Understand the Difference Between Real-time On-demand Taxi Solution and Taxi Dispatch System

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The taxi industry has always been a successful one, even before the age of technology. People and places, these two words go together so well that it’s no wonder that the taxi service business has continued to expand and grow at such a large scale over the years, and will continue to further improve in the future. However, as the industry has been a huge success, the market competition has also risen at an alarming rate, making it harder to compete against other taxi companies. With advancement of technology, and its increase of implementation into businesses, taxi service platforms have been majorly distributed into two categories, which are on-demand taxi solution and taxi dispatch system.

As a business owner, it is highly important to know the difference that each one has from the other, as it is crucial for your market strategy, otherwise you will just end up wasting a lot of money and resources. Another factor to highlight here is whether you are a startup company looking to join the taxi service industry, or an already existing company trying to improve its services with the use of technology. Other things to keep in mind is the complexity and cost that each one has, so depending on your business plan, you need to choose accordingly.

A taxi dispatch system generally provides the services to call, book, or reserve a taxi. This is the less techy and more cost-effective choice to go with. However, this requires a great amount of market publicity and credibility, because spreading your brand name isn’t enough anymore, but providing reliable and comfortable service to customers is what matters most. As this is a less techy way to offer your company’s taxi service, the target audience is most likely non-smartphone users and elderly people. If your taxi company already has its name known in the market then this is a safe bet.

Now comes the real-time on-demand taxi solution, with being techier, targeting smartphone users by providing mobile applications for your taxi service platform. If you are a startup with a good investment, then you can build and launch your taxi solution app in the market, or even if you already have an existing platform but want to target the younger tech savvy audience, then go ahead with your unique app idea. If you don’t already have an app, then getting a good on-demand taxi solution built for your taxi business organization might be the best move you make for your business.

As the days go by, the number of smartphone users is increasing rapidly. This means that by deciding to provide them a real-time on-demand taxi solution, you are trying to target a larger market audience. This also means that you are willing to compete against the tougher competition and want to climb the ladder of success quickly. If you are a risk-taker than this is a risk definitely worth taking, because the chances of success only increase based on your market strategy. As you launch your taxi app, make sure to publicize it properly on a large scale, because the smartphone apps market is huge and contains many taxi platforms.

A good plan would be to provide a taxi dispatch feature included in your on-demand taxi solution to decrease your market competition while increasing your target audience, as people would love to be able to use two different kinds of services from a single application. Another point for business owners who are planning a startup is the driver recruitment. Hiring a large number of drivers for your taxi company beforehand might not seem like a smart move, considering the fact that you just stepped in the market, but if you can manage it, it is highly recommended that you do.

Keeping all of these factors in mind and understanding the difference between a real-time on-demand taxi solution and a taxi dispatch system, you need to plan out your business strategy and perform a market analysis depending on your target audience, and whether you are startup or an already existing company in the taxi service business. Preparing ahead is always a better plan than to face challenges head-on without having any idea what they can be.


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