Gone are the days when people had to go the extra mile to get a taxi, thanks to the technological advancements that brought taxi booking app development into the picture. Now with a few clicks on the mobile application, customers can easily book their closest taxis and reach their preferred destinations hassle-free. Digitization in the taxi industry has embraced this sector and makes it notable for investing. Uber, Ola, and Lyft are some of the best examples of the taxi-booking apps that have transformed this industry significantly.
According to market reports, the global online taxi services market is expected to grow from $23.42 billion in 2020 to $28.65 billion in 2021 at a CAGR of 22.3%. By 2026, it is estimated to reach USD 327.54 billion, at a CAGR of 8.95% over the forecast period (2021-2026). Furthermore, with the increasing use of smartphones, the demand for mobile applications is also rising. Therefore it is high time for the businesses to invest in taxi booking app development to get the expected business ROI.
Today’s Gen Z generation believes more in technologies and applications. They are highly comfortable with the digital space and want every service at their doorsteps quickly and effortlessly. Many entrepreneurs are now shifting their traditional taxi business to digital platforms to cope with such demands.
If you are from the taxi business industry or planning to enter this sector, a mobile taxi app is a great way to tap a large audience and broaden your business reach. To know more about how these taxi booking apps help you gain more reach and customers, we have written this post.
This blog will guide you on why taxi booking app development is essential for your business and how it will help you to stand ahead of your competitors.
Uber is a leading taxi booking app in the market that has covered a vast market share. As a result, many companies are encouraged to follow the Uber taxi-business model and follow it in their business operations. Today, On-demand taxi booking apps like Uber are the most demanding requirements of businesses globally.
Enterprises approach various mobile app development companies to build a similar app like Uber or its clone. But still, some businesses are not satisfied with the fact that they require a mobile taxi app to run their business smoothly.
So, let’s start with the benefits that make you understand how investing in taxi booking app development leads your business to new doors of success.
Benefits of Taxi Booking App Development-
#1 Broadens Business Reach- The first and most critical benefit of investing in taxi booking app development is that it helps taxi businesses expand their business reach. It allows them to tap potential customers easily. Today’s generation is the smartphone generation- from making a call to book a taxi, people now prefer to book a cab with an app. According to a survey, 65% of people use online taxi booking app services. This number is enormous and can help any startup to get potential customers. Hence, building a mobile taxi app is a wise decision to start your business and attract more customers.
#2 Enhance Brand Credibility- Brand awareness is an essential part of a business, especially if it is a startup. It plays a significant role and can make and break your business efficiently. Have you ever wondered how Uber, Ola, Lyft, and other taxi booking apps have gained such enormous attention globally? Their brand awareness makes people informed about their presence in the market and services they offer worldwide. In addition, their taxi app development decision helps them expand their brands to different cities and countries.
If we take the example of Uber, then this company takes its annual revenue bar from $0.4 billion in 2014 to $11.1 billion in 2020. Uber drivers had completed 4.98 billion trips in 2020. They achieved this enormous milestone with the help of a mobile app. Mobile app development has introduced their business on a massive platform and enhanced their brand credibility all across the globe.
#3 Increase Customer Loyalty- A positive brand image helps enterprises keep their customers staying with them for a longer run. Apart from the market reputation, the next big thing to win customer loyalty is the type of services you offer. A customer always has several expectations and requirements from a business. To build a strong relationship with customers, the firms must identify those needs and provide solutions accordingly. Such demands can be identified with the help of effective feedback systems that you can implement in your taxi booking mobile application.
The feedback systems allow customers and drivers to share their experiences. It will help them to understand that your business actually values their demands and relationships with them. Integrating such functionalities in mobile apps helps businesses in converting their standard visitors into potential customers.
#4 Improves Profit- Many taxi operators pay massive commissions to the aggregator’s applications to run their business swiftly. If you are a taxi business operator, building your own mobile application can save you from such commissions. This decision helps you to cut additional costs and brings total profit to your business. An in-house taxi booking app will ultimately enhance your profit margins and grow your business manifolds.
#5 Enlarge Product Offerings- Ride sharing and taxi booking are the standard services that every taxi business offers its customers. But offering more variability in the products brings additional value to your business. With the traditional services, you can offer a few unique options to your users, like choosing their preferable car, drivers, and more. These add-ons will help you to gain more customers’ attention. Not only the customers but you will also gain a competitive advantage over others.
#6 Communication Transparency- Maintaining transparent communication between drivers- customers, customers-companies and companies-drivers is one of the most challenging tasks. Unfortunately, many offline taxi booking companies fail to maintain smooth communication and fail in the end. But online taxi booking apps eliminate these miscommunication situations and lead to a satisfactory user experience.
With the taxi booking apps, operators can seamlessly manage crucial instructions and check the drivers’ availability. Moreover, the application offers real-time updates about the drivers, customers’ locations, and more. It also provides authorities to drivers to accept or decline the ride in real-time. Hence, taxi booking app development will help you keep transparent communication across all your channels and customers.
#7 Close Monitoring on Drivers- If you run an offline taxi business, you can’t track your driver’s performance. Whether it is related to fuel expenses or customers’ complaints, you can only rely on the information provided by your drivers or customers. These situations somehow affect the business efficiency and increase the chance of losing customers. But online taxi booking apps remove all these issues. With an online app, you can monitor your driver’s efficiency closely. Be it harsh driving, fuel payment, or unfriendly behaviour; you can track your drivers effectively and take necessary actions on time.
#8 Get Valuable User Data- To expand your customer base, it is always better for businesses to know their customers well. But many companies fail to learn what their customers expect from their services. Quality services are the most important factor that holds your customer with your business. Here, Taxi booking software plays a vital role; it helps companies get valuable user data that can help to offer more customized and unique services to the customers. It can be special discounts, offers, and more that attracts customers to your platform. With the data, you can send push notifications that elaborate your service deliveries, ultimately improving customer satisfaction.
#9 Cost-Effective Pricing: Fare prices have always been a topic of arguments between passengers and drivers. Many times, it turns into aggressive conversations which are entirely not acceptable by any of the parties. But with online taxi booking apps, there are no such issues as these applications offer complete payment transparency to both parties. Before finalizing the taxi, customers get the estimates of prices for their decided destinations. If they are okay with the charges, they can book their cab. On the other side drivers also get the price details once the ride is over, so there is no need to negotiate or argue with the customers. Mobile taxi booking apps have become a game-changer & surpass local taxi service in terms of money as rates are low, like 6–7 rupees per kilometre.
#10 Real-time Location Tracking- Location tracking is considered one of the essential benefits of investing in taxi booking app development. The application comes with location-tracking features that enable organizations to stay updated with the real-time locations of their cabs. Moreover, this feature also allows both drivers and passengers to track the exact locations. As a result, the customers will get an idea about the estimated arrival time, and drivers can find their customers efficiently.
How Much Does It Cost To Create An Online Taxi Booking App?
The most important question asked by many entrepreneurs is the cost of taxi booking apps. How much will it cost them? Unfortunately, many startups think that mobile app development will cost them massive in their initial stage.
The cost to build a taxi booking app depends upon the various factors, including-
- Features & functionalities
- App design and complexities
- App size
- App platforms
- Frontend and Backend requirements
- Developers Location
- Hired Mobile app development company
The more will be your application requirements; the more will be the cost. If you plan to build an app with basic features and an Android platform, it will cost you less. But when it comes to building an application with advanced features and an iOS platform, it will surely cost you high. Also, the location of developers marks a great difference in the cost; mobile app developers from India will cost you less than the developers from the USA, UK or Europe region. Below we have mentioned a few approximate figures:
- India: $10 to $ 80 per hour
- Europe: $30 to $150 per hour
- USA: $50 to $250 per hour.
Hence, your choices ultimately decide the budget of your taxi booking app development. To get the detailed price structure, we would advise you to connect with a mobile app development company. It will help you to understand how the mobile app development process works and how prices are decided.
Taxis are considered a great source of transportation, not only in terms of money but also in comfort and security. And technological advancements in this industry are like cherry on the cake. The concept of an online taxi booking app has come as a blessing for taxi operators. With this digitization, they get an opportunity to connect with more customers and expand their business to a comprehensive level.
The online taxi booking services benefit not only businesses but also drivers and customers. On one end, where customers get the comfort and on-time rides, the other side drivers will also receive decent earrings and extra benefits.
If you are a startup in the taxi business industry, investing in taxi booking app development will help you gain more and quick reach. You can easily tap a large audience and enhance your business productivity. So what are you waiting for? Hire a mobile app developer today and start your project!
We can help you with this. We are a leading mobile app development company that has developed several mobile applications for various clients globally. We provide exceptional mobile apps at cost-effective prices. So connect with us today and discuss your app idea.