How to start your own Taxi Business during and post-pandemic?
Do you wish to start your own taxi business? Wonder how can you build your uber like taxi app? What are the precautions you should take for your startup during and post-pandemic?
In this hard period, one needs to undergo thorough research to understand the changing market nature. The taxi business is risky but can provide a high ROI. But before stepping into such a game, a few things need to be planned.
Steps to know while you start your own taxi business
- Target location
- Hiring human resource
- Develop a revenue model
- Working model
- Promotion and advertising
Stepping into the market isn’t as easy as we think so before starting a taxi business, we need to understand the preference and geographical area of our targeted location. One can spread the taxi service nationally and internationally but will always have to initiate from a smaller territory. Study the demand for taxi services and bring innovation in comparison to your competitors. Not only to find customers but also the availability of drivers should be the priority while deciding on a target area.
After searching the market and deciding the target location further step is to invest. Higher return, either way, requires risk. The kind of investment needed in the taxi business is buying cars and hiring employees.
In the conventional period, a major chunk of investment used to be the land for taxi parking and the expenditure over the office area. But now due to Covid, circumstances have changed, technology has made life easy and now the investment needs only revolve around the vehicles used as taxis. Tracking instruments and insurance both are important while making such purchases.
Hiring human resource
We now have the target location and cars. So what do we need further??
All we need is skilled drivers who will play a significant role in the free flow of such business. You can hire drivers for full time or part-time as per the requirement.
Educate the human resource about the terms and policies of the company. Provide thorough knowledge about incentives for motivating the employees.
Also, train the staff about the working patterns of the current technology such as drivers apps.
Develop a revenue model
Next, we work on building a revenue model. The revenue model is the primary source of our business income. Here, you decide the following:
- Percentage of the trip commission charged. It can vary from 10 to 25%.
- Fares for different locations.
- The flexibility of pricing depending upon the demand and availability of rides.
- Surge – The software algorithm can automatically increase the rates on a particular algorithm. It can help you earn more during the mismatch of the demand and supply occasionally.
- Amount to be charged on cancellation of a ride.
Initially, the services are provided at a lower rate to capture the market.
Build an application that can provide GPS tracking, geofencing and other prevalent features. The taxi service provider cannot succeed without such features.
Jugnoo has proven to be the first choice of the people for a taxi business start-up. It provides three significant applications such as customer app, a drivers app and a dashboard for managerial purposes.
Basic features required in a customer app are as follow:
- Instant booking feature of the cabs without any hassle.
- Tracking facility to track driver and the route while booking as well as while being in the taxi.
- Payment gateways- zero human contact needs digital payment gateways. Secure payment gateways such as Paytm, google pay, PhonePe is the most use Payment platforms to reduce human touch.
- Detailed information about the driver – Transparency is essential to build trust with the consumer. Your application should provide clear information about the driver along with the facilities does it interact before riding.
- Availability of the application on google play and App store.
It is an application including an interface for the drivers. It allows drivers to accept the rides, track the consumers, navigate etc.
Such an app shall include the following.
- It must include facilities like real-time requests to accept the ride instantly and manage the bookings.
- Location tracking. A proper GPS supported software to reach out to the consumer in no time.
- Working summary. A proper page to note down the number of rides and learning in a day. It creates an automatic database for a transparent business and earnings of a driver etc.
Jugnoo also provides a dispatch dashboard for the owner to manage the bookings of all the taxis. It also helps supervise the working of all the drivers and employees. Real-time tracking helps check all the drivers and their rides during working hours.
It helps manage the profiles and queries of the consumers.
It provides flexibility in changing the prices due to surge charges and other factors.
The interface should be user friendly for all age groups. Targeting all age groups shall provide a wide range of target audiences.
Promotion and advertising
Once you are ready with your revenue and working model, advertising awaits you. No business can fully furnish without an appropriate advertisement. Digital marketing is the key requirement to overpower the competitors in the market.
Creating campaigns and surveys can make it easy for you to understand the preferences of your customers. Take time and understand their choices because the consumer is the king and the king should be happy.
Along with it, social media marketing will help you create goodwill. You can choose either free or sponsored promotions on platforms like Instagram YouTube Facebook for wide coverage.
Off-line promotions can include advertising in particular locations like airports, bus stations, railway stations et cetera
Pandemic angle over the transport world- How ideal is to start your own taxi business
This pandemic has revolutionized our living patterns. So while planning to start our taxi business, we need to undertake a few precautionary measures. These measures shall continue even after the end of the pandemic.
Focus on providing the basic safety requirements such as masks, sanitisers, gloves etc.
Set a proper rulebook for travelling in your taxi. For instance, a driver cannot drive without a mask, on the other hand, a customer cannot avail of taxi services without the key precautions. Maintaining such norms helps set standards in the market.
We are now all ready to set the stage on fire. Just follow the above steps and execute it in a planned manner to experience lucrative fame and profits. To get more information, feel free to connect with us.