What Makes Monthly Subscription Service Attractive for Taxi Startups and How SpotnRides Can Help for It?

For any startup business, being different from others is the key. On-demand taxi booking startup is no different from that. A deluge of taxi startups using Uber like taxi app solution has emerged in every nook and corner. If you are a new taxi startup, you might know about this and yet to launch startups should know about this. Not everyone can get investor backing like Uber or Ola. So they have to do something different to stand out from others. 

In this blog, I have tried to explain about a subscription model for taxi startups. If you are someone who has got an idea to enter the taxi business or someone already in the starting phase of taxi startup, then this blog if for you. 

By providing some new service you will always be a notch higher than your peers. Most important of all is that the new service should be better for riders than they got before. Subscription plan obviously brings exciting benefits to taxi riders.

What is the Subscription Model in the Taxi App?

Why subscription plan for riders?

Change in taxi fare is inconsistent and many frequent riders find it annoying. Even if the price offered for a ride is small, the fluctuating fare is often criticized by users. Many taxi companies think that low taxi fare makes the ride reliable and it is the best option for users. But when it is inconsistent, it becomes counterproductive.

For example, a rider goes to the office in the morning and pay a certain fare and when he returns in the evening, the fare is not the same as that as in the morning. Fretted by this, he thinks twice before taking a cab next time.  

This totally violates the fundamental idea of taxi booking apps. Taxi startups service should always be reliable and affordable even though other options like carpooling are available.

Here comes the application of the subscription model. Uber taxi is currently piloting the subscription model and it is yet to get mainstream.

Working of taxi subscription model

The rider/user has to prepay a fixed amount as a monthly fee for a particular trip. Then the user can make any number of rides to that destination in a month. The prepaid fee is finalized by the taxi startup. This helps the users to plan the day without any fear. The subscription can be made to renew automatically. 

You as the admin of the taxi startup can also introduce subscription plans for rides within city limits so that users who take frequent rides within the city will be benefited. 

Get Free Demo of Taxi Booking App – WhatsApp | Skype

Cons of taxi subscription model

The subscription model will be profitable and sustainable for you only when you offer the plan for predefined routes. So if a user opted for a subscription plan but takes another route in the middle, that ride will not come under the subscription plan. Which means the rider has to pay for it. The taxi subscription plan is favorable only for frequent riders and for occasional rider, this plan may cost more.

But this is the only con in this model and it is obvious that there are no services devoid of any cons.

Is the subscription plan worth it

Price protection: No matter the weather, traffic, or time of day, the user’s ride fare is protected and will not be changed. The rider can plan the ride without worrying about the ride fare.

Track savings: Savings for each ride can be accessed in the app. The subscription can be cancelled anytime by the rider.

Multiple subscription: More than one subscription plan for multiple routes can also be purchased by the rider. 

No surge pricing: Rides that comes under the subscription model will not be affected by surge fare. 

How to add subscription model to your new/existing taxi startup?

Existing taxi startups can approach their taxi app maker to include the subscription model to the solution. This requires modification in the customer app and admin web panel. 

You can also reach us for incorporating this feature to your solution. SpotnRides is our taxi app solution and we are experienced to handle any customizations to the taxi app. Our portfolio of products include, taxi management system, taxi dispatch system.

Newbies who are planning to enter the taxi market with a different kind of service like the subscription plan, join us to get the SpotnRides taxi booking app. Our taxi app solution has other services like carpooling, long distance ride sharing apart from subscription model. 

Perks like free software updates, free technical assistance, minor issue fixing, technology update notification are offered post sales of the taxi app. 100% customization without affecting the core of the app is possible with our expert developer team. Still not convinced about us? Then send your doubts and queries about SpotnRides to [email protected]. Our business team is available 24/7 to respond to you.

Get Free Demo of Taxi Booking App  – WhatsApp | Skype

About the author


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

Request for Similar Product

    Get a Free Demo

    Created by SpotnRides
    · Powered by Uplogic Technologies PVT LTD
    2017 - 2023 - All rights reserved