Strategies to Boost Revenue for your Taxi Business
The taxi industry is surrounded by a lot of buzz today. Uber and Ola’s cabs have raised the bar for the industry and inspired other businesses to enter this sector and hire software developers. With their on-demand taxi booking services and multiple revenue structures, they are also seeking methods to experience the same success.
Research shows that the global taxi market was valued at $69.18 billion in 2019 and is projected to reach $120.89 billion by 2027, registering a CAGR of 12.3% between 2020 and 2027. Uber has acquired the no.1 spot in the taxi industry with a share of $11.1 billion in revenue and 93 million users worldwide due to this exponential growth.
Do you have any idea how they manage to generate such tremendous revenue? What are the sources of their income? Do you wish to learn? Great! Read this blog. We’ve listed a few strategies that you can consider to boost revenue for your taxi business.
Understanding Different Stakeholders in Your Taxi Business
1) Business Owners/Admin – Taxi platforms and taxi apps can provide a good source of income for businesses since they allow an individual or business to purchase licenses to give to taxi drivers in exchange for money.
2) Customers – Taxi users are essential since they are the ones that request this sort of service. In other words, they are crucial when it comes to the taxi industry.
3) Taxi Drivers – The taxi driver is one of the most important user groups in the taxi industry. In this industry, they make up a significant part since they are responsible for generating revenue through passenger transportation.
Strategies to Boost Revenue for your Taxi Business
Many customers prefer to utilize cab booking services because they believe they are more dependable and convenient than conventional modes of transportation.
The management of these apps is delegated to a third-party organization, which also handles all of the technology and operations. The app service provider and the taxi driver who make use of this platform split the profits made by this business.
There are many considerations regarding how much investment should be made while establishing the business, and there are multiple strategies to boost revenue for your taxi business. However, you may also seek the assistance of a mobile app development business to guide you better on this.
Let’s dive into the strategies now.
1) Increase the Social Media Presence
The number of social media users globally grew from 4.2 billion in January 2021 to 4.62 billion in January 2022. More than half of the world now uses social media (58.4%).
It’s likely that your taxi company is already on social media! It’s an excellent place to promote services through paid channels, for instance. Making your company pages exactly what clients would adore would help you gain more customers online on platforms like Instagram, Facebook, Youtube, and TikTok.
Social media is a fantastic marketing tool because it enables communities to be built by brands. Since potential customers are already using these platforms, it is the responsibility of your taxi company to increase their awareness of your company and convert them into devoted customers.
Make sure the social media page is frequently updated with useful, intriguing, and sometimes even entertaining information to achieve this. Promote discounts, show viral videos that are relevant, and run contests. Being accessible when customers need you is frequently the best way to promote a cab business, and social media is a terrific platform for doing so.
To engage your consumers more deeply, you might develop original stories that feature your passengers and drivers. Additionally, reply to customers’ queries and feedback on a frequent basis.
2) Establish an Online Presence
Speaking of the internet, how is your website doing? Digital consumers currently number 2.14 billion as of 2021. Of the 7.74 billion individuals in the world, that equals 27.6%. In other words, more than one in four persons you encounter in your surroundings shop online.
On the website of your taxi company, there should be two things: a phone number and a button to order your ride-hailing service online.
Why is that if you already have a useful taxi mobile app? Tourists, business clients, and many other people may find online booking useful when utilizing the app isn’t practical.
As a result, you are severely limiting your exposure if you don’t have a website with a booking feature. Your website will increase brand recognition, make you more visible to potential customers, and ultimately result in more ride requests.
3) Target PR and Media
Recognizability of a brand is crucial, right? Getting your business enough attention in local media is one of the best strategies to attract and keep customers. People feel as though they have known and trusted your taxi company for a very long time when your brand stands out and occasionally appears in the media.
You could obtain publications for free in various media because so many regional magazines, podcasts, and radio stations are always looking for interesting stories. Try them first; it’s essentially free advertising! Our word – one of the most beneficial strategies to boost revenue for your taxi business.
Companies like Uber also rely on conventional media and PR strategies to increase their customer base and attract new ones.
Effective PR will increase brand recognition, foster brand loyalty, and give customers a favorable picture of your company. PR methods can also help you get customers from your audience.
4) Online Promotion Through Targeted Ads
When you advertise to someone who has expressed interest in your ride-hailing business, your conversion prospects are increased. The same holds true for advertising!
You can narrow in on your target customer group on different platforms by using algorithms, customer behavior, and preferences. They are then exposed to your advertisement, which increases the likelihood that they will choose your service.
Find out which social media platforms your audience uses by conducting research beforehand. Ready? Launch there some interesting advertisements!
Customers may see your advertisements on YouTube, in Google Search, on websites other than search engines, and in third-party mobile applications. This may result in a significant increase in traffic for your taxi service. To target particular audiences, consider launching niche ad groups. Because Google Ads charges pay per click, the cost per new customer is typically relatively reasonable.
To optimize earnings from a limited budget for your taxi service, it’s helpful to remember that Google Ads demands some experience and expertise. For newbies, hiring professionals to manage Google Ads is a wise move.
Facebook and Instagram Ads
One of the most common methods to attract and retain customers is to run advertising on Facebook and Instagram. Your taxi business needs an Instagram account connected to the Facebook page of the business to get off the ground effectively. Now, Facebook Advertising Manager allows you to create ads for both platforms.
Set a modest budget at first, say, less than $10 each day. Decide who your target market is, where they are, and what interests them (if you know those). These folks will see your creatives, so make sure the graphics are eye-catching enough to draw in customers.
It’s acceptable if users choose not to download your taxi mobile app right away after viewing the Facebook/Instagram advertisement. Many people will simply “like” or “follow” the page for your taxi company, which is wonderful because they are now a member of your community and may soon become committed users.
You may monitor the results of your advertisements’ performance in Ads Manager and modify campaigns right away. Facebook is also releasing a new tool called Facebook Business Suite that will allow businesses to obtain detailed analytics on advertising efforts.
5) Outshine Through Fleet Branding
Your fleet is constantly on the streets. Many people pass by your cars (or bicycles? or motorbikes?) every day. Check that your cars speak for you.
Fleet branding is a powerful, incredibly cheap form of advertisement. Everywhere a car goes, it naturally promotes your services because it is always recognized. In the US, 96 percent of cab consumers agree that branded cars make a taxi firm appear more professional and stand out in the crowd. Do you want to be truly inventive? Add QR codes so people may download your passenger or driver apps.
6) Offer Credit Card Payments Feature
Although it may seem obvious, the more payment alternatives your taxi mobile app has, the more customers you attract. For consumers to conveniently keep track of their spending and make a single card payment, any taxi company must accept credit and debit cards.
Additionally, all card payments go directly to the bank account of your taxi company, ensuring a consistent turnover to demonstrate to potential investors and business partners.
7) Referral Campaigns Add an Icing to the Cake
Referrals are there to boost the expansion of your taxi business. People rely on the advice of their friends and relatives because they trust them. Especially when an opinion is accompanied by a sweet offer, like a voucher for a discount, allow them to provide discount codes for new users of your app. They receive a small discount, and you gain new customers for your taxi service!
The technology solution for taxi companies provided by Jugnoo includes a tool for referral campaigns. It is incredibly economical because you decide how much money is spent on each new user. Your customers can share their promotional codes using the convenient sharing feature in the passenger’s app while using the Jugnoo system.
Like those timeless flyers with discount codes? Yes, why not? Create a campaign on My Hub and hand out codes on flyers in public locations such as shopping centers, tourist hotspots, sporting, and cultural events. Make careful to generate unique codes for each location so you can track which ones drive more app usage.
8) Recruit the Best Drivers who will Act as your PR Agents
Trust us when we say that. The interface of your mobile taxi app is not even close to as crucial as the taxi drivers themselves. Customers that receive excellent service from a driver will naturally continue doing business with the company the driver works for.
Thus, it is your responsibility to ensure that your drivers are content, committed, and highly skilled.
Companies like Uber prefer to hire drivers who own their own cars since doing so lowers the cost of building and maintaining a fleet.
Drivers will naturally interact with passengers and be in a position to promote your business for free!
Asking 100 drivers to join up and test your app will soon result in them referring more drivers to use it. With more drivers, your fleet will grow as well, and your company will experience the expansion you’ve been hoping for.