If you ask me which is the right time to enter the sharing economy like Uber, Ola, etc, I would say 2019 without any hesitation. When Uber first started ten years back everyone thought that the demand for such taxi sharing market will not persist for long. But contrary to that notion, the taxi sharing industry is growing at a drastic pace with no slowdown at least till 2030. Many regional taxi startups are operating successfully and innovative taxi services like car sharing, long-distance ride sharing, and many more have come.
People gave unanimously positive reception for the taxi startups because it eliminated their long-time transportation problems. Consumer behaviour change from owning a vehicle to using a taxi is also one of the reasons. Now you know why I am saying that now is the right time to enter this market. In this blog, I have shared some exciting tips for new and yet to launch taxi startups to fully utilize the taxi market and be an inevitable part of it.
Connect with potential investors
Popular business markets will always be crowded with businesspersons and entrepreneurs. So invariably there will be a race to catch a specific position. In this competitiveness, you can have an edge over others by having investors backing. Not to mention that many top taxi startups at present have had an initial push from investors.
To get proper backing, reach out to potential investors like angel investments and venture capital firms. Angel investors are individuals with a net worth more than $1 million. Many such individuals are looking to invest in interesting startups which can show signs of growing big in the future. So prepare a list of them near you and reach them.
Venture capitalists are private firms which are established only to invest in potential startups. Every year a typical VC gets hundreds of applications for funding.
In both the cases above, they look for something innovative and creative. So first focus on bringing some new techs and services to your taxi startup. Replicating Uber alone will not help.
On-demand taxi sharing economy involves a lot of data of its users which includes both the driver and the rider. So the consumer’s data must be safe and secure without any slight compromise. You have to ensure it. Technologies like blockchain, end-to-end encryption, etc are not new. These areas are where you should not be reluctant to spend.
More than safety and security, there should be transparency. Transparency brings more trust. According to a study by Harvard business school, 97% of the non-users of on-demand taxi service fear data misuse by vested groups as the reason for not using the taxi apps.
Percent of non-users can be reduced by being transparent.
Implement new strategies continuously
Consumer behaviour changed into using non-demand taxi extensively, this behavioural change is constant and it evolves continuously. Be up to date with the latest technologies, advances, and innovations. Pick relevant technologies and implement it while making strategy changes in marketing and customer acquisition.
Now I will give a glimpse of how the sharing economy will evolve in the coming days. First is giving an exhilarating experience in the payment system, access to service, and customer care. Second is access to the value. AI, quantum computing, and data analytics will give way to providing more value to users by constructing better models using the data derived.
Effective marketing and customer acquisition
If you are starting your taxi startup from scratch then, deciding on resources for marketing and customer retention will be a difficult task. There is a misconception that more money on marketing is more effective. So try smart non-scalable strategies. Customer segmentation is one such technique. Here you use target marketing based on the type of users.
Second is to build a community through a set of users who are more interested in your service. These people can act as a promoter for your brand. It is found that 90% of individuals trust something recommended by their friends.
Having an ideal taxi app solution
All the above ways to grow will be futile if you don’t have a good taxi app solution. For small aspiring taxi startups, I always recommend using readymade taxi app solutions and making changes to it.
If you are thinking of getting such a solution, I would like you to take a look at the SpotnRides pre-built taxi app. SpotnRides is our firm’s flagship solution. We offer a set of different app designs and features. You just need to pick the design and features that suits you and our team will integrate into the taxi app efficiently.
The robust admin panel enables you to undertake many activities using sophisticated analytics tools. Still not convinced? Then connect with us for a live demo.
Tap a message to [email protected]. Our business team answers all your queries and requests.