When was the last time you wasted time waiting for a taxi or dealt with an unprofessional driver? Not many to think of in the previous decade, right? You can experience a paradigm shift in the way taxis operate. People never wait for taxis anymore, nor do they have to worry about meter readings that display the fares at the end of a ride. Any modern advancement is aimed at boosting productivity, enhancing customer convenience, and yielding a higher income.
The advent of Uber marked a revolution in the way industries offered services to customers. Uber never owned cabs or ran a rental agency. Uber is an aggregator capable of connecting people in need with cabs. Ever wondered what it takes to build a taxi empire like Uber? Is it the investment you put into your business? Or is it the marketing you do to your online platform? Neither of these makes sense unless and until you visualize how the app should perform its operation. In simpler terms, you must identify and integrate a robust business model. For all those entrepreneurs who wish to launch an uber like app, this blog sheds light on the vital business model that one must consider during app development.
What the arrival of Uber meant to the taxi industry?
Ever since the introduction of passenger cars, the taxi industry has become an integral part of people’s lives to move from one location to another. One of the main reasons for the predominance of road transport is the fact that it offers convenience and reduces the overall strain of traveling. Then the yellow cabs era happened. People can stop yellow cabs passing down the streets, reach their destination, and pay their fare at the end of the ride. While this seemed to be convenient two decades back, people expected more from the taxi industry and began to lean towards public transport, as it offered a safer commute option.
With a large scale reception for smartphones and the internet, Uber entered the main picture and attracted people worldwide. The company leveraged technology to create a virtual medium, establishing a connection between people and cab drivers. Yellow cabs were declining, and people began adapting to booking over their smartphones rather than calling a cab agency.
How does Uber work?
Uber’s business model is commonly known as the ‘aggregator model.’ The idea behind the model is quite simple but innovative. It is challenging for cab drivers to find riders instantly. They roam around the region, wasting their energy, time, fuel. With people scattered everywhere throughout the area, they cannot find the right cab at the right time. The underlying concept of Uber is that it aggregates multiple cab drivers under a common roof. People in need can instantly identify available cabs, avail of their services, reach their destination, and pay the fare through the app.
With Uber extending its services over 70 countries and 200 global cities, there cannot be a better example to quote this business model’s success. Not to mention the fact that by the end of 2019, Uber was valued at $82 billion.
What are the elements that constitute the business model of Uber?
For a business model to operate efficiently, you need multiple characteristics of a platform working coextensively. For example, the driver app must receive instant updates as soon as a booking is made in the passenger app. Hence, three main elements are shaping up the productive functioning of an Uber clone. They include,
- The User app
- The Driver app
- The Revenue Model
The User app:
Passengers are the backbones of any successful taxi business. The target audience for an app like Uber involves people from almost every walks of life, including
- People who do not own a car.
- People who wish for a quick and safe transport option.
- Luxury travelers and tourists.
- People who need a cost-effective ride, etc.
Hence, make sure the workflow of the app is seamless without any glitches or defects. An efficient taxi dispatch software that automatically assigns cab drivers to passengers can make all the difference in your taxi app. A complicated design can lead to the loss of potential customers. Hence, ensure that the user app is simple, fail-proof, and robust.
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The driver app:
There is no business without service providers. Dedicating an app explicitly for drivers is vital to streamline communication between service providers and passengers. Some of the essential aspects to consider in the driver app include,
- An intuitive dashboard, providing all the vital information regarding the rides to drivers.
- An earnings tab, wherein drivers can analyze their daily, weekly, monthly earnings seamlessly.
- An availability toggle to let drivers switch between their working hours.
The revenue model:
The business model of a taxi app doesn’t end with offering rides alone. It has the responsibility of collecting the fares from the passengers, deduct the necessary commission cut-down for the business owner, and transfer the remaining amount to the drivers. Besides, any entrepreneur aspires to generate maximum revenue from the business. Hence, planning the revenue stream also plays a crucial role in the business operation.
Among the multiple factors contributing to a particular business’s success, the business model has a huge role to play. A white label Uber clone with a robust business model, providing efficient functioning of the platform, is bound to succeed. Get in touch with an expert app development company, integrate a top-notch business model, and scale greater heights with your taxi app.