This wide difference among people does not occur overnight. When you go back in time, taxi booking was the most difficult thing as you had to wait patiently until the operator assigned you with a driver. But after ages, there’s no other easy task than booking a cab. The foraying of apps like Uber was one of the reasons for this huge surge among people. The abundance of smartphones contributes to another important reason for this.
The global taxi app market is streaming at a high pace with the growing competition. At every moment, the industry is exploring different things to integrate them with the app. The integration of AI is the recent big thing in the taxi app market. Entrepreneurs are finding ways to set their march into this revenue-generating market.
If you are wandering for ideas to kick-start a profitable business, then a taxi-hailing app is what you need to own. In this blog, let us explore various aspects related to starting a taxi booking app.
Taxi booking apps in 2020 – An overview of the market
The sigh of relief people get from these taxi booking apps is spectacular. For a while, we were all tied up in a small arena, where we had to wait for hours to book our cabs. With just a few clicks, we are getting our rides in the blink of an eye. This is what is driving people to choose these apps for their rides.
When I say 2020, for sure, you all will get reminded of the pandemic outbreak. Several businesses and organizations came to a standstill. One of those was the taxi-hailing companies. With complete lockdown everywhere in the world, the operations of cabs and other public transports were halted.
The CAGR of the taxi app market went down by -43.7 percent, and it declined from $83 billion to $46.7 billion. When compared to the first half of 2020, the second part was a little satisfying for the drivers and the app owners. As it was the time when things were returning to normal, we could expect a positive outreach.
How favorable is the global taxi booking app market?
The advent of the internet has reached every small corner of the world. Moreover, all of us are prone to using smartphones for all our daily activities. In addition, the taxi booking apps provide affordable rides, which makes it more convenient for people to take up.
In 2020, the global taxi booking market was estimated to be worth USD 159.6 billion, and it is expected to reach USD 327.54 billion by 2026, at a CAGR of 8.95 percent. China is one of the most populous countries, and is the largest taxi market in the world.
Even though in 2020, half of the year was spent on pandemics, it paved the way in the second half facilitating the market to earn more revenue.
What are the benefits of launching taxi booking software?
Running a business is not a big deal but staying updated with the changing trends is where the real game starts. The arrival of taxi booking apps replaced the traditional taxi business. Several taxi companies failed to cope with the upcoming changes in technology. Only a few operators who have adapted themselves to the changing scenario survive in the market. Here are some of the benefits of launching a taxi booking app.
An easy and convenient solution
In this digitization era, making phone calls are no longer people’s favorite. They are more comfortable with using mobile apps to book their rides. This is where the users’ reliability lies, and as a business owner, you have to pay attention to them. When you choose a digital medium for your business, your brand value will eventually increase.
In traditional taxi booking, the riders or the customers will have no idea about the location of the drivers. Even the drivers do not find it easy to contact them and update them every time. But in a taxi booking system, the users will track their drivers’ location in real-time. This will also help them to track the live location along with calculating the Expected Time of Arrival(ETA).
Monitor the driver activities
The taxi agency owners do not have control over the drivers’ performance. However, the only best way to monitor their performance is by observing them. To observe them, we have advanced technologies. The taxi dispatching software has a separate segment for storing the analytics and performance records. This segment was quite untouched for a long time.
So, the app admin will get a copy of all the activities of the drivers. While performance appraisals, the app owners can consider them and rate their performance.
A perfect revenue generator
The major consideration of a business is revenue generation. Every business and entrepreneur strives hard to get back their ROI. Taxi booking apps are the best ways to generate revenue. In the taxi business, you can charge different fees and charges from the customers. The ride fee changes at times according to the demand, external conditions, distance, etc.
Things to follow to kick-start your taxi booking app business
It all starts with research, as they lay the foundation for you to come up with more intriguing ideas. Through research, you will understand the market demands and trends prevailing in the market.
Secondly, once you are clear with the market demands, frame your business models. In case you already own a taxi agency, then you need a different approach. Why I’m laying stress on the business model is because your cost for app development varies based on it.
Go for a competitor analysis where you can analyze the performance and products of your competitors. Identify the potential areas where you can focus much more.
Identify the best app developers around the town to develop your taxi management software. There are companies widely acknowledged for their agile taxi booking app development. However, you can approach them to develop your app.
The Taxi-hailing business was initially started as a niche segment focusing on a limited population. But later on, the growth of technology and smartphones literally paved the way for the taxi apps to shine out. This is the best time to start your haunt to design and develop a robust taxi booking app.