4 factors that drive a competitive, profitable taxi network

Published July 26, 2021 in Blog

In an unregulated eHail rideshare market, with new operators frequently joining the mix, the likelihood of passenger dissatisfaction increases while trust in the industry tumbles.

Today’s passengers are mobile-connected and increasingly reliant on eHail platforms to search, compare and book transport. Customers demand high-quality, consistent service every time they complete a trip. (Should anyone pay five times the regular fare just because it’s raining?)

However, the current eHail market hides its risks behind a veneer of convenience.

Lack of governance or oversight leads to less visibility and control over service. Unaccredited and unregulated operators aren’t likely to be monitored or managed for bad service.

This ultimately leads to negative public opinion and, by association, can damage the taxi industry’s reputation.

Ultimately, the responsibility for managing and regulating public transport falls to transport authorities.

The regulatory umbrella of those authorities needs to also cover eHail and rideshare services to help bring order to the chaos and deliver a more efficient, safer customer experience.

To help facilitate this shift in business thinking – to bring multiple modes of transport together under one platform rather than operating in silos – authorities can leverage taxi management software that can integrate eHail and taxi via a shared platform.

With a united technology platform, operators and authorities who incorporate the taxi into their fleets can gain a shared real-time view of their vehicles, drivers and network, ensuring compliance with current regulations, guaranteeing a reliable, cost-effective service that increases passenger satisfaction and maintains viable profit margins.

To ensure regulation creates a level playing field there are four areas on which authorities need to focus:

In my view, the following benefits are just some of the outcomes that can be achieved within each of the four categories.

1. Regulation

    • Regulated fares lead to consistency, building public trust
    • Fair application of government and disability subsidies
    • Appropriate driver incomes sustained
    • Operating vehicles meet required standards

2. Safety

    • Fleet road-worthiness is maintained
    • Vehicle service and safety checks regularly scheduled
    • Drivers covered by public liability insurance
    • Drivers undergo police checks, accreditation and training

3. Service

    • Vehicles dispatched to high-demand locations
    • Effective route management reduces congestion
    • Passengers receive efficient, satisfying service
    • Special events more efficiently managed

4. Sustainability

    • Drivers are earning a fair and minimum wage
    • All operators are profitable and invested for the long term
    • Vehicles are not old and kept up to date for passenger use

In one of the world’s fastest-growing cities, the Dubai Roads & Transport Authority has already acknowledged the need for a united platform by integrating all modes of transport in the emirate through taxi management software, bringing taxi into the public transport network.

By implementing a united solution, authorities, eHail providers and passengers will all enjoy shared benefits – including those I’ve mentioned above, and more.

The outcomes of a regulated, connected platform will be felt across the industry through greater repeat trips and increased new business. Are you on board?

I encourage you to find out more about taxi technology being deployed globally.

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