers (which could be either pick-ups or drop-offs),  transportation for private school students, especially on special occasions like prom nights, sporting events, etc., and business travel. Retirement and assisted living institutions too show a demand for luxury rides to deal with their elderly transportation needs, particularly on days that are special or during specific events.

Most of the luxury limo services in San Francisco, CA compete to get their fair share of the market, which includes areas like wedding transportation, airport transfer, and corporate travel. Since these segments have a steady demand for private limousine services in San Francisco, CA, there’s a high level of competition, which has eroded the profit margins for many. While some companies have started to diversify their businesses to sustain, others have stepped up their amenities on offers. For example, anyone looking for SFO transportation in San Francisco, CA could get amenities like phone charger, ambient lighting, mini bar, entertainment options such as music system, DVD, TV, etc. when s/he boards a limo. At the same time, providers offering luxury limo service in San Francisco, CA have started highlighting their fleet of vehicles and chauffeurs too. Unlike boring taxis, all of which look and feel the same, booking a private limousine service in San Francisco, CA would give you a wide range of choices when it comes to picking your vehicle. From magnificent limos and sedans to SUVs and limo vans, you won’t have a dearth of choices when it comes to selecting your vehicle. Getting experienced, fully vetted and tested (with thorough background checks and medical examination), trained and licensed chauffeurs is an added advantage of hiring a luxury limo service in San Francisco, CA. Knowing that a competent professional, who has been trained in safe driving and passenger safety, is doing the driver’s duties would let the passengers feel safe and relaxed. Whether you need a private limousine service in San Francisco, CA for your wine tours in Napa Valley or Sonoma Valley or to arrive at a business meeting and wow your potential business partners and/or clients, having an experienced chauffeur behind the wheel would ensure you reach your designated destination fast and right on time.

Perhaps you now feel limos have no competition in the market and that they have got an open playing field to monopolize. But the truth isn’t what you think. All around the globe, luxury ground transportation options give tough competition to the limo business and it’s no different in San Francisco. In the city, you will find options like Lyft Lux, Lux Black, Lux Black XL, and Uber Black that can compete with limo services. Whether you need SFO transportation in San Francisco, CA or a luxe ride for your personal/business needs, these services (that can be booked on demand via ride hailing apps) will let you choose from different models of high-end vehicles such as BMW, Audi, Bentley, Buick, Ford, etc. If you thought the competition for luxury limo services in San Francisco, CA ends with these high-end Uber and Lyft services, think again because there’s more to come.

3- Autonomous vehicles are predicted to be the future of modern ground transportation

Autonomous vehicles are predicted to be the future of modern ground transportation

Self-driven vehicles are being tested all over the world and the United States too has joined the bandwagon. This has intensified the competition in the ground transportation market. By 2025, the global market of autonomous vehicle (AV) is expected to touch the $36-billion mark with North America claiming ownership of an impressive 29% of all the self-driven vehicles in the world. However, the dream of riding a driverless car or taking a nap in the vehicle while it drives itself to your destination is not happening very soon.

A significant amount of investment and meticulous research is being conducted around the world, especially to make these vehicles safe. This has become extremely important when you consider some of the recent fatalities involving these self-driven cars. While some of these accidents have been caused due to a system glitch, many others have been caused either because the humans sitting inside or those outside did something wrong. For instance, consider the 2018 Uber crash that happened in Tempe, Arizona, and caused the death of Elaine Herzberg, a 49-year-old who was crossing the street with her bicycle. The vehicle’s safety driver Rafaela Vasquez was blamed for the crash as she was busy watching an episode of “The Voice” on her phone, in violation of Uber’s policy, which made her visually distracted. Thus, she failed to keep an eye on the driving environment and the automated driving system’s operation, which was the primary cause of the crash. This shows how human drivers would still need to be in automated vehicles so that they can step in and get hold of the controls in case they anticipate an accident or crash or something serious.

According to the National Highway Traffic Safety Administration, human error is to be blamed for 94% of all road accidents. Some recent accidents involving autonomous vehicles show these futuristic vehicles too aren’t safeguarded against human errors. At present, there are still no fully autonomous vehicles on U.S. roads that run without a human driver. For now, there will always be one (or even two, in some cases) people present inside the vehicle, who would be able to react to the vehicle’s potential warnings in time. It’s interesting to note here that due to the recent news reports and current statistics related to accidents involving self-driven cars, people are still wary of driving or being driven in these autonomous vehicles. Until further tests make these vehicles safer, these vehicles would have human drivers, who will monitor and get behind the wheel, if needed, no matter whether the vehicles are used by a private limousine service in San Francisco, CA or others.

Thus, it can be said that AVs have heated up the domain of ground transportation globally, in general, and in San Francisco, in particular. However, getting to board a driverless luxury limo service in San Francisco, CA is still a distant dream. So, if you were worried about your preferred private limousine service in San Francisco, CA getting rid of the human chauffeur sometime soon, take heart for that day isn’t yet around the corner.

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