How To Start an Electric Taxi Booking Business?

October 17, 2024

Successfully planned to start an electric taxi business? Read this post and understand how to launch an EV taxi service for a smooth business experience. 

The rise of the electric vehicle market has taken a tremendous leap forward, and this trend is expected to hold its significant place in recent times. 

As per the pollution being noted, many countries expect to ban the use of diesel and gasoline cars by 2030. No wonder, due to this reason, the majority of car manufacturing companies like Audi, BMW, Mazda, Ford, Honda, Jaguar, Lexus, Suzuki, Renault, Tesla, and more in the line are investing in the manufacturing of top-notch electric cabs.

However, if you have decided to convert this great opportunity into your business idea and find your answer on how to launch an EV taxi service, then let us assure you are on the right track. 

Below, we have shared a detailed guide on the EV taxi business, focusing on strategies as well as some important stuff like an overview of some established players and types of electric taxis you can invest in. 

But before starting with anything, let’s understand how electric taxis are great business opportunities. 

Business Opportunities In Electric Taxi Booking Business

If you have decided to pursue this business idea, don’t doubt yourself. You are on one of the most profitable and successful paths.

Baffed with how? Having strong audience growth and retention rates is all that will impact a business’s growth.

In the case of this EV taxi business, if you can make a lasting impression on your audience, no one can replace your business in the market. 

Here are Some Reasons that Show You Have Made the Profitable Choice: 

🗹 Apps in Demand 

The craze of electric vehicles is rising in the market due to its sustainable future role in urban mobility, and many people are switching to this trend.

So, starting with an electric taxi business in this demanding phase can take your business idea to a profitable and productive shift. 

🗹 Integration With Green Technology

Well, Blockchain technology is no longer a new concept. And looking at the opportunities it brings for the electronic taxi business, it just works as a valuable asset with several use cases, maintaining overall transparency and documentation for the electric taxi business. 

🗹 Government Incentives

Governments from many nations often provide subsidies and incentives to encourage the adoption of electric vehicles. You can directly benefit from such support and launch an etaxi startup, reducing costs and building up a strong financial feasibility of your business. 

These are some of the business opportunities that comes with EV taxi business. However, if you are curious to know more. 

☛ Also Read: Top Reasons to Invest in Taxi App Development Business

Top 6 Strategies To Start Electric Taxi Business

It’s time to execute your plan into reality. But remember, you need to be very strategic about everything to make a 360° turn in this taxi booking industry. Don’t stress out.

Below, we have listed some proven strategies that will help you build an EV taxi business:

1. Know Your Competitors

The evolving EV taxi business requires an overall understanding of the competition in the market. Analyze the local top-rated taxi services and learn about their strengths and weaknesses.

Also, provide a detailed understanding of their pricing strategies, customer service, and reviews to learn more about your competitors.

This will help you build a solid strategy to defeat them and establish an irreplaceable position in the market. 

2. Choose The Right Vehicle Fleet

Invest in the suitable safe, comfortable, and reliable automobile if you want a strategic approach to get a user-centric business. Make an overview of your targeted market and its requirements.

In fact, take care of the fuel economy to eliminate the running expenses. Make sure the chosen cars are also in accordance with all applicable laws and safety norms in the area.

Investing in a fleet of suitable and well-kept vehicles can establish a solid brand identity, gain clients’ trust, and pave the way for a prosperous and profitable taxi business.

3. Figure Out The Business Model For Your Taxi Cab Company

Now is the moment to create a great business model strategy. Having a taxi business primary source of income comes from rides. To get started, determine the average taxi ride cost with your company.

Include salary, taxes, rent, and any other potential fixed and variable expenses your taxi service may have in your estimate. Using this calculator, you can see how much money your business will need to raise for its debut.

It is common for a taxi firm to only be able to cover some costs initially. Your taxi service must first expand a little to start turning a profit. 

4. Know Your Legal Formalities

When decided to launch etaxi startup, be aware of all legal formalities. Businesses must do proper research on their rules and licenses to start an electric taxi business.

These guidelines usually require permits, insurance, and background checks for drivers. Make sure you are aware of the vehicle and the safety rules for compliance assurance.

Additionally, establish your company’s organizational structure, get any necessary business licenses, and register your firm with the relevant authorities. 

5. Driver’s License Is A Must

Prospective taxi drivers must have the license to legally run a taxi or rideshare business. In fact, make sure all your hired drivers have a clean history and are lawfully applicable to join your taxi business.

By ensuring your hired drivers are clean-checked, you provide your taxi business operates within the terms and conditions and that all of your drivers have the proper training and experience to carry people safely and dependably.

6. Hire And Train Drivers

Hiring and training drivers for your EV taxi business is essential for success. Customers choose drivers with an excellent driving history, valid licenses, and a user-centric mindset.

Consider tracking their history carefully to ensure they are worthy of hiring.

As soon as you have the correct crew, invest in thorough training programs that include client relations, safe driving techniques, and proficient use of the taxi app or dispatch system.

Track drivers’ performance and provide them feedback to help them improve. 

Existing Top Rated Players Electric Taxi Booking Service 

So, starting a solid electric taxi booking business begins with a great understanding of competitors already in the market. 

And you know what taxi businesses like- Uber, Lyft, Ola, and Grab plan to achieve 100% electric vehicles in a few years. 

However, things will not flow simply because you understand that you must be very strategic about establishing your brand among already existing and well-famed ones.

So here we are discussing the top 3 well-established taxi booking businesses. 

1. Lyft

Launched in 2012, this is a top-rated American taxi booking app owned by Logan Green and John Zimmer that has made an overall enhancement in urban transportation and established a solid online presence. Here is the report by business of apps that indicates the reason: 

• Lyft generated $4.4 billion in revenue in 2023, a 7.5% percent year-on-year increase
• Lyft’s average revenue per active rider increased to $54.66 in 2023
• Lyft had 21.4 million active riders in 2023, a 5.4% increase on the previous year

☛ Related Topic: Start Business With Taxi Booking App Like Lyft

2. Blu Smart

It is an Indian ride-sharing company launched in 2019 by Anmol Singh Jaggi, Punit K Goyal, and Puneet Singh Jaggi. The brand serves almost every electric car, showcasing its commitment to sustainability. It partners with Tata to source clean energy for its EV charging infrastructure. Here is proof of their sustainable business by Business Standards: 

• According to its current monthly financial performance, the company estimates it will double its annual revenue by $110 million by March 2025. 

3. Bolt

Founded in 2013 by Markus Villig and initially known as Texify, this app serves more than 45 countries in Europe, western Asia, Africa, and Latin America. After its name change from Taxify to Bolt in August 2019, it has expanded to provide further services like food delivery services within the electric taxi booking service. Here is the report by Grand View Research for your understanding. 

• The market size for Bolt was estimated at USD 6.65 billion in 2023, and now it is expected to grow at a CAGR of 5.5% within 2024-2030

☛ Also Read: How To Create an App Like Bolt

To help you be more strategic about starting a more powerful business, have an understanding of the taxi business. 

☛ Maybe It Helps: Top 10 Taxi Booking Apps

Types Of Electric Vehicles To Invest For Business

EV Types	Description	Basic Range	Medium Range	Premium Range
Battery Electric Vehicles	Also known as “all-electric vehicles” and “pure electric vehicles”, they are battery-powered and have lithium batteries because they carry more than one passenger.	Tata Tiago EVMG Comet EV	Tata Nexon EVTata Punch EVMahindra XUV400	Mercedes-Benz EQSMercedes-Benz EQE SUVVolvo XC40 RechargeHyundai Ioniq 5BYD Seal
Plug-In Hybrid Electric Vehicle	uses batteries to power an electric motor associated with an internal combustion engine, uses electricity stored in the battery to travel about 10-50 miles,  and can charge on 1 or 2 levels of EV chargers.	Chevrolet Volt Toyota Prius Prime Hyundai Ioniq PHEV Kia Niro PHEV	BMW 330e Audi A3 e-tron Mitsubishi Outlander PHEV Ford Escape PHEV Subaru Crosstrek PHEV	BMW i8 Porsche Panamera S E-Hybrid Mercedes-Benz GLE550e Volvo XC90 T8 Land Rover Range Rover PHEV Bentley Bentayga Hybrid
Hybrid Electric Vehicles	also known as self-charging hybrids, use an internal combustion engine and electric motors, which use lithium batteries. The installed battery is charged using regenerative braking.	Toyota PriusHyundai Ioniq HybridHonda Insight	Kia Niro HybridFord Fusion HybridMazda3 Hybrid	Volvo S60 RechargeLexus NX HybridMercedes-Benz E-Class Hybrid

Cost To Launch eTaxi Startup – $8K to $19K

So, if you have made up your mind to start electric taxi business, then let us give you a tour towards its costing as well. 

Talking about the electric taxi booking business may seem like investing in something costly. But here is the kicker for you! It only takes $8K to $19K to get a powerful electric taxi booking app.

However, it is just an estimate, there are some factors, i.e., complexity, feature, developers, geolocation, etc, that can significantly affect the costing of your app. 

But don’t worry—whatever the cost to make an mobile app, with great revenue generation strategies, you can achieve sustainable growth in this competitive world. 

Revenue Generation Strategies to Start a Taxi Booking Business

🗸 Commission Based Model

You can impose a commission on each pickup and drop under this approach.

Generally, the fee rate ranges from 10% to 20%, although you are free to keep the commission if you would rather. It is the model that taxi booking apps most frequently utilize.

🗸 Model of Subscription

Your electric taxi service users must pay a monthly or yearly subscription fee. Car-sharing firms frequently use such models to generate revenue by providing their clients with exclusive services.

It is a standard but incredibly successful business model for all other apps on the market and for booking electric taxis.

🗸 Hourly Rental Model

It functions similarly to an hourly rental model in which a customer rents an electric taxi for a set amount of time.

This strategy is popular for companies or organizations with regular employee or customer transportation needs. 

🗸 Advertising Model

In this model, a business generates revenue by selling advertising space on its app or website.

The commission on each advertisement can be charged as you choose.

RichestSoft: Your Liable Partners To Launch Taxi Startup

Having a solid taxi booking app development company is highly essential. It directly impacts an app’s productivity.

Remember, if you are dealing with a tremendous and effective custom mobile app development company, they will create an advanced electric taxi booking app that will leave a lasting impact on people. 

And let us tell you, RichestSoft is the only support that will help you stand out in this highly competitive market and will allow you rule and establish your era through your app. 

Here Are Some Reasons Why You Should Choose Us :-

• We build a responsive electric taxi booking app with unbeatable and productive results. 
• After the launch, we dedicate ourselves to complete responsibility for your app’s installation on the Android and iOS stores. 
• We follow ethical terms for your electric taxi development and approval on the Apple and Google Play Stores without taking risky shortcuts to provide you with the best industry results on the budget. 
• We have a technologically advanced analytical solution that tracks the commissions, earnings, payment modes, and hotspot bookings (including specific timings). 
• We build strategic business reports that help you set a marketing budget, i.e., driver’s commission, gift and voucher distribution to the targeted audience, and so on.  
• We provide businesses with the software’s source codes and copyrights. You can use them to change servers or sell business apps. 

Conclusion

Overall, we hope now you know how to start an electric taxi booking business. Remember, you need to be very strategic when starting this electric taxi booking service, so don’t think twice.

Just begin implementing the above-mentioned strategies and stand out in the taxi booking app business. 

It is also extremely important for the success of your app where you get it developed.

Choosing RichestSoft to launch an electric taxi booking service app will directly help you rock this competitive taxi booking business world.

With our expertise, we assure you that we will provide a productive, standing-out app.