Why Is It Profitable To Invest In Ride-Hailing Apps Like Uber?

The taxi apps like Uber and Lyft surpassed the regular taxi in New York in 2017. It shows the impact these apps have created among the audience. Since its launch, the taxi booking apps like Uber have been popular due to its simplicity and uniqueness. Now it has become a conventional means for traveling. Uber, a popular ride-sharing app, has a massive fleet of 3 million drivers and has taken 75 million customers requests till date. With a few weeks of ride-hailing apps interruption due to the Coronavirus related government regulations, streets have turned empty. Now that they have resumed their services, the demand is more than ever before. 

Statistics Show The Revolution These Apps Have Created

• Uber has a global market value of $72 billion. In the United States alone, Uber fulfills 40 million rides per month. They have adapted to the current needs by shifting to digital payment methods to prevent virus contractions.
• Grab dominates 60% of market shares in Southeast Asia. As of 2019, Grab was valued at $10 billion, and they believe the numbers will double in 2020. The number of customers doubled between 2017 and 2018. It had 3.5 million customers in 2017 to 6 million in 2018.
• According to Statista, Lyft is the second-largest ride-sharing company in the US and shares 22% in the market shares. Uber contributes to 74% percent of the market shares.
• Gett is popular among taxi-hailing apps. It is currently available in 120 cities and 54 countries. Approximately, it has provided 50 million trips to date.

Benefits Of Investing In The Taxi Business

We are living in a digital era wherein there is an application for everything. People are used to getting the services they need through mobile applications. Furthermore, it is simple and straightforward to establish business through the application.

Lots Of Opportunities

The taxi app offers a more viable means of attracting customers than traditional businesses. People are looking for quick and efficient service providers for going from one place to another, and taxi apps fall under that radar. Being an application, if the entrepreneurs wish to scale their business to other transportation sectors, it is easily possible with a few lines of programming code. Uber initially started as a taxi booking company, later expanded to food delivery, on-demand services with products such as UberEats and Uber for X. People trust the brand Uber, so they use these services. So once you have established your presence among the audience, it would be more likely to become successful, and taxi booking apps can achieve that.

Satisfying Customer Demands

Uber-like apps offer great ways to retain customers. Admin can understand the mindset of the customers regarding certain features by conducting polls and surveys. Reviews and rating features act as an effective way to improve the services offered to the customers, thereby satiating their needs. Admins can resolve customer grievances and issues through the powerful and comprehensive admin panel.

High Profits Through Effective Monetization Models

There are several revenue streams through which the taxi booking apps make substantial profits. Here are some of the majorly used monetization strategies:-

Commission: The popular ride-booking apps like Uber and Lyft do not own the cabs. For every ride the driver completes, they get around 80%, and the remaining goes to the concerned platform.

Surge pricing: Based on the demand at the time being for the particular route, the price is charged. In other words, the ride fare would vary according to the demand at the moment. 

Advertisements: Apps can regularly earn through paid ads and other promotional modes from third parties.

These apps offer a more reliable medium for business. If the taxi-booking apps are experiencing a downtrend, they can utilize the same platform and shift to other logistics services. For instance, Gojek has had less demand for its ride-booking services due to the lockdown regulations. So they used these cabs, two-wheelers for food delivery and other delivery services. There is always a goto option, so the Uber-like app business provides immense security for the app owners. 

Conclusion

It is simple to establish an online business. There are taxi app development companies that offer Uber-like apps. Choose the best among them as application’s look and feel are the major determiners for increasing the customer base for your business. Have an expert look for their portfolios and the taxi booking apps features then decide on the company to get it. It is crucial to decide the business model and marketing strategy before stepping into the app development process. All the factors being followed, there is no one to stop you from being successful.