The global taxi booking market will reach $250 billion in value by 2025. Which is up by 400% from the present value. The taxi booking economy consists of both medium and regional startups to big MNCs like Uber and Lyft. In this large valued market, only a few big firms are dominating which leaves very little room for others.
Only when regional taxi startups expand to new markets and offer new service, they can compete with other firms and gain good market share. So many merits are there if a taxi booking startups is expanded and existing, yet to launch startups must be aware of it. In this blog, I have explained the advantages of expanding your taxi startups and also the steps to follow to make the expansion seamless.
Getting foreign investment
It is normal to see regional startups not getting adequate external funds from VCs and investors. At the same time, foreign firms have more chance to secure funds. This is because if a startup is able to expand to new markets, then they must have the potential to go big. At the end of the day, external funding is all about investor confidence.
So going global helps to get funds and this aids you to roll out new service, increase scalability, and compete with top taxi firms.
In a new market, you will have new prospects with different expectations and needs. This new expectation will drive you to release better and diverse services and also enhance existing service. In the new markets, you need to work a lot different from what you did at home in the area of marketing, customer engagement, customer retention, etc.
More revenue streams
Since you release new services to satisfy the new user base, you will get more revenue-generating streams. These new revenue streams will give you some ideas to replicate it in other regions. Also, you will get more sales than before by reaching more consumers.
Startups have to encounter a lot of risks than other businesses mainly because they bring innovation which may or may not be liked by the users. Still, they need to constantly innovate. When you operate in multiple markets, you can try something in one place and even if it backfires you have other markets to sustain. So by expanding and working in more areas, you reduce the risk.
Entering an unknown market will be easy if you taxi startup brand is already well known to the locals. Expansion of business will give you more brand visibility and recognition which will make you further the expansion to other territories. The total cost also comes down since marketing and customer acquisition expenses are low.
Steps to follow to make the business expansion hasslefree
Research on purchasing power
The purchasing power of the users affects the type of service and price structure you provide. Before expanding to a specific market, do research about the financial status and purchasing power of the people. After getting a clear picture of it you move on to design the pricing structure and type of services to offer. Sometimes a region with very low purchasing power will not be sustainable for your startup or you need to bear some loss for some time.
Partnering with local firms
Surely some taxi startups similar to you would be functioning in the new market. These local firms will have good knowledge about the market and also know the do’s and don’ts in the business. Partnering with anyone of them will certainly give you an edge over others. You will also get a key learning curve from local firms and excellent knowledge sharing happens.
Having an apt business model
While getting into a new market you must know the preferences of local people and their taste. Whoever it may be, connecting with people using your startup service without knowing them will get you nowhere. For example, GoJek, when started in indonesia, didn’t offer taxi cabs straight away because the people are used to only bike taxis and autos. So GoJek first introduced on-demand bike taxi and auto. Then moved to other services.
It is better to learn people’s preferences before stepping in.
These merits of expanding taxi startups are still not realized by many potential startups. I hope you have a good understanding of my brief explanation. More important than stepping into new markets is to have a perfect solution and that is unconditionally liked by the users. A perfect taxi app solution must have a great user interface, seamless payment system, idyllic UI/UX design, sophisticated admin dashboard, foolproof design for drivers, and hasslefree performance.
Such a perfect taxi app solution is available with us. Spotnrides is the taxi app I am talking about and it is already in use in 10+ countries. Looking to start a taxi firm and expand it quickly? Then, using SpotnRides solution make it happen quickly.
For more details, drop a message to [email protected]. We are looking to connect with you as quickly as possible.