Achieving $1 billion valuations is a dream for many. At present less than 2% of the startups have achieved this feat. Some years back reaching the one billion mark was next to impossible but now it is very much possible if the startup is steered in the right way. Startups are called Unicorn if it achieves a billion dollar in total valuation.
When it comes to on-demand taxi booking startups, only Uber and some more firms are unicorns. Since the taxi booking market is growing consistently, and many regional taxi startups use innovative methods to capture the market, becoming a unicorn is possible and easier compared to other markets.
I cannot say whether all firms that work towards becoming a unicorn can become one, but the step taken for it itself makes a startup to grow better in many ways.
In this blog, I have mentioned some steps for taxi startups that if followed will lead towards a highly valued startup.
What it Takes for On-Demand Taxi Startup to Reach Unicorn Status?
Attaining the critical mass
Unlike other startups, the on-demand taxi hailing firms have to create two kinds of user base to grow and become stable. Riders and drivers are the two users. If your firm is relatively new, you need to first strengthen these two user base. Most taxi booking firms use discounted service and a slew of benefits to create a critical mass by capturing drivers and riders.
Having a critical mass for your startup give an edge over your adversaries and make it relatively easy to improve the value.
There are many types of benefits and subsidizing services you can provide. Without attaining the critical mass it is impractical to proceed further.
Some small taxi startups are exerting too much pressure to its drivers with over the top goals in order to gain more riders. This is not going to help and backfires after some time with drivers opting out of the platform.
Denying mistakes and falls is bad
It is inevitable to commit mistakes and hit roadblocks while running a startup. The problem is that many don’t realize their wrongdoings and blame the users for it. For example, in the last 5 years, the no. of startups closing their door has outnumbered newly opened startups. Most of the closure happens when they fail to not repeat the mistakes. Developing creative and innovative idea to acquire and retain customers is okay, but smooth execution is way more important because an idea is a commodity but execution is not.
I have seen taxi startups bringing in new features like hiding mobile no., emergency panic button and many more but when it fails, the users are conveniently blamed.
Embracing the true reason for failure gives you more resilience to persist and save you time and money. Resilience and persistence are basic traits for unicorns.
Change is constant for the value proposition
Change in the form of innovation is constant in the startup market. If it is an on-demand taxi startup the rate of keeping up with change also decides the fate. Normally, the value proposition is what makes you different in the taxi booking economy. So the value proposition is what that needs constant innovation and that change must be ahead of the industry trends.
If you want to grow to be a unicorn, your idea and level of keeping up with industry trend must be like a unicorn startup.
Attending accelerator programs
More than 2000 accelerator programs are being conducted across the globe. These programs nurture developing startups in terms of giving mentorship, investors and other support that help them become stable and self-sufficient. Y Combinator and Techstars are the top accelerator companies. No one can deny that these programs are better platforms to grow but getting into it requires some standards.
These standards sometimes come in the way of increasing the startup’s value. So this is to warn you that just to enter into these accelerator programs, you must not fall into the trap of focussing only on fulfilling the said standards. Also, 70% of the unicorn startups have not been a part of any accelerators.
You can join with serial tech entrepreneurs or existing unicorn founders to get any mentorship or advice.
Outside funds only as a catalyst
It is easy to get funds from angel investors, join venture capitalists, and combine with private equities. All these are external funding and with it reaching a highly valued startup might not be a time-consuming task. Long term sustainability is equally important to being a highly valued startup.
Increasing your taxi startup’s value alone to attain unicorn status will not guarantee you sustainability even though you become a unicorn. Relying only on outside funds will only improve the value.
It is a necessity to balance both sustainability and value improvement. So use external funds only as a catalyst to your already growing firm. Also, fewer partners and equities means you have more hold over your startup, which is needed for developing startups.
More important of all the above-explained steps is that your taxi service should be exceptionally good. If you are confident of having it, then first correct it. Also, there is no standard template to follow to reach unicorn status. But, as I said before, the value you achieve while trying to make a highly valued firm itself is worth it.
Even, yet to launch taxi startups can make a note of what I explained above. If you are at present looking for a brand new pre-built taxi app solution, try SpotnRides taxi solution. We are constantly in touch with top players in the taxi market to get valuable info in order to keep SpotnRides ahead of all.