The global transportation services industry has grown by leaps and bounds in the past two decades. Even though the pandemic has disrupted the regular pace of day-to-day services, the market is going strong and is expected to be valued at $7,518.4 billion in 2023.
However, the most noted transformation is that of the ride-hailing business, which has set off a chain reaction of taxi mobile app development. The ride-hailing segment's global user penetration will be worth 20.8% by 2025 - a decent leap from 19.3% in 2020.
As of August 2020, model brands such as Uber and Lyft hold 71% and 29% of the market share, respectively. It is safe to conclude taxi mobile apps have become a necessity in this day and age!
Offering mobile apps necessary for taxi businesses
The reason customers prefer hailing taxis through the app is because of the transparency the platform offers. It is reliable to get a taxi as the app displays the booking's real-time status, along with the driver's details and the GPS tracker.
If your taxi business can make the customer experience safer and smoother through a mobile, you will develop not only an impeccable brand reputation but also a loyal customer base over time. That brings us to the next segment, i.e., the technology used in apps.
Adopting AI and ML at scale to empower your taxi business
AI is an integral component of today's mobile app development industry. For instance, it helps improve efficiency with the accurate retrieval of historical customer data. AI's predictive analysis capability connects the demand for taxis and time slots preferred by customers.
Therefore, the AI technology helps develop user-friendly mobile apps and enhances taxi services, thus streamlining both drivers' and passengers' demands.
5 benefits of leveraging AI for your taxi business
Let us dive into how the integration of AI benefits the on-demand taxi services:
1. Route optimization
A taxi mobile app with AI is excellent at optimizing routes so that drivers can drop the passengers to their destination in the shortest possible time. Artificial Intelligence implements the reasoning algorithm which configures accurate driver routes.
That enables the drivers to receive calls based on time and direction. For instance, if the driver is near point C, AI algorithms will ensure they only receive booking requests from areas close to point C. Artificial intelligence-based taxi app development can do wonders!
2. Personalized user experience
Consumers of today do not like to be treated like robots. They prefer doing business with brands that are big on personalization. The customers of a ride-hailing business are no exception. Leverage the power of AI in your taxi mobile app development to gauge your customers better.
Follow eCommerce stores and note down your customers' previous rides with you. Please pay attention to their frequency of booking taxis, ride durations, and most visited locations - these are helpful metrics to study.
Accordingly, personalize the mobile push notifications and nudge them to take a ride when they usually take or offer a discount or limited period coupon code after they have completed X number of rides with you. AI can help you smarten your taxi business offering for them.
3. Self-directed dispatch
Self-dispatch is when any taxi shows up to a passenger-in-need at the earliest without their superiors' intervention - a concept synonymous with traditional taxi services. Since AI capabilities can be used for data mining and pattern recognition, it can help your taxi business mobilize resources rather efficiently.
The self-directed dispatch can automatically intimate the driver to pick up the nearest passenger who has initiated a booking. That increases the accuracy level of taxi services and enables a smooth service to the customers.
4. Smart driver onboarding process
The level of automation and convenience of use that Artificial Intelligence Services can enable in your taxi app is exceptional. But what is even more impressive is that it can help operators create and deliver a streamline onboarding experience for drivers.
For starters, AI can be integrated into a chatbot that holds answers to common driver queries. Moreover, AI-powered training modules can deliver real-time support when drivers are stuck with an issue regarding the taxi app.
Merely handing over drivers, a taxi app with AI is not going to cut it. You cannot assume they would be comfortable using the technology.
Therefore, having an onboarding process can help your taxi business appear empathetic towards your drivers, which, in turn, would grow your taxi network via word-of-mouth.
5. App sentiment decoding
One of the USPs of AI is analyzing sentiment, which lets you know where, when, and how your taxi app is being discussed amongst your customers and competitors. The interactions could occur on social media, across messaging boards or online forums (such as Quora or Reddit).
Irrespective of the platform, you can gain actionable insights into how your taxi app is perceived in the market and leverage external user feedback to enhance your business offerings, modify user policy, and update app features.
Four reasons why you must invest in taxi mobile app development
Combine your on-demand taxi services with AI, and you have yourself a thriving business that attracts an extensive network of drivers and customers. Here are four reasons why you must develop an AI-powered taxi app:
1. To offer a niche value proposition
Having a taxi app will enable you to offer the following benefits to your customers:
- Estimated duration and cost of the ride
- Limited period coupon codes for rides on specific occasions
- An in-app gateway for cashless transactions
- The option to track the driver's current location
With an AI-powered taxi app, your drivers can enjoy:
- Flexible working hours
- Little to no investments to join your taxi business
- An insurance safety net
- Easy mobile payments
Therefore, choose any of the taxi app development companies to help achieve the goals mentioned above with an app, and keep your customers and drivers happy.
2. Expansion to other geographies
Believe it or not, taxi-hailing services such as Uber are not available in many countries such as Cyprus, Brunei, Malta, and Oman. Therefore, if you want to grow your taxi business exponentially, a taxi app will help you expand to those areas where the facility is not available.
Of course, this requires you to do research, but in the end, if you have a clear understanding of the locations where ride-hailing services are not available, your taxi app can make a massive difference to consumer demands.
3. Optimize management
The taxi services industry has come a long way from the traditional phone-based dispatch system to a modern, mobility-on-demand transportation technique. Opting for taxi mobile app development will help you mobilize resources accurately and effectively.
Your call centre/admin team can track the rides currently being undertaken along with payments, user account information, and cancelled rides. Your taxi business will work more efficiently when you know everything is under control.
4. Cultivate customer loyalty and boost revenues
Imagine the difference your taxi business can make if you have your very own taxi app with AI. Your customers won't have to rely on any third-party platforms to book a cab; they can use your app. Besides, if your services are impeccable, they would be happier to use you frequently.
Opting for Artificial Intelligence-based taxi app development means you will turn passers-by into regular customers dedicated to your taxi service. Nothing is better than having a loyal army of customers for any business!
Three use cases of Artificial Intelligence-based taxi app development
1. Uber - transparency of payments
The first brand that comes to mind, which has successfully leveraged AI to offer impeccable customer service, is the US-based Uber. Its taxi app with AI maintains full transparency between what a passenger pays and what the drivers get paid on every trip. Moreover, Uber allows the customers to know every trip's cost before booking a cab with its AI-powered algorithm.
2. JapanTaxi - forecasting demand
JapanTaxi's taxi dispatch support system efficiently uses predictive analytics to mine historical customer data from service logs. It integrates with weather data to estimate the number of passengers they can expect at any given point.
3. Yandex.Taxi - elimination of taxi waiting time
Launched in Russia, the Yandex-Taxi app has its mapping, routing, and navigation system, powered by AI. That enables them to reduce the time that drivers waste on waiting for a passenger to get in the taxi because the bookings made are for immediate requirements, and makes it easy for the drivers to drop them to the destination at the earliest.
Summing it up
There is no doubt that AI can help you make your taxi experience better for both customers and drivers. It can streamline on-demand taxi app development - optimize resource management, minimize the waiting time for drivers, and determine the ride's price for customers.
So, raise the bar of your taxi business and invest in taxi mobile app development today! Partner with any leading taxi app development companies such as Intuz and get started!