How taxi booking app reduces the operational cost? - Yelowsoft

How taxi booking app reduces the operational cost?


Do you own a taxi business? Are the top honchos like- uber, lyft, and ola is hurting your business profits? If so, then it becomes essential to analyze what changes they have made in their taxi business.

The answer is mobility. Yes, they have mobilized their business on the wheels by integrating mobile app in the taxi business dna. You might be confused by thinking that what the taxi mobile app has to do with the bottom line.

Let’s clear up the air:

The huge amount is needed to set up and successfully run the traditional taxi business, which involves vehicles insurance cost that goes up to $100 per week, licensing cost of $300 per year, establishing office cost that will be around $1000 per month, and employing customer care service to dispatch taxi to the passenger. The total cost of ownership and operational cost is nearly equivalent or slightly less than the income.

This is an alarming fact!

But, this is not the case with the taxi companies that are heading towards on demand app development. The custom taxi mobile applications like- Yelow taxi enable the taxi companies to automate the business, diminish the cost and step in with the modern trends by connecting the passengers and drivers in a few clicks. The solution works great for all types of the taxi business, be it a startup, taxi operator or big enterprises. It’s interesting. Isn’t it?

Let’s take a sneak peek inside at how the taxi mobile apps cut down the operational cost of the taxi business and thereby uplift the benefits:

Covering more miles in a day

Traditionally, either the taxi drivers look for the passengers or the taxi booking is dispatched to them by the system. Even, sometimes, the drivers also sit idle about which the taxi owner is unaware of. This way a lot of time gets wasted and less distance is travelled by the drivers. But, at the end, the owner has to pay the monthly check to the driver and spend on the vehicle maintenance even after getting less taxi bookings.

With a taxi booking app, the scenario will get completely changed. The drivers can easily find the passengers in the nearby area and can drive more miles in a day, thus the average number of bookings in a day gets increased. Also, there is no need to spend dollars on the taxi dispatch system. The mobilization of the taxi business boosts the income with reduced operational cost.

Zero in the headache of taxi management

In the conventional taxi business, the owners have to incur both fixed cost and variable cost that includes taxi purchase or lease, taxi insurance cost, vehicle taxes, vehicle maintenance, fuel, parking cost and pretty more. The situation gets turned upside down with mobile app.

The big fishes in the taxi world like- uber or lyft won’t hire employees and employ independent contractors. The drivers have their own vehicles and they are liable for the vehicle operating expenses. Thus, the taxi companies get free from the vehicle management and the expenses.

Consequently, the taxi app development reduces the operating cost.

Eliminate the search cost

Presently, the biggest concern for the traditional taxi companies is finding maximum bookings in the shortest time so that the driver’s efficiency gets improved. It is only possible when the driver knows in advance where the customer wanted to go before making any booking so that more rides of the same route can be completed.

The taxi mobile app has the answer to this problem. With a push of a button, the booking request is sent to the multiple drivers wherein the detail of the rides that’s pickup and final destination is mentioned. The information helps the driver in getting the passengers at ease and manage the multiple drives effectively.

It implies there will be no communication cost, no search cost and no service helpline, which in turn decrease the taxi operational cost.

Ride sharing

Sharing the ride is quite an old concept, and that’s convenient and reliable. If the taxi sharing model is adopted, then the cumulative travel time can be cut by 30%, traffic gets reduced to nearly half, and operational costs get minimizes. But, it’s difficult to find the safer cab sharing services.

The ride sharing or car pooling services through mobile app not just solve the hassle of public transportation, safety concerns and the problem of traffic congestion that people face in commuting, while trimming the cost of the ride that makes the business more competitive. Here, seats planet digital taxi solution excels.

The seats planet app provides a systematic mechanism wherein the driver can post the trip details which includes the current location, destination and the route they are following; the passengers want to book the shared taxi can search for the shared rides and when the similar trip is found, then at the push of a button the taxi gets booked. Let the drivers pick up the passengers on their way and passengers to reserve the seats safely on the spot or for post rides.

Wrap up

In the digital world, not having a mobile app means you are losing the major share of the target audience and the revenue as well. The taxi industry is no exception. The taxi booking application not just connect the drivers and passengers at the fingertips, while reducing the overall operating cost with decreased search cost, ride sharing module, and improved average miles traveled by the driver.

The mobile app innovation ride is an ideal solution for the taxi industry to fuel up the income with diminished operational cost. Don’t hang fire! Embrace the e-taxi app now.

Shahid Mansuri
Shahid Mansuri
Shahid Mansuri Co-founder of Yelowsoft, one of the leading Taxi Booking software development company in 2017. It is known for developing Taxi Dispatch Software of unmatched quality. His visionary leadership and flamboyant management style have yield fruitful results for the company.