You are living in a time where transportation industry is changing drastically, especially in the recent years. Taxi app development is one of the more contemporary revolutionary trends in the industry of transport.
Do we think it’s a pleasant change?
For sure; but these changes also have a bad side. Take Uber like apps for example; they are facilitating everyday travel all around the world these days, there is no doubt about that. Uber clone apps have taken the world with their new and exciting service structure that has overthrown the traditional taxi/cab hailing service provider. Even though the main principle of the taxi app like Uber is pretty much same as its ancestor but since it’s more convenient thus it’s more popular. In this article, we have summarized the pros and cons of taxi app development for customers, drivers, and business owners.
Effect of Uber like Taxi App on Customers
- Customers no longer have to chase after cabs for multiple blocks or wait for precious minutes until a cab comes by. Uber like taxi app can help them find a cab while staying comfortably in their homes.
- The service is cheaper than an average cab. Most drivers of these taxis are relatable people who make the journey pleasant enough.
- The cars used by these apps are well-maintained and are protected by commercial insurance coverage.
- Customers can avoid handing cash and can use credit cards to pay their fares. An email receipt can help matters even more.
- Customers can track driver’s progress pre and during the drive and communicate with them.
- Since drivers cannot see the destination before a ride starts, it saves customers from arguments of the drivers who’d rather not travel to where passengers need them to go.
- Unprofessional drivers are filtered automatically when they get bad reviews.
- A prompt customer support team is always within accessible in case help is needed.
- The high demand for these Uber clone apps proves that people love the taxi app development services. The only bother is ‘Surge Price’ or ‘Peak factor pricing’. Sometimes when customers’ needs an urgent cab they have to pay exaggerated prices.
- Surge Pricing is a rule of the free market that involves price shifts based on the number of cars and intensity of demand.
- Customers have developed the habit of hailing taxis even for minimal distances which has cost and health implications.
- Sometimes issues with the car or drivers cause customers to miss important trips or even flights.
- Some safety concerns have also made an appearance in places where regulations are lax.
Effect of taxi apps like Uber on Cab-Industry
- E-hail services are so very popular these days. People trust them and if done right you can get regular customers who will need your service on daily basis.
- The number of well-maintained, amazing looking, totally comfortable foreign and locally assembled cars, is increasing.
- The number of vendors offering uber like taxi app development solutions is also increasing every day, which has caused the prices for taxi app development to go down.
- More people are willing to drive these taxis to make some extra cash in their part-time which means that your business will never be lacking drivers for these cars.
- Between Uber, Lyft and traditional cab service, the competition is cut-throat for newer business opportunists.
- Price competition is the curse of this industry as well.
- Businesses are over-promising the benefits of using these e-mail services at the expense of drivers. Drivers often get stressful because of these problems.
- Traditional taxi and cabs have but went out of service because of these Uber like taxi app services.
Effect of taxi apps like Uber on Drivers
- Safety is one of the most attractive features for people who are driving with Uber.
- The driver needn’t worry about fare hassles as no cash exchange hands.
- The freedom and flexibility to work is also an attractive feature for these drivers who sometimes even have other regular jobs. They can log in and out at will.
- These drivers can avoid taxi rental leases and buy their own motors.
- Drivers are also spared the favoritism and office politics culture enforced by dispatchers.
- Drivers also are given the right to rate passenger based on their behaviors. So they won’t have to deal with rude passengers twice.
- Low prices might be attractive for customers but they aren’t for drivers. As drivers have to rent cars from the third party or buy latest model vehicles. Competition in the market drives prices down and drivers are often the ones to take the burn for it.
- With the increased number of drivers, the average earnings of an individual driver have decreased.
- Consequently, drivers have to work longer hours to make up for the earning gap.
- Trip cancellations also are a cause of trouble for drivers to a minimal degree.
Uber like taxi app development and taxi business might be a growing business trend but it’s not without probable pitfalls. Uber like apps has given people the freedom to arrange for comfortable car transport from the safety of their homes. People are happy to put the black and yellow cab issues. All this is a good news for a customer and investors. However, the investors also need to be smart about the taxi apps and service business and ensure their market prospects beforehand.