After the inception of ride-hailing services and on-demand taxi apps, the UK industry underwent a drastic shift in the transportation system. Since these services acquired most of the market shares, traditional taxi businesses were greatly affected.
A statistic report that the UK industry will grow at a compound annual rate of 2.1% in the next five years to reach 9.7 billion (as in Euro). Also, the industry is currently facing challenges from a popular ride-hailing service like Uber. However, it is believed that the initiation of contactless payments in taxis and Uber losing its license to operate in London increases the demand for traditional taxi businesses again.
So, as an entrepreneur, you still have a viable business opportunity. But following the same traditional ways to boost your revenue may not work further since people have already seasoned the on-demand services. Therefore, it will be a better option if you shift your taxi business to digital. All you have to do is to reach the right developing partner to create your taxi booking software.
But before approaching, you have to come up with some ideas that will eventually make your business successful. Here we will explain a few things that you have to concentrate when you start planning your business strategy.
First things first, so plan a precise business model based on your operating way. If you are planning to be a self-employed taxi driver, then organizing a business model might not be a priority.
But if you are planning to start a taxi business, then this will be a vital and profitable option for you. So make sure to plan a detailed business model by analyzing the current market trends, expenses, on-going costs, and potential earnings that you will get in return. Being pre-planned will be helpful for you. Instead of starting the development of the taxi app from scratch, go for a Uber clone.
Target location ideas
Targeting appropriate locations to launch your business is necessary. Since the market is already competitive, finding the right niche will be a crucial one. Also, research shows that the number of taxis operating in London has been declining and there are possibilities to earn huge money if you launch in rural areas where the demand is high.
However, in the end, it all depends on the driver’s convenience to select locations. But have in mind that moving to different areas may not be a feasible idea; instead, you can plan some other strategies like targeting locations such as the city center, clubs, airports, etc.
Naming and branding
If you are a self-employed driver, then this naming and branding are not required. But if you own a fleet, then you must concern about your taxi business name. Creating a strong business name can leverage your brand across the industry.
For example, if you are providing a taxi service in a particular locality, you can merge the area name in your business name to be more visible on the online searches. Through this, people can easily find you, and there is also a high chance to increase your brand reputation.
Since people were practiced with cashless payment methods, accepting cash-only will not be the right option. So make sure to accept card payment. Also, it is made mandatory in London for drivers to accept card payments and provide printed receipts.
Since you are going to operate a fleet, it is essential to recruit professional drivers. You have to make them undergo screening procedures, like checking their personal and vehicle information.
Also, you have to acknowledge that the drivers are not involved in any criminal records previously. Once these procedures are taken care, you can choose your drivers.
As the industry is already flooded with numerous taxi business, there will be a huge competition. You have to brand accordingly to gain new customers like promoting, advertising, offering discounts and free rides, etc. Only then, people will take a step to experience your service.
Once you have planned the above accurately, you can deliberately approach your developing partner. You can create a website along with a mobile application. Since people find it easier to receive your service through apps; if you are not aware of the modern taxi hailing business model, discuss it with your developing partner, or you can simply choose the existing taxi booking app like Uber.
Nowadays, many development companies like AppDupe offer clone scripts at a reasonable rate. So, you can choose it to create a new app or can buy and customize it. Either way, it is beneficial.