One of the reasons time is being perceived to be moving fast is because of the transformations in technology. Looking back at how things were a little over ten years ago, it would be surprising to see that so many things have changed.

One of the most prominent areas of change can be observed in the transportation industry, and especially cabs. We have come along way from waving at a random taxi on the roads to taking out our smartphones and requesting a cab at a time and place of convenience.

The credit for this transformation Hass to be given to the technology company from San Francisco called Uber. Today, the world has become synonymous not only with booking a taxi but also with all businesses that rely on a mobile app-based on-demand service provision. It has become so much of a generalization that any app providing on-demand services is addressed as an Uber for that service.

Although Uber might seem like a transportation company on the surface, it is, in essence, an aggregation and cloud dispatch company. Uber did not bring in new modes of transportation or new drivers for that matter. It connected the demand and supply through a simple mobile application, assisted by GPS and navigation. This combination of a personal profile to identify the requester, the GPS to find out the location of the person, and the incorporation of digital payment methods has been the shot in the arm that the service industry was looking for.

The transformation of transportation

It has been a little over ten years since Uber first ran on the streets of San Francisco. Today, it would be rather surprising to hear that an entrepreneur wants to start a taxi business by maintaining a fleet without using technology. Such as being the impact of Uber and its different manifestations across the globe and across industries.

Needless to say, any transformation leaves with its share of challenges. It was not a smooth ride for Uber, either. In most jurisdictions, the government had regulated the cost per kilometer for any taxi service.

Fortunately, Uber has been successful in continuously breaking these restrictions, and it has paved the way for a lot of new taxi services to spring up in different parts of the world. DiDi in China, Ola in India, Grab in Singapore, 99 in Brazil, Careem in the Middle East, GoJek in Indonesia, and Lyft in the United States can be quoted as good examples.

This business model’s impact has been so intense that it has resulted in many taxi industry juggernauts’ disappearance. The classic New York yellow cabs have been literally thrown out of business by Uber. The same can be said about a few taxi companies that dominated the Indian market.

The advantages

What is it that prompts these many businesses to go for the Uber model? An app like Uber brings a host of advantages for every party in its business model.

Better availability

Before Uber, if you had to avail of a taxi, you either needed to see the taxi or call and fix a pickup. This process was quite tedious, cumbersome, and confusing. Even if you were to reach a taxi driver, it would have been quite difficult for you to pinpoint your location, increasing the possibilities of frustration during the time of pick up.

With an app like Uber, however, the GPS comes into play. As soon as you launch the app, you will be able to see the drivers available in your vicinity. The GPS and the mapping system will take care to assist the driver in reaching your precise location. 

Better profitability

The business model of Uber serves to increase profits for the business in terms of both volume and efficiency. With the assurance of availability, a lot of users may now use your Uber-like app. These numbers directly translate into profit. 

In addition, the efficiency in routing, the introduction of automation, and the streamlining of the booking process ensure that the bottom line is positively impacted.

Better efficiency

We have already seen that the introduction of automation positively impacts the profitability of the cab business. Automation, in addition to making the process more precise and efficient, also reduces the extent of human intervention and the associated inaccuracies.

Better management

The feedback system and the means of measurement were not quite adequate for the taxi ecosystem. It was difficult for a customer to redress their disputes with the business. However, a taxi booking app like Uber can bring in a review and rating system, making it easy for the passenger and the driver to give feedback specific to a trip. 

With the automated data connection, it is now possible to also find out the efficiency of the driver. All these data points can help in optimizing your operations and in netting better revenue.

Better business mechanism

Earlier, taxi services’ business was about maintaining a massive fleet of vehicles end it limited the scope of operations. In introducing a mobile app-based ecosystem, Uber did not only change the way cabs were booked. In addition, it also changed the way cabs were maintained.

Instead of hiring a dedicated driver fleet, Uber brought in a business model that looked at drivers as partners instead of considering them as employees. This meant that the company was not liable to pay them a fixed salary or handled their taxes. It was a significant breakthrough not only for the gig economy but also for a lot of companies that went on to follow the same business model for multiple services.

Who needs a taxi booking app like Uber?

The business of Uber and most other taxi booking apps is in aggregation. On the surface, it might seem that a mobile application is necessary only for a business that uses the same model. However, considering that there is always a need for any taxi to find the user command’s precise location and navigate to that location, the mobile app can be useful for any taxi business. It holds good in terms of its benefits for a taxi company that has over 1 million drivers registered or just 30 cars operating in its fleet.

Features of an on-demand cab booking app

You might already be aware of the cab booking app and ecosystem being made up of three distinct entities with a dedicated app for each of them. The user, the driver, and the administrator are given specific apps to make their work easier.

Instead of looking at every app’s features in detail, let us look at a few all-encompassing features that need attention.

The app should feature an easy registration for both the driver and the passenger. The registration should be made possible even through legacy credentials like Google and Facebook.

Digital payments are an integral part of the on-demand ecosystem. To fulfill this, your app should be tied up with a versatile payment service provider like PayPal.

Security is of paramount importance, especially when it comes to an app that can track the real-time location of a user and a driver. Your app should be made compliant with regulatory frameworks like GDPR.

Conclusion

Given the fact that the ride-hailing market is quite broad and open, it is the right time for new players to test the waters during this pandemic. One of the most critical requirements for you to embark on a profitable journey with a taxi booking app is technology.

Building the app from scratch, however, could be a cumbersome and daunting process. Alternatively, you can consider using an Uber Clone app. The Uber Clone script is easy to customize, and it’s available as a product off the shelf. 

All you need to do is get in touch with the company specializing in the white-label Uber Clone app’s development and customization. They will take care to understand your business requirement and embellish the app with the essential features, so you are all set to launch your app-based taxi booking business.