Business Ideas, Ride Hailing Business

Complete Business Plan to Start an UBER-like Taxi Ride Hailing Business in Your City

Ride hailing or taxi dispatch business or taxi aggregation business, based on an UBER-like business plan is a smart way to make money for entrepreneurs and business people alike. UBER, in spite of being the biggest company in taxi business is not owning a single car. Such powerful is the business idea wherein the business is run relying on a powerful online platform. So, just by owning a software, one can effectively make money by way of commissions without investing a hell a lot on buying and maintaining cars. A good piece of UBER clone script can be had for around $2000.

UBER has invaded all parts of the world with over 3 million drivers and counting. Instead of owning a car and driving for UBER, one can easily buy a software package, start and run their own business and be an entrepreneur. This may sound daunting, but there are a lot of UBER-like clone software and scripts available, some being ready-made and some tailor-made to the precise needs of the customer.

Who are my target customers?

uber like business plan

The target customers to whom you are gonna sell your UBER-like business plan are individual taxi owners, owners of a fleet small and large, or even private car owners who wish to make money of their idle cars. Ride sharing, car pooling apps are a few other ways that will be profitable to both you and private car owners. This ride sharing concept can ideally be marketed as a solution to address traffic congestion, fuel conservation, or simply an added incentive for individual riders.

The competition for such a Business is very less in urban areas whereas in semi-urban and rural areas it is little to none. This makes it a better proposition. On the software front, you need to look for distinguishing features that are useful, that add value comparing to the other prevailing taxi companies in the market.

Software – the core of a Taxi Business:

An UBER-like Business Plan to work will need a software as trustworthy as UBER itself. The market is clouded with a lot of software claiming to be UBER clones. A Taxi dispatch Business is almost entirely dependent on the Software to function efficiently. So investing in the right software itself will alleviate most of the headache. A taxi dispatch software should be able to handle incoming requests, manage payments, record driver and user ratings, manage commissions, generate detailed reports of rides and transactions etc. Some UBER clone scripts promise even more features like airport ride management and support for future driver-less cars.

Marketing and Sales plan:

uber like business plan            taxi dispatch business plan

Before getting a taxi ride hailing business up and running, you will need to structure a financial plan that would work out profitable to you and the car owners. First of all you’ll have to decide on a monthly revenue target, device the budgetary plan  and work accordingly to achieve it.

The total initial investment excluding  software would be $50000

Say for example you want to generate a monthly revenue of $40,000. A model budgetary plan

Average charges per km(including fuel and maintenance): $0.4
Total revenue target per day($40,000/30): $1333
Total kms to be run per day:                                                                3333kms
Total commission earned per day@20%:                                         $267
Distance an average driver can cover/ day:                                     300kms
So, number of cars required to cover 3333kms/day:                10
Profit to the company:                                                                          $4000
Salary to the Business owner:                                                             $4000

 

So a taxi business owner can easily make $8000/month with an initial investment of $50,000.

Majority of the investment capital would be spent in marketing the app among the general public. Various channels  both online and offline are to be used to effectively get highest number users to download and use the app.  Targeted Ads on Google playstore and Apple appstore, Banner ads, facebook local will give more visibility to online users. Local newspaper ads, backlit ads on airport lounges and train stations, community centers, distributing brochures in malls, movie theaters. Using radio jingles every now and then is an effective way of registering the brand name in the minds of people.

The budget for marketing would look like the following;

Social media ads:                                        $8304
Google and apple store,  banner ads:     $19375
Ads on top local newspapers:                  $966
Distributing brochures:                             $671
Showing ads on Public places:                 $2684

 

Other marketing channels to take advantage of:

marketing a taxi business

With a good user base at hand, you can up-sell and cross-sell numerous products from partner service providers right through the app. You can promote the taxi business by partnering with service providers like movie booking, food delivery, coffee shops, groceries, shopping sites etc., who in-turn can promote your business through ads in their platforms. Mobile SMS and email marketing is a cheaper way to reach thousands of potential customers. Sponsoring major local events can go a long way in extending the reach. You can even try innovative, creative or even hilarious PR stunts that could attract the attention of the media.

marketing a taxi business

FAQs:

what is a taxi dispatch software and how is it different from a car rental platform?

A taxi dispatch or taxi ride hailing software is an innovative approach taken by companies like UBER and LYFT for on-demand booking of taxis for short distance commutes mostly within 50 kms, whereas a car rental/lease management system takes care of rental cars on the basis of hours, days or even months in some cases. Few software have solutions for both the businesses tied up into one like SmartCar.

A taxi dispatch business and a car rental business – which one demands lesser investment and better return?

A taxi dispatch business can be started with a very low upfront cost, as low as $2000 for purchasing the software suite. Since the software is ready-made, you can go up and running in no time. Its an UBER-like Business plan, where you won’t carry the risk of owning a fleet of cars and maintaining them. Managing appointed drivers can be a cumbersome job when the size of the fleet increases. These things make the idea of Taxi dispatch Business all the more interesting and worry free in the long run.

 

 

 

 

 

 

 

 

 

 

 

Summary
Complete Business Plan to Start an UBER like Taxi Ride-Hailing Business in Your City.
Article Name
Complete Business Plan to Start an UBER like Taxi Ride-Hailing Business in Your City.
Description
A Complete Business plan for you to start an Uber-like Taxi ride hailing business in your city or anywhere in the world. Foraying into taxi business requires planning at various levels. Use this guide to understand the tasks involved before you hit the market.
Author
Publisher Name
Smart-Car.Tech
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