Question

In: Economics

In the absence of app-based services, what roles do coordination failures play in causing failure in...

In the absence of app-based services, what roles do coordination failures play in causing failure in unregulated ride hailing services? How can ride-hailing apps mitigate such contracting problems?

Solutions

Expert Solution

I completely agree with the statement that ride healing services are totally based on apps and if there are coordination failures then there is no use of app. In the present scenario if we have to co-ordinate the apps without having an access to the internet and application based technology, then the best way to impart services to the customers can be done by providing a direct emergency button based on mobile network so that it can be easily accessible to the consumer and in case of any emergency they can contact to the nearby authorities.

We can mitigate such contracting problems because if there is no coordination then these apps create a severe impact and problems for the customers. Direct phone calls and messages through the network of the cell phone can also help in such a situation. If their is any coordination failures then a direct phone call to the respective authorities or a system of direct messaging can be a great escape plan.

Apps providing such services are totally based on data and software and runs on the basis of internet. A coordination failure can easily affect, or rather result in failure of the services. In this situation the only solution is to convert everything depending on internet to mobile networks. Direct calling, texting and emergency buttons are some of the solutions to this problem.


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