Why Geofencing Is Necessary for Your Taxi Startup and How to Test This Feature in Your Taxi App Solution?

Once you have launched a brand new taxi hailing startup, you need to focus on customer acquisition and retention. There are many conventional ways of doing this, but in the fiercely competitive taxi market, it won’t work. Some innovative methods must be applied to do it. For example, some top taxi startups earnestly use features like geofencing for customer engagement and retention. 

Here, I am going to explain about geofencing and why it is necessary for your taxi hailing startup. Also, I have provided a step by step approach to test this feature in your taxi app solution in case you are in the stage of live testing.

First things first, before diving deep into it, let me tell you what exactly is geofencing.

What is Geofencing in Taxi App solution?

Geofencing is a feature used by mobile app firms whether it is on-demand or anything else. 

Geofencing refers to a human-defined geographic area ( polygon in geometry terms) on the Earth’s surface. This feature is used in taxi apps for geographical location based configuration.

By defining a specific area, it is possible to engage with the taxi app users in that area effectively like sending mass notifications regarding new products & offers, implementing surge pricing in areas with maximum demand, special price for airports, and many more.

This is a timely and innovative marketing ploy to attract customers and retain existing users.

To the question whether this feature will be effective or not? 80% of the users feel that they are happy with location based targeted messages. 60% of the population anticipate location based notifications and in that 40% people utilize it immediately.

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Benefits of geofencing in your taxi startup

Personalized customer engagement

If you are sending a notification on airport taxi discount to users outside the airport, they would get frustrated and this will damage your firm credibility. With geofencing, such problem is a thing of the past. 

You can send personalized experience to the users by knowing what can attract them. 

Saving money

This is an obvious advantage of using geofencing. Normally, a firm spends a significant amount of money for promotion and customer retention. But, the geofencing feature can have a dramatic effect on users at very little cost. This will be a great advantage for entrepreneurs who are bootstrapping their taxi startup.

Rich data collection

On-demand startups rely more on data than any other industry and taxi startups are no different. Having data about consumer behavior can be helpful to design better and personalized products. Marketing can also be made focussed without wasting resources.

Giving a perfect example of this will make you clear about geofencing. Let us take the case of Uber.

Geofencing in Uber

Uber first implemented the geofencing feature to identify airports to notify people in airports about available cabs and special offers on booking. This is something different from what was done before. Eventually, Uber applied this feature to many other areas.

Testing geofencing feature in your taxi app solution

I hope most of them who are yet to launch small and medium taxi startups are relying on Uber like taxi app clone script. In the taxi script, it is easy to integrate this feature and it is more important to test. 

We as a maker of taxi app solution – SpotnRides, will embed this feature into our script as per the customer preference. Now, we try to explain step by step to test this app solution for surge pricing for a particular region.

First, install the setup and launch the admin panel. In the admin panel dashboard, you will see the geofencing feature.

Step 1: Now, set up a username and password to register. Next login into the admin panel.

Step 2: You have to now go to the pricing setup to configure pricing for a particular area. You can do this in the side panel of the geofencing where you can add or view existing pricing setup.

Step 3: The admin can now use the action button in the pricing setup to reconfigure like add or delete. Also, the admin can re-enter the details if needed. 

Step 4: To add new pricing setup, the admin has to select the new pricing setup option. Then opens a new tab. Here, the admin can add a new location, vehicle type, base fare, and many other variables can be added.

Step 5: To view and modify the type of vehicles assigned for a particular region, the admin can do it using view all vehicle types in the admin sidebar.

After making all the changes, the admin can save the changes and all the entries will be updated soon.

This way you can test the geofencing feature using various other configurations like sending offers, notifications, new services, etc.

If you are about to enter the on-demand taxi market and looking for a fully loaded taxi app along with geofencing, then SpotnRides will best suit you. We have provided our app along with geofencing to many entrepreneurs and businesses across 10+ countries. We will also provide constant support for you even after sales till you are completely familiar with all the functions.

Please don’t hesitate to tap a message to [email protected] for doubts and queries. We are waiting to answer you anytime.

Get Free Demo of Taxi 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.

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