Business Model Canvas of Conventional Taxi Services

The Emerging Business Model Canvas of Conventional Taxi Services Embracing Mobile Apps

Through a mobile app, a taxi booking business goes about as a facilitator in giving the owners and administrators to serve their clients through numerous channels. Prior to mobile apps, clients could book their ride through their cab business website, call center or an application interface.

But of late, most of the cab booking businesses have switched over, Or are in the process of switching over to taking appointments just through mobile applications. The drivers have an independence to choose their own particular time to log in to the mobile application and acknowledge demands for rides from clients. The source of income for every taxi business is the commission for every drive. The operational costs are low as they significantly need to contribute just on the technological innovation.

Business Model Canvas of Conventional Taxi Services

The taxi business has turned out to be an awesome innovation stage for transportation and offers simple alternatives of booking a taxi through an application and offers adaptability to the driver. The individuals who work more get incentives. These companies don’t own cars nor do they employ the drivers, they simply connect with the drivers through the application.

They are the technology-driven marketplace. The cab companies thus began to grow at a speed of light due to the accomplishment of the associated technologies.

Let’s go through the business model canvas of every successful taxi business from the supply to the customer side,

Key Partners

  • Drivers who own cars
  • Technology Partners like SpotnRides
  • Payment Processors
  • Investors
  • Partnerships with public transit agencies
  • Financing partners
  • Other Technologies ( GPS, Maps, Payment, Cloud Storage, Data Analytics etc )

Key Activities

  • Platform Development and Maintenance
  • Research and Development
  • Marketing and Consumers Acquisition
  • Balance supply and Demand
  • Hiring Drivers
  • Drivers Payments
  • Customers Support
  • Expand to more cities
  • Keep participants engaged and stimulate ongoing participation

Key Resources

  • Cab Booking Platform
  • Pricing Algorithm
  • Routing Algorithm
  • Skilled Driver who own vehicles
  • Process Automation
  • Salient Features
  • Venture capital to keep the business growing
  • Brand name & assets

Value Proposition

  • The smartest way to get around
  • Customers ( Taxi on demand, Case free, Easy to order a cab and short wait time, low price, cab map tracking )
  • Drivers ( Additional source of income, Flexible work schedules and can work part-time, easy payment procedures, Drivers get paid to be online )
  • Experience
  • Layer Player
  • Revenue Sharing
  • Technology trends
  • Two-sided Market

Customer Segments

  • Passengers ( those who do not own a car, Citizens who need a taxi service, Party people who go to clubs, Parties or Customers, Business Travelers and Tourists, Cab at the doorstep in bad weather conditions and other possibilities )
  • Drivers ( possibly who own a car and want to earn money )

Customer Relationships

  • Quality
  • 100% digital mobile experience
  • Convenience
  • Highly Automated
  • Self-services
  • Review option
  • Rating and Feedback System
  • Customer Support


  • Word of mouth
  • Mobile App ( Android and iOS )
  • Websites
  • Public Relations and Press Releases
  • Social Media Channels
  • Various Local Advertising Channels like Newsletter, Radio
  • Online advertising etc

Cost Structure

  • Salaries to permanent employees
  • Platform Development
  • Research and Development
  • Events and Marketing
  • Payments to Drivers
  • Legal

and Finally, Revenue Streams

  • Pay per Ride charges
  • Surge Pricing
  • Cost Saving to Taxis
  • Net Revenue and Net Loss

The transformation of the taxi business into a completely app-driven service is a prime example of a real-world business turning totally digital. The change has been so revolutionary that conventional taxi services find it difficult to survive no matter how hard they try. Eventually, even the neighbourhood taxi stands are embracing technology and going the app way.

Looking for an Uber-like mobile app interface for your taxi service? SpotnRides is a full-functional Uber taxi app clone that will enable you to launch your mobile-based taxi service in no time. Once you decide to use SpotnRides we will completely customize and brand it according to your business and it will function totally as your unique taxi booking app. Low-cost, very fast and totally reliable.

If you are looking for a quick response team to clarify your doubts instantly about your new business venture, please connect with our expert team at [email protected].

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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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