MobyteLab News • Feb 11, 2020
The taxi business sector is currently one of the hottest industries across the globe. Daily, commuters are abandoning public buses and transport systems in favor of ride-sharing services. Likewise, private car owners are gradually limiting the use of their own cars and have glided into utilizing ride-hailing services.
However, while the world may be enthralled by the dominance of taxi businesses, it is important to note that this was not always the case. Rather, the taxi industry has taken giant strides and has evolved within the last century.
This blog post relates helpful insights regarding how to run your taxi business as well as how to stay ahead of the competition and maximize profit.
Find out more Understand and Optimizing the Customer Experience with Taxi Management Software, click here.
The Evolution of the Taxi Business Sector
The taxi business sector has been traced back to the 17th century when hackney carriages were hired out to passengers. However, with the introduction of automobiles, carriages soon went out of fashion and the taxi industry immediately shifted to the use of battery-powered taxis. Subsequently, gas-powered engines took over, thereby changing the face of the taxi industry.
Ever since then, major taxi companies have struggled to stay on top of the increasing competition by introducing newer and more efficient car models to their business. This ulterior business move has helped these businesses to thrive and stay relevant despite the teeming number of taxi companies.
However, the ultimate game-changer for the taxi industry was the introduction of ride-hailing systems such as Uber and Lyft. These tech companies drastically changed the face of the taxi industry, thereby making transportation easier for commuters and drivers alike. They created a taxi booking management system where commuters can seamlessly book taxis and make payments swiftly.
Currently, the taxi business sector has been majorly overtaken by ride-sharing companies trying to stay ahead by creating new trends.
Current Trends in the Taxi Industry
Today, the taxi business sector has incorporated new trends in order to draw in customers and ensure swifter returns on investment (ROI). Thus, new taxi companies who are trying to stay on top of the competition ought to look out for these trends and adapt to them. Some of the current trends in the taxi business sector include:
- Subsidized prices: Today, more and more taxi businesses are focusing on deflating prices for commuters and passengers. Previously, commuters could take a bus or hitch a ride with friends because of the cost. However, with the subsidized prices which taxi companies have incorporated, a large percentage of commuters are now willing to use taxis more often. Thus, for a taxi business to thrive in today’s market, it’d have to offer lower prices or maintain the same price range as the other existing companies. This is because commuters are more likely to go for cheaper alternatives. So, if a taxi company fixes exorbitant prices, commuters would most likely be put off and go for cheaper alternatives. On the other hand, cheap and affordable prices are a great way to attract customers and make huge profits
- Taxi app development: Ever since Uber came into the limelight, more and more taxi companies have understood the importance of ride-hailing and are shifting towards that direction. The main motive behind the introduction of taxi applications was to create a more convenient mode of transportation and as such, rake in more customers. Thus, a large percentage of taxi companies have created an application for their businesses. One major advantage of this trend is the convenience which it offers to customers. Commuters can now book a ride from their homes as opposed to walking all the way to a bus stop. So far, taxi app development has become a huge success and has been very effective in attracting more commuters.
- Delivery services: Studies have shown that diversification of services is an effective way of ensuring swift ROI. Thus, major taxi companies have incorporated this trend and subsequently, have started offering diverse services to commuters. The most popular choice, however, is delivery services. A large number of taxi businesses are taking giant strides towards partnering with stores and offering delivery services to customers. This path will not only serve as a good source of extra income but equally help in building a brand. Thus, taxi business owners who are seeking to create a competitive taxi business should consider offering diverse services.
Taxi Industry needs the taxi app development/ taxi management software to beat the competition.
How Taxi Businesses Can Attract and Retain More Customers
Customer attraction and retention is a complicated process. They do not go hand in hand. While a taxi business may succeed in attracting customers, it may fail to retain its customer base. Thus taxi businesses and companies must strive to not only attract customers but equally retain the attracted customers.
One major way through which taxi businesses can attract customers is by following the current trends in the industry and utilizing them. However, following and utilizing the current trends is not enough. Simply adapting to trends will only make a taxi business a replica of the competition. There will be no factor that sets the company in question apart from the other competing businesses.
Thus, to attract and retain customers, taxi businesses must incorporate certain strategies that would make them unique and different from the rest. Here are some effective ways through which these companies can achieve customer attraction and retention:
- Online promotion: With the introduction of the internet and various social media platforms such as Twitter and Facebook, a majority of commuters have an online presence. Thus, taxi businesses can utilize and take advantage of these online channels. With daily promotions and ads, companies can reach their target audience and thus, appeal to them.
- Discounts and offers: Discounts and offers are a major tool for obtaining and sustaining customer loyalty. A number of taxi companies have utilized this business strategy in order to rake in more profit. Commuters are more likely to stay loyal to companies who offer them discounts or promotions after continued use. For example, taxi businesses could offer a 10% discount to new customers. This would subtly persuade customers to keep patronizing the business.
- Quality services: Studies have shown that customers are more likely to reuse a brand or business if the services offered are top-notch. Thus, taxi business owners must strive to improve the quality of their services. This could be achieved by employing more professional drivers and making each ride very comfortable for users. Another easy way to improve the quality of services is to request and make provision for customer feedback after each ride. An avenue should be created for customers to leave reviews and ratings. These reviews will serve as a guide for taxi business owners who wish to improve the quality of service
- Marketing and Branding: For taxi business owners who are seeking to attract more customers, branding and marketing are important aspects to focus on. How appealing is your business to customers? To rake in customers, companies have to focus on building an attractive brand and marketing to their target audience. This can be done by creating an online presence for the business and utilizing traditional marketing. A fusion of new age and traditional marketing will help companies to attract and retain customers. For example, online advertising and marketing can be fused with TV ads as well as word-of-mouth marketing. This will help these companies to reach their target audience in each demographic and age groups.
How Taxi Businesses Can Attract and Retain More Customers
Tips for Beating the Competition
As stated earlier, the taxi business sector is crammed with several companies trying to outdo one another. As such, beating the competition and staying on top of it could be a Herculean task and almost impossible. However, the taxi business can achieve by using the right tools and strategies
The first step towards beating the competition in the taxi industry is to quickly adapt to current trends. Each day, new trends and standards are set. Failure to adapt to these trends and standards would make your taxi business seem retrogressive. Thus, every new or already existing taxi company should strive to set new trends and adapt to existing ones.
To beat the competition, taxi business owners should equally focus on taxi app development. Creating a taxi management software would help companies to keep track of rides and create a more convenient mode of transportation. The convenience which taxi management software offers makes it a huge bonus in the taxi industry. Thus, in order to beat competitors, taxi businesses must create an effective taxi booking system that will enable commuters to book rides seamlessly.
Taxi app solution for Taxi business or Start-up
In the same vein, taxi business owners ought to focus on improving the quality of services and incorporating new car models for use. Daily, taxi companies invest in newer and more efficient car models for commuters to enjoy. It is important to note that commuters are more likely to board new and efficient car models. As such, you would need to ensure that all cars are in perfect working condition in order to avoid bad reviews. Creating a taxi fleet management software will enable you to keep track of and monitor your cars.
Finally, beating the competition involves more than just offering efficient services and following trends. It equally involves using the right marketing strategies to attract customers. In today’s age, advertising means everything. Companies can get the most out of this tool if they utilize the right advertising tools. For example, social media platforms are very effective for audience reach. According to Hootsuite, “about 70% of people in North America are on social media. Currently, the global penetration level of social media is at a whopping 42%.” What this means is that a large percentage of your potential customers are on social media. Thus, as a taxi business owner, you must strive to reach this audience by advertising on social media platforms and the media in general.
Find out more 4 Great Tips to Boost Your Revenue in the Taxi Business, click here
The taxi industry has come a long way and has evolved throughout the years. This evolution has led to the setting of new trends and a more digitalized form of transportation. Thus, to adapt to this new system and beat the competition, taxi businesses must stick to trends and offer unique services.
As a taxi business owner, the first step to take is to create a cab dispatch system that will enable you to run your business smoothly and efficiently. With this software, you can then run a progressive company and beat the competition in no time at all.