As an aspiring entrepreneur, you must know the market performance of the industry before making any critical decision.
Especially with the pandemic all over the world, it is important to understand the ups and downs of the industry before leaping.
This article will showcase the online taxi industry's performance in the future and its viability before getting into the taxi app development.
Get ready to soak in some numbers!
What is the statistical performance of the online taxi industry?
The app-based taxi industry has a market share of 72 - 75%, and it’s not going to reduce as the number of smartphone users is increasing day by day.
The revenue of the US ride-hailing taxi app industrywas $5.1 billion in the year 2020. And it is said that 100 billion people prefer booking their taxis using an online platform.
The estimated CAGR is 17.4% in 2024 despite the pandemic situation taking a toll on businesses.
There is no better time to launch an online taxi business than now!
Will the online taxi market flourish in the near future?
Yes! It is estimated that the ride-hailing taxi industry will have a revenue of $327.54 billion within the forecast period of (2021-2026).
The Asian-pacific market has taken over 73.14% of the global taxi market. The app-based taxi booking services are going to flourish in the years to come.
How did the industry perform and manage to survive COVID?
The taxi industry has generated a revenue of $302 billion in 2019 and $192 billion in 2020 even with the pandemic (COVID) in a full swing.
The taxi industry was able to survive the severe blow during COVID that other businesses couldn’t withstand.
3 Lessons that taxi businesses must learn post-COVID:
- Diversify your revenue streams - try your on-demand app on other potential ideas.
- Invest in the digital transformation of your business.That’s the only way that your taxi business can cope with the changing circumstance.
- Don’t let your customers forget you. Give out constant updates about the function of your business and care about their health & safety.
What are the challenges in the online taxi industry in 2021?
These are some of the challenges that the online taxi industry will face in the upcoming year.
- Market leaders like Uber, Lyft, Cabify, own the majority of the market share when it comes to the online taxi business.Protip:Work on having competitive pricing and superior customer support to win over the local crowd to your taxi business.
- Acquiring funding for your online taxi business could be challenging unless you have a strong business & marketing plan to showcase that you are different from the competition.
- App development costs might not fit within your budget.Protip:Go for a ready-made app solution than developing from scratch.
- Not giving out features and functionalities inclining towards the safety of the riders and drivers can cause a dip in the number of users. (eg: Precautionary notification, in-app chatting, and calling)
- Not having a contactless payment, in layman terms not digitizing the payment procedure can make users question the user-friendliness of your taxi app. (eg: wallet option or card payment method)
What's the future of the app-based taxi industry?
The future of the app-based taxi industry is completely based on marketing strategies since people got a little too comfortable booking for online services.
During lockdowns, it is your responsibility as a business owner to keep reminding about your market presence to your audience.
And off lockdowns, give out special offers initially, and make sure you highlight the safety procedures of your business.
To sustain global warming issues, the next big thing that you can do to adopt Electronic Vehicles (EV).
How does starting an on-demand taxi business using electronic vehicles sound to you?
Pretty awesome, right?
The electric vehicle has a 2.2%market share in the USA now. But in the upcoming years, due to many environmental hazards, there is a high chance that EVs could become a huge thing!
Imagine being one of the first entrants in the market as an EVs ride-hailing on-demand business.
Do think about it!
Hope these statistical reports and other important details uncovered in this blog helps you know what to expect from the online taxi industry!
Having a taxi app could help you reach your customers as you want. For that, you’ll have to know what taxi app development company is the right fit for you to build your dream taxi business.