Starting A Taxi Business: How To Outsmart Uber And Lyft In The Ride-Hailing Market

Starting A Taxi Business: How To Outsmart Uber And Lyft In The Ride-Hailing Market

The recent spread of smart mobiles and apps has made people experience convenience on the sofa with a few swipes. Ordering and booking through apps have reached a massive effect with modern apps, including ride-hailing businesses. People are choosing to book taxis via apps rather than the more conventional phone-based methods. 

The ride-hailing market has seen massive change with the rise of giants like Uber and Lyft. These companies have revolutionized how people commute, making traditional taxi services face numerous challenges. However, amidst the fierce competition, there lies an opportunity for savvy entrepreneurs to establish a successful taxi business and outsmart Uber and Lyft.

This blog lights up the pavement for success amidst the giant service providers, Uber and Lyft.

Uber and Lyft working models 

Both giants have the indigenous idea that they don’t own a car for service; rather, they unite multiple service providers for service and run a successful business. Both Uber and Lyft operate primarily through mobile apps available for iOS and Android devices. Users can download the app, create an account, and request rides from their smartphones. When a user needs a ride, they open the app, enter their destination, and request a ride. The app then connects them to nearby drivers. The app’s algorithm matches riders with the closest available drivers based on factors like distance, traffic, and driver ratings. Thus, ride-hailing is simple through their app. 

In case you are thinking of starting a ride-hailing business, such a working model can support you a lot by just investing in the app and avoiding investing in vehicles for rides.

Uber’s and Lyft’s tactics

Uber and Lyft follow specific tactics for keeping their businesses competitive.

Uber follows the following strategies for the taxi booking business.

  • Surge Pricing 
  • Ride Pooling 
  • Driver Incentives 
  • Referral Programs 
  • Localized Marketing 
  • Real-Time Data Analysis 
  • Continuous Innovation. 

These are the tactics followed by Uber in the ride-hailing business.

On the other hand, Lyft uses the following tactics for business development.

Focus on Customer Experience, Community Building, Transparent Pricing, Accessible Customer Support, Environmental Initiatives, and innovative Marketing Campaigns

This shows the basic idea that nature should be constant. You can understand the working nature of the app’s business development.

Convenience of mobile 

The above tactics show that mobile phones and apps are major reasons for successful businesses. The customer has the convenience of using it for any purpose. Marketing and booking are easier on mobile. 

The traditional booking method requires physical assessments, but the mobile method doesn’t require any physical assessments other than tapping the mobile apps. Such convenience can only be given through the mobile app.

The mobile app provides user-friendly booking, convenient features like live tracking of the rides, and convenient payment methods. 

So providing such a convenient app for the taxi booking business is essential. So a startup business can be supported through the Uber clone app. Even existing businesses can be transformed with the support of the app.

Upcoming developments

Even though the apps provide convenience, more innovations are awaiting to rule the booking service. Such upcoming developments are

Autonomous Vehicles: One of the most significant upcoming developments is the introduction of autonomous or self-driving vehicles in the taxi industry. 

Electric Taxis: With a growing focus on sustainability and environmental conservation, electric taxis are gaining popularity. 

Predictive AI Algorithms: Upcoming advancements in artificial intelligence will enable taxi booking platforms to use predictive algorithms. 

Voice-Activated Booking: Advancements in natural language processing will enable voice-activated booking options. 

Augmented Reality (AR) Navigation: AR technology can enhance the navigation experience for drivers and passengers.

In-Car Entertainment: To improve the overall passenger experience, taxis may offer in-car entertainment options such as streaming services, Wi-Fi connectivity, and interactive displays.

These innovative trends help the app reach a wider audience. These trends can help boost your business. When you have the idea of starting up a ride-hailing business with an app, these features can keep your business sustainable even between giants such as Uber and Lyft.   

Using giants’ strategies to your advantage 

Following the above-stated tactics in your business will help you sustain the business. This will suit both startup businesses that are upgrading their traditional businesses to an online business platform through the app.

And also follow the following steps to outsmart the competitors;

  • Evaluate Current Operations used often and update the user reviews in it
  • Increase fleet size to accommodate more customers.
  • Implement Advanced Technology in your app 
  • Geographic Expansion is also important for scaling up your business
  • Optimize Pricing Strategies often to attract customers
  • Monitor and Analyze Data for the development and upgrading of systems 
  • Continuous Innovation in the field and trends are required
  • Provide the option of selecting various vehicle options for the riding experience


In short, Uber and Lyft are giants occupying the taxi business. If you are planning to enter or upgrade your business, follow the above-stated tactics and keep updated about the trends for achieving success. The major step is to use an app for streamlining your business. You can either create a custom app or a clone app for your business. 

In the case of choosing a clone app for your business, the right choice is SpotnRides an Uber clone app development service. We provide a reliable ride-hailing app for your business.

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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