Are you excited to start your own Taxi Business? It’s no surprise, considering the monumental success of Uber. The journey may seem daunting, but you can start your taxi business beginning with the initial phase of thorough market research to to launching your Taxi App, after rigorously testing. There is an alternative to building your Taxi App from scratch, app development companies can make your ideal Taxi Booking App for you.
There are a lot of countries where there’s a lack of market penetration of Uber and other popular Taxi Apps; you can seize this opportunity to rake in millions by targeting these untapped markets. But you need a detailed business plan first.
You need to make a roadmap, which lists the goals that you want to achieve by a specific date. For example, a prototype should be finished by X date, and features need to be implemented by Y date.
Roadmap for Starting Your Taxi Business
Market Research & Validation
While Uber has dominated most of the Western markets, you can still find non-Western markets like Indonesia or Vietnam, or African countries, where there is a need for a Taxi App that addresses the necessities of the locals. These areas have seen rapid digitalization in recent years as smartphone usage has seen unprecedented growth. You can also target small cities and rural areas within these markets to increase visibility and expand your customer base.
Analyzing the demand for Taxi Apps in cities, suburbs, and even the demand for inter-city rides. What type of Taxi Apps are they using, Which vehicle is the most used, How much does the fare cost, Identify areas where a specific type of vehicle may be required, like a motorcycle.
Identify different types of customers, like commuters, travelers, corporate clients, the elderly, and the handicapped.
Analyze your competitors and see how they address market demands. How Taxi businesses like Uber have introduced unique features and created disruptions, this is the ‘wow factor’, an app that delivers a step change. Mass appeal is a big factor in a disruption. How they managed to stand out from the crowd and capture attention.
Identify gaps in your competitors’ customer base, like underserved neighborhoods, off-peak service, and specialty vehicles.
Validate demand by launching surveys or focus groups with potential users. Build partnerships with hotels, offices, or event venues.
Business Model & Revenue Streams
You need to decide how you’re going to make money from your Taxi App, a commission-based model is usually the main one. This is where you can earn commission for every ride.
- Subscription-based Model: These subscription plans are monthly or semi-annual, offered to the drivers. You, as the app owner, can modify these plans as per your requirements.
- Surge Pricing: During peak hours or festivals, you can increase the fare charges due to increased demand.
- Cancellation Charges: If any of your users decide to cancel their ride just before the driver is about to arrive, you can charge them cancellation fees.
- In-App Ads: You can put advertisements from Google and Facebook in the app and generate revenue every time a user clicks on them.
Legal, Licensing & Compliance
- Acquiring transport authority licensing for taxis and commercial vehicles.
- Commercial vehicle registration and insurance.
- Manage Driver agreements, whether it’s an independent contractor or your employee.
- There should be clarity on fare splits, cancellation fees, and conduct policies.
- GDPR/CCA-style user and driver data protections
- Secure Payment Compliance
Technology Platform
User & Driver Apps
- Core features: Registration via Phone Number, Email ID, and Social Media. Ride Booking, real-time tracking, ratings system.
- Must-Have Features: Push notifications, in-app communication system, an S.O.S emergency system.
Admin Panel
- Gods-eye View: Ability to see the location of all the drivers in your region.
- Manual Dispatch Panel: Users can directly call your company, and your backend team will book the ride.
- Location & Fare Management: You can set a specific amount of fare depending on the location of the ride.
Tech Stack For Your Taxi Business: Android, iOS, or both?
Ideally, you want to use both platforms. Both of these platforms have their pros and cons, but ultimately, you need both in order to succeed. Android is the way to go to reach a larger audience. Regions like Asia and Africa have the most Android users, so you want to target them in order to increase your customer base. But if you likely want to take your app to the global stage, your Taxi App should launch on both Android & iOS platforms. Each platform has an enormous and very loyal fan base.
For iOS:
The programming language used is Swift. The Integrated Development Environment is XCode. The database used is the user’s default.
For Android:
The main programming language that is used is Java. The Integrated Development Environment is Android Studio. The database implemented is Realm.
Backend Development:
The language that is used in the backend is PHP, which is used to script websites that are interactive and dynamic. Node.js is a cross-platform, open-source JavaScript runtime environment.The framework that is used is Express.js, a minimal and flexible Node.js web application that provides a robust set of features for web and mobile applications. MongoDB or MySQL are the databases used in the backend.
Additional Technologies:
Stripe is used for the payment gateway. Google Maps API is used for maps and location services. For Push Notifications, Firebase Cloud Messaging is implemented
Operations & Fleet Management
- Acquiring Vehicles
You either hire taxis from a Fleet Company or use driver-owned vehicles. In case of vehicle shortage, the former option will come in handy. Partner with rental agencies.
- Driver Recruitment & Training
The onboarding process of the drivers needs to be seamless. Background checks need to be done in a systematic way, with criminal background checks, and if their driving record is squeaky clean. Their government-issued personal ID needs to be double-checked for fake names or fake addresses. Onboarding training like understanding how to contact customer service, using navigation, and following safety protocols.
- Quality & Safety
Regular vehicle inspections should be done to avoid any accidents. Maintenance schedules for ensuring proper vehicle functions.
- GPS-Log Reviews
- 24/7 Hotline for any emergencies.
Testing Process
After you’ve built a functioning prototype, your QA team will test every feature, function, and compatibility of the app. This process usually takes months. Both automated and manual testing procedures are used. The QA team will run the workflow repeatedly to see if they can detect any major bugs or errors. They will test the functionality of the user interface. They will create various test environments to check various aspects of the app. Security checks are conducted to detect any privacy violations.
The Launch Phase
All your hard work has come down to this: you can finally upload your app to the Android and iOS stores, but there is an approval process that takes a couple of days. Since this is your first app. App Development Companies will help you launch your Taxi App faster than building from zero.
Marketing & Attracting Customers
You can begin marketing your app through TV advertisements, social media promotions. Providing referral bonuses for first-time users and drivers. Launch promotions like a first-ride free. Loyalty programs where users can earn credits, event or festival-driven discounts.
Post-Launch Phase
After many sacrifices, you have finally launched your Taxi Booking App and started your Taxi Business. Your developers will continue to fix bugs after the release and add features in accordance with market trends. After all this, you have accumulated a substantial amount of debt, and your app must succeed and generate millions in revenue for your business to remain afloat.
Not to mention the physical infrastructure needed to host your development team, like office spaces, electrical machines, power bills, etc. There’s an affordable alternative to all this. App Development Companies.
Starting your own Taxi Business with App Development Companies
The blog has so far discussed the detailed process of building a Taxi App from scratch. But there’s another way that you can start your Taxi Business: Pre-built feature-rich Apps brought to you by leading taxi app development companies. These companies save you all the hard work and large investments that you would need to build a Taxi App on your own. Along with the app, they provide two years of upgrade support and one year of bug support. You will get the user app, the driver app, the main website, and the admin panel. You can request what kind of features, UI, and logos you want, and they will implement them.
Advanced Features of a Ready-Made Taxi App
- Rides for Accessibility
- Corporate Rides
- Book Rides for someone else
- Taxi Pool/Ride-Sharing
- Driver Reward Feature
- Taxi Bidding and many more.
They will White-Label your Apps and website, which is the process where the app development company will replace their name and logos or any trace with your company’s name, logo, and colors, and get it launched on the Android & iOS app stores using your credentials.
Your Uber Clone App will be launched in 1-2 weeks, and you can start making money from day one.
Conclusion
This blog discusses the detailed process of starting your own Taxi Business. There are a lot of opportunities for up-and-coming entrepreneurs to leave their mark in the Taxi Industry. The development process begins with market research, competitor analysis, and identifying customer pain points, followed by choosing a business model and revenue streams. It also involves considering the legal aspects of a taxi business and determining whether to opt for Android or iOS (Ideally, both). By the time you’re done building the app on your own, you’re going to want to retire for life, with all the mental and financial strain.
Therefore, the most attractive option is to purchase a ready-made taxi app developed by a leading App Development Company, one that delivers your dream app. Your App will be launched in 1-2 weeks, and you will be bathing in money.