Do you remember how to order a taxi before taxi applications exist? In the meantime, you had two options: call the number of a taxi company or take a taxi on the avenue. Today, mobile applications are revolutionizing the taxi industry with innovative technologies that offer alternative solutions to customers and drivers.
Nowadays, customers are able to book a taxi 24/7 , see exactly how far the designated taxi driver is and be able to pay digitally . In addition, the driver can accept or refuse a taxi request via the app, call the customer in case he does not show up and offer different payment methods to speed up the transaction and make it simpler.
Major players such as Uber, Taxify and Chauffeur Privé have shown that this was a profitable business strategy and have therefore encouraged many entrepreneurs and small businesses to launch a similar taxi booking application to replicate their success. Over the last decade, the number of automated taxi solutions has increased and the popularity of taxi applications continues to grow.
In this article we will discuss added value and revenue model of a taxi application. In addition, its features will be examined to better understand the technical aspects .
Bilateral added value
Since taxi applications are two-sided platforms , it is imperative to have a value proposition for both parties; customers and drivers. However, all the proposals of a taxi application aim to reduce search costs and transaction costs , which is exactly the essential feature of a multi-aisle platform.