The ride-hailing taxi industry has a much wider scope for growth especially with the increase in the need for easy access to daily transit. In fact, the global ride-hailing market valued $36,450.0 million in 2017 is projected to reach $126,521.2 million by 2025. With the growing market demand, taxi businesses can gain massive profits if they can formulate an effective business strategy and rightly execute the same.
Here’s a comprehensive guide to launch your new or existing taxi business on the digital platform.
1. Digital platform: the need of the hour for taxi businesses
2. Benefits of automating your business
3. Marketing your taxi business
4. The power of social media for taxi businesses
5. How influencers can help boost your business
6. Measuring your social media presence
7. Retaining your existing customers
8. Popularizing your app and attracting the new audience
Problems in the traditional taxi industry
Despite its massive market size, the taxi sector has not unleashed its true potential yet mainly because the segment is highly unorganized. Merely 5% of taxi businesses are organized while the other 95% is still fragmented.
The traditional taxi setup has several shortcomings such as complex booking and dispatch, lower brand recognition, poor customer support, increased operational costs and much more. Besides, the traditional players in the taxi industry also fall short when it comes to achieving a balance between market demand and supply. All these problems in the traditional taxi industry demand for an advanced solution and this is where online ride-hailing comes into the big picture.
Automating your taxi business
The arrival of online ride-hailing makes both taxi booking and dispatch simpler than ever. The involvement of major players in the industry like Uber, Lyft, and Ola make it mandatory for taxi startups to build taxi applications and stand their ground in the race.
Marketing your ride-hailing business
Marketing is the backbone of any business and ride-hailing is no exception. You need to identify your target audience in the first place so that you can prompt them to avail your service. It is through targeted promotions that you can achieve brand recognition and boost the value of the same at a faster pace. You need to formulate the perfect market strategy that suits your business model to tap the interest of your audience and convert opportunities into your customers.
Social media marketing
Social media platforms like Facebook, Twitter and Instagram are being widely used across the globe. These platforms indeed, have 2.3 billion active users as of now. With billions of users, social networking portals are the right place to attract customers for your taxi business. In fact, 73% of marketers believe that social media marketing fetches good results for business development.
When it comes to social media, it is impossible to overlook influencers. In a nutshell, influencer marketing is rather an advanced version of promotions through word of mouth. Influencers can bring massive traffic to your taxi business website all in a short period. In fact, businesses are said to gain 6.5 USD for 1 USD when they invest in influencer marketing.
Consider the number of followers your influencer has and how relevant they are to your business. After all, it shall be of no use if the traffic that comes in never becomes a business opportunity. Weigh the influencer’s ability to convince his followers to use your service. Also, get to know the strategies your influencer uses to achieve maximum reachability and analyse how far it suits your business model.
Social media analytics to improve opportunities
Social media analytics are the key to identifying the progress of your taxi business. With social media analytics, you can get an overview of all the activities on a given page and the volume of leads generated for your ride-hailing business through social media. The components of social media analytics include the number of page views, page previews, customer engagement rate, post clicks, page reach and much more achieved within a specified time frame.
App engagement and customer retention
Marketing is, of course, the initial step to drive traffic for your taxi business and persuade them to download your taxi app and make use of your service. However, it all does not end here because incoming traffic is nothing if the customers uninstall your taxi app. After all, business success lies in retaining your customers and curtailing the number of app uninstalls.
You can measure your taxi app retention rate with various metrics such as the number of active users, session length and app churn rate.
Attracting new customers for taxi business
Customer retention is a brilliant move to hold onto the existing opportunities for your taxi business. However, you also need to expand your customer base to take your business to the next level. Rating and reviews come handy here and now is the time to make use of your existing customers to attract new ones.
Ready to revamp your ride-hailing business with a tailor-made taxi application? Talk to our consultants at TaxiMobility today for a 15-day free trial.