A Guide to Building a Profitable Taxi Business in the Market

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The online taxi business is one of the major industries that is growing with each passing day.  This market has touched the billion-dollar mark due to millions of users who are opting for the ride-sharing apps over the traditional method of booking a taxi. In this article, we can take a look at the obvious disadvantages of the traditional taxi service and how the online taxi business that prevails now has bought a solution for it and helped taxi business owners run a profitable business:

Booking a taxi:

With the traditional taxi booking system, users had to find the number of a taxi service and call them well in advance to get a taxi. They had to explain their location and give directions via phone. If they do not book a taxi before-handed, they were left with no available taxis. 

Solution: this was overcome in the online taxi system as people could book a ride a few minutes before they start from their pick up point. They can specify the location in the app with the help of the GPS system integrated. In short, users can get a ride with a single tap. 

 Availability of drivers:

Back then, the availability of drivers was unknown by the users or admin. The owner will have to call them and enquire about the availability, working hours, and more. Finding an available driver was an arduous task. 

Solution: Now, drivers are provided with an availability toggle in their panel. They can display their status of availability using that slider. The algorithms employed in the app will make sure that the ride request is assigned to the next nearby available driver automatically.

 Error percentage:

The old system had chances of high error percentage as the entire process was manual. The wrong drivers were assigned, the location was noted down and conveyed with errors, drivers were assigned for the wrong users, contact details shared were wrong at times, etc. 

Solution: The entire process was automated, so the error percentage was reduced drastically. Separate algorithms were integrated to assign drivers, share details, send live locations, and more. 

Storage of records:

The traditional method involved lots of paperwork and required an ample amount of space to be stored. If any of the records were needed for reference, it took a long time to identify it. A few records were misplaced or lost, and there was too much confusion while sorting it. 

Solution: Users and drivers can get access to their previous, current, and upcoming ride history via the online taxi app. The admin had the privileges to access all the app-related data, earning history of drivers, user information, fix fares, and more. So, finding a record was made simple. 


The fares charged for each ride were not fixed and nominal in the traditional method. Users bargained, and drivers charged more at times. Even if a single person was traveling, the entire fare had to be paid. 

Solution: The automated fare calculator available in the online taxi app computed the fare based on the type of ride, distance, and more. It was nominal and fixed. Users were also given the facility to share their ride with other passengers. This reduced their travel expenses. 

Crucial attributes of an online taxi app:

The below-mentioned features should be present in any taxi app as it will make the app easier to operate:

  • Social media login
  • Live tracking
  • Availability toggle
  • Sharing ride details
  • God’s eye view
  • Scheduled bookings
  • Easy cancelation/refund process
  • Favorite list
  • Secure payment gateways
  • View earning history
  • Preferred languages
  • Reject requests
  • Access to wallets
  • Ratings and review system

Summing up:

The above-mentioned factors will make the online taxi system a successful one. Ensure that you include the vital features to increase the user-friendliness of the app. Hire the best app development company to develop an online app for your taxi business

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