Hi there! In this technologically dominated century, you must consider infusing automation into your business. Here, we will discuss the development of a taxi booking app. Agreeing to the fact that the taxi market is brimming with competition, it is still possible to benchmark your business. Therefore, in this writeup, we will uncover every detail of the on-demand taxi services business.
Potential Difference Between Ride-Hailing And Ride-Sharing Services
Here comes the potential difference that lies between ride-hailing and ride-sharing taxi services. In the case of ride-hailing, a passenger will book a taxi through the app. Since the whole process is automated, the request raised by the passenger will be directed to the driver who is present in the nearest location.
But ride-sharing is quite the opposite that of ride-hailing service. Here, different passengers will book a taxi, thereby making a shared ride. Shared rides are, of course, way cheaper than taking individual rides in case of ride-hailing services. However, the ride-sharing services are prone to cause a threat to the passengers as they will have to travel with strangers. That’s quite a major difference between ride-hailing and ride-sharing services.
Until now, we have been defining the difference between ride-hailing and ride-sharing services. Next, we shall discuss how the companies treat ride-hailing and ride-sharing services.
In general, companies that provide ride-hailing services provide complete insurance to drivers. Whereas, in the case of ride-sharing, drivers are hired on a contract basis, and in most cases, the drivers will use their own vehicles.
Imperative Tips To Beat The Competition In The Taxi Industry
We all are well aware of the competition sustaining in the taxi industry. Starting a venture in this industry will throw you absolute competition. As said in the beginning, you can overcome the competition by incorporating unique values to all the stakeholders (both passengers and drivers). Let us discuss the tips on how to surpass the competition in the taxi industry.
- Market Analysis
In general, you will have to perform market analysis. The market analysis includes identifying the potential customers, target location/country, etc.; while analyzing the demography, you must consider the presence of competitors.
For example, there are many countries in which the services Uber have been banned. Yes, you heard it right. Though Uber is the market leader in on-demand taxi service, it is restricted in certain countries. The reason behind this restriction is that Uber employs unlicensed drivers. Many countries don’t allow unlicensed drivers, which makes it a hindrance for Uber to penetrate the market in different countries. Therefore, you can pick out those countries that don’t have major competition.
- Finding The Niche Is All That Matters
On-demand taxi services are just a dime a dozen. Therefore, you must pick a niche in which you wish to offer services. Therefore, here we will see through the niche ideas for your taxi services business.
- You can provide ride-hailing services exclusively for women.
- You can offer transportation services to schools and other educational institutions.
- Another interesting niche is offering e-rides. Yes, e-rides are gaining immense popularity in various countries.
- Other than these services, you can provide a range of taxis like how Uber does. Uber’s black cars, comfort, WAV, etc.,
Once you are done with performing market analysis and finding the niche, you should head to framing the UVP (Unique Value Propositions).
- Define Your Unique Value Propositions
The value propositions you provide will make customers head towards your services. Here, we shall see the possible value propositions that you can consider offering to your customers.
- Rides at discounted fares. For example, you can provide occasional discounts, discounts for women, teens and senior citizens.
- Giving customers the facility to make payment through their convenient payment options. Here, the point is to provide different types of payment gateways so that customers will pick a payment method of their choice without any disappointments.
- Most importantly, avoid framing surge pricing. Uber is well-known for its surge pricing. Though there prevails criticisms for Uber’s surge pricing, the company still employs surge pricing. But, it is better to stick with the usual pricing that is based on the distance and other market conditions.
Monetization Model For Your On-Demand Taxi Service
There are certain monetization models that are prevailing in the on-demand taxi market. Well, we will see them in detail.
- Cancellation Charges
Cancellation charges are usual in taxi booking services. When a passenger or a customer books your ride but cancels the ride, then they are bound to pay the cancellation charges.
- Premium Features
You can recur income from premium features. While your app has smart features, you can frame certain features as paid ones. Therefore, to access the premium features, customers will have to make a payment that can be on a subscription basis.
- Advertising Charges
Income via advertising third-party services or products is common. Advertising fees can be based on cost-per-click or cost-per-impression. On the whole, advertisements will guarantee hefty revenue.
Generally, businesses who enter the on-demand taxi services market will go for Uber like app development. It is because of the app’s perfect set of functionality and features. Therefore, you too can adopt the Uber like taxi app that lets customers easily book rides.