New Technological Definition Of The Taxi Business
Posted: Jun 28, 2016
In the past few years, the taxi business has completely revamped itself, thanks to technology. Like food can be ordered at the click of a button and airline tickets confirmed within a few seconds, now taxis too can be ordered on your doorstep within minutes. Till a few years ago, you had to physically hail a taxi, or call one through your mobile phone.
What Has Changed?
Now, not only can you book one in a few seconds through an app, you can also track your driver and know exactly when she or he will reach wherever you are. These advancements have made major changes in the way the business is run – both for consumers and for the taxi drivers (and people who run their business) themselves. Here is a look at what a tax app can help you with.
- Book a taxi in an app within minutes
- Track your ride and share your ride status with your loved ones.
- Have an estimate of the fare
- Increased security
- Free Wi-Fi
The Economics Perspective
The way technology has redefined the taxi business is by matching supply and demand. There has always been a supply of taxis, and there always has been a demand. These apps allow the two to come to know each other even if they are not in immediate proximity.
How technology has changed things for taxi drivers and the business
Technology has revamped the way taxi drivers do business. Businesses like Uber do not have a permanent ‘Uber’ sign on their drivers, and such drivers are free to operate their own business too.
Apart from this, such apps allow taxi drivers to remain productive more easily. They can get more work done in an hour with these apps than without, thus helping them earn more. Uber, for example, fulfills one million rides daily.
According to the Bureau of Labour Statistics, drivers choose to partner with services like Uber because of the higher income they get (91%) and also the work day flexibility that such a partnership provides (87%). In a traditional taxi setup, the routine of a taxi driver is not completely up to him or her. And with taxi software offering GPS technology a driver can get a customer whenever he is working.
How technology has changed things for customers
The customer is the true king here. The customer can now book a taxi easily, know the fare breakup and the approximate fair, pay a lump sum upfront through a credit/ debit card or an e-wallet and even choose to go cashless.
The customer can track the driver and give feedback as well as easily complain if there are any issues. Not just this, customers get periodical offers like free rides, or a certain percentage off their rides and other attractive programs.
Customers get wooed from different companies by different strategies. Apart from gimmicks like referral programs and free credit or discount on certain days, some companies go out of their way to please the customer and earn his or her loyalty. Lyft, for example, incorporates things such as snacks, experience journals, themed playlists and even photo booth accessories.
The future looks bright for the consumer and for such apps too. It cannot be denied that the way we have known the taxi industry to be a few years ago may well just become a memory in the future. With the competition rising as new apps are emerging in every country, the only confirmed thing is that the consumer will definitely reap the benefits and taxis will become more affordable than ever.
Ritesh Patil is the co-founder of Mobisoft Infotech that helps startups and enterprises in mobile technology. He loves technology, especially mobile technology. He’s an avid blogger and writes on the mobile application.