How to choose a perfect business & revenue model for your taxi app business

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How to choose a perfect business & revenue model for your taxi app business

A simple guide to choose a successful business & revenue model for your on demand taxi app business.

After the massive revolution set by Uber in the taxi booking industry, many startups, entrepreneurs and business owners want to enter the market and develop an on demand taxi booking app like Uber. They are also looking for ways to replicate their success with on-demand taxi booking services and alternative revenue models.

Uber has 93 million active users and processed $26.61 billion worth of bookings in 2020. Source

One of the basics to check off the startup checklist is having a business and a revenue model. The business must adapt to changing circumstances.

Therefore, it is essential for your startup to be more adaptable and scalable. A solid business plan necessitates a healthy and progressive business and revenue model.

A solid business plan requires a healthy and progressive business and revenue model.

Let’s check out what business and revenue model can work for your on-demand taxi startup!

Why do you need a business & revenue model for your on demand taxi business?

  • A business model is a blueprint for your on-demand taxi company. It enables you to determine what stage of business development you are in and how far you can progress.A systematic business model ensures transparency to all stakeholders, which will ultimately help you address your startup's concerns.
  • A systematic business model ensures transparency to all stakeholders, which will ultimately help you address your startup's concerns.
  • Having a flexible business model will allow you to consider expanding your taxi business in a new direction.
  • A complementary revenue model that can be integrated into any business model will ensure your company's adaptability.

What is the right business and revenue model for your taxi business?

The aggregator business model has proven to be the most appropriate and profitable in recent years.

An aggregator business model involves the creation of an online marketplace that brings together service providers and end users under one roof.

In this case, the riders and the drivers are connected to the on-demand taxi platform.

The rider can book rides from the given category managed by the on-demand platform's admin (that's you! ), and the driver can accept the ride request and continue with the ride.

The admin of the on-demand platform manages the riders and drivers, provides offers via promo codes, and performs other managerial-related tasks.

"But how can I monetize this business model?" would be the next question for any entrepreneur. Continue reading to learn about the revenue model!

Commission based revenue model for your taxi business:

The commission-based revenue model is one the most complementing revenue generators for the aggregator business model.

The rider is charged a booking fee based on the flat fee or distance-based concept. The ride fare will be collected by the admin, and the driver will be paid his earnings.

This is how the commission-based revenue system works. Let's look at why this is one of the best decisions you can make for your business!

  • The administrator has the authority to set the commission in two ways: percentage or flat fee.
  • The service providers (drivers) incur no losses by registering with your marketplace platform; you (the administrator) will pay them once their services are used by customers (riders).
  • The admin can get a steady stream of revenue as the business grows (collection of small amounts shows a big difference).

Are you excited to know more about how the business and revenue model of the taxi app function?

Check out the FREE Demo of Wooberly - is a successful on-demand marketplace that is extremely flexible, scalable, and customizable according to your business needs!