How Market Research Can Help You Launch a Profitable Taxi Business

Earlier the taxi market was valued at $159.6 (USD) billion in 2020. The market experts have made the forecast that the taxi business market will cross $327.54 (USD) billion by 2026.

In 2020, the pandemic outbreak disrupted businesses across the world and the taxi business was one of them. With restricted movements and lockdowns, there was a reduction in demand for taxi booking. Post lockdown, people fear the risk of catching the virus associated with public transportation. Thus compelling them to book a taxi abiding social distancing rule. Customers are showing tremendous interest in booking personal cab which is positively impacting the taxi market. Regardless of the ease in the lockdown measures and COVID19 vaccines, the demand is still on the rise.  It is expected that by the year-end of 2021, the market will experience a boost.

Passengers prefer to book themselves a taxi as well as go for ride-sharing services in developing countries like China, Indonesia, Vietnam, India, Malaysia, etc.

Because of the traffic congestion and hassles of finding a parking space, passengers from the countries like Europe and the USA prefer traveling in a taxi. That’s why the companies are coming up with more economical traveling options like motorcycle/bike taxis. This helps in expanding their business operations, retaining their respective market shares in a highly competitive market.

The taxi market is huge in Asia regions capturing the major share of the market, accounting for 75% of the global taxi market in 2020. Increasing traffic, low taxi fares, quick to book, are the major driving factors that are responsible for the boost in the Asia-Pacific markets.

Market Overview for On-demand Taxi Business

There is no denying the fact that the Asia-Pacific region is the leading taxi market. It is witnessing significant growth in Asia-Pacific. Taxi booking apps like Ola, Didi Chuxing, Onda, Uber, etc. are highly used. They are capturing the market share by building Uber Clone App, using scalable, cutting-edge technology. These taxi booking apps are facing the competition in the regional markets, growing overseas. Asia-pacific taxi booking apps like Didi Chuxing have begun their operations in Australia, Japan, Costa Rica, and Mexico. Whereas Indian market leaders like Uber and Ola are serving in the USA and Europe.

It is believed that China has the major share in the taxi market, because of the highest population in the world. Due to quick availability, comfort, economical and end-mile connectivity offering, taxis have become an essential need today.

India ranks 2^nd being the most populated country across the world. The majority of the citizens are middle-class category. They are mostly using autos and public transportation for commuting short distances. With the advent of Uber and Ola taxis, the country saw a huge demand. Moreover, now these apps and similar taxi booking apps are introducing Bike Taxi to make it more affordable and quick to commute.

Market Analysis of Taxi Market

It is crucial to do a market analysis before you move further to building a taxi booking app. Thorough researching the taxi market and studying the scenarios will give you much better clarity while integrating the features, OS platform and which technology to be used to make your on-demand taxi booking app successful.

Competitive landscape

Studying some of the major players like Uber, Grab, Lyft, Ola, etc. can help you know the best marketing strategies, their work mechanism to have a seamless taxi booking app for your business.

The key players of the taxi market are investing a lot of money in the latest technology. Uber and DiDi Chuxing taxi booking apps are offering personalized booking experiences to users.

In some countries, there has been a rush in the number of customers opting for rental services. Hence, the taxi booking apps like Ola, Prydo, and Meru are offering value-added services to their customers at very competitive prices. What’s more, recently Ola Cabs have partnered with Apple music and other video streaming services so that their customers can enjoy a pleasant ride.

Customers buying criteria

Targeting customers with low to mid-range income as they are motivated to use your taxi booking services over your competitors because of the convenience and quality associated with our services.

The customers choose cab services when the following criteria are met:

• Performance should be the USP. There should be one goal in mind for your customers. The ride service offered should be seamless, prompt, efficient, safe, and comfortable
• Offering high-quality service by providing timely pickup, call masking, and customer care
• Providing clean, well-maintained cars
• Payment convenience by enabling multiple in-app payment features

Capital and financing

Every industry comes with monetary gains and losses. It is up to the taxi business owner to ensure that it runs seamlessly. That is why, before venturing into on-demand taxi business ideas, it is best to do some research.

While developing an app like Uber, developing it right from scratch can be expensive. Building an Uber Clone App can be done at a fraction of the cost. It is a ready-made, white-label solution, offering 100% customization to the owner. The app can be modified without any technical assistance. Thus you can launch Uber Clone in 5 days without breaking your bank.

Customized features

Your taxi booking app success very much depends on the features you are integrating. Know your target audience and their preferences before customizing the features. Following are the new version 2021 features to integrate with an app like Uber:

• Face mask verifications
• Restricted passenger limit
• Safety checklists
• Safety ratings and reviews
• Graphical status of the rides
• Ride cancellation
• Apply toll costs manually
• Taxi fare calculation 2 models
• OTP verification to start the ride

In Conclusion

The taxi business might not look easy to build and develop. However, the right consultation with an on-demand taxi booking app Development Company is advisable. Speak with their team lead, know which kind of taxi booking business model will be good to build. Discuss the features and take the live demo to know the functionality of the app. However, keeping in mind your market research, implement the strategies, features, and functionalities to make your on-demand taxi booking business instant success.

Author Bio:

Anurag Rathod is an Editor of Appclonescript.com, who is passionate for app-based startup solutions and on demand business ideas. He believes in spreading tech trends. He is an avid reader and loves thinking out of the box to promote new technologies.