Cab aggregators have revolutionized the raid-hailing business through taxi apps. Among the road transportation, cabs are well suited for the customer who prefers comfortable rides. But finding a secured & affordable taxi in a short time was a difficult task for a user. Cab aggregators have turned these pain points into a business opportunity. Uber, Ola and Lyft were some of the globally successful cab aggregators. Like them, any enthusiastic startup entrepreneur can easily launch a cab aggregator platform by using a pre-built customizable clone script.
Let’s analyze the cab aggregator business, revenue model & pricing strategy of the business.
What is a Cab Aggregator?
An online cab aggregator connects the rider & driver through a digital platform (web/mobile app) for a taxi ride. Also, the aggregator doesn’t own any cabs. It aggregates the taxis via an online platform. The aggregator’s online platform just acts like a mediator only between rider & driver.
Revenue Model of Cab Aggregator Business:
Among the many ways to earn from the cab aggregator business few were discussed below.
1. Commission on Rides
2. Corporate Tie-ups
3. In-app ads
1.Commission on rides:
Once the rider gives a ride request via the application, the available driver nearby accepts the ride request. After completing the ride, the rider pays through the online platform. The cab aggregator takes his commission and then pays the balance amount to the driver.
2. Corporate Tie-ups:
The cab aggregator firm can tie up with big corporate companies to commute their employees. This is a niche market for the online taxi business. Many raid-hailing companies already have these types of tie-ups with giant corporate companies. Moreover, the cab aggregator companies offer customizable plans for them. So, companies may select the commuting route, type of vehicle & time of the ride for their employees. These commuting rides help to reduce employee stress caused by traveling to work.
3. In-app ads:
The in-app ads mean advertisers display an advertisement on the web/mobile application. The app users are the targeted market of this campaign. The banner Ads, Interstitial Ads & Video Ads are the few types of in-app ads. In-app ads were the easiest way to generate revenue for app publishers.
Pricing strategy – Surge Pricing:
When the demand for cab rides increases, the fares will rise dynamically. This is called surge pricing. The inclement weather, heavy traffic & festivals are some reasons for the high demand. To manage the sudden increase in ride requests, cab aggregators use surge pricing as a tool. Moreover, the surge pricing method is generating huge revenue for the cab aggregators.
Conclusion:
In this blog we have analyzed the cab aggregator business, its revenue model & pricing strategy. Moreover, the script that was chosen for the cab aggregator service is another key factor for the success. The script influences the online platform’s user experience & the customization ability. The uber clone is the trending script among entrepreneurs now. However, an entrepreneur should analyze all these factors before starting a cab aggregator service.
