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Role of GPS tracking in Taxi Business

Role of GPS tracking in Taxi Business

Updated on September 27, 2024
9 min read

As the taxi industry is becoming more competitive every day, taxi businesses like you need to innovate to stay ahead of the curve.

And one of the effective ways to innovate business, enhance operations, and provide better service is by using GPS tracking systems.

A GPS tracker not just help you to monitor fleets in real time. But plays a vital role in improving safety, customer satisfaction, and overall business efficiency.

Know that the majority of taxi businesses are growing and succeeding because of GPS tracking. Hence, it is crucial for you to know the potential of GPS tracking and how it can help you not just solve the tracking problems but grow beyond your expectations.

Keep reading as this blog has everything you need to know about the role of GPS tracker, how it works, its benefits for your taxi business, its features, and how it can help you grow.

Skip reading only if you think you have taxi software with an inbuilt GPS tracker better than Uber.

What is a GPS tracker?

A GPS tracker is a device that connects to a vehicle or a person using the Global Positioning System (GPS) to track and transmit real-time location data.

It can also record navigation data. This data helps you get better control over your fleet's movements every step of the way.

How does a GPS tracker work?

Well, the GPS tracker works smartly. It uses a network of satellites, wireless connectivity, a server, tracking hardware, an interface, a GPS vehicle tracking API, and a signal receiver to determine a device’s location.

Moreover, there are two main modes of the GPS tracker in which it often operates:

  1. Active mode: This mode provides you with real-time tracking and monitoring. It also enables you to floor every movement as it happens.

In the active mode, you will need an internet connection to operate and get real-time tracking updates.

  1. Passive mode: This mode works without an internet connection. Hence, it records vehicle data at set intervals when the internet is active.

This collected data can be reviewed later for analysis. Furthermore, it provides a history of movements without requiring live tracking.

No matter how you choose to use a GPS tracker, the benefits to your taxi business are undeniable.

From better navigation to faster turnaround times and enhanced safety, installing GPS trackers can give your business the edge it needs to succeed.

Why your taxi business needs GPS tracking?

The rise in demand for on-demand taxi services has coupled with increasing competition.

why-your-taxi-business-needs-gps-tracking

Your customers are opting for easy and fast taxi service providers like Uber.

Customers expect transparency, security and assurance of peaceful rides which Uber offers using GPS tracking.

In the same way, now every customer expects the same from the taxi dispatch or ride-hailing service providers.

By knowing all these expectations of your customers, you now know how crucial it has become for you to provide excellent service than ever.

But the good part is that a GPS tracker can help you in several ways. It can help you with;

  • Ensuring accurate estimated time of arrival (ETA)

  • Offering better safety for both drivers and passengers

  • Ensuring better navigation for drivers while driving

Let’s explore these benefits in more detail.

The benefits of using GPS trackers for your taxi business

Running a taxi business without GPS tracking is like driving blind. Explore the GPS tracker benefits below and see how it can help you in the taxi business.

benefits-of-using-gps-tracker-for-your-taxi-business

1. Accurate ETAs

One of the most common complaints from customers in the taxi industry is the inaccurate arrival times of taxis.

Being a ride-hailing service provider, you have been a rider too. And you know that when a rider books a cab, he wants to know exactly when the vehicle will arrive.

It is common to have traffic on the route. Along with the unexpected traffic en route, detours and other factors can make ETAs unpredictable.

With the GPS tracking system in the taxi booking app, your customers can receive real-time updates on their cab’s location and ETA. This will provide your passengers with a smoother and more predictable ride experience.

2. Improved navigation

A GPS tracker provides your drivers with real-time traffic, weather and road closure updates so they can easily determine the best and safest routes to their destinations.

More sophisticated GPS systems even have integration with ride-hail apps. This integration gives your drivers real-time rerouting so they can avoid traffic congestion, accidents, or bad weather. It saves time and fuel in the process.

If you have a good GPS system, then it means that your drivers will spend more time driving on the road rather than being stuck in traffic.

It also means that your drivers will have more pickups. And more pickup is more money for your business.

3. Enhanced driver and rider safety

Adhering to the prime directives of any taxi company, safety are a major concern.

Through a GPS tracking system, you can track drivers and ensure that they follow the best routes.

Drivers who know that they are being monitored naturally tend to drive more carefully.

If there's any deviation on the driver's route or incase of an emergency situation then the passenger will be able to notify you and can even press an emergency button called ‘SOS’.

What more do you need?

With the best GPS tracker for car, you can set virtual perimeters with geofencing technology and receive alerts if a vehicle exits a user-determined area.

Plus, you can also offer added peace of mind against theft or unwarranted use.

Features of GPS trackers that boost performance

When you are selecting a GPS tracker for your taxi business, you will certainly want the one that is provided with the features which not only can improve efficiency of your fleet but also provide improved customer experience overall.

features-of-gps-tracker-that-boost-performance

Here are some of those features which should be there.

1. Real-time tracking

This is probably the most important feature of any GPS system. You should be able to see where exactly is every vehicle at any given moment.

Google maps integration will give you precise and reliable location. Plus, it will also give exposure to your customers.

2. Location notifications

You can even set specific zones in your GPS tracker (like office or high demand areas) and the system will let you know when a vehicle enters or leaves those zones.

You can easily manage your fleet better especially during peak hours. Isn’t it what you are looking for? Is this not killing the pain giving you pain of headache? Well, many say yes!

3. Travel history

Travel history logs all the trips your drivers make like;

  • What routes did they take?

  • When? and

  • Where do they go?

You can find a lot of insights in this data that will not just help you to evaluate driver performance but also identify if there were any patterns in customer demand.

With travel history, you can make tweaks to routes and schedules to operate as efficiently as possible.

Speed alerts and theft protection

Concerned about safety? Taxi GPS tracking systems offer speed alerts and theft protection. These both help you monitor vehicle speed and location to ensure the security of your drivers and vehicles.

Know both of them in brief below.

1. Theft protection

Worried about vehicle theft? GPS trackers equipped with geofencing technology allow you to set virtual boundaries for your vehicles.

If your vehicle exits the boundary without authorization, you’ll receive an immediate alert.

Should theft occur, the GPS system can provide real-time updates on the vehicle’s location. This smart functionality will increase the chances of recovery.

2. Speed alerts

Maintaining a safe speed is vital for both driver and passenger safety.

With a GPS locator for cars, you can monitor how fast your vehicles are going in real time.

You can set speed limits within the tracker. And if a driver exceeds this limit, you’ll get an instant alert.

This feature not only ensures safety but also helps you avoid costly speeding tickets.

ensure-your-driver-safety-with-advanced-gps-speed-alerts

How GPS tracking impacts the bottom line

Now that we’ve covered the key features, let’s discuss how GPS tracking directly impacts your taxi business’s profitability.

Investing in the best GPS tracker for a car can help you to reduce fuel costs, enhance vehicle performance, and ultimately increase your business’s revenue.

1. Fuel efficiency

GPS for company vehicles help your drivers choose more efficient routes. This smart selection leads to reduced fuel consumption.

In an industry where fuel costs can eat into profits, optimizing routes through real-time data can save significant amounts over time.

2. Higher customer retention

When customers know they can count on accurate ETAs and quick, safe rides, they’re more likely to use your service again.

Live vehicle tracking plays a vital role in customer satisfaction. This results in better customer retention and more word-of-mouth referrals.

Advanced insights with data analytics

Data drives smart decisions. GPS vehicle tracking systems provide advanced data analytics that help you analyze fleet performance, optimize routes, and make cost-saving decisions efficiently.

Accurate data insights

Today, successful businesses make decisions based on data. GPS tracking in taxi business don’t just show locations; they gather and analyze a wide array of data that can be critical for business decisions.

This data includes driver speed, fuel usage, and idle time which can all be tracked and reviewed for efficiency improvements.

You can even analyze customer preferences and peak booking times. This will help you allocate your resources more effectively.

unlock-the-power-of-data-insights

Conclusion

Integrating a GPS tracker into your taxi business or using a feature-rich taxi dispatch software with a built-in GPS tracking system is no longer a luxury—it’s a necessity.

The benefits are clear. It offers beyond just the tracking. It includes better ETAs, improved navigation, enhanced safety, and a significant boost to your bottom line.

If you're ready to take your taxi business to the next level, GPS tracking is the way forward.

Whether you're looking to improve customer satisfaction, streamline operations, or reduce operational costs, a well-integrated GPS tracker for business vehicles is the perfect solution.

ready-to-scale-your-taxi-business-with-gps-tracking
author-profile

Mushahid Khatri

Mushahid Khatri is the Chief Executive Officer of Yelowsoft, one of the leading taxi dispatch and on-demand delivery solution providers. He is a visionary leader who believes in imparting his profound knowledge that is leaned on business and entrepreneurship.

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