Are you thinking of starting a new business in 2024 in online cab booking services? Does making an Uber taxi clone app excite you but you are not sure if it will give the best result? Then this blog is going to clear all your doubts regarding this industry.
Here, we have discussed why you should invest in taxi app development, and in turn, build the best app in this industry.
Why You Should Start a New Business With Uber Taxi Clone App in 2022
Number of Users and User Share
After people tasted the ease and convenience that Uber provided, it didn’t take them long to get used to it. What resulted was a spike in the number of Uber users. This success prompted many people to launch similar apps like Lytf, Curb, Ola, etc.
The first thing that anyone determines before getting into a business is the potential market. As you can see in the figure above, the market for an Uber-like app is massive. The good thing is that you already know what users expect. If done right, you can launch your ride-hailing service in multiple cities and later, in multiple countries.
However, there is one thing that must be bothering you. It is the question of market share. There are some established names in this industry and users seem to be divided between them. Then how can you, a newbie, break into it and attract users?
Let us show you another statistic here to ease any doubt you have about generating business with an Uber clone.
|In 2015, the market share of Uber in the US was 91%. By January 2021, it had fallen down to 68%.
This goes on to show that no matter how big the hold, it is always possible to disrupt an established market.
The second thing that you must be wondering about is the revenue that you can generate with an Uber taxi clone app. The whopping revenue of Uber must have convinced you to some extent about the potential that this service has.
But the main question is how can you earn revenue from it? Is trip commission the only way?
The simple answer is NO!
An on-demand taxi service like Uber provides the individual drivers a predetermined portion of the aggregate earnings from each journey. The taxi app development company keeps one part for itself. The commission rate often varies depending on the service.
However, the percentage often stays around 15 to 30 percent. You can lower your portion of the commission and accordingly decrease the fare to attract more users.
You can charge higher for your services at certain times. This typically occurs when a location lacks taxis or when adverse weather makes it impossible to provide taxi services. Another situation could be during the peak hour of the day when most people are using your app. You can directly profit from the increased fees charged. Building a system like this is a piece of cake with the right taxi booking app development.
You can make your on-demand taxi services available for premium rides, which necessitates a luxury fleet to serve premium customers. Naturally, this service will have slightly higher pricing than the standard ones. As a result, in the case of premium trip services, the share amount between the drivers and you will increase.
This is a win-win-win situation for all the parties involved. The users will get more comfort and a sense of luxury, and you and the drivers will get more money.
Ride Cancellation Fee
Apps like Uber charge a particular penalty fee when a user cancels a trip at the last minute. You will receive this amount directly, and it is considered as one of the sources of income.
Another way you can increase your revenue is by placing in-app advertisements. Once the number of users of your app grows, brands will pay you to place an ad of their product or service on your app. That will give them the eyes of the many users of your app.
Since you will be able to place ads of multiple brands, your revenue will also grow manifolds.
Number of Drivers
Just like its users, the drivers working for Uber and other similar online taxi booking services are looking for better opportunities. In fact, Uber had 5 million drivers in Q4 of 2019 which reduced to 3.5 million in a year.
What drivers need is a good commission, frequent rides, and flexible working hours. If you provide them with this, you will never have a problem with finding drivers.
|Uber is the most downloaded app in the travel category and was downloaded 95 million times in 2020.
Another thing that app owners are worried about is app downloads. The app download is not only an indication of the success and growth of the app, but it also fills the investors with confidence that everything is going well. If you hire the best taxi booking app development company, your app downloads will certainly see a boost.
It is a critical metric, and you must keep a sharp eye on it. If the app download stat shows stagnation or starts to fall, you should find out the reason quickly and rectify it
Show ‘em the True Entrepreneurial Spirit!
No matter what anyone says, the market for online cab booking is huge, and there is huge potential in growing your business with it. If you are worried about the technical aspect of it, don’t worry, we have got your back!
Narola Infotech is a taxi app development company with 18+ years of experience. Our developers are experts in making similar apps and are trusted by clients around the world. If you have an idea for online taxi booking, you can contact us any time to discuss it.