On-demand Taxi Services Business

Hello Entrepreneur! Are you willing to offer on-demand taxi services? In this blog, you will get all the insights! This blog will be a full-fledged guide on on-demand ride-hailing services. With these interesting insights, you can take your taxi services online and acquire huge profits. Let us begin!

Why On-Demand taxi Services Are New Normal?

In recent years, there sustains an increasing demand for online taxi booking apps. People go behind taxi apps as they book taxis in a few clicks. Most importantly, the instant availability of taxis at their doorsteps has become more convenient for users. Additionally, taxi booking apps come with many exceptional features. They are estimated time of arrival, estimated fare of the ride, location tracking, Geolocation, etc. Hence, for your taxi booking service to be successful, you must develop a smart app that holds smart features.

Moreover, domestic transportation will be occupied by ride-hailing services. In fact, on-demand ride-hailing services will be dominating the transportation industry. Some of the factors of dominance include comfortability, safety, and affordability. Additionally, the taxi app will include a variety of features like mask detection, limiting the passenger seat, safety regulation features, ride-cancellation based on safety, etc. Most importantly, the driver and the passenger may take rides based on gender and some other compatibility features. Indeed, for taxi app owners, this may increase taking rides from people by about 20%.

Also, in the upcoming sections, we will unearth more on the features of the taxi booking apps. As of now, we shall head to the different types of on-demand taxi services that are in trend.

On-demand taxi services and their branches

Ride-hailing services

Ride-hailing services are the most common services opted for by users. First, users will open the app, then book a taxi, and make the payment. Interestingly, the app’s mapping algorithm will map the user’s taxi request with the close-by driver. According to the address details given by the user, the driver will reach out to users.

Car-pooling services

Generally, car-pooling services often take up the name of shared rides. In the car-pooling services, users will travel with other passengers. Moreover, car-pooling is affordable as the ride fare is between users.

Corporate taxi services

Corporate taxi services are the best way to promote your business. Here, you will tie-up with corporate companies to offer transportation services for their employees. Moreover, the company will bear the total expenses for rides.

Shuttle services

Shuttle services are an interesting taxi services idea. Here, you will provide transportation between a certain source and destination continuously on a given day.

Outstation rides

In addition to the above taxi services, you can consider providing outstation rides to users. Taking outstation rides is profitable as you can charge based on the number of days or kilometres.

Existing business models in taxi services

  • Individual taxi services
  • Aggregator taxi services

Individual taxi services

Individual taxi services are suitable for businesses that already run a taxi business. For instance, you run a taxi business but doesn’t have an online presence. However, you can mark the online presence of your taxi service by developing an app. Moreover, you will have complete ownership of the revenue generated.

Aggregator taxi services

In contrast to individual taxi service, the taxi aggregator app will list different taxi service providers on your app. Every time a user books a taxi via your app, you will receive a commission from the taxi service provider.

What is the scope of investing in on-demand taxi services?

  • According to the statistical report of 2020, the user adoption rate of on-demand taxi services is 19.3%. Also, this rate is expected to reach 20.6% by the year 2024.
  • The profit from ride-hailing services is expected to reach 192 billion dollars by the end of 2021.
  • The ride-hailing sector is forecasted to generate revenue of 365 billion dollars by 2024. 
  • On the whole, the best way to kickstart a taxi business is through a ready-made app solution like the Uber clone app.

Exemplary Features To Be Present In Your Taxi App

  • Book nearby drivers

Generally, people prefer on-demand services as their first preference, as they can book nearby drivers. Hence, it is important to list the number of active or available drivers on the app. Based on the driver’s availability, the user will choose the driver. If the driver accepts the user’s ride request, he/she will drive to their location.

  • Track drivers

After getting confirmation from the driver, users must be provided with the ability to track the drivers. Currently, taxi booking apps come with a tracking feature that will show the exact location of the driver.

  • Fare estimation

Firstly, keeping your services transparent will attract more users. Taxi business apps are incorporated with the fare estimation feature. After entering the source and destination details, the app will calculate the fare of the ride.

  • Arrival time estimation

Similar to the fare estimation, the app will also show the arrival time. Based on the location details, the app will show the time of arrival of the taxi. Of course, this is one of the smartest features that will definitely lure users.

  • Schedule rides

The scheduling feature lets users schedule their rides. Interestingly, users can plan ahead of their rides by opting for the schedule feature. For instance, if a user plans for a ride day after tomorrow, he/she can enter the date and book the taxi.

  • Live navigation

Generally, the live navigation feature of the app is beneficial to drivers. Indeed, it is a real-time feature. Here, drivers can use the navigation feature to find directions easily. Besides the live navigation feature, the driver can get the optimized route suggestion.

  • Payments

Let users ride cashless by letting them make the payment through the in-app payment feature. Besides the digital payment options, you can also include cash on delivery options.

  • Ride history

The ride history feature will sum up the number of rides taken by the user via your app. It is an equally important feature. Here, the history section contains ride-related information like location details, fare, waiting time, date, and time of the ride.

Revenue Model Of Taxi Booking Services

Booking Charges – You can frame the booking charges according to the industry standards. For example, we all know that Uber follows the surge pricing method, right? In surge pricing, the fare of the ride will change according to the demand and supply. Therefore, it is up to you in deciding the booking charges. Hence, always make it a point to offer budget-friendly rides.

Advertising charges – Selling ads on your app platform can yield high revenue. Therefore, you can allow third-parties to advertise on your app.  Basically, you can impose advertising charges on the basis of cost-per-click or cost-per-impression.


Hey! In today’s times, having a digital platform for your taxi services is highly important. By implementing on-demand taxi app development, you can bring in customers effortlessly. Hence, with no second thoughts, take your taxi business online with the development of a taxi app.


Please enter your comment!
Please enter your name here