The online taxi business has been reaching its peak after the introduction of the ride-hailing applications to make things much easier. The online taxi business applications are emerging in every region of this world so as the competitors including some big giants like Uber,Ola etc. The unique feature will differentiate the competitor from the newbie.
Steps which has to be analysed before starting a business:
- Scope of the business: The scope of the business has to be analysed to know whether the business can be feasible and profitable.
- Identification of competitors: The competitors of the business should be identified. The competitors may be in any form of potential threat.
- Analysing the competitor: After identifying the competitors, they have to be analysed by different methods like SWOT(Strength-Weekness-Opportunity-Threat) Analysis or Porter’s 5 forces analysis.
- Market Viability: The market viability has to be measured by the company before starting the business. The market viability can be analysed by taking a survey from the people in a certain region. This can also be done to identify the potential customer.
- Lifespan of the business: The business life span as to be identified which makes the person think about starting a business because there is no use in starting a business which has no growth.
Parameters which has to be maintained:
- User-Friendly: The interfaces which have been published for the customers and drivers should be easy to use.
- Fast and effective cab hiring: The cab hiring process should be done fast and without any flaws which make the customer rely on this brand.
- Transparency: The process has to be transparent from booking a cab to billing and giving feedback on the service.
- Competitive pricing: The pricing which was formulated by the company should be based on competitors to be competitive in the market.
- Safety and Support: The taxi business should be build with a strong safety and support system like 24*7 customer care.
Technology used by Application:
- Location Tracking: The location tracking technology has been used by the taxi company to locate its customer’s current location and the driver’s current location. GPS has been used for sharing location from their smart device.
- Traffic updates: The application will also contain traffic updates. It has been used for calculation of approximate ride time.
- Fare Calculation: The approximate ride fair has been calculated through the application programs. The fare will be calculated either based on time or distance covered. There certain factors like:
- Peak hour charges: The extra amount charged for based on demand during the particular hour.
- Base fare: The taxi company should be having a certain amount as base fare which is the minimum ride charges.
- E-wallets: The E-wallets have to be maintained in the application for easy transactions. Certain offers like cash backs will be credited to the E-wallet so that the customer can be using it for future rides in the same application.
- Easy feedback box: The application should be having a feedback box which should pop-up after every ride. This feedback box has to be easy-to-use with attractive characters like stars, emojis, etc.
The taxi business is a service-oriented business which has been considered to be profitable over the period of the time. This business has been evolving from time to time.