Why The Taxi Hailing App Is The Most Popular Thing Today

You waited in the streets, calling out to taxis when you needed one. From the London streets to the ones in Tokyo, taxis had their own special charm. It often played a significant role in movies the world over. Yet, the taxi business and industry isn’t what it used to be before technology has changed how we get our favorite cab on the streets!

Mobile Apps and the Taxi Industry

The recent change in the industry of taxi business is majorly caused by the introduction of smartphones and mobile apps. Companies like Uber have redefined the private transportation industry with their taxi sharing apps. It changed the whole way the market operated and established new standards in the industry.

Let us trace the growth of taxi hailing app sector and explore the changes it brought.

Everything is Instant

Taxi booking apps eliminated any delay between the first attempt of booking to arriving of the taxi. Customers use their phones to book a ride and the apps automatically select the nearest driver. The passenger just needs to wait till the car navigates to his location. Payment methods have been accelerated as cashless transactions can be made using the same booking app. Receipts are generated instantly and emailed to the customer and sent on the app.

Taxi Companies without any Fleet

Modern taxi dispatch system like Uber has done away with owning any vehicle of their own. Drivers with their own or rented cars can join the company through a simple process. The company only acts as the middleman and takes a small cut from the fare of each ride. It has proved that just by linking customers to their demand, an organization can thrive and grow. There are certain criteria on the model of vehicles and their registration year.

Innovative Revenue Generation

As already discussed above, the main source of income for companies like Uber is the small percentage charged on every ride. The customer base essentially needs to be quite big to earn a significant income. This has initiated numerous moves from the companies to draw and retain more customers. Offering discount for the first ride is almost a non-written rule in the industry now.

Extra incentives like free rides are also provided when someone refers the app successfully to a friend. Along with this, other customer loyalty programs and seasonal deals are also provided. Sometimes the taxi business also partners with other companies to market and promote their app.

Continuous Improvement

The market is already teeming with taxi companies who have their own booking apps. To survive in such a competitive market one needs to evolve constantly and improve. The taxi apps can be used to gather rich analytics and data related to customer and drivers.

This can give insight into customer preferences, their spending habits, and other information. Based on this information, companies are constantly upgrading or refining their service. For example, Uber introduced its luxury car segment in countries only with significant demand. They also introduced the option of paying in cash in places where card transactions or net banking is not so much in vogue.

Hurdles faced by Taxi-Hailing Apps

Like every new technology, taxi apps were received with much apprehension by the public. The idea of using your phone to book a cab took some time to gain traction. The drivers were also skeptical of the payment method where they were paid through direct, weekly deposits in their bank accounts.

Then there were the traditional taxi fleet and unions who made every attempt to stop the entry of their rival. But in the end taxi hailing apps received the recognition it duly deserved and became the most used system of taxi booking. The success of entities like Uber has lead to many Uber clones and online taxi booking software who are looking forward to establishing themselves as market leaders.