Emerging as the most popular service in the industry, mobility-as-a-Service (MaaS) encapsulates both public and private transportation providers. Based on the specific travel needs, customers and goods providers can easily realize the benefits of taxi service. According to Statista, it is anticipated that the MaaS market will reach a market capitalization of a whopping 9.5 trillion U.S. dollars by the year 2030. The immense potential of the industry can also be harnessed by ride-sharing, e-hailing , and bike-sharing across the globe.
The popular taxi-booking company Uber already took advantage of this industry and proved that the ride-hailing market is indeed an integral part of the sharing economy market. In fact, the company was the leading ride-hailing operator all over the world with a stunning market value of 72 billion U.S. dollars. This shows a clear picture of the demand and revenue in the taxi booking industry.
Business model of taxi hailing service
While emulating the business model of Uber won’t be a bad idea, developing an app from scratch is another alternative. However, the fad of the decade is going for a solution that saves time and money. That is why an Uber clone appwill be the best solution for entrepreneurs still trying their luck in launching their taxi business.
Every taxi-hailing business follows a simple model of demand and supply. The three main participants include the admin, the driver , and the user. When a rider needs a cab, he can book a taxi through the app on his mobile. As soon as the request for a cab is placed, drivers in the nearby regions are notified. Drivers can accept or decline the cab request. Users can pay when their rides get completed and drivers can send their commission amounts to the admin via the platform.
Revenue Model for your Uber Clone
Though opting for a clone app might seem like an all-in-one solution, the job of an entrepreneur does not end here. Generating revenue constantly from your taxi service app is what will make your business profitable. It will ensure that you stay in the industry for a long time. Startup enthusiasts can adopt any of the following revenue models for their taxi booking app.
Commission Fee: Charging around 20-30% of trip amount for every ride booked via the taxi app can generate decent revenue. The commission amount can change according to the location, demand and other factors.
Cancellation Fee: Time is precious for everyone. If a rider cancels a trip, taxi booking companies can charge a cancellation fee based on the distance traveled by the driver to reach customers. Imposing a penalty for frequent cancellation is also another option.
Promotional Fee: Through ads on your mobile and web apps, you can earn a promotional fee. The popular Pay Per Click, Pay Per View using Google Adsense can work wonders for you.
Surcharge: Customers can be charged an additional amount during peak hours. According to the demand for service in a specific location, riders will have to pay extra money. Generally, an average of 5% of the trip amount is charged as a surcharge.
Wrapping up...
With a gross revenue of over 11.5 billion dollars from the taxi industry, taxi booking apps have ample room to explore new opportunities. Besides, it has become easier to hire drivers now and you can manage your cabs seamlessly with a fleet management system. One can start a taxi business on a small or large scale. Moreover, there is no need to spend lots of money on developing your taxi app as clone apps can come to the rescue.
For a successful taxi booking business in the least possible time, an Uber clone will be the ultimate solution. Uber Like Apphas been one of the major companies to rule the mobile app development arena for a long time. They develop the best clone apps available in the market. So, if you want to get your hands on their apps, drop a line and watch their demos. There is no better time than now.