How to Grow Your Taxi Business? - Proven Methods

Overview of the Taxi booking market

Before that, we waved our hands in front of the taxis or pre-booked it through phone calls. But that does not happen now.

The adaptation of technology and mobile phones have changed consumer behavior disruptively. And the arrival of Uber put consumers the ease of booking taxis through mobile devices.

Now if any business need to take hold of the taxi business, they need to emerge with a mobile app; cause that's the new and preferred way.

Besides, check out the Ridesharing industry statistics and market growth to get a current scenario of the taxi booking industry.

Figure out your role in the Taxi business

It is the question you must have to ask yourself.

For instance, we are an app development company specializing in readymade taxi booking solutions. We encounter a lot of entrepreneurs who reach us with an idea and return with a mobile app.

Particularly a woman approached us to build her taxi booking app. She is a taxi driver who ought to automate her taxi business. But that's not the motive. Her region lacked a taxi booking business and taxi for riders.

She obviously can see those missed gaps. There was no taxi available in her location. What more reason's required to start her taxi booking app? And we assist her with our readymade taxi booking solution.

The thing is that everyone has different goals and unique reasons to start a taxi booking business. We encountered a myriad.

Let me come to the point.

Ask this yourself!

What are your goals - the requirement - the target market, and the problems you intend to embrace and solve for users? Now you might get a little idea about "Who you are?"

If you're not, you'll never leave this blog without knowing that.

1. Marketing

First & foremost, marketing is essential - It opens new possibilities to put a hook on your audiences - Here, your target audiences are your fish.

Be consistent with your marketing strategy that creates awareness and helps you widen your business reach. However, there are two types of it. Traditional & digital. Both are important.

Well, digital is more effective - you can target your specific audience for the taxi business. And you can leverage organic(Social media, SEO, and more) and paid advertising(Google ADS, Youtube ADS & so on).

In Google ADS, you can target users based on their interests, keywords, and demographics. Thus, it saves time while reaching the right audience for your business.

This video can help you widen your perspective on marketing. Guess who’s talking? It’s Seth Godin.

2. Where to start - The location?

Spotting the right location helps you to determine your target audience.

Every business starts somewhere. I am referring to the place and the region where they initiate their business.

For instance, take Uber as an example; now operating in more than 70 countries and 10,500 cities. However, they started their journey in San Francisco, California, in 2009. Look how they expanded in all these years.

For your taxi business - choose a location that seems more welcome and comfortable for you to start. It eases you in focusing on the other work. Like, if getting started is hard, pondering where to start is a daunting process. But there’s always a way out.

Step to grasp,

• Choose your target market.
• Research the competition around your area.
• Analyze the cost of living and doing business.
• Analyze future growth potential.

3. Offer 24*7 customer support

HARNESS customer support. It is not a tool but a way. It is a path that treats customers in the right direction. Hold their hands through the before and after purchasing journey.

Another fact; however, you may have heard this earlier, anyway - listen to this. "Acquiring customers is costlier than retaining" - the best customer support persuades customers to stay with your taxi business. It cultivates trustworthiness and loyalty.

4. More REVENUE channels! More GROWTH!

It is the key. For WHAT? To your taxi booking app and its growth. Adding revenue channels is necessary for every business to prosper, rule, and get ahead with the market share.

Many businesses are trying to do that, and the rest are struggling. However, the act of trying would give you the opportunity. Even if it's not moving towards the goal directly but sure, it opens other doors of possibility.

Let's take Uber as an example. They have several ways - here is that,

Commission fees

The overall portion of Uber comes from the commission fee they charge from the riders through the app. It varies on the city and the ride type.

Surge pricing

During festive days or in a high-demand area, Uber charges extra price from riders to quench the supply and demand of taxis at the right scale.

In-app advertising

In-app advertising displays within the app itself. It appears in a different format, such as display ads and sponsored listings. Uber's in-app advertising is a way to generate additional revenue and provide targeted ads for riders.

5. Building loyal customers

Customer loyalty in your taxi booking means the desire to book taxis from your web or app. And in another case, listing a car on your taxi booking platform.

If you feel attracting new customers to your Taxi app is a headache, alluring loyal customers is even more daunting. But there's a way - here's this blog. So, no worries.

Imagine, Steve, before becoming a loyal customer of your app. He wants to travel back home. Steve was looking for a cab and couldn't find any, then all of a sudden, your app struck his mind, so he booked a taxi from your app and arrived safely at his home without hassle.

Would Steve forget about your service - If I were Steve, I couldn't possibly do that.

Grasp these steps,

• Conduct a loyalty program.
• Customer supports.
• Add enough value to their money.
• Return something back to them.

6. Be FAR BETTER than your competitors!

We are in a world that gives customers a plethora of choices. Every niche has countless businesses participating; you are another one in the race. It is obvious to seem daunting but hope is there being UNTOUCHED.

• Analyze your competitor's strengths and weaknesses.
• Know your unique value proposition.
• Riders & drivers should be your No:1 priority - Introduce plans & policies that add value to them.
• Improve your service, either for riders or drivers.
• Offer Better service with Better pricing.

7. Creating unique value propositions

There are loads & loads of businesses, but what makes the consumers embrace the brand they love? We all know it's the value - you deliver to them.
Before considering providing value - Identify who you are and your current state. It is critical to getting ahead in the journey of a value proposition.

Without knowing yourself. What you're to your customer, and how possibly you're going to achieve the goal of the value proposition?

And then, let's move on to the quick steps,

• Identify your customer's problem and how your competitors are reacting to that.
• Find out the value you're providing in the contemporary situation.
• Identify the market gaps.
• Enlarge the possibility of providing MORE value.
• Continue doing that.

We have come to a conclusion!

Growing your taxi business can be challenging, but there are proven ways. Like, I mentioned above. Some of them hold an impact on scaling your taxi business. Beyond, there are some I would like to drop it down.

Leveraging social media can seem ineffective. But that's not true indeed. Social media gives you the potential to connect with your audience personally. You can build a community and let them interact.

And SEO - an underrated and effective way to reach your audience organically. It includes optimizing your website.

And let's not forget about the offer tactic used by taxi-booking pioneer Uber. They spend enormously on acquiring new users (riders) in their taxi business.

Not only them - but most business end up using this offer strategy, and many have achieved the goal.

Remember, this process takes time, patience, and consistent effort, but implementing these proven methods can help you scale your taxi business to the next level.