Remember how to order a taxi before the taxi app exists? You had two choices: call a taxi company or take a taxi on the street. Today, mobile applications are transforming taxi manufacturing with advanced technologies that afford other keys for both customers and drivers.

Taxi App Launching Strategy

Today, customers can book taxis 24 hours a day, 7 days a week, see exactly how much their assigned taxi driver is, and pay digitally. On the other hand, the driver approves or rejects taxi requests via the application. And calls the customer if not at the agreed location and offers various payment methods to make the transaction faster and smoother. 

Leading companies like Mytaxi, Uber, and Cabify have shown that it is a commercial business policy, hoping many entrepreneurs and small industries will launch similar taxi booking apps and repeat achievement was there. Over the past decade, the number of automated taxi solutions has enlarged and the admiration of taxi applications has sustained to grow. The technology is recognized to bring benefits to the user.

This content describes the value proposition and revenue model of a taxi app. Besides, it analyzes the functions of known taxi applications to get detailed information on technical aspects.

Providing Bilateral Value Proposition

Keep in mind that taxi applications are bilateral. It is therefore imperative that both the customer and the driver have value for both. The taxi app is aimed at reducing search and transaction costs. This is an important feature of multilateral platforms.

Value Proposition to Consumers

  • Request a taxi with one click 24/7
  • Find a driver
  • Know the price of the trip and the estimated travel time.
  • Lower price than conventional taxis.
  • Flat rates for certain frequent destinations, such as airports
  • Cashless transaction
  • Scoring and feedback system.
  • Free travel with discounts on certain occasions.
  • The value proposition for drivers
  • Income generation
  • Flexible time
  • Easy settlement system
  • Possibility to contact the client.
  • No need to invest
  • Possibility to earn more in rush hour
  • Insurance coverage

Faster and Easier Customer Acquisition

It is important to note that these value propositions are examples and should be considered “generic”. Another quality of the application would be that, like its competitors, it would show the location on a GPS and notify the user about the proximity and arrival of the unit. Most people use smartphones and apps to easily manage their daily activities. Therefore, we recommend that you develop applications for any business to improve customer relationships and increase your company’s revenue.

Push Notifications and Messages 

When a taxi reservation is completed, the user must receive a notification with the driver’s name and contact number, and the type and number of the car. Also, when a user attempts to reserve a cabin, a notification is sent to the driver that needs approval. This allows the application to send push notifications to the user.

Taxi Application Revenue Model

In addition to learning about the marketing strategy for taxi services potential value propositions for customers and drivers. To illustrate this most easily, let’s take a closer look at the famous Uber taxi app. The user must be able to pay for the trip with various payment methods such as debit cards, credit, cards, cash, and wallet, and so on. It must be integrated into the system to facilitate transactions. Evaluating drivers and cars have made it easier for companies to monitor their activities. This makes it easy to fix customer satisfaction issues.

Different Cars for Each Customer

Do you remember when you were traveling in the same type and the same model of the same type of taxi? Those days are over thanks to the fact that today’s customers can choose the type of car they want to travel to. For example, Uber is not partial to a specific type of car or a precise customer segment.

There are several options for those who prefer traveling in black cars, such as Uber X and Uber Black, Uber Taxi, those who are looking for a cheap solution, and those who are looking for luxury cars, such as the Uber SUV. They offer customers the possibility to choose the type of car they want to travel to, thereby giving them a new taxi booking experience.

Effective Pricing Strategy

An important aspect of the Uber app is its pricing strategy. Taxi companies usually increase travel rates when demand is greater than supply. Instead, Uber billed clients based on traffic bulk and travel time from point A to point B.

Besides, the price per kilo is mechanically altered based on the number of accessible drivers and the number of taxi orders. This pricing process goal to deliver motivations for drivers to go to work when demand is highest.

Alternative Transportation

Today, Uber is proposing additional means of transport, such as boats, helicopters, and the like. This has allowed Uber to have a new revenue stream. The application would provide the user with a photograph of the driver and the car, as well as the license plates and a model of the taxi.  So, the main question arises that how to market a taxi app?

Understand Features

Having analyzed the value proposition and revenue model of a taxi app, let’s dig a little deeper into the features of this type of app.  Experience as an application development specialist shows that it is not easy to understand the technical aspects of an application. Let’s start with the basics and find out what each function is used for.

  • Ease of registration. An option to register with a phone number and password using Facebook, Google Plus, or traditional methods. By providing the option to access via social networks, applications can convert personal information into applications in seconds. It is also important to distinguish between drivers when users enter the application. Along with that using these social sites for a taxi marketing plan
  • Personal profile. Users and drivers can add, edit, or delete personal information at any time using the app.
  • Email model. Email notifications are very useful for sending payment information, route details, payment confirmations, digital wallet information, or reset your password if you forget it.
  • Car search function. Uber has integrated a search option for cars with a minimum distance of kilometers so that taxis can be assigned to customers as soon as possible. This allows customers to filter only the taxis closest to their location.
  • Car availability. If the car status is active, the user can request a ride. When a vehicle is booked, its status automatically changes to idle and the driver does not need to change it manually. Users will not be able to change their destination address once their travel request has been approved.
  • Rate estimation. As business models rely on paid travel, it is important to include a rate estimation mechanism. In this way, the application can properly calculate the rate based on the standard price for a particular distance.
  • Multiple payment methods. Users may pay by credit or debit card through the application. Another option is to send money to the wallet application.
  • Ease of location. Google Maps integration allows you to calculate the distance and route between point A and point B. Also, the driver can find the customer and the customer can see the driver’s location on the accepted trip.

Additional Features

  • Car category. This option allows customers to select the type of car they want when booking a taxi. This allows you to reach different segments.
  • List of cars. This allows the driver to list all vehicles used to perform the taxi service. You can easily change or delete the car details in the list. The app owner can see all the cars listed.
  • Promo code and free travel. Each time a new user registers with the Uber app with a promo code, the first ride is free. When the person makes the trip, the user who gave you the code will receive a free trip.
  • History clients can access their travel history, where they can access date, time, location of collection and arrival, total cost, and car and driver details. Drivers can see the trips made through the application.
  • City management. The application owner can determine which cities provide this service. If the result is negative for a particular city, you can easily remove it.
  • Language. If multilingual applications are available in different countries, such as Uber, it is important to display them in the correct language.

Do not worry about how to promote the taxi business. The promotion and advertisement are of the app very helpful in promoting the taxi business.  The application would be available for Android and iOS devices for free, both for taxi drivers and for users. The only thing that would be reviewed would be that the taxi drivers comply with all the documents, among which he highlighted, the card, the magazine, the insurance, among others.


Ease of use and expressions of alternatives to traditional taxi services are the most important reasons for the popularity of taxi applications. They have revolutionized an industry that has been stationary for a long time. In many countries, the taxi industry is subject to tariffs in the form imposed by local governments. However, the taxi app creates a free fare market and allows customers to customize their trip.

Kinjal Savaliya

Kinjal Savaliya is Business Development Executive USS LLC. At USS LLC we developed the best mobile app development solution for Dating App, Grocery Delivery App, Healthcare App, Laundry & Dry Cleaning App, Pharmacy App, Taxi Booking App.