One of the most prominent questions investors are asking is “How to start a taxi business in India?” Are you also looking to invest in this lucrative industry and enjoy hefty returns? Fret not, this blog will provide an in-depth guide on how you can start an online booking taxi business and provide information on a cab business plan in India.
With ongoing technological advancements, the taxi venture market is buzzing all around the world. The ever-increasing demand for the taxi market has led the taxi venture to grow by leaps and bounds.
With the emergence of taxi giants like Ola, Uber, and Lyft, anyone in any corner of the world can now hail a taxi from their smartphone. This massive paradigm shift from traditional taxis to the taxi-hailing model is very profitable and has urged entrepreneurs to invest in this lucrative industry.
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In 2015, there were two major taxi online booking service providers in the country: Ola and Uber. That year people started booking online taxis and started gaining knowledge about taxi booking app development. The taxi app revenue in 2015 was $3.8 billion and continued to grow and in 2023 it stands at $6.6 billion. Have a look at the table below to understand the taxi app revenue growth (Source):
| Year | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
| Taxi App Revenue | $3.8 billion | $5.3 billion | $6.3 billion | $6.9 billion | $7.5 billion | $3.7 billion | $ 5.9 billion | $6.5 billion | $6.6 billion |
In order to start a taxi business in India, you must have a well-structured plan and roadmap so that you can establish your taxi venture effectively and efficiently. A well-structured plan is essential for the proper workflow of business elements such as taxation, documentation, etc. Additionally, if you have a robust taxi booking app development solution, you can boost your business of taxi-haling to new heights.
Here are the steps that must be followed to start a taxi business in India:
The first thing is to analyse the market and target customers. Acquire information about the routes, fares, and cab demands by passengers in particular areas.
Develop a Taxi-led business plan that covers every aspect of the taxi business including routes, cab fares, how you can attract customers, your business goals, etc.
After making a complete business plan, get your business registered and obtain a license which is a permit that allows your business to run in the country legally.
Purchase cars of segments that are mostly preferred by passengers. You should have hatchbacks, sedans, and MUVs in your taxi fleet as these segments are the most preferred mode of transportation by passengers.
After you have a fleet of taxi cars, you should hire experienced drivers who have legal licenses. You can hire them as full-time or part-time taxi drivers as per your requirements.
Plan your routes and set fares according to the taxi market. Also, have a multiple mode of payment so that drivers and passengers have convenience in payment.
Before the promotion, make sure to develop a Taxi online app for your taxi business as nowadays most taxis are booked through mobile apps. If you want an expert taxi app developer team for your business you can contact a leading taxi app development company.
You can hire the best taxi app development services provider to promote your business through various promotional strategies including, pamphlets, digital marketing, social media marketing, newspaper advertisements, etc, which will be beneficial to your business to reach a number of people.
Listen to your customer’s needs and suggestions, and work on the feedback to improve customer satisfaction and business performance.
Also Read: Taxi Booking App Solutions For Your Business- A Detailed Guide
India has over 1.4 billion population which creates great potential and a huge opportunity for taxi booking app development. The advancement in technology has changed the way we commute in our daily lives from short routes to long routes while also changing the way of book taxis. Taxis are going to stay and the requirement will increase with the population.
As the taxi venture is highly lucrative, it makes sense to invest in a taxi business. Here is a list that will help you understand why it is profitable to invest in a taxi business:
Also Read: Everything You Need to Know about On-Demand Taxi App Development
Here are some emerging and unique features of the taxi booking app development that are integral in offering an enhanced user experience to users as well as drivers. Let’s take a look-
| Features | Description |
| User Onboarding | It is important to provide a simple user interface where users can register and log in to the app without any hassle. |
| Booking Interface | Users are able to book a taxi from the booking interface without any hassle. |
| GPS Tracking | An API is integrated into the app of taxi booking which shows real-time GPS tracking in the taxi-hailing app. |
| Cab Type | Users can choose which type of cab they want to ride in. Some options include Bikes, Autos, Mini Taxis, Sedans, and SUVs. |
| Pick-Up and Drop Location | Users can choose the pickup and drop location for ease of convenience. |
| Estimated Ride Fare | An estimated ride fare is calculated according to the distance and traffic of the route you have selected. |
| Live Tracking | The users can also track the live location of the driver before and during the ride. |
| Payment Gateways | Safe and secure payment gateways are integrated into the cab online app so users can make payments without any hassle. |
| In-app Messages | Users can connect with the driver through the in-app messaging and call feature and coordinate with the driver accordingly. |
| Ratings & Reviews | The users can rate their rides and drivers according to their experience. |
| Features | Description |
| Driver Onboarding | A simple user interface where the driver can register and log into the application. |
| Driver Profile | All the personal details about the driver are listed in the driver profile including identity verification. |
| Ride Alert | The driver gets a notification whenever someone books their ride through the app. |
| GPS | The driver has real-time location services in the app so they can reach the users without any hassle. |
| Dashboard | The dashboard functions like the home screen of the app where the driver can monitor and manage all the rides. |
| Push Notifications | Drivers receive push notifications whenever a user books or cancels a ride and other application functions. |
| Ride Fare | A ride fare is shown to drivers according to the distance and traffic of the ride. They can either choose or decline the ride. |
| Booking History | All the rides the driver has completed can be monitored by the booking history feature. |
The overall costs revolve around multiple factors above mentioned. While estimating how much it costs to start a taxi business, it can be around $25,000 to $30,000 with the availability of cars that can easily fulfill customer requirements. Starting a taxi business remains a feasible option that holds great potential in this leading market. Proper cost, effective strategies, and other adaptive plans lead to imperative opportunities for successful taxi online booking venture growth.
The factors which affect the cost of starting a taxi business depend on several factors including:
The taxi industry is rapidly growing, so investing in taxi app growth is a wise move. Travelling by taxi has become a lot more affordable since the introduction of online taxi apps, compared to when these apps were not available. These are popular because of the low rates, instant bookings, and large variety of cabs.
If you want to develop a cutting-edge taxi online booking app BR Softech is a leading taxi app development services provider that can help you streamline the process. Our highly skilled taxi app developer team utilise their in-depth knowledge and expertise to develop cutting-edge and feature-rich Taxi online apps that have the potential to attract millions.
Q.1 Is it profitable to invest in the Taxi hailing industry?
Yes, this is booming right now and it is very profitable to invest in the taxi industry right now.
Q.2 Do you provide customized Taxi Booking app development solutions?
Yes, we offer completely customized taxi booking app development solutions that are tailored to our client’s requirements.
Q.3 How much does it cost to start a taxi service business plan?
Initially, the business of taxi booking involves a lot of money as you would be purchasing many cars, and paying driver salaries, and other expenses. However, the taxi-hailing business is highly lucrative.
Q.4 Is Taxi App Profitable?
Yes, the Taxi App is highly profitable for your business as a large number of people book taxis through taxi mobile apps and generates a high ROI.
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