How to generate revenue off of taxi applications

How to generate revenue off of taxi applications

In this capitalistic society, generating significant amounts of revenue has become an essential part of businesses. Without a scheme to generate revenue, the business would drown under debt and find it hard to cater to their customer’s needs. Industry only grows alongside the economic progress, they complement one another’s development.

There are several ways to do that such as;

Commission:

Taxi services are known to generate revenue mostly by taking a certain part of commission from their rides that have been enabled through their applications. There are several services that don’t use their own cars for their services. But instead, the drivers they have collaborated with use their own cars. There is basically a contract between the two parties that the application will bring more customers for the drivers whilst drivers will provide their skills and vehicle to the company; this way both of them will be able to generate revenue. Upon each transaction made by the user, the applications cuts off a certain amount from it, for themselves and the rest goes to the driver.

Pricing influx:

Influx within pricing refers to the phenomenon when fares are either increased or decreased depending on the demand and supply. For example when there’s more demand of a specific thing, it is more likely to get more expensive rather than lowering its rates. And within these phases, companies such as taxi services manage to gain revenue. Depending on their users and drivers, taxi services surge their prices and take benefit from it.

Variances within cars:

It is best to provide your user with as many options as possible, this enables them to avail services more effectively. They will not be the only ones benefitting from it, but you can too. For example, the better the car is the higher the rates can be. Premium features and luxury options can never be disliked by the customers; but keep in mind that you cater to all social classes, making your services accessible to all. From cheaper rides to expensive ones, each with their own features and assistances.

Retaining customers:

Since your service was made solely for the purpose of aiding your clients; retaining them for longer runs might be one of the best ways to secure your revenue. After all, they are the only factor that has all the stakes to either make your services bloom out or to break it. It is advisable to provide your users with options and features that will be attract them more into your taxi application. For that you will be required to create a taxi app that speaks from their perspective rather than your businesses. Only when your users find it easier to relate to your services, will they be able to stick to it.

Features to add in your application to make it stand out, in manner to generate more revenue

  • Option to schedule rides: No matter how efficient the services might be, there still isn’t a assurance that the car might arrive right on time when the user needs it. Since demands for taxis are high during prime hours, delays are expected to happen if not due to the drivers fault or the users then due to the traffic. Therefore, paying heed to this factor is essential and in return what can be done to prevent it from happening is to have a feature that allows the customer to book the cab beforehand. This will keep everyone on the schedule without any adjournments.
  • Allowing users to share their location: Safety is one of the major concerns that taxi application users have. It is important to keep the users comfort in mind, the feature that allows users to share their location is going to aid them at gaining trust for the taxi services. This will put the user’s well-wishers at comfort. Although, you will be required to integrate special APIs for this feature to work, to make tracking more efficient.
  • Add more stops to the application: Usual taxi applications only allow 3 stops along the way for users to avail but by increasing that number, you’ll be providing the use more chances to enjoy the ride. Some people tend to travel in groups and in those cases they might feel the need to make several stops in the way to grab their requirements.

By following this guide you will be able to enhance your applications conversion rates, retain users and gain popularity.