With people confined to their homes, the ever-present transportation sector has come to a screeching halt. Even the giants of the ride-hailing segment, like Uber, Lyft, are struggling to manage the decline in demand. Uber’s net loss of $2.9 billion in Q1 of 2020 provides you the impact of COVID-19 on the ride-hailing sector. However, as nations begin to ease lockdowns, the situation is returning to normalcy. As people’s hibernation phase ends, taxis have started to witness an increase in demand.
The ‘safety’ factor has propelled the need for private vehicles over congested public transport. With consumer preferences changing drastically, the resurrection of taxi apps is inevitable. Are you an entrepreneur aiming to launch an on-demand taxi app but worried about the existing market conditions? If so, this blog provides detailed insights on how the taxi market will regain its feet once the situation stabilizes.
According to Markets And Markets,
- The ride-hailing market is inclined towards the negative trajectory, settling for revenue of $75.39 billion in 2020.
- However, post-COVID-19, the global ride-hailing market, will reach a significant $117.34 billion in 2021.
- This stat explains the fact that the market experiences a massive YoY (Year over Year) growth of 55.6% between 2020 and 2021.
According to recent reports, Uber and Lyft have begun their reconstruction phase. For instance,
- Uber’s business in Hong Kong has reached almost 80% of the pre-COVID-19 levels.
- Similarly, Lyft reported a net loss of around $400 million in Q1 of 2020. In the second quarter, the platform declared that losses would not exceed $325 million. These are clear signs that the market is improving and adapting to the needs of the people.
Besides, it is expected that the world economy is poised to recover in 2021. According to WEO, the global growth forecast is approximately 5.4% in 2021.
The dynamic taxi market will obviously witness new players going neck-and-neck. In addition to the conventional aggregator model, one can experience the rise of other business models as well. Here are some strategies to consider in a Uber clone script to captivate the audience and ensure steady growth.
- Exploring Mobility as a Service (MaaS) model: With people avoiding congestion and practicing social distancing, public transit agencies are under immense pressure to explore the digital medium. As an entrepreneur, you can roll out your booking services with the Mobility as a Service (MaaS) model. This way, you can rent your software for a fixed fee to these agencies. As a result, while the transit agencies enjoy digital bookings, you enjoy consistent payment. An entrepreneur experiences a reduced burden of aggregating fleets and relying on people with this model.
- Leveraging AI to optimize routes: In today’s technologically-driven world, Artificial Intelligence (AI) can provide solutions to mundane real-life problems. You can eliminate the fear among drivers by protecting them from COVID-19 hotspots or containment zones by leveraging AI. This way, drivers can reach customer destinations without any fear or hassle.
Strategies to tackle COVID-19
With COVID-19 propelling the need for safety, you need to preload your on-demand taxi app script with COVID-19 safety add-ons. This way, by tackling the virus, you can easily build the ‘trust’ factor, laying the foundation of a taxi empire. Some of the safety strategies worth-considering include,
Before the ride:
Precautionary measures can go a long way in curbing disease spread in the community.
- Restricting the passenger count: It is advisable to limit the passenger count to two or three, depending on the situation. This way, you safeguard both drivers and passengers from disease spread.
- Disinfecting and sanitation: Drivers can disinfect vehicles before each ride with the necessary disinfectants and maintain personal hygiene with the proper use of sanitizers. These simple acts before the trip will ensure safety throughout the ride.
During the ride:
- Face mask recognition software: Ensure that the drivers are abiding by safety regulations throughout the journey with software recognizing drivers’ face masks. This way, the admin needn’t worry about drivers’ safety. The software notifies the controlling authority whenever drivers aren’t following safety protocols.
After the ride:
- Disabling Cash on Delivery: Prevent any form of contact between drivers and passengers by encouraging passengers to pay via digital modes. Disabling CoD can substantially enhance the community’s safety.
- Safety ratings & reviews: Hear regular feedback from customers on the platform’s safety standards, thereby enabling the admin to take corrective action from time to time.
It is only a matter of time until the ride-hailing market will regain its ‘buzzing’ status. With even giants of the sector starting their services from square one, an entrepreneur with a world-class Uber clone can gain instant traction. Implementing the necessary safety measures and adopting new strategies can create all the difference in the taxi app in the post-COVID-19 world.