Identity Verification Fuels Growth of Ride Sharing Industry
The ride-sharing industry is growing at a huge pace. As per Orbi’s research, the ride-sharing industry-valued $51.3 billion in 2017 and the anticipated growth rate is 20%. The industry is expected to grow at a huge pace and to gain a value of $220.5 billion by 2025. Many ride-sharing businesses are operating around the globe and use in-house measures to cater to fraud, but commonly the businesses prefer outsourcing such services. Biometric verification through face recognition is one of the common solutions utilized globally for identity verification in real-time.
With the industry becoming a multi-million dollar firm, the risk of loss is also, multimillion-dollar. Not all ride-sharing businesses are using real-time verification which has left loopholes for fraudsters and criminals. A most common source of risk in ride-sharing comes from their drivers and partially it comes from the passengers. AI-based solutions for identity verification and geo-location screening helps in catering to the risk of onboarding criminal drivers, who might affect the credibility of the company.
The reason behind the growth of the ride-sharing industry is the rise in vehicle and fuel prices. More and more people are moving towards ride-sharing as compared to buying their personal vehicles because it is cost-effective and time-effective aswell. Another reason behind this tremendous growth is the trust of people in this industry.
The driver of a vehicle working under the sticker of your company depicts your company and its values. So, in-depth screening of the drivers is vital, and one-time screening is not enough as the risk is a constant factor in this industry. Continuous verification through biometric screening is a feasible solution to mitigate the risk of fraud in the ride-sharing industry.
What Is Online Identity Verification?
Online identity verification is the process of identity verification of an individual (rider/driver) in real-time using artificial intelligence. Artificial Intelligence (AI) and the latest technologies are used to verify the identity of a person in real-time. It performs the verification and delivers the results within 30 seconds.
Frauds in Ride Sharing Industry that can be Addressed with Online Identity Verification
Fake drivers
Criminals with intentions to rob the riders or to kidnap them are also prevailing among the legitimate drivers that applied for working under your company name. The criminals use fake identities to register as a driver for robbing the riders. Whenever a driver registers with a ride-sharing company he is the ambassador of that company in front of the riders. In case a criminal is registered as your driver, it will affect the credibility of your company. Word of mouth is very important in such industries, one bad experience will multiply and will lead to a loss of customers in the future.
Drivers Renting Out Their Cars
Often the drivers register with a company and rent out their car to some other driver, who is not verified by the company. Companies perform basic security measures on registered drivers, so if someone else will drive the registered car, it will risk the riders and the company’s value. So, continuous verification of drivers before every ride is necessary, to secure the interest of riders and the company.
Fake Complaints From Customers
Often the customers prove to be a source of risk for the ride sharing company. The customers might say that the driver did not pick them up or the wrong driver was driving the car. In case of real-time verification performed by the rider, the company will have the backup of verification results. If the company will have performed verification on the location of drivers, they will be able to show that the rider made verification and was dropped to the predetermined destination.
Benefits of Using Real-time Identity Verification
In order to mitigate this risk of onboarding fraudsters and criminals, the businesses need to run in-depth identity verification on their drivers, before hiring them. This is the very first step, it should be entended to regular verification. Every time a driver takes a ride, ask the rider to verify the driver through real-time face verification.
Exceptional User Experience
It helps the businesses in delivering seamless onboarding experience to the clients. Online identity verification can be performed within 30 seconds and will leave a positive impact on the client regarding the concern of the company towards their clients’ security.
After a few incidents, the ride sharing industry faced a lot of bad-fame that is why people prefer those services that practice visible security measures. But they do not want to spend a lot of their time on verification and security protocols. So, real-time identity verification helps in achieving several goals through one service.
Cost-effective
Not every ride-sharing business has the budget of developing an in-house security system, especially if it is a startup. Outsourcing is a feasible option with regard to low cost. The verification plan can be developed according to the cost appetite of the company. No pre-planned packages.
Precision in Results
The precision rate in online identity verification solutions is high. Shufti Pro delivers 98.67% precision in its identity verification services. It helps businesses in reducing false positives and onboarding only credible drivers.
Easy Integration
The integration of online identity verification solution with the system of the business is easy and frictionless. The API integration can be performed within minutes and does not require any expensive technology for the installation of the software. So, fraud prevention can be achieved within minutes.
How Is Face Verification Performed in Real-time Identity Verification?
Face verification is performed in real-time using artificial intelligence. First of all the integration of identity verification API with the system of the ride-sharing company is completed. The app or website of the ride-sharing industry is used by the riders to perform verification on the driver.
The driver shows his face to the camera and real-time verification is performed by mapping the facial features and liveness detection. Once the verification is performed, results are shown in real-time to the rider and a backup is created in the back office provided to the company. The back office maintains complete verification results.
So, conducting real-time identity verification and face verification on the drivers every time they take a rider will help the businesses in retaining happy customers. Security is the major concern in ride sharing and using identity verification helps the rides sharing industry in gaining credibility among the customers. It will also enhance the face value and profits of the businesses, by retaining happy customers.