How To Start An Electric Taxi Booking Business?

Launching an electric taxi booking business is easy, but dedication to work is required to reach the top of the market. The demand for the electric taxi business is rising because it is affordable and has shown exponential growth in the past few years. As electric vehicles operate in favor of the environment and reduce noise and air pollution, it has become prominent, and major companies like BMW, Honda, Jaguar, and Mercedes are adopting them rapidly.

Looking forward to dipping into the electric taxi booking business? Hyperlocal Cloud can help you build a taxi booking app with cutting-edge technology to boost sales and customer insights in your business.

Reasons To Start An Electric Taxi Booking Business

An electric taxi is an effective option for the environment, drivers, and all ride lovers. Therefore, electric taxis are popular on all streets and in big cities. Now, let's understand some reasons that will solve your ‘why’ to start an electric taxi booking business:

Let’s take a peek into the future of the battery taxi business:

• The economy of the electric vehicle market is expected to reach $561.30 by the end of 2023.
• The EV market is expected to show a CAGR of 10.07% between 2023-2028, generating a projected market volume of $906.70 by 2028.
• There would be more unit sales of electric vehicles that are expected to reach 170.7M in 2028.

Now you know the electric taxi booking business's future and advantages. It also positively impacts the environment, making it a sustainable choice.

• It is more viable than other taxis.
• It won’t require gas and liquid fuel that causes pollution.
• It is more convenient and reduces noise pollution.
• It saves money and doesn’t create toxic emissions.
• An electric taxi can be charged easily, which will maintain the growth of your electric taxi booking platform.

                                                                                           Source:- Statista

Benefits Of An Electric Taxi Booking Business

There are multiple benefits of an electric taxi booking business, some of them are:

Sustainability

Electricity, a clean and renewable energy source powers electric taxis. It makes them a more sustainable option than traditional taxis, which run on gasoline or diesel. Due to rise in demand, it can give your business sustainable growth in the market.

Cost-Effectiveness

The operating costs of electric taxis are lower than those of traditional taxis. It is because electricity is cheaper than gasoline or diesel, and electric taxis require less maintenance.

Convenience

Electric taxis can be booked through a mobile app, which makes it easy for riders to find a taxi and book a ride. It is especially convenient for riders who are in a hurry or who do not have access to public transportation.

Comfort

Electric taxis are typically quieter and smoother than traditional taxis. It makes them a more comfortable ride for passengers.

Health Benefits

Electric taxis produce zero emissions, meaning they do not contribute to air pollution. It can have a positive impact on the health of riders and pedestrians.

Government Incentives

Many governments offer tax breaks and other incentives to electric taxi businesses. It can offset the cost of purchasing and operating electric taxis.

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How Does An Electric Taxi Booking Business Work?

An electric taxi booking business works the same as a traditional taxi but with the additional benefit of using electricity instead of petrol. Passengers can use a mobile application to book an electric taxi, and the app will automatically connect them to nearby electric taxi drivers. The app provides an estimated fare for the ride, and passengers can track the driver in real time.

Let’s understand step-by-step how an electric taxi booking business works:

• Passengers download the app and create an account.
• A passenger enters their pick-up and drop-off locations.
• The app displays nearby available taxis on the hit of the ‘find’ button.
• Passengers select the taxi and book their ride.
• The app sends a notification to the driver.
• Driver locates the pick-up location.
• The driver picks up the passenger from the location and takes them to their destination.
• The passenger pays through the app, UPI, cash, or credit/debit card.

The business model of an electric taxi booking app is a two-sided marketplace model, where a company connects the passenger with the driver and takes a cut as a commission.

Revenue Model Of Electric Taxi Booking Business

The revenue model of the electric taxi business is quite similar to that of a traditional one. But with the benefits of using electric vehicles in it. This option can be more sustainable and environmentally friendly for drivers and passengers.

Commission-Based Model

You can charge a commission on every pickup and drop in this model. The charge rate typically varies between 10% and 20% and is the most common model taxi booking apps use.

Subscription Model

Here, passengers pay a monthly or annual subscription fee to use the service of your electric taxi. Car sharing companies often use such models to profit by offering exclusive services to their customers. It is a common but very effective business model for not just an electric taxi booking app but for all other applications in the market.

Hourly Rental Model

It is like an hourly rental model where a passenger pays an hourly rate to rent an electric taxi. It is a popular model businesses or organizations use that must transport employees or customers daily. The generated revenue in this model is fixed at one amount until any major changes in your business occur.

Advertising Model

In this model, a company generates revenue by selling advertising space on its app or website. This model is less common but can be a reliable option for businesses with a wide user base.

Overall, an electric taxi business model is very profitable. You can choose any model mentioned above and generate leads in your business.

What Types of Electric Taxis Are There?

There are majorly three types of electric taxis:

Battery Electric Vehicles

Battery Electric vehicles, known as ‘all-electric vehicles or ‘pure electric vehicles’, run entirely on battery power. They don’t have any petrol or diesel engines. They are run by more than one motor, which can be recharged by separate batteries. Most of today’s BEVs have lithium batteries because they lift more than one passenger at a time.

Examples Of Some BEVs

BMW i3, BMW i4, Hyundai Ioniq Electric, Hyundai Kona Electric, Mercedes EQS, Tesla Model X, and Volvo C40 Recharge.

Plug-In Hybrid Electric Vehicles

A Plug-In Hybrid Electric Vehicle uses batteries to power an electric motor, associated with an internal combustion engine that can recharge the battery to give it a longer drive life. A PHEV generally uses electricity stored in the battery to travel about 10-50 miles. Once depleted, the battery switches to the internal combustion engine’s fuel tank to travel another 100 miles. All types of PHEV batteries can be charged on level 1 or level 2 types of EV chargers.

Example of PHEV

Audi A3 E-Tron, Bentley Bentagya, BMW 225xe, Fiat 500e, Ferrari SF90, Toyota RAV4, and Lincoln Aviator Grant Touring.

Hybrid Electric Vehicles

Hybrid Electric Vehicles, also known as self-charging hybrids, use an internal combustion engine and electric motors, which use lithium batteries. The main difference between PHEV and HEV is that an EV charger can’t charge the battery of a HEV. The installed battery is charged using regenerative braking.

Examples of HEV

Audi Q7 SUV, Audi A-8 Le-Tron, Silverado 1500, Toyota Prius, Ford Focus MHEV, Lexus CT200h, and Toyota Yaris Hybrid.

Top Industry Players Of Electric Cab Booking Apps In The USA

Now let’s take a glance through some successful businesses in electric taxi booking with an app:

Uber Green

Uber Green works like Uber, but with the Uber Green app, a passenger can avail of electric taxis instead of diesel & petrol vehicles. It is working on a vision that by 2030, 100% of citizens of the USA start using Uber Green.

RideAustin

RideAustin provides an electric taxi booking service in Austin, Texas. It comes with every single feature that a taxi app should have. A passenger can avail of a ride at the price of $1 and a minimum fare of $4 with this app.

Strip

Strip offers its passengers the top-rated electric taxi booking service all over the USA. Strip allows their passengers to book a taxi in advance or on-demand. The app also offers a fare estimation feature, that allows passengers to calculate their fare before booking a ride.

Easy

As the name suggests, Easy provides easy electric taxi booking in the USA. The app has 20 million users from 30 different countries worldwide. Easy gives a fantastic user experience from a user's point of view.

Also Read: How To Build An EV Charging Station Finder App

Features Of Electric Taxi Booking Business

Features in your electric taxi business app drive sales and customer retention and can help generate revenues. Let’s discuss exclusive features for businesses, users, and admin that can make your business rise above the market.

Features For Passengers

Let’s know some features that can be favorable for passengers:

Login & Registration

Passengers should easily log in/register with all their memos and required information. You can integrate social media APIs for quick login/registration support.

Choose Car Type

A passenger must be able to choose the fleet offered in the application. It could be a bike, car, and rickshaw for the ride.

Feedback & Review

This feature will also help improve your business. User-given feedback is analyzed to improve business operations, take action, and make changes.

Vehicle Tracking

With the help of GPS, a rider will be aware of their desired fleet's status and arrival time. It will help them manage their time accordingly.

Push Notification

It will let a user be updated about the cab’s arrivals, cashback, and any other updates. It also helps gain customer insights like behavior, data, and feedback.

Features For Drivers

Our app features make it easy for drivers to use:

Edit Profile

With this feature, a driver can edit their profile to include information about their vehicle type, car number, registration, and photos.

Multi-Currency Support

It lets a driver exchange currency in return for their services. They can choose which currency they want to be paid besides the company’s.

Accept/Cancel Ride

Drivers will have full control over what rides they want to accept or cancel to manage their working hours accordingly.

Contact Passengers

With this feature, drivers can also contact their passengers in case of any query, like informing them about the ride, locating them, and other ride-related questions.

SMS/Email Alerts

SMS or e-mail alerts will notify a driver of the upcoming ride, fare, and other activities from the user's side. It will also update them if there’s any change in fare and climate.

Features For Admins

We offer beneficial features for admins:

Dynamic UI

An admin panel needs to be equipped with a dynamic UI to monitor business operations and how many cabs are active at the spot.

Rate Card

As a business owner, Hyperlocal Cloud gives you a rate card feature where you can decide your ride fares. All you have to do is input the amount, which will apply to all the registered vehicles in your app.

Complaint Management

With this feature, you can review, reply to, and take action on the complaint given by the customer. It will increase customer loyalty and boost sales.

Geo-Location Boundary

An admin can determine the boundary of the operations of their registered vehicles. They can decide the parameters of the ride-sharing business.

Driver Management

This feature includes the new registration of drivers after complete verification of their identity, licenses, and vehicle registration. You can add and remove drivers in your application through a driver management panel.

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How To Start An Electric Taxi Booking Business App?

After understanding the future scope and the required knowledge of the ride-sharing business, it’s time to learn how to start an electric taxi booking business.

Market Research

Conducting proper market research is important. In this process, you will find out if any market gap lies and how you can fill it. Find out some competitors' weaknesses and analyze their performance in the electric taxi booking business.

Prototype

The prototype will determine the look of your application. This process includes color, brand name and logo design for your application. You can also use an Uber clone app to get all the features and functionalities like Uber with your brand name.

Final Development

The development phase of your application is divided into two parts: front-end development and back-end development. The front-end development part for your application includes API integration, implementation of UI, creation of animations, user login & sign-up interfaces, etc.

At the same time, the backend development process includes servers, security, data transmission, and communication between the front end and API. Both factors are quite important for complete development.

Testing

The testing phase of your application ensures that all the functionalities and features are working properly in your application. It also ensures quality, live tracking or GPS control, authentication between user and driver, and another verification part. The testing phase of an application is required to confirm that the development process of the application has been successfully executed.

Deployment

After completing the development and testing process, your application is ready to be live for usage. At Hyperlocal Cloud, we offer free deployment on Google Play Store and Apple Store for your application.

Conclusion

The electric taxi booking business benefits those looking forward to investing in this business niche. With the right company and support, you can beat the competition and put your business ahead of your opponents. Whether you start traditional cab sharing or an electric taxi ride-hailing business on this planet, it will always be beneficial as it provides comfortable services to customers.