Till some years back, people used to wave on the roads for a taxi. They intimate about the destination to the driver, enter the cab and once they reach the destination, they pay the driver with cash. This is the traditional way of how a taxi business operates.
People faced a lot of inconvenience in the above model. Then came the model of taxi dispatch system, where the riders have to call the taxi dispatch center to book a taxi. This model was a huge hit and many entrepreneurs started to replicate this system across the globe.
In 2009, a new entrant named Uber introduced the on-demand taxi booking market, where the users can book a cab with a tap on their smartphone. They leveraged the widespread reach of smartphones and internet reach. Following Uber, many other firms like Ola, Lyft, Didi followed the on-demand taxi business model. This took a heavy toll on the existing taxi dispatch model.
Nevertheless, I think the time has come for the taxi dispatch model to regain its lost stature. You may think about how taxi dispatch companies can compete with the giants like Uber, Lyft etc. The answer lies in the controversies surrounding the on-demand cab handling companies.
From the self-employment debate to the rider safety, there are numbers of ongoing controversies in the on-demand taxi business. No need to mention the heavy criticism from the traditional taxi firms, who have been offering cab services at lower prices. A huge number of public resentment is also growing on against Uber. So it seems like now is the right opportunity to take back your market share.
There is also a misconception that the taxi dispatch model is running on technology that is no longer relevant. This is not true because of the development of taxi dispatch software solutions you can give your customers the ease of technology to leverage your taxi booking services.
Why taxi dispatch system is better?
There is seen a constant increase in the total volume of taxi trips with the advent of taxi booking mobile apps. This results in more passengers, higher ROI and increased revenue for the taxi owners.
Managing a taxi fleet is not easy where high competition, customer safety, and reliability are the challenging factors. An advanced fleet management system with real-time updates, reports, and tracking can facilitate the overall efficiency and effectiveness of the dispatch process.
Perfect vehicle management
While using a taxi dispatch solution can systematize the operations, it also gives room for easy handling of all vehicles. Now, with the GPS facility, it has become easy to ensure the safety of the vehicles.
Users can book a taxi manually without even using a smartphone
- Dispatch bookings received over a phone call.
- Un-assign a driver and assign booking to another driver.
- In the case of auto-dispatch failure, the booking can be managed by the central dispatcher.
Improved Quality of Service (QoS)
With the Taxi Dispatch Software, you can improve the quality of taxi service that you offer. Passengers will save their precious time by booking online and also they can pay online through e-wallet/digital payments.
Uber and Ola like the on-demand model is a huge hit especially in tier-1 and metropolitan cities. Leaving that aside, in tier-2,3 cities, people rely less on smartphones. Which implies that people still rely heavily on non-smartphones for any services. So, the potential for taxi dispatch companies is huge in these cities.
Entrepreneurs from these areas can get benefitted from this. Right now, the only way Uber can maintain high service levels at the low rates they charge riders is by subsidizing the drivers with huge and costly incentives. I don’t think it can sustain for too long.
Uber’s business model requires constant cash infusions from investors. Uber is simply not profitable and may never be profitable. It is up to the innovative and creative entrepreneurs to take the taxi dispatch business at the right time.