When was the last time you waved hands at a taxi rather than booking cabs through smartphones? Do not stress yourself; that was long back. The impact that Uber created made on-demand taxi apps an integral part of people’s lives. It’s been nearly two quarters since the onset of the COVID-19 pandemic. People confined to their homes have gradually begun to adapt to the ‘new’ normal and step out of hibernation. Taxi giants facing losses are rare. However, there’s no point in crying over spilled milk. It’s time to get back on track with the need for returning to normalcy more than ever.
Given the taxi industry’s dynamic nature, it evolves with the customer trends, standing tall even after its century-long stand. What is it like to develop a taxi app post the COVID-19 era? How will people receive the app? What are the customer trends that an entrepreneur needs to look into during development? What’s the scope for micro-mobility?
Are you an entrepreneur with these questions in mind? If so, this blog is right for you. Let’s dive straight in.
The COVID-19 nemesis and the Resurrection phase
Initially, let’s discuss the impact of COVID-19 on the taxi industry. Inevitably, there are damages. But the taxi industry is capable of resurging, provided it gains the all-important customer trust. Some stats that show a decline in sales and possible resurrection are,
According to Ken Research,
- The global ride-hailing market will settle for $52.07 billion in 2020, after having a healthy rise in 2019 ($60.5 billion).
- Due to the pandemic situation, the market will decline with a CAGR of -13.88%. This rate is acceptable, considering the fact that the demand for taxis has almost completely dried up amid lockdown constraints.
- On a positive note, the industry will regain its lost market, recovering tremendously to reach a record-high value of $85.48 billion in 2023.
- During the forecast period between 2020 and 2023, the market will grow by a double-digit CAGR of 17.97%.
Renaissance is very much on the cards, with the market expecting new players to make their presence. Are you ready to launch your perfectly safe ride-hailing app?
Focus on specific areas
People will have specific queries up their sleeves as they begin to get back with their lives post the pandemic. A successful entrepreneur streamlines business activities to solve people’s concerns. Here are specific considerations that you need to address with your taxi app,
- The fear factor: People fear they would contract the virus if stepped out. A private taxi ride is more comfortable and safe when compared to congested public transportation. So, why should people opt for your taxi platform? Implementing safety community guidelines is a great way to grab people’s attention.
- The need for public transit agencies to turn digital: It becomes a back-breaking task for public transit agencies to turn the wind and boost their sales. What if you can aid in turning their activities digital by renting your taxi software? This way, by digitizing shuttle/commute vehicles, you can earn consistent income while agencies get to be technologically ready to meet people’s demands.
- Ride-sharing in the post-COVID-19 era: Carpooling will decline both in popularity and sales post the pandemic situation. However, people will not hesitate to share their rides with friends and family and split fares. Hence, implementing ride-sharing as a part of ride-hailing solutions can come in handy.
- Micro-mobility will flourish: With an increase in the tendency towards digital-powered vehicles, coupled with the convenience of self-driving, micro-mobility will occupy a major share in the transportation industry in the upcoming years. Eliminating drivers from the ecosystem paves the way for privacy and reduces the chances of virus transmission.
Devising plans based on market conditions and executing them at the right time and the right place enables entrepreneurs to widen their customer base and revenue stream.
Here’s how your on-demand taxi app can flourish
Entrepreneurs and strategies are inseparable. A highly-skilled entrepreneur utilizing the right strategic tools can make a revolution in any sector. Here are some strategies that will help your business to flourish post-COVID-19.
Digitize! No way out
If you’re a traditional taxi business owner, now is the time to digitize your operations. Retaining customers is a piece of cake with a top-notch white-label Uber clone app. With the situation becoming stable, enable your potential customers to book services via smartphones. This way, you can instill the trust factor in your customers’ minds as well.
Onboard drivers into your community
You can expect or sustain demand without supply. Except for the app, it is your drivers who come in direct contact with your customers. Educate your driver community on COVID-19 precautionary measures. Providing them safety gear, including gloves, masks, sanitizers, etc., can be an ideal way to set the tone for your customers that they can believe in your process. Instructing them to disinfect the surfaces with cleansing liquids can go a long way in ensuring safety.
Besides, with an on-demand app, drivers get notifications on high-risk prone zones, reminders on upcoming rides, etc.
Explore the SaaS (Software as a Service) model
In case you’re hesitating to invest in the aggregator model, you can opt for a more reliable SaaS model. In this case, all you need to do is develop the dispatch software and rent it to public transit agencies. This way, people get to reserve seats on public transport vehicles through the app. The situation provides a win-win scenario, wherein you needn’t worry about the decline in sales while public transit companies get to turn their services digital.
Set sustainable goals
Overnight success is rare, especially in the taxi sector that is resurrecting from COVID-19 damages. It is advisable to set achievable goals and work towards the betterment of your business. By digitizing your business, you have access to real-time analytics. You can analyze your business performance based on numerous metrics. This way, you can identify areas of improvement. Besides, instead of making decisions based on instincts, you can have detailed reports, paving the way for informed business decisions.
On-demand apps play a pivotal role in ensuring people’s access to comfortable and reliable services. The taxi market will regain its glory after the gloomy COVID-19 phase. Entrepreneurs needn’t hesitate to invest in the sector as the sector is already heading towards a healthy recovery. Micro-mobility can pave the way for self-drive and autonomous vehicles, making it more safe and convenient. On the whole, entrepreneurs can utilize this pandemic situation to lay the foundation for a perfectly safe and highly reliable on-demand taxi app.