Why buy a car when you can afford a luxurious ride back home? The transportation services have been boosted tremendously with the advent of on-demand taxi apps. People all around the globe avail taxi services. Business owners can always rely on taxi services for increased ROI. One major app that revolutionized the transportation industry is Uber. Uberization has made people access their smartphones for almost all services nowadays. An uber clone app can pour in revenue to the business owner. There are specific key strategies that can come in handy to generate revenue with the app. Let us discuss them here,
How is the taxi services industry faring globally?
- The taxi services market is expected to grow with a CAGR of 10.8% between 2020 and 2025.
- Online platforms will add to 47% of the total revenue in the ride-hailing sector by 2024.
- The average revenue per user in the taxi service industry adds to $220 in 2020.
- The ride-hailing online platforms will attract 1.5 billion users by 2024.
- As of 2018, the global transportation sector generated revenue of $5.1 trillion.
- The transportation sector alone adds to 6% of global GDP.
In the current situation, the online taxi services industry is the wealthiest revenue generator. A business owner need not have second thoughts about investing in this flourishing business option.
How is revenue generated with a taxi app?
Taxi apps generate revenue in a number of ways. They include,
Payment Commissions: A taxi app connects drivers with app users. Users enjoy a hassle-free ride. They pay for the services. Business owners are entitled to receive commissions from these payments. This is because they act as the bridge connecting drivers and users. The admin deducts a part of the payment before the amount reaches the driver. Payment commissions are a common way to generate revenue.
Third-party ads: Business owners can collaborate with third-party vendors for advertisements. By publishing ads on the app page, business owners receive payment. This third-party marketing can add to the revenue generated by the app.
Premium subscriptions: Having a premium version of the app can generate revenue for business owners. Users need to pay a certain amount to unlock the premium version. By availing the premium subscription, users have access to advanced features like avoiding surge pricing, on-time delivery, etc. This way, revenue is generated by the taxi app.
Invite and Earn: This feature involves users to recommend the taxi app to others. According to Jay Bear, almost 92% of consumers trust recommendations from other people. This can be the business owners’ trump card for revenue generation. Users can recommend the app and earn a certain amount of payment. However, business owners can generate increased revenue by fare commissions owing to increased users of the app.
How can a taxi app like Uber be developed?
Taxi apps like Uber are developed by proper planning and utilization of resources.
The development process includes:
Market Study: This is a vital step in the development of the app. The market study can help people visualize the type of product that can satisfy users. Customer demands are reflected directly in the market study. The flaws of the existing app and the voids in the market are visualized by the market study.
Functional requirements of the app: This stage involves determining the technical requirements essential to develop the app. Functional requirements include the technologies and tools used to develop the app. The technical team required to develop the app is also selected in this stage. This stage is crucial because it is the functional requirements that shape an app.
Budget to develop the app: A business owner should be cautious regarding the budget involved to develop the app. The budget is usually decided by the business owner, after visualizing the requirements to develop the app. A restricted budget and a dedicated team can create wonders during development.
The development: A schedule is prepared for carrying out different activities during development. A business owner must stick to the schedule for the timely development of the app. Either the development can be performed from scratch or a ready-made solution like Uber clone app can be used.
The Testing: Once the app is developed, testing the app in a live environment begins. Apps developed based on test and prepared models are sustaining longer than other apps. Appropriate testing procedures can lead to an app enabling seamless workflow. Bugs during development are eliminated in the testing phase.
Deployment of the app: Once the development of the app is complete, the app can be launched into the market. The app, compatible across different platforms like Android, iOS, etc., is launched.
Promotions: The duty of a business owner doesn’t end there. App promotions are essential to attract users towards the app. Exciting offers and discounts can pull users towards the app. For instance, you can promote your Android app on various Android news sites.
How much does it cost to develop a taxi app?
The taxi app development process begins with a plan to achieve a minimum viable product (MVP).
It is wiser to obtain a minimum viable product initially and see how the app fares in the market. You can add to the features in the form of updates. How the users respond initially can help you decide the plugins that are to be added to the app.
It is to be duly noted that time is a crucial factor that decides the cost of developing an app.
- Around one-third of the budget is spent on the user app. (33%)
- The driver app and the admin panel amounts to one-third of the budget. (approx. 15% each)
- The remaining one-third of the budget will be spent on bug-fixing, quality assurance managers, post-launch team, etc. (33%)
According to Statista, average rates per hour vary based on the location.
- In the United Kingdom, rates vary between $60- $150 per hour.
- In India, rates vary between $10-80 per hour.
Approaching app development companies for clone apps can reduce the budget significantly. The clone apps developed can be instantly launched in the market.
The transportation and taxi services industry is booming exponentially with the advent of on-demand platforms. Assured Return Of Investments has made this business venture, ideal to business owners. The demand for these taxi services will continue to grow. Developing a taxi app can be greatly beneficial. However, advanced planning and resources are required. Clone apps are modern technological advancements that are worth- considering in the growing market.