The taxi market has come a long way since 2009 when Uber has entered the market. The advancement in technology and easy access to smartphones have completely changed the face of the taxi market.
Uber introduced novel ways for the taxi market to redo the traditional plan of action. The idea of Uber becoming the case study for all passengers, drivers, and taxi companies that a taxi business can be operated in such a way too.
Once Uber turned out to be a massive success, many of the startups and entrepreneurs jumped to the market and made a huge profit from it. Lyft was the first rival of Uber. After that many other players also entered the market such as Ola, Grab, and several others came into operation in different parts of the world.
The taxi market has seen rapid growth in the last few years, and the growth also seems to continue in the next few years. You are also about to step into the taxi market, but unsure of things such as taxi app development trends, taxi booking app market growth, taxi market risks & forecast, then this blog post is aimed to help you.
Read More: How to Build Taxi Booking App Like Uber?
This Year Will Be The Year of Taxi Market Growth
With technological advancement, the taxi market is completely transformed and great ideas and vision come to the light. The taxi market is expected to grow at a CAGR of 10.8% in the period of 2021-2025.
As per the report of Statista, the overall value of the taxi market is projected to hit the mark of $17,095 million by the end of 2021. And it is expected to grow at a high speed from 2021 to 2024.
Another report of Statista states 21.6% of user penetration in the year 2021, which is further expected to hit the mark of 22.08% by the end of 2025.
A Guide to Taxi Market Trends
In sync with the advancement of technology, we have seen several taxi app development trends that have validated the potential of the taxi booking business. Willing to learn what those trends are and how these trends are transforming the taxi market? Then read further and stay informed about the trends.
1. Increase in the Demand of Online Channel
As said before, the expansion of smartphone users across the globe has made users shift from offline taxi booking to online taxi booking app. There are many reasons behind the increased usages of taxi booking apps.
The foremost reason is that such an application provides convenience to the users by offering them a simple way to book taxis using the mobile application. Second, taxi booking apps provide a variety of information such as driver details, driver address, driver location, calculated fare, and other essential information.
To make a profit from the increased demand for online channels, many big players are introducing cost-effective features such as co-riding. This feature enables the users to split the fare of the taxi along with a co-passenger, hence, you can expect pocket-friendly rides with taxi booking applications. To attract customers, some small taxi businesses also started adopting the co-riding features.
2. Environment-friendly Electric Cars
Global warming is a major issue across the world, especially in urban areas. The limited availability of fossil fuel and imminent pressure also there to reduce vehicle pollution. Hence, electric cars are going to be the future taxi market.
The trend of the eco-friendly electric car has started, but it is going to stay for a longer period. Electric cars are on the checklist of all countries, hence, governments providing various incentives and schemes to benefit the drivers.
The trend of electric cars is doing great and all taxi business owners should think about ways to take advantage of electric cars.
3. Self Driving Cars
Self-driving cars are going to be the future of the taxi market. Recently, a Chinese startup named AutoX took the taxi market by storm by launching self-drive taxi cars. Besides AutoX, many big players in the taxi market are also trying to replicate the same.
Uber is also working on the driverless car strategy. A survey organized by the Pew Research Center found out that one out of three people thinks that self-driving cars are going to dominate the taxi market in the forthcoming years.
4. Air Taxis
One of the freshest trends in the taxi market is air taxis. The team of scientists is working hard on this idea to bring this into reality. Industry giants such as Uber have seen testing drone-based cab services to transport goods and people from one location to another location.
Challenges Faced By the Taxi Market
The taxi market is overcrowded with the number of small and large taxi businesses operating in small cities to large metro cities. Henceforth, the taxi market has a lot of challenges to be dealt with. But, observing the latest trends, the growth of the taxi market does not seem to slow down in forthcoming years.
Business owners and entrepreneurs who are about to kick start their journey in taxi app development should know some challenges and how they can deal with such challenges.
1. Competitive Market
The promising taxi market growth led many organizations to expand their fleet in the taxi market. Therefore, work hard to get an edge in the competitive market.
You opt for innovative and advanced technologies such as artificial intelligence, machine learning, augmented reality to attract users to your business. You should also walk a mile with your taxi app development to come up with something new and interesting which benefits the customer and not frustrate them.
Here are some of the industry-leading features you can apply to your taxi booking application to make it more secure and helpful.
- Co-riding feature to split the total fare
- Personalized promotional offers
- Ride live location sharing facility
- Rider’s mobile number hidden
- Interactive maps
- Ride scheduling
2. Lack of Experienced Drivers
There are many instances when we hear about taxis meeting with accidents, driver’s rude behaviour, rash driving. Such things will surely spoil your brand reputation in the market and will make your business suffer. The major reasons behind such incidents are inexperienced drivers.
However, having a dedicated admin panel to track the driver’s performance will go in a long way to make sure all your associate drivers are professionals. You have found that a driver is involved in any sort of illegal activities or behaves rudely with the passenger, then you can take immediate suitable actions against the drivers using the admin panel.
Apart from this, you can ask your taxi app development company to integrate a review and rating system with your taxi booking application. This feature empowers the passengers to share their reviews about the driving and behaviour of the drive.
3. App Development Cost
The biggest cost you have to pay to start your online taxi booking business is app development cost. Since all taxi businesses are operating on the Uber-like model they need not spend huge on cab acquiring and other infrastructure development.
4. Taxi Allocation
When you make a booking on apps like Uber, it will search for the nearest cabs available to your location and send them a request to pick you up. We made such things possible because of the matching algorithm. But what if a matching algorithm is made of poor quality code, hence, your riders will experience problems while booking a cab with you. If such issues persist with your application for a longer period, they might quit using your application and switch to another cab booking application.
You can prevent such situations by hiring a professional team of taxi developers at BR Softech.
Forecast of Taxi Market Growth
The taxi market suffers during the year 2020 because of pandemic situations. Now, as life gets back on track, people have shown a massive interest in online taxi booking services. This led the companies to invest in taxi app development to make the most profit from this largely growing industry.
To offer a more affordable and hassle-free riding experience, some of the leading taxi market players such as Uber Ola introduce motorcycle or bike taxis. This pocket-friendly innovation has drawn the attention of people.
The above facts show the taxi market growth is unstoppable. Hence, investing in taxi app development services is a smart decision and turned out to be an enduring source of revenue for you.
Smartphones have become an integral part of our everyday life and using a taxi booking application is something like our day-to-day task. In the forthcoming days, we predicted the taxi market to grow at an unexpected speed.
In this blog post, we have done a deep analysis of the taxi booking business is on-demand including taxi market growth, challenges along with the solution, taxi app development trends, and so on. If you are about to step into the taxi booking business, then this information will provide great help to you.
BR Softech is a well-established taxi app development company. You can consult with us regarding the taxi app development project. We have a team of experienced professional developers who will do their best to make you the next proud owner of an app like Uber.
BR Softech Pvt. Ltd. excels in providing cost-effective IT Solutions. Established in August 2010 with over 10+ years of rich experience. An Apex rated IT serving company around the world. Our team of innovative and creative designers deals in web designing, mobile/ software development and other digital marketing services intending to deliver outstanding digital outcomes.