Taxi booking apps have been around for a decade and you’ll still find new businesses coming up with their own apps such as the Uber Clone app. This is perhaps because of the unfaltering profitability of this business model. In today’s blog, we will attempt to understand the business model of online on demand taxi booking platforms and why it has become so lucrative in the recent few years.
Before we get down to that, let us briefly try to understand the flow of a typical Taxi booking application like the Uber Clone. If you have been following this business closely in the last few years, you will have noticed that there are hundreds, if not thousands, of different types of taxi apps such as Ola, Uber, and Lyft and so on and so forth. However, Uber seems to have been the favourite and the most popular all over the world.
The biggest reason that attributes to this stems from the fact that people are used to this app flow. An app flow is basically how one screen or one button translates on to the next one. Now, every app has its own unique design features, but there is always a learning curve when people start using it. After having successfully used Uber for years and associating it with a ‘safe’, ‘easy’ and ‘quick’ medium of booking cabs, people have started associating Uber with the easiest and the most rewarding taxi business.
This is why; there are so many different smart entrepreneurs across the world, who have started their own taxi businesses but based their apps on the basic skeletons of Uber. This allows users to start using the app instantly without having to unlearn anything in order to make their first taxi booking.
The flow of the Uber clone apps is as such:
- The user downloads the app and then logs in to it using any of their Facebook, Gmail or other social media accounts. Alternatively, they may even fill out a short registration form in order to make the booking.
- After this, the user can simply enter their destination, their pick up location and find a list of all the types of vehicles that they can book.
- They can select bike taxis, hatchback cars, sedans, luxury cars, SUVs and so on and so forth based on their budget and the number of people traveling.
- Once done, they may use the app’s integrated wallet to make an auto payment or make cash payment after the ride is done.
- After this, the driver and the rider can both rate each other based on their experience of the ride.
The Business Model
The first thing that one must note while beginning an app based on demand taxi booking business with the help of the Uber Clone app is that it empowers the app owners with a degree of flexibility unlike any other. There are three basic ways in which this app can be used in order to earn money.
Say you don’t want to drive a taxi or don’t own cabs. All you want to do is to make sure that you can provide a platform for ride seekers to connect with those that are offering rides. This is the perfect avenue in order to use that kind of a business model.
In this type of a system, all the app owner has to do is to provide the app for registration to different cab owners or taxi companies and to the customers. Each time anyone books a ride using your app, you make a commission from it.
This commission is also set by you in terms of percentage. So, for example, you say that 10% of every ride fee should be yours. Every time a booking is made, you get 10% of the total ride fare.
Now, in case you already have a cab and run your own small taxi business. This could be a single taxi based business or a fleet of taxis. By purchasing the Uber Clone app, you will now give your business a digital advantage. With the help of your app, people will no longer have to wait around the corners of the street to find you. They can simply hire you right from the app.
You can continue to make big earning at the times of your convenience, at locations of your convenience and forget about petty haggling about the fare of the ride. Since everything is digital, your app automatically generates invoices and you never have to worry about totaling anything because you get regular reports.
If there are other cars in your company and other drivers, they too can be booked using the app. You will have a bird’s eye view of what is going on in your business, the number of rides that are being taken, the kind of money being made and so on and so forth.
A Mix and Match situation
Now, say you have a business of taxis but you don’t want to stop only at the money that you are making but want to go beyond it and tap into the potential of the local taxi market in totality. With the help of the Uber clone, you can extend the digitization advantages to your competitors as well and get a commission from their business too!
Basically, your Uber Clone app should have a company panel that will allow other companies to register and start offering their services using your app. Now, once anyone books a ride for even their taxis, you will get a commission.
Because of the extensive digital reporting systems, you will be able to see exactly what kind of business they are doing, the number of rides they are taking, the hot spots that generate the maximum business and so on and so forth.
Wrapping it up
All in all, basing your taxi business on a digital solution such an online on demand taxi booking and ride hailing app like uber can be a game changer in the taxi market. All you need to do is to figure out which uber clone app would suit your needs, take an online demo of the app and then go for it!
Anurag Rathod is an Editor of Appclonescript.com, who is passionate for app-based startup solutions and on demand business ideas. He believes in spreading tech trends. He is an avid reader and loves thinking out of the box to promote new technologies.