White-Label Taxi App Versus Custom-Built App- An analysis.
The world of taxi app development is witnessing new innovations at a rapid pace such as a white-label taxi app. The urbanization of the taxi industry has made the rider’s life simple, convenient, and comfortable. The on-demand taxi apps have made life difficult for traditional taxi owners and drivers.
To fight back such a situation is only to get an Uber-like app developed for the taxi business. The creation of an on-demand app can be done in two ways. Either the owner can get an app developed from scratch that will be customized as per their business needs. Or the owner can buy a white-label taxi app that is already tested and proven.
A mobile application has become a way of communication between the passenger and driver. An increasing number of taxi businesses are moving toward customized mobile applications as a part of their business, comprising unique features exclusively offered by the service provider, resulting in a better customer experience. White label refers to a product developed by another company, rebranded, and then sold to another company. A white label taxi app is a package containing an app for passenger, driver, and dispatcher/ admin panel.
Some common features that are always included in the white label taxi app are:
- Map integration for passenger and driver app.
- Dispatch panel with voice over internet protocol integration
- Support for various payment modes
- Automated payout for drivers
- Data archive
- Cloud hosting
- Ability to customize the front end
- Ability to scale the app by adding more cars to the fleet
- Analytics and reporting
Different ways to create a white-label taxi app
There are two ways of creating a white-label taxi app, which is as follows:
1) The client can opt for keeping the codebase as it is and change the frontend of the app which results in a different appearance. This helps in matching the app’s appearance with the client’s branding.
2) The client gets multi-tenant applications created. In this, each tenant consists of an app that is slightly distinct due to a different set of features. This is generally used by Software-as-Service (SaaS).
Different business models for the white-label app:
- SaaS-based Model
- Hosted Model
- Partnership Model
SaaS based Model:
The SaaS based model includes two types of charges:
- One-time setup fee: In this, the client needs to pay while setting up the solution.
- Fixed monthly charge: In this, the client needs to pay fixed monthly charges which depend on:
- Number of drivers
- Number of trips in a day
This allows scaling the business as the number of drivers and trips increases.
In this model, the development company gives the source code of the white- label taxi solution to the company.
The client company may also provide maintenance and support to the white-label company for an annual maintenance charge (AMC).
.In this model, the company providing the white-label solution acts as a technology partner to the taxi company. The white-label solution company charges the client company an amount annually and claims a few percentages of share or every successful ride made in a day, week, or month.
Advantages of the white-label app over customized apps:
1) Lower Initial Investment for a white-label taxi app:
The development of a custom-built app from scratch requires a lot of investment. The owner needs to invest in research, testing, design, and development. These processes require designers and developers and along with these, a business analyst required that will figure out all the core features requires in the app.
There is no such investment required in the case of a white-label solution. The client only needs to pay the one-time set-up fee and a monthly subscription fee to get going.
2) Quick to market:
The creation of the custom-built app which can beat the present-day competition may take months or even years. Whereas the white-label taxi app saves the client’s time and keeps them ahead of the competition.
3) Post-release maintenance and support:
In the case of a white-label taxi solution, the company takes care of all the maintenance and support free of cost. From the server, updating code, supporting application to ensuring that everything is running smoothly all is taken care of by the white-label company. These facilities are offered by the companies inclusive of their package.
Whereas in the custom-built app there is a need to worry about the maintenance of the app and hire experts for maintaining the app.
4) Brand Visibility:
Now rarely do we see anyone waiting for a taxi alongside a road. Everybody now uses an application to book a taxi. The company without a taxi app is missing out on an incredible number of potential passengers.
The white-label taxi app increases the customer audience by making the services easily accessible by just a few clicks. This results in increased profits and brand visibility.
5) Higher Return on Investment (ROI):
The white-label app plays a significant role in increasing brand visibility and which increases customers and this results in increased profits. The white-label app streamlines all the operations of the taxi fleet which saves up time and money as there is no dependency on any agent for bookings in lieu of heavy commissions.
Business operations can be complex and every organization has different needs and issues. The business owners have a tough time choosing between a white-label app and a custom-built app. The factors that affect the development of an app are:
- Project complexity
- Type and number of platforms integrated
- Backend infrastructure and API
- Application safety
- Quality Assurance and Stabilization
- Number of specialists involved
The white-label app is a solution for the taxi business at a low initial investment with a scope of customization. It offers minimized go to market time and an after release maintenance option for entrepreneurs looking for quick technology solution for taking their business online.
Looking for a mobility solution for the taxi business? Get in touch with our on-demand product specialist at Jugnoo Taxi.