Top 29 Reasons to Run a Taxi Business with a Taxi App

There is a reason for a business to be successful. The same applies to the on-demand app-based taxi business. Taxi app firms disrupted a traditional industry that is more than three decades old.  To be frank, taxi app companies are not transportation firms but technology firms. In simple words, it is their app that made all the difference in the taxi industry. Now, many have decided to start a taxi app-based company in their locality. They should know the exact reasons why a taxi app business can be successful before venturing into it. Below I have mentioned some top 29 reasons on why a taxi app can really make a difference.  

Why we Need a Taxi App Solution? 

 Safe and secure rides

Using taxi app you can avail all the details of the driver in the customer app itself. In some taxi apps, the details of the driver will be displayed on the app before booking a cab.

Attracting more riders

There are a lot more features on the app that attract more riders. Some of the features that gravitate customers are.

  • Cashless payment.
  • Fare splitting
  • Emergency panic button
  • Sharing ride details with friends/relatives/family.
  • Carpooling

Drivers can find the exact location of the Passenger

With GPS integration in the app, the drivers can easily spot the rider and can ride in the route using the map without any hassle.

Hasslefree route identification and spotting of drivers

Once a cab is booked, the rider can easily spot the driver and cab on his customer app. While riding also, the customer can track the route on the map.

Real-time vehicle tracking by admin

The admin can track the ride from start to finish from one place using the admin web panel

Handle Multiple Taxi Dispatch

With the taxi dispatch software, you can receive multiple cab request and send all of them at the same time without any hassles.

Estimated fare calculation

The customer can know the estimated ride fare even before starting the ride. This gives more transparency to the rider.

Less manpower required

Since most of the process is automated, the need for additional manpower is less and this saves a lot of money.

Safe cab booking even at midnight

Riders especially women can safely book rides even at midnight because of the emergency panic button and other features in place.

Increases brand credibility and visibility

Your taxi company will no longer be confined to the local area. You have an app and so the reach will be high. More brand visibility quickens the rate of expansion. The app solution also brings more transparency which in turn improves the credibility.

SOS button for driver safety

Driver should also feel safe. Emergency button is not only for passengers. In case of any emergency, the driver can use the SOS button in his app.

Driver and passenger retention

The taxi service will become so good that you can retain the customers and drivers as partners.

Reviews and ratings

The driver and rider can review and rate each other at the end of the ride. This improves the transparency and helps the driver and rider to be better.

Customer feedback

At the end of the ride, the customer can give feedback about the ride on the app. This helps to improve the service and give a better service next time.

Debar unruly customers

Based on the driver’s rating, the customer can be debarred from using the service if the rating falls below a threshold.

Manage, monitor, and analyze from one place

The admin can manage literally everything from dispatching a taxi till completing the ride. Driver commission, fare management, etc are controlled from the admin web panel.

Generate reports from the derived data to improve the business.

The admin web panel is loaded with data analytics tools which can provide valuable results and reports. These results and reports can be used to improve business operations.

Offers and discounts for riders

To attract more customers and retain existing users, cashbacks, loyalty points, and offers are provided frequently.

Riders can pick a different vehicle

Gone are the days where you have to ride on whatever cab that is available. With a taxi app, you can choose from a set of different vehicles.

Customers can schedule a trip

Want a cab for tomorrow? You can book for it today itself. With schedule booking feature you can book cabs beforehand.

Attract more fleet

With easy vehicle attachments and exciting incentives, commission, you can easily expand your fleet.

Extra money with the app

The operator can monetize the app by allowing ads on the customer app. This is in addition to the commission from the rides.

Push notifications for the customers

All the offers, discounts, and ride details are set via push notification to the customer’s mobile.

Push notifications for the drivers

Ride details, commission details, rides completed, incentives, and bonuses are sent via push notification to the drivers.

Surge pricing

The ride fares can be made to increase or decrease based on demand in that particular area. This feature helps to bring more customers and also to monetize demands.

Improved overall efficiency

Since most of the process is automated, there is little human intervention and the possibility of error is low. This improves the overall operating efficiency.

Geo-fencing to monitor the cabs

Geo-fencing mode to monitor the cabs and drivers to stop them from using cab for other services.

Attracting tourists

Cab service is not only for the locals but also for tourists who want to enjoy the rides. Multilingual features like multi-currency, multi-language, etc.

Generating daily reports

The admin can generate reports daily and analyze profits, revenue, rides, etc.

So, by now you might have a clear idea of the things a taxi app can do. Next step is to create a business plan for your taxi business. I strongly recommend SpotnRides for your taxi solution. You don’t have to spend too much money. SpotnRides taxi solution is prebuilt and comes with exhaustive features. 

Just send your business plan to [email protected] or talk with them directly. Their business team is available all the time.

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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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