Geofencing: What Is It? And Why Is The Cab Industry Concerned?
Transport Malta (TM) has requested ride-hailing platforms like Bolt, eCabs, and Uber to roll out geofencing technology within their systems, but this has caused some controversy.
Bolt went on the record to say that this could “kill the whole industry” while eCabs took more of a tame approach but still told Lovin Malta that it’s concerned that this will “inevitably lead to longer wait times for passengers, less efficiency for drivers, and dead mileage.”
But, what is geofencing?
Well, it’s a system that’s intended to improve traffic flow and safety, according to TM. It uses GPS technology to establish virtual boundaries. Within these boundaries, Y-plate vehicles will not be able to park and wait in these designated areas.
However, clients will still be able to reserve Y-plate vehicles from within the designated geofenced area. Drivers stationed outside a 250-metre radius will then proceed to the designated pick-up location specified by the customer.
According to TM, the geofencing system is already legislated and it will be introduced as a test and trial in designated areas around the country.
What does the cab industry have to say about this?
“eCabs is carefully reviewing the update received on Tuesday morning from Transport Malta regarding the gradual implementation of ‘geofencing’,” the company told Lovin Malta.
“As always, our primary concerns are rider and driver experience, as well as the overall sustainability of the ride-hailing industry.”
“eCabs has appointed an internal team to review how best to implement geofencing as requested by the authorities.”
“While discussions are ongoing, we have some reservations on the matter.”
“Limitations on where rides can be accepted will inevitably lead to longer wait times for passengers, less efficiency for drivers, and dead mileage.”
“eCabs believes in a ride-hailing sector that offers a safe, affordable, and sustainable transport alternative.”
Meanwhile, Bolt went a little harder, telling Times of Malta that it could “kill the industry”.
“I can’t imagine a scenario where it will be feasible… for a driver to operate in such a heavily restricted market.”
Driving time and fuel consumption will be increased, a spokesperson said, meaning fewer opportunities to receive orders, so less earnings for the drivers.
Lovin Malta reached out to Transport Malta for a comment and is currently awaiting a response.
What are your thoughts on this system?
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