10 Things That Will Happen When You Transform Your Traditional Taxi Business to Mobile App Based Booking Business Model

For decades, traditional taxis roamed around the cities to pick and drop riders. They were so popular to the extent that some people cannot even do their daily work without these taxis. These cabs did not use GPS or any other stuff but still ruled the streets of important cities across the globe. Their success did not last too long and the riders too faced discomfort with the traditional taxis. Here is the reason for their deterioration.

  • Many cab drivers refused to pick and drop people in the suburban and rural areas.
  • Exorbitant rates were charged and the fare is known only after the ride is over
  • Calling a cab and telling directions to pick up was cumbersome and time-consuming.
  • Taxi drivers deliberately used the longest route to charge more money.

These problems crippled the conventional taxi industry and the only way for them to survive is to transform their business to the latest trend. On-demand based taxi model is the latest trend and the traditional taxi owners spent less effort to adopt this model.

Uber, Ola, and Lyft are established app-based taxi firms. But existing taxi companies have to start afresh using the taxi app. During this transformation, certain things will happen and let us see them one by one.

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  • Starting from taxi booking to dropping the customer, everything is done using GPS navigation. The driver reaches the rider within minutes of booking because of GPS. Again the drives find the shortest route using GPS.
  • The rider will now know the exact fare for the ride even before the ride starts. So, there is no room for bargaining and other stuff. The average travel time is also displayed in the driver and customer app.
  • You no longer need to own cabs. Instead, you will be allowing the vehicle owners to attach their cars to your company and make them join the driver partner program.  This reduces your burden by eliminating vehicle maintenance, fuel charge, salary, etc.
  • Your company will become a part of the on-demand startup market. So, there will be a lot of room for raising funds from investors, VCs, and individuals.
  • The risk factor will be low in your taxi business. You don’t work on the inventory model instead, you will be using the aggregator model. So, the total asset value will be less and you can concentrate on your core business.
  • With technologies like blockchain, it will be easy to verify the documents, licenses, and background of the driver. The smart contract in the blockchain automatically checks it and warns any data mismatch.
  • Reaching wide customers at literally no cost will become possible. Having an app for your taxi company itself is a kind of digital marketing. Just use social media to increase the number of app downloads.
  • You can set a standard rating for the drivers and remove any drivers if they fail to maintain the standard rating. This will improve the quality and behavior of drivers.
  • The riders no longer have to panic when harassed by the driver. An emergency SOS button comes with the app. So, the rider can use this anytime during an emergency.
  • Every transaction like ride payment, commission for each ride, bonus, incentives, etc is possible to do digitally without any hassles. You can now check the accounts, no. of rides, kilometers driven, on the admin dashboard.

Apart from what I said above, you will have a lot of surprises when you transform your business to the app-based taxi booking. These changes also depend on the quality of the app solution. SpotnRides is one of the taxi app solutions that is developed with the utmost quality in terms of coding, features,  design, and deployment.

SpotnRides is tailor-made for existing taxi owners, so I would strongly recommend it for your business. Send your doubts and queries to [email protected]. SpotnRides is also suitable for other on-demand app-based services, so please do check our  blog to explore its applications.

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About the author


I am working as a Senior product developer and have developed and delivered Web and Mobile products for numerous clients.

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