Having a business and a revenue model is one of the basics to tick off from the startup checklist. The business has to be adapting to the changing circumstances.
Therefore, it is essential to be more flexible and scalable for your startup.
A strong business plan requires having a healthy and progressive business & revenue model.
Let’s check out what business and revenue model can work for your on-demand taxi startup!
Importance of having a business and a revenue model for an app-based taxi business:
- A business model serves as a blueprint for your on-demand taxi business. It helps you find what stage of business development are you in and how far it’ll take you.
- Having a systematic business model ensures transparency to all stakeholders, which will ultimately help you address the concerns of your startup.
- Having a business model with flexibility will help you think about scaling your taxi business in a new dimension.
- A complimentary revenue model that can ease into any business model will ensure adaptability in your business.
How to choose the right business and revenue model for your taxi business?
- In light of the current situation (COVID), your business model must reduce human interaction. As a result, ensure that your on-demand business strategy is fully digitized.
- The business model you opt for has to help in reducing the operational cost of running a business.
- The direct and indirect expenses such as maintenance costs have to be at a minimum.
- Having an app-based business model is the most effective way of reaching out to your target audience.
- If you choose an app-based business strategy, the app's features and capabilities must be user-friendly and designed with cutting-edge technology.
- The business model you opt for has to be flexible to the changing needs of the business environment as well as the customer needs.
What is the right business model for your on-demand taxi app business?
In recent years, the aggregator business model has shown to be the most appropriate and profitable.
An aggregator business model is creating an online marketplace that connects the service providers and the end-users under one roof.
In this case, the riders and the drivers are connected to the on-demand taxi platform.
The rider can book their rides from the given category managed by the admin of the on-demand platform (which is you!) and the driver can accept the ride request and carry on with the ride.
Managing the riders and the drivers, providing offers through promo codes, and other managerial-related activities are performed by the admin of the on-demand platform.
“But can I monetize this business model?” - is the next question any entrepreneur would ask. Read further to uncover the revenue model!
3 Reasons why you should use a commission-based revenue model for your taxi business:
The commission-based revenue model is one the most complementing revenue generators for the aggregator business model.
A booking fee is charged to the rider based on the flat fee or distance-based concept. The admin will be receiving the ride fare, then the driver will be paid his earnings.
This is how the commission-based revenue system works. Let’s get into the reasons why this is one of the best choices that you can make for your business!
- The admin has the power to fix the commission, in two methods - percentage or a flat fee.
- The service providers (drivers) don’t risk any losses by registering into your marketplace platform, you (the admin) will be paying them once their services are availed by the customers (riders).
- The admin can get a steady stream of revenue as the business grows (collection of small amounts shows a big difference).
Check out the business model canvas template for your on-demand taxi business!
Source: Business Box
Aren’t you excited to know more about how the business and revenue model of the taxi app function?
Check out the FREE Demo of our on-demand taxi app, Wooberly.
Wooberly is a successful on-demand marketplace that is extremely flexible, scalable, and customizable according to your business needs!
Have more questions about our product and services?