The popularity and demand for ride-sharing services are growing among passengers worldwide, and the market is expanding rapidly. Customers are thrilled to pay for their entertainment, and they are even happier when the fee is lower than that of regular taxis. To attract customers, you must first identify the factors that cause them to lose faith. It is especially important for a ride-sharing business.
There are numerous opportunities in the taxi booking business, but every taxi booking business faces challenges with those opportunities.
Let’s go over the challenges you might face if you enter this space and how you can overcome them.
Your Company Will Not Be Able To Get Off The Ground Unless You Have Drivers:
Why are drivers so valuable in the taxi and ride-hailing industries? Ride-sharing drivers, on the other hand, are essentially self-employed contractors. A single corporation does not always obstruct them. As a result, they have more options to explore by signing up for various ride-sharing apps and earning more money. Maintaining the loyalty of drivers is a critical component of a ride-sharing platform. And to do so, you must first understand the factors that drivers value the most. Drivers are concerned with earning a living and having the ability to work from home.
People, for example, mostly own cars in different markets in countries such as the United States and Australia. Some people can now use ride-hailing services, thanks to the rise of these services. Supplement their income by riding for ride-hailing companies such as Uber or Lyft. Consider Singapore’s situation: they have an efficient public transportation system and various ride-sharing options. As a response, owning an automobile is a luxury rather than a necessity for most people. Using the car for taxi booking services such as Grab can be a good way to use the vehicle.
Now that we understand that drivers are an important part of the business, ride-sharing companies must invest ineffective training programs for drivers to provide the best customer service.
Grab, a ride-hailing service has launched GrabAcademy in conjunction with a driver welfare program called Better 365 to improve driver behavior. The academy has released numerous app upgrades to ensure a safe and enjoyable driving experience, including trip ratings and in-app training videos.
The Impact Of Government Obliviousness And Engrossment:
Without a doubt, disruptive business models produce both winners and losers. The regulatory authorities share the same thought process. In the United States and Asia, there is a rapid shift toward ride-sharing. Even though Europe is lagging, it has an impact on ride-sharing services.
Some countries suspect moving toward a combined regulation for taxis and ride-sharing cabs.
The Land Transport Authority of Singapore (LTA) introduced new unified regulations in 2019 to impose powerful rules on private-hire operators. Previously, there were no uniform regulations for private operators such as Grab and GO-JEK. Singapore’s government fined Grab and Uber S$13 million ($9.5 million) shortly after Uber’s exit from Southeast Asia.
Another significant challenge for ride-hailing companies is obtaining permission to operate in different countries. Governments have enacted several authorized rules and regulations that govern local transportation network companies. For example, GO-JEK denies by government agencies in the Philippines. It occurred due to its ride-sharing service application failing to meet the required local ownership standards.
Cost Battles Are An Ongoing Battle:
There is fierce competition among ride-hailing services and intense discount wars. Companies offer generous incentives to both commuters and drivers to gain market share. Dianping, a Chinese company, has launched ride-hailing services in seven cities, with attractive rewards for passengers. By offering these rewards, they have challenged Didi Chuxing and other ride-sharing players in the country. The company is offering three coupons worth 13 yuan each, which is the flag-down price of a regular taxi in China. Another ride-hailing company, Go-Jek, is currently offering market entry pricing in Singapore, and its charges are significantly lower than Grab’s without the surge pricing.
Rather than focusing on Go-strategy, Jek’s Grab intends to avoid the price war with GO-JEK completely. They are much more concerned with providing a better customer experience in the long run.
Creating customer loyalty programs that adhere to the following criteria:
Do you believe that passengers are truly devoted to a single app? Have they tried any other ride-hailing apps, or do they only use one? All businesses in every market want to know if their customers enjoy switching apps to take advantage of offers and promotions or if they prefer sticking to one brand.
An excellent UX/UI and ease of use appear to have the same effect on customer loyalty. Here’s an example of the Hong Kong-based HKTaxi app. They simplified the app’s design to make it more user-friendly. In addition, the company has begun a new partnership with Mastercard to provide secure in-app digital payments for its passengers. Cardholders and taxi drivers in Hong Kong will benefit from the service. Frequent passengers can now handle cashless transactions, while taxi drivers protect from potential threats such as cash robbery or receiving counterfeit banknotes.
What is the cost of developing a taxi-booking app, and how can Suffescom assist you in overcoming all obstacles and achieving success in your business?
As we always explain, the cost of a taxi-booking app determines by the number of hours required to develop it and the features included in the app. The app with basic features will take time and money, as shown in the table:
We can assist you in developing your app with cutting-edge technology and unique features that will set you apart from the competition and increase the popularity of your app among your customers. You can read all of our blogs to learn the step-by-step process of getting into the ride-hailing business and overcoming obstacles to success.
After reading this blog, you should better understand the difficulties you may face while operating a taxi booking service. If you have any further questions or would like to develop a customized taxi-booking app for your company, don’t hesitate to get in touch with us and request a free demo.
