There are very few instances in history of business, when a certain idea has turned the industry upside down and create a billion dollar company within few years of its launch.
One such company is UBER & its Vehicle booking app based business model that has not only created immense value for company but also had disrupted the traditional market of vehicle hiring or booking.
But how is it possible and what are the reasons of such blockbuster rise of UBER, OLA cabs, LYFT or any vehicle booking app based startups, let us find out:
Passenger’s delight : Let’s get back in time and analyze how Taxi booking was done earlier ; Either you hire a random taxi standing on roads where you expect more frequency of taxi’s or you call a known taxi driver or such agency, than request them to send taxi at particular time to reach your destination and that too on the fare & conditions of the operator, yet there were instances when you request a sedan & operator send you a hatchback or other dirty business tactics used by these taxi operators.
The uber clone taxi booking app has changed it all together, passenger can book a Vehicle on Smartphone, decide the type of vehicle, time of travel can track the ride and even give ratings to driver & ride quality. Then there are additional benefits like promo codes, wifi, free rides etc, depending upon company’s promotional offers.
In broad sense, while earlier the taxi drivers and operators had upper hand in this business, the use of technology & Vehicle booking startups has made passengers the king & they absolutely love it.
Large variety of options: From selection of vehicle to time to travel to payment option there are huge benefits from various options provided by the company’s. A passenger can even request for a particular driver or car if it’s possible plus there is option of ride sharing that has increased use of car pooling and passengers are using taxi for travel while paying minimum fares.
No liability of Vehicle: The passengers have zero liability of vehicle they hire. Any repair work or any damage done while traveling, it is the responsibility if the driver & even if vehicle breakdown between the ride, the company will provide another vehicle to passengers & make ride as much comfortable as possible.
Money matters: Vehicle booking app based companies have made the ride fares very competitive due to their unique business model. For ex. Uber & Ola cabs do not own any vehicle neither the drivers are there employees, by this operating cost has been decreased significantly and this cost benefit can be given to customers. Also, there are promo codes, offers that companies are giving to acquire more customers. Companies are earning while customers are saving money.
The future: With meteoric rise of Smartphone users, the market opportunity is huge; therefore more and more companies are joining this trend. Recently there was news floating that Alphabet (parent company of Google) is going to put $ 2 billion in Lyft.
And the incredible $50 billion market value of UBER has proved that indeed the opportunity to launch a startup based on this model is not to be missed.
How Entrepreneurs can gain: This business model is proving to be the most effective and most profitable for companies, and with ready-made uber clone taxi app solutions like Appicial which provide a fully customized white label solution with mobile apps for passengers & users and web analytic panel, anyone can startup his Taxi booking business in just few days with full functionalities and earn huge profits from day one.