Why Most of the Taxi Startups are Failed While Competing with Uber-Like Taxi App?

Just two years after the inception of Uber, traditional taxi companies faced the heat and slowly opted out of the taxi market. This result is obvious because in the US most of the Uber fares were below $1. Can you remember the time when traditional taxis charged so low?

Keeping that aside, it has been 10 years since on-demand taxi revolutionized the taxi market. Now many small on-demand taxi startups are struggling to battle with the giants and losing their market share. Still the number of new startups using the readymade taxi app is growing everyday. We say this because, as an on-demand taxi app development company we get a lot of queries for the app.

The point here is that with the right way it is possible to take down large firms. Before that it is necessary to analyse the pain points faced by small taxi startups. Realising the flaws is important for change. And this applies also for traditional taxi companies which can transform to app-based platform.

What are the Limitations for a Small Taxi Startup?

Cost: The overhead cost of Uber is very low. Uber has an algorithm in place to get and dispatch cabs. Other taxi firms do it using manual dispatcher. And this puts a serious constraint on the fare collected. Some on-demand firms having app also couldn’t control cost because of app maintenance issues and poor app performance.

Scale: The economy of scale of Uber is massive and all its services are evenly distributed across its operational areas. This enables them to give lower cost. A user can use Uber in any country and the quality of experience will be top notch no matter what. On the other side, small companies are fragmented and are struggling to give uniform service in all places. This makes the people to think that their service is unworthy.

Brand: Regional taxi startup are hard to gain brand recognition like Uber. Users tend to prefer taxi app with good brand name. Niche services with exemplary customer service alone can create a brand for small startups.

Consolidation of taxis: Everyone knows that Uber and other taxi startups don’t own any of the cabs they have. Literally anyone with a car can sign up with Uber. This eliminated the problem of getting a taxi anytime even during peak hours.

Waiting time for customers is also in minutes. This cannot be matched by other taxi startups which have very less cabs in use. They can overcome this comfortably by giving attractive benefits for driver partners.

Customer service: The drivers and riders are rated on the spot just after the ride is over. Other companies have this option but I seriously doubt their extent to which the ratings are accounted.

Services:   UberBlack, UberX, UberShare, UberPool, etc are are some of the services offered by Uber. Their wide range of service enabled to capture a wide user group. Replicating this model might be difficult in terms of cost but it is worth it. 

These limitations are easy to overcome. This is because of the fact that most of these constraints can be solved using the taxi app itself. For example, the driver app can be spruced to make the driver partners easy to get on-board. Single window document verification and quick support can do this. 

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So it all spirals down towards having a better quality and performing app solution. Selecting the right app maker and partnering with them makes half work done.

I strongly recommend you SpotnRides for that purpose. SpotnRides is our one of the top selling taxi app among our other on-demand portfolio. Another problem cited above is the cost of maintenance of the app. If the app is fully loaded with constant technical assistance, why then do you require to spend for maintenance. And our firm provides free technical assistance and updates to you for some time. 

Such free initiatives are unique to us. Here I would like to point out some features of the SpotnRides taxi app. 

  • SpotnRides is whitelabel solution. So you can put any logo you want. 
  • The app will be customised to include your regional language and currency.
  • The admin panel is all in one of its kind. The user just have to take a glance to note all the proceedings.
  • Even after the deployment of the app we are open to customization and design changes if needed.

We conceive the SpotnRides taxi app through three stages along with the client:

  1. Design concept: The client has to pick a design from the plethora of designs available with us. 
  2. Feature integration: All the features are not included in the basic app. Based on request features are added.
  3. Launch: After beta testing and finalising, the app is launched.

If you have any queries regarding SpotnRides you can immediately tap a mail to [email protected]. We are always at your disposal. For those who quickly contact us we offer a live demo right away. Looking forward to your partnership. 

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.

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