Impact of IoT on the Taxi Industry

Arun Kumar | July 17 - 2017


Uber has brought a devastating blow to the Taxi Industry. So, is it all over for the licensed holders? Not quite.

The local taxi companies across the globe have been hanging by a thread. To make a comeback can be challenging, but not impossible. The answer lies within IoT.

To find the solution of reviving the taxi industry, it is important to analyse your competitor, case in point, the Uber’s success story.
 
How Uber has the upper hand

Uber and other ride-sharing apps give their customers three main advantages – Convenience, safety and cost-effectiveness.

Passengers prefer the app ridesharers as they can book a taxi depending on their schedule and not wait for a taxi for a long time. From picking the type of car, scheduled pick-up and other facilities, Uber has been one step further in improving the passenger’s experience.

Uber may be embroiled in controversies when it comes to safety concerns, but the majority of riders continue to bank on them for the safety factors. Breaking down the unfamiliar boundaries with the passengers and drivers has been the key to their success.

Lastly, Uber has been successful in offering cheaper rates due to its ride-sharing process. Passengers are readily moving on from taxis to the ridesharing services owing to this major factor.
 
The saviour of Taxi Industry: IoT

To stay in the game, the Taxi industry has to reinvent themselves and revolutionary technology is the solution. IoT or Internet of Things has long been on the market, but its tremendous potential remains untapped in certain industries. The taxi industry is one among them.

To survive the Uber wave, the taxi companies must deliver on the one thing passengers need, convenience. IoT connects all the processes on a centralised cloud network to gather real-time information. Through the unified system, all processes like dispatching, communication, quick service and payment are integrated. The dispatch system can also provide features like on-time pickups, regular updates on driver details, estimated time of arrival and trip management. All these factors will better the business’ operations and in turn, improve the passengers’ experience.
 
Next, when it comes to the safety factor, the taxi companies can work on bridging the gap between the passengers and drivers through one-on-one communication, licensed drivers and call masking features.
 
These features can play a vital role in tackling the ridesharing businesses. The taxi industry can provide a unified experience and offer the best prices to attract passengers towards their services once again.
 
With the advantage of IoT and technologically-driven solutions, it is the right time for the taxi industry to buckle up and rise above the competition.