If you are a taxi booking app owner, you can be a billionaire in the upcoming years.
Find difficulty in believing?
Just read the story of Uber and you will understand why we are saying this.
Two friends, Travis Kalanick and Garrett Camp were attending the LeWeb in Paris 2008, an annual tech conference which the Economist describes as ‘where revolutionaries gather to plot the future.
One winter night during the conference when the two friends were unable to get a cab gave birth to the concept of Uber: "What if you could request a ride from your phone?”
After the conference, both entrepreneurs went their separate ways, but when Camp returned to San Francisco, he continued to be fixated on the concept and bought the domain name UberCab.Com.
And rest of the story you know what today Uber is.
It is the most popular ride-hailing company, which operates in more than 700 cities and facilitates 17 million trips every day. As of Jan 2021, Uber's current market capitalization is $98.74 billion, making it a billion-dollar company.
Amazing isn't it?
Just a few years ago, not that long 3-4 years before when people were mostly used to move from one place to another through either public transformation or personally owned vehicles. Not everyone can afford a personal car.
Nowadays, we all are hailing in the car for our day-to-day basic needs. This is because of the bang of taxi apps which has fully revolutionized the public transportation culture.
Cab or taxi booking app development is growing fast. Several new companies are driving into this online mobility service market around the world, which makes the competition more intense.
Since Uber-like taxi app is kind of a boon for people who want to avoid the hassles of heavy traffic and public noise, just to be on time, almost every small to a big investor is trying to make an app like Uber and aspire to establish a billion-dollar company.
But this is where business people are making a big mistake.
It becomes alluring to see the success of Uber how a small startup gradually turned into a global company. Many entrepreneurs who are endeavoring to set up their venture in the taxi app market usually follow the Uber-clone app development approach.
But the reality is that it's not about how to create an app like Uber, instead, it is about how Uber app made it possible to become a billion-dollar company.
Today, eSearch Logix will tell how a taxi booking app can build you a billion-dollar company, while learning from Uber's success story and the future scope.
If you are a startup, entrepreneur, or business venture who wants to develop a taxi app that generates revenues in billions should pay attention to this blog.
Current Ride Hailing market in 2021
The taxi market was valued at USD 159.6 billion in 2020. The market is expected to reach USD 327.54 billion by 2026, at a CAGR of 8.95% over the forecast period (2021-2026).
In recent years, there has been a massive increase in taxi on-demand and ride-sharing services across developing countries such as India, China, Vietnam, etc. Especially, Android app development company in India considers on-demand taxi apps among the top-grossing apps in the market.
This has led the companies to provide more options for vehicles like minicabs, SUVs, sedans, two-wheeler bikes. People are now expecting more taxi booking options on mobile applications.
There are many taxi/cab booking apps in the world that are providing ceaseless ride-hailing and ride-sharing services and making billion of money.
Here are the valuations of the top taxi apps in the industry:
- Uber- 72 Billion
- Didi Chuxing- 56 Billion
- Lyft- 11.5 Billion
- Daimler- 7.1 Billion
- Grab- 6 Billion
- Ola- 3.8 Billion
- BlaBla Car- 1.6 Billion
Why the demand for taxi booking apps is growing in the market?
1. Rise of on-demand cab booking service
On-demand taxi apps provide great ease of access to hiring a private vehicle for temporary trips. In the modern digital age where anything can happen just at your fingertips, people are finding these apps as the highly reliable source to commute.
In the world, where the half population is GenZ, they heavily rely on cab booking apps when it comes to traveling. So the fact is that in the upcoming years there will be more percentage of Gen Z people only than Gen X and Gen Y which will consequently contribute to the growth in the online taxi booking industry.
2. People love to use taxi booking apps
The on-demand taxi app service offers all features for user's comfortability. It also provides real-time tracking and user feedback to rate their traveling experience. Thus people enjoy their rides without waiting for a long time with a 100% safe journey and acceding insurance.
3. Rise in the job opportunity
Cab booking apps not only provide convenience to their users but also give many options to drivers to work part-time or full-time. A report suggests Uber gives 50,000 jobs a month, while other top taxi apps like Lyft, Ola, etc. are also providing various job opportunities worldwide.
4. The rise of MaaS (mobility as a service)
The concept of transportation is changing. New models have emerged to address modern transportation requirements which have given birth to Mobility as a service model.
It includes ride-hailing, ride-sharing, car subscriptions, as a quick solution for people who want to avail themselves of the traveling facility on their mobile device or smartphones.
5. Taxi apps give a feedback system to both passengers and drivers
In a traditional bus ride, neither a passenger has a feedback system to share his or her experience of the journey in the bus nor driving skills of the bus driver nor does the bus driver have a system to share his feedback on how passengers cooperate during the journey in the bus.
But with the introduction of taxi and cab booking apps, it has created an open and fair system where both passenger and driver can share their experience with each other.
6. Gives Real-Time Updates and Communication Transparency
With the taxi booking app, people can easily communicate with their drivers directly and get real-time updates regarding their availability. Therefore, on-demand taxi booking apps are creating a compelling and transparent communication channel between drivers and customers.
7. Empower businesses to provide additional offers
The mobile app works as a medium of multiple services. If you are the owner of a cab booking app, you can offer various additional services to customers on their rides such as free movie tickets, coupons, shopping vouchers, discounts on riders, etc. These offers make the customer experience more delightful and empower the business to grow on another side as well.
Now you have understood the future of the taxi app market is bright and Why Mobile is Important to Consider for Your Business in 2021? But you should remember taxi booking app requires a smart and real-time strategy to make it fully successful.
Uber, Didi Chuxing, Lyft Daimler, Grab, Ola, and BlaBla Car are able to make billions of profits because of their strong backup support and large team for holistic management. Mere developing a taxi app is doesn’t mean your will set up a billion-dollar company in few years.
Uber is the pioneer of this trend, therefore, entrepreneurs and business ventures who are considering investing in taxi booking app development should learn from Uber what they ultimately did that made their mobile app extremely successful in the market. Read below.
Tips To Build a Billion Dollar Taxi App:
1. Provide ease of use
Uber ride charges are generally higher than other cab booking apps, despite this; people use Uber because their app provides ease of use in the following ways:
- Simplifies the trip booking process- no hailing, no call, no searching
- Reduces uncertainty of when and what type of car will arrive
- Simplifies the payment process
- Make it easy to split the fare
- makes the price transparent with an accurate fare estimation
- Security and peace of mind throughout the ride
- Better quality through rating driver and passenger on every trip
- Saves time through smooth on-demand dependability
- Automatic process
- Multiple choices of vehicles
2. Have Safeguards in the place to Avoid Scandals
While Uber has gained an impressive reputation over the past years, it has also faced criticism over a few scandals. Some customers claim that drivers had cheated them out of money or sexually assaulted them. These types of scandals directly hamper the reputation of the company no matter your advanced your application is.
Therefore, you should be proactive about the scandals that could affect your brand reputation and have safeguards ready to handle as well as to ensure the security of mobile apps if such situations arise as soon as possible.
3. Give genuine solutions to real-world problems
Every business exists to serve a need for its customers. However, many companies employ the same limited set of business models- which are rarely enough to solve all the different problems that customers face.
Uber here demonstrated this by addressing various problems that customers face with traditional cab companies. So you should provide effective solutions that solve customer's real-world problems. Remember, a real entrepreneur is a problem solver.
4. Minimize Infrastructural Requirements
Uber was a startup and they also faced fundraising challenges in establishing the company in taxi booking services. One of the reasons that Uber grew so rapidly was it didn't have the same overhead expenses as traditional cab companies used to have.
A less complex infrastructure also allows companies to adapt to changes more quickly and efficiently. So, controlling expense is a critical part of running a business to strive as cost-efficient as possible.
5. Decentralize Decision-making
Company executives have to manage most functions during a company's initial stages of growth. However, delegation becomes important as the company penetrates new markets and grows its subscribers’ base.
Uber encountered this challenge and outsourced its remedial decision-making functions to local organizations as growth increased.
Operating a business across multiple locations simultaneously is challenging, therefore, you should empower local managers to make real-time crucial decisions.
6. Keep it simple
Simplicity saves time and focuses on what is exactly needed. And in traveling, it is required the most. Uber developed a simplistic taxi booking mobile app that makes it easier to streamline the business. So try to keep your business model as simple as possible to avoid unnecessary complex things.
Uber was successful because, at the time of its launch, no other company had devised a similar ride-hailing service at such a large scale. But today, such services are common, making it tougher for new businesses to create a powerful impact on a global scale.
Uber constantly worked on improving its services and providing real-time solutions that customers needed.
If you ask can a taxi booking app build you a billion-dollar company? Uber is the best answer and others as well. Only you need to do things in the right way.
eSearch Logix is a premier taxi app development company in India that is equipped with a large team of certified developers, software engineers, programmers, QA analysts, and market experts who know how to build a taxi app that works for a global audience and makes huge profits.
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