If you are a taxi app owner, you will be a billionaire in the upcoming years. The taxi market expected CAGR 9.22% in 2019-2024. The market value will be US$216,810m in 2020 and US$318,765m in 2023.
In this blog, you will get to know about the scope and prospects for taxi apps in the global market and what is the reason for its growth.
Just a few years before, not that long just 3 years before we all used to move from one place to another through public transportation or personally owned vehicles. Everyone can’t afford a car, It’s rare to own a personal car. Nowadays we all are hailing in the car for our day to day basic needs. Since the world has been changed to digital, We can do anything from the same place where we are just by a tap, isn’t it magical. Alike, now traditional taxis are changed to e-hailing taxis. Where people can easily book their nearby taxi with just a tap.
E-hailing is fast growing in the online mobility service market. Many new companies are driving into this market worldwide, which makes the competition more intense. The current scenario of e-hailing, North America is the highest contributor in the world for the online taxi app business, and secondly Asia-pacific. If you are interested in starting a business, then my choice will be the taxi app business. Keep reading to know more about the taxi app and its scope in the market. By the end of this blog, you will get a clear understanding of the whole taxi app business, and you will be ready to start your own taxi app business.
Factors that steer the growth of the e-hailing business industry
E-hailing is nothing but the booking of cars or any other transportation through your mobile devices. Here are some factors that steer the growth of the e-hailing business industries.
Rise of on-demand cab booking service
To be honest, without a smartphone and good internet our day will not be fulfilled. Since we are living in the tech world everything is made simple as I mentioned above. We are also able to bring everything to our place itself, even the world.
After the smartphones entered into everyone’s life things kept changing. Now we can book a taxi near our home. We don’t need to go so far away to bring a taxi or to book one. In the world, there is half the population of Gen Z. They are the maximum number of persons who use to book the taxi through online apps. So the fact is in a few years there will be more percentage of Gen Z peoples only than Gen X and Y. So there will be high growth in the online taxi booking industry.
The startup trend of the on-demand online taxi app transportation service
The on-demand taxi app service provides all features for their user’s comfortability. It also provides real-time tracking and user feedback to rate their traveling experience. Thus the people also start to enjoy their comfortable ride without waiting for a long time. And it also provides a 100% safe journey for their customers.
Rise in Job opportunity
They not only provide comfort to their customers, but they also give options to drivers to work part-time or full time. In the US N number of people are employed as full-time taxi drivers. The report says Uber gives 50,000 jobs a month and the other top taxi apps like Ola, Lyft, etc are also providing job opportunities worldwide.
The rise in trends of MaaS (Mobility as a service)
People who don’t have their own car or people who feel too lazy to drive a car are always preferring online taxi service for their smooth travel without a sweat. The statistics say that your own vehicle goes $8858 if you run it for 15k miles per year. So people prefer online taxi apps because there is no need for maintenance costs and petrol costs.
There are few low usages of the internet in some countries there which has less usage of online taxi apps. The digital countries have high growth in the use of on-demand online taxi app service.
The taxi market has been divided
The taxi has been used by a single customer or group of people to share their ride. The pickup and drop location for taxis is always decided by the customer, but the public transportation the pick and drop location has always been decided by the service provider.
The taxi app has been divided into two types as we all know online and offline taxi booking services. Its survey shows that 65% of people use online taxi booking app services. The on-demand taxi booking app also shows us the estimated cost before booking a ride. It gives more options for customers to choose from different vehicles.
Major players of the taxi app
We all may well know about the major players of the taxi app business all over the world are Uber, Lyft, Ola and Grab.
Uber – In 2019 the survey shows that the taxi booking app operates in the Middle East is $3.1 billion. Uber also started many new services for their customers. Still, the leading top fist taxi booking app is Uber.
Lyft– it was launched after Uber and it’s cheaper than the uber service. And they also started their service in over 200+ countries. For example, Uber costs $16 and Lyft costs only $12.
Ola – Ola launched its taxi service in 2010 and it claims 1,50,000 booking per day.
Grab – Grab is also one of the famous taxi apps among the US in 65 cities and has 50,000 taxis on the ride. They provide three options for their customers “Ride now”, “Pair and share” and “Ride later”.
The working process of all these on-demand online taxi booking app services is the same. There is no difference in it.
The process of taxi app development
Yea, up to now I have talked about all the scope of the on-demand online taxi booking app. Let me tell you how to build an on-demand taxi booking app in these four steps.
Step-1 Clear vision of your own taxi booking app
What type of taxi booking app are you going to offer the market? Not every taxi booking app should be exactly like uber applications. There are a lot and more no of other services like Bike sharing, Employee transportation app, Car rental app.
Step-2 Have a good understanding of the market situation
After you got the concept for your taxi booking app. You should need to understand the market situation. Where your app business will succeed or not because many similar apps are there and how your app will stand out from the other competitors. You can also check through the business model of the uber and other top online taxi booking apps.
Step-3 Find proper developer for your app development
So after finishing all the above steps, you will need a developer to build your own taxi booking app. There are lots of developers in the market who are ready to do your work but you have invested much more than you have in your pocket. Think wise and act according to it.
Step-4 Final thing to be done
Above mentioned are all common things you have to do for creating an app but the final step you have to decide about the app security, market competitions, app localization, and user attraction.
These are four processes for developing a taxi app in the right way. Up to now, I have talked about the market value, scope and how to create a taxi app. Let me tell you why you should start your own app and scope of the taxi app beyond 2020.
Raid-hailing trends for 2020 and beyond
In recent years there are many innovations and technologies that have been introduced and used in many countries all over the world. Therefore some companies are also building new features in taxi apps to make their app innovative. The top 2 are listed below
People nowadays are trying to protect the world and try to avoid pollution. There is a famous cab company called go green. Which is on-trend in the market this cab runs in electricity to avoid pollution. And people are feeling more blessed to ride in that car because they are not harming their world.
Cars without drivers. The project is undergoing in the process it may be launched in the upcoming years. And AI is also now included in my taxi apps to bring more user-friendly to the customers.
Top features that make the taxi app more comfortable
The features that make the on-demand online taxi booking app more comfortable for the users.
Reasons why you need a taxi app for your business
The reason why people use taxi apps is for saving their time and for comfort. So it’s better to develop a taxi app for your own business.
Nowadays people are always not satisfied they need something to experience user-friendly. Designing an interactive UX/UI makes more advantages for your app to run smoothly and fast on all devices.
Communication plays a major role in everything. But developing an app for your customers does not need any communication. It will automatically locate your pickup location and you can set your drop location with any communication to the driver. And the app will be processed according to your local language.
By creating a taxi app you are giving 100% security to your customers because the location can be tracked in real-time. It will automatically share with their friends. When a car goes in the wrong direction then it will automatically be noted in the admin panel and customer app.
Strategies for boosting your taxi app by targeting advertising, offers and discounts, Prime version, etc.
What are the different challenges?
The most different challenges faced in on-demand taxi booking apps are the book later option. For example, you might have booked your cab 2 hrs before reaching the airport but due to traffic, the cab couldn’t be on time.
Mobile phones have become half a part of our body. Usage of taxi apps has become like our day to day task. Some of the top companies in the on-demand taxi booking app Uber, Lyft, Ola, and Grab among them Uber’s main aim is to expand its business by adding upcoming technologies.
By reading this blog you might have known the importance of the on-demand taxi booking in upcoming years. Still, why are you waiting for? Start your own app and earn it from your home.
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I am working as a Senior product developer at Uplogic Technologies Pvt Ltd. Uplogic Technologies is a leading producer of mobile and web app development solutions in the market. We have delivered web and mobile app solutions for numerous clients comes across the world.
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