The taxi business is a large one, utilized by many people who find it cheaper and generally less stressful to be driven to their destination by a taxi driver! Not everyone can own a car, automatically creating a demand for taxi services.
For businesses with an existing taxi rental service, taxi booking app development can do wonders to uplift your business. But if you don’t already have a taxi service, you can still build an Uber clone app and use it as a booking platform for existing cab companies.
Methods of Revenue Generation in An App Like Uber App
Uber clone app development should be done in such a way that monetization methods must be taken into account. After all, Uber clone apps need to have a steady revenue to support optimal functioning. To give you an idea, here are some methods of generating revenue from an app like Uber.
This is the most reliable mode of revenue for any Uber clone app and brings in maximum income for the app owner. In this, you can charge the driver a small commission for every trip the driver completes.
But what does the fare include? Let’s have a look.
- Base Fare: The charges of pick up and drop off
- Distance: The distance the vehicle covers during the trip excluding the distance covered to pick up the rider
- Time: The time which is taken to cover the distance
- Booking Fee: Charges to cover the administrative cost. This fee will go straight to the app owner
- Tipping: If the rider wants to tip the driver, this feature should be present
What is Dynamic Pricing?
Dynamic pricing is a method of determining a product's price based on a variety of factors such as demand, supply, inventory, competition, location, and other market circumstances, but in a shorter time frame.
It's a straightforward concept of markup economics. You design an algorithm that increases the price that is favorably associated with the rise in demand since you now have a lot more alternatives to sell your services to which are in short supply.
This approach may be used during times of high demand, such as rainy days, big events, or vacations, to ensure that passengers are always picked up quickly and conveniently.
The dynamic pricing system will assist you in better managing your inventory by attracting more drivers to the surge pricing location in search of more rides; all while increasing revenues and maintaining your brand image.
This pricing strategy is used by Uber and has been in place for a long time for other industries, your Uber clone app must feature this pricing.
Once your app garners a large user base, it will become a significant draw for larger businesses seeking collaborations as part of their marketing efforts. Advertisements are a major presence of the monetization opportunities when looking at the features in the Uber-like apps.
Uber's business model involves income earned from promotional agreements in addition to commissions from drivers. In this model, custom ads and promos are displayed at the request of interested businesses.
This type of collaboration works in favor of all the parties involved - the customers, the brand, and the app.
- Customers benefit from the marketing campaign of the brand
- The brand gets eyes on itself which is the purpose of the ad
- The app pockets the money it gets from the brand for placing the ad on its users’ and drivers’ app screens.
Organizing a monthly or yearly subscription plan can impact your Uber clone application, especially in months of low revenue. Subscription plans such as these can ensure ride bookings are made even when demands are low.
Sponsorships and Partnerships
Perhaps sponsoring a small event can help to spread awareness about your service! It’s not a bad idea and the owner of an Uber-like app should always consider such awareness drives.
Another idea is to partner with another brand that can help you grow your services. Like a tie-up with a car company for a newly released car or partnership with a scooter company to launch eScooter app services.
When demand and supply are constant, prices are likely to be fixed as well. But, when demand rises the demand must also rise, affecting the prices. Prices are increased to accommodate allocating more resources to the area in which demand has surged.
The pricing mechanism is called ‘surge valuation’ and is a great way for you to gain high revenue using the worthy reasoning of high demand and limited cab availability.
Different Ride Choices For An Uber-Like App
Different people prefer different traveling methods, this mainly is due to different income brackets. Likewise, to cater to these differences, you can introduce differently priced vehicles for users.
This is one of the most prominent features of Uber clone apps and one you must invest in. Just like how Uber has several types of cars like the Uber green, Uber black, Uber Comfort, etc. The higher-end type of rides can cater to people attending a wedding or party and want to stand out from the crowd!
To provide added incentive for people to refer your Uber clone app to friends and family you must include a special coupon or discount, making it worth a user’s time to refer your app. You can even offer users a free ride every time a new user joins your app through their referral code!
Being a taxi booking app, you can extend your services to accept special services. Examples of this are giving special ride services for a particular purpose (voting, hospital checkup, etc) or providing your services to a certain age group (teenagers or senior citizens).
The benefits of Uber clone apps have been clearly stated, they are the core of transportation for people who commute daily and can act as a viable income source for those who choose to invest in it. Uber clone app development lets you bring your ideas to life with the skill and experience imparted by an Uber clone app development company.