Why Having Your Own Taxi Startup Is a Great Idea Today

Taxis all over the world today are increasingly hailed with the help of apps instead of the traditional manner. And the companies that have pioneered this change have been startups.

The first one to make a worldwide impact, Uber, took a chance by simply bringing a smartphone application to the table, and it paid off big time. Today it seems impossible to even imagine the world without the convenience of summoning a taxi with a few clicks.

You’re Starting with Few Competitors
Years ago, when Amazon started its business, there really weren’t many competitors who sold stuff online. That offered them a huge competitive advantage, helping them capture markets that were traditionally dominated by offline industries – with no visible online competitors.

The one benefit that a modern taxi startup has today is that everything has been tried and tested already – so you know exactly what road to take and which pitfalls to avoid.

This knowledge, if properly used, can help you succeed and therefore excel against the competition. It is important to not make too many mistakes in this field, because there is a common customer base, and there is always another company waiting to snatch at the one that you have managed to acquire. Thus every mistake comes heavy.


Tips to Succeed and Go to The Next Level

Keeping this in mind, here are some tips for the intelligent modern taxi startup that really wants to succeed.


The right software

Finding the right software is key. This is what will help the customer book their ride, the driver to manage his rides and his day, the management to look over everything. Choose software based on the kinds of features that you require. Remember that it should be especially easy for the customer to use, because once a customer feels that your app isn’t easy to use or is unhappy with an experience, s/he has too many competitors they can instantly jump onto. Do not ignore the customer relations department and take customer feedback seriously, especially in the beginning stages.


Assuming responsibility

One thing you will find is that big companies like Uber refuse to take responsibility for their drivers causing accidents. Yes, of course, thorough background checks are conducted before a driver is hired and his papers are checked out too. But Uber refuses to assume any liability for the driver’s actions on the roads.

From the point of view of finance, this might seem like an intelligent step because this means that the company saves a lot of money. But from the point of view of gaining consumer trust, this is a bad move as it keeps a section of people away from using such services.

If a modern startup starts assuming responsibility for their drivers and hires them on contract, a whole new consumer base which had been untrustworthy of this form of getting a taxi will be open to such a company.


Rigorous vehicle checks

Uber conducts a very thorough and rigorous vehicle check of every vehicle that is being admitted into their fleet. Not only does such a check ensure that very old or damaged vehicles don’t make it to the roads (as they might cause accidents) but it also ensures that the customer does not turn away from the service simply because the cars weren’t up to the mark.


Ratings

Uber and Lyft have this rating system that lets you rate your driver after each ride, and leave additional feedback if you want to. This puts in place a system that automatically weeds out bad drivers.

A driver with a consistently low rating is let go. Uber, in fact, has a two-way rating system, allowing even the drivers to rate their passenger after each ride. Such a rating system makes sure that the entire taxi service becomes more efficient.


Green business

With Eco-friendly being the way to go in any kind of business, this has caught up to the taxi business too. If you are Eco-friendly, you not only help the environment but also gain brownie points with the consumers. Besides, depending on country to country, legislation might also demand a certain level of Eco-friendliness.


Uniformity

Uniformity provides a certain reassurance to the consumers. If you can provide a fleet of cars or taxis that all look the same and have drivers that are similarly attired or in uniforms, then you will have a USP that none of the major players have been able to provide as of yet. Not only will you have the trust of the older forms of taxis, but you will also have the ease and modernity of the taxi driver app.

If you’re thinking to start a taxi business, now is the time. It’s one of the most profitable right now, and with the right taxi app software, it would be a lot easier to build your customer base.