What are the Best Strategies that Taxi Startups Could Learn and Execute?

Launching a taxi startup like Uber alone is not sufficient, steering it to success requires a lot of strategies to be executed. Though the on-demand taxi booking market is growing rapidly with overall value skyrocketing, the no. of taxi startups that continue to close because of competition is also happening. Some approaches and strategies used by Uber, Lyft, and Ola can be replicated in your taxi startup to face the market with resilience.

Tech advancements must be used to the fullest and data analytics tools can be of much help to gather and derive valuable details regarding sales, service, customer engagement, etc. In this blog, I have explained some strategies like this to execute so that you steer your startup towards success.

What are the Strategies the Taxi App Startups Should Follow?

Best strategies to follow

Most of the strategies I have explained below are replicated from Bolt. Bolt is a taxi cab company which was launched as a small startup but it grew rapidly in 4 years and now it operates in 30+ countries.

Pricing strategy focussed at the riders and drivers

It is possible to provide value to the users at an affordable rate and charging exorbitant fare doesn’t really mean more value is given to the customers. So strive to structure the pricing which is worth and gives more value to the users. Bolt made a huge change to its pricing by charging only 15% commission for every ride unlike 20-30% charged by the competitors.

Even Though your profit margin might get affected, you will be able to build trust among users and build a brand.

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Services aiming at the problem faced by people

If you are looking to expand the business by entering new markets, then aim at the market where you can give taxi service which solves a potential problem of the riders. For example, Bolt entered the totally unexplored African market where people had a real transportation problem.

So focus on the market like this and provide an efficient taxi service. Going deeper into it, pick markets which also have low employment rate so that you can make them as driver-partners. Following the previous pricing strategy also will give you a big boost to make a mark in new markets.

Entering well established markets

Entering under developed and well established market at the same time is the best strategy to follow. Top startups like Uber and Lyft did it aggressively.

Entering under developed market gives you a lot of scopes to establish a brand in that region. But while entering a well established market, you can experiment with new services aimed at the demographics, regional ethnicity, diversity, consumer behavior, etc.

Features and services you would like to bring can be piloted in new markets and any misfire will not do any damage to your startup except for your operations in the new region.

To make everything smooth, it is better to partner with an already operating counterpart in that region so that knowledge sharing, technology replication can be done.

Impeccable customer engagement

No strategy can replace effective customer engagement. No matter what great service you are offering, bad customer satisfaction is always detrimental.

Avoid sending offers, cashback, and other notifications to unrelated customers. React to feedback and reviews. Provide user-friendly service like ride pass, carpooling, long-distance ride-sharing, split fare, etc.

Waiting period after the taxi is booked must be a bare minimum. For that work to improve the taxi matching algorithm with the aid of your taxi app maker. Exorbitant surge pricing must be avoided and make sure the customer and driver app is interactive with immersive UI/UX design.

What SpotnRides can do to you?

Following all these strategies requires the aid of an experienced taxi app solution maker. SpotnRides is one such pre-built taxi app maker with a proven track record of working with startups and businesses.

Complete customization of your taxi app like UI/UX design, incorporating new service, features, etc is possible with us.

Most of our existing clients are small startups and if you are such a startup with big idea of launching a taxi firm like Uber, then I assure that partnering with us will be the best decision. We help you have a completely personalized mobility platform that engages users and elevate your startup.

Want to experience our taxi app solution? Request a demo and get a live demo with an explanation from our technical team.

To connect with us, drop a message to [email protected]. We are looking forward to answering you.

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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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