Two behavioral traits have been vividly noted about Generation Z - Internet Frenzy and Instant Gratification.
The first generation to grow fully into the Internet Era, Gen Z is more comfortable with the digital space. And thus, enterprises around the globe are making evolutionary changes in their product offerings, digital presence, brand image, and core business cultures. Yet, quite recently, enterprises are rigorously undertaking these changes, because Gen Z has entered the corporate world now and they will have the maximum purchasing power by the year 2026.
Right from product reviews on Google to likes and shares on Social Media, the internet generation is living their lives through their smartphones. To cope up, businesses around the world are moving towards the Brick and Click business model - digitizing their business offerings. Apart from that, enterprises are adapting sales strategies where the customers can get their services instantaneously to tap into Gen Z.
Because of such customer expectations, the demand for On-demand Mobile Applications due to their real-time response has rightly increased in leaps and bounds. An on-demand app is a platform that facilitates its users in attaining necessary or emergency services when and where needed. The most classic example of on-demand apps is food delivery and taxi on-demand business models.
To understand why the taxi booking industry is transforming from a conventional brick and mortar business model to digital business, let us understand the differences between On-Demand Taxi Booking Apps and a Conventional Phone-Call Taxi Booking Business.
On-Demand Taxi Booking Apps Vs. Conventional Taxi Booking Businesses
There is no denying that digital businesses like Uber, Ola, and others are flourishing and are creating a global mark with their service offerings. Such is the impact of On-Demand Apps on the Taxi Booking and Car Rental businesses that the conventional business models of phone call taxi bookings have rendered ineffective and expensive. Also, with advanced service offerings and high visibility, customers prefer to book taxis from the apps.
Another reason why conventional business models are suffering is that they are highly dependent on human interactions. Compared to on-demand applications, such conventional businesses incur higher administrative costs due to the increased staff requirements. Apart from that, enterprises are opting for digital service offerings instead of phone call bookings because the on-demand apps can be scaled easily without making any preliminary expenses on office setups. Also, there is no need for additional administrative teams or the need to develop infrastructure for the new location. They just have to station drivers in the new location and open the location for customers!
While the above reasons are enough for any enterprise to invest in an on-demand app for their Taxi Booking business, below are some other benefits of investing in an on-demand taxi application:
Benefits of Investing in an On-Demand Taxi Booking Application
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Effective Market Reach to Acquire New Customers
Apart from booking cabs and taxis for the day-to-day commute, the second-largest customer base for any taxi booking businesses is the tourists and travelers who rent taxis. With the advent of search engines and on-demand taxi booking apps, the majority of tourists will turn to Google or App marketplaces to search for Taxi Rental service providers. Thus, when you have an App registered on different marketplaces, you can easily reach these new customers, and with decent offerings, you can acquire them easily.
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Business Process Automation
While the conventional Taxi Booking businesses rely on phone calls and human operators for their Taxi Bookings, the on-demand taxi booking app can automate the whole process and eliminate the dependency of the business on their phone operators.
Deploying human forces comes with a high administrative and operational cost to manage your taxi bookings. Instead, it is better to make an app available for your customers who can book taxis in real-time and connect with the nearest driver through a driver dispatch application. The need for human interaction is removed from the process, which reduces the cost of the administration and increases the profitability of the business.
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Augmented Product Offerings
An augmented product is a valuable addition to the core product or service. For instance, renting a taxi is the core product offering for the Taxi Industry. But, offers like rideshare, premium and luxurious cars, options to choose drivers and vehicles, and many other such value-added services are the augmented products of the Taxi Industry.
When you have an on-demand app for your Taxi Booking business, such augmented product offerings can be quickly be introduced and offered to the customers. Not only will these offerings make the customer experience more delightful, but many businesses are adding such augment product offerings to stay ahead in the competitive curve and creating a distinct brand.
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Real-Time Updates and Communication Transparency
One of the biggest problems of having human mediators between customers and drivers in the Taxi Booking business is the high probability of miscommunication. Many times it happens that the operators skip some crucial instructions from customers, or they fail to check the availability of the drivers before confirming a trip with a customer. Such instances can result in unsatisfactory user experiences and can also prove harmful to the brand image.
When Taxi Booking businesses operate via an on-demand app, the platform facilitates customers to communicate with their drivers directly and can get real-time updates regarding their availability. Also, the drivers have complete control of whether to accept or decline the ride offer in real-time. Thus, an on-demand Taxi Booking app can create a compelling and transparent communication channel between drivers and customers.
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Effective Brand Positioning and Better Value Proposition
When you hire an expert App Development Partner, they can create the user experience and interface in a way that helps you emphasize your brand positioning and value propositions.
For instance, if a brand wants to emphasize on customer security, you can introduce a one-touch communication button where the customers can directly contact authorities or broadcast their live location with SOS message to their kin directly from the app. If a brand wishes to emphasize affordable rides, they can send customized Push Notifications to their customers with deals and offers and gain maximum benefit from their marketing efforts. And the best part is a brand that can quickly adapt to customer expectations and reposition themselves with minor customizations.
Thus, when businesses opt for Digital Platforms for their Taxi Booking business, they can easily communicate their value propositions with their customers and align customer expectations with business goals.
Conclusion
With the above information, any savvy business acumen can understand the significance of having an on-demand mobile application for the competitive Taxi Booking business. But, that decision of Digitalisation is not an end, but the beginning of the next phase.
Since having a mobile app holds much importance for your business, it is also essential that the execution of the project is done with absolute finesse. Businesses not only need a custom-tailored on-demand app for their business to gain optimum benefits of the platform. They also need an expert App Development Partner who has relevant domain experience and essential market exposure to execute the whole project.
