You may have started to plan for your taxi app startup. I hope by now you are learning the nuances to follow in entrepreneurship, especially in the on-demand taxi business market. But nothing can be replaced with the insights you can get from a successful company’s initial public offering(IPO) in the same on-demand industry.
I am talking about the Uber IPO. Uber is the largest and the first conceived on-demand taxi app startup that sowed the seeds to numerous regional taxi firms.
In fact, Uber is the one to say that the on-demand model can indeed be a potential disruptor in every field. Uber is making revenue of around $12 billion and at the beginning of 2019, it went for an IPO. There are both positives and some bitter things you can learn from this IPO.
In this blog, I am going to explain this. Who knows? In some years time, you may also go for an IPO.
What are the Things Taxi Startups Should Learn from the Uber IPO?
Profit and long term success are not correlated
Uber started its IPO with a share price of $45 and this price declined barely in two months. Many experienced entrepreneurs have started to question Uber’s reliability. What some people in the industry are saying is that the profit a company gets in the initial stage and long term success are two different things.
You must be careful not to confuse one with the other. Focussing on immediate profits is a short-sighted approach that you must be careful about. Your top priority must be deep with innovative plans for better services at optimal cost.
Building a backbone in the early stage
Uber even though it pumped a lot of money into the business mainly from VCs, it can afford to operate for the next five years without any profit. Still, its shares didn’t fetch a good price in the market. Everyone overestimated its potential. This is what happens when you try to only increase the valuation of the firm without really increasing the company value.
For example, an internet company Amazon initially invested a lot of money on building the infrastructure which was necessary for it to become a truly global company later on.
Instant profitability is a poor indicator of a startup’s potential
Uber and other taxi startups like Ola, Lyft, etc are disruptors. So it cannot be evaluated using the traditional parameters. Technology disrupting taxi booking startups have an altogether different business model and revenue model. Growth of taxi startup is within its potential to unleash innovation.
So the startup’s potential must be measured using its pace of innovation and ability to keep up with tech advances. Uber innovated largely but it was measured relative to the traditional taxi companies, which made Uber to overestimate everything.
The key takeaway from this is that you must compare you with taxi booking peers.
Care about customers
Uber built its entire model on customer feedback. Customer complaints and negative ratings are very important to them. They took it way seriously without any excuses. When you take customer feedback like this, the customer feels valued. Here customer included both the driver and rider.
This is an example of being customer savvy and along with it, do the market expansion. This is by far the best strategy used by many corporations.
Look around you
In the region of your yet to come taxi startup, look for existing on-demand startups of any kind. Find some of them which show explosive growth but vaguely unsustainable. See what makes them like this in terms of customer relations, drivers, government, etc.
Learning from other’s mistakes is the most underrated that many are not following.
I hope the above points give a good insight into the taxi startup business. Now we will go to the taxi app development stage.
The global taxi business market is growing at an unprecedented rate. So your taxi app solution must have an international feel. And I think SpotnRides can give you that. SpotnRides is the flagship app of our firm. We worked with many on-demand business leaders and founders before working on the solution.
SpotnRides is a readymade app on the table. So once you purchase you only need a very little effort to change it into the final form. And our team of professionals can handle it with ease.
Each app like the rider app, driver app, and the admin panel is built and designed with utmost code quality, so best performance, user interaction, and foolproof usage is assured. Want to experience a live demo of our product? Then connect with us on firstname.lastname@example.org. We are happy to serve you at any time.
After-sale support is normal with our firm. Any technical support ranging from app updates to bug fixing is done at a nominal rate.