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Looking to start your own cab aggregator business today. This article is absolute compilation about how to start a cab aggregator business, including the market size, customer requirements and pricing and building an app-based service.Continue Reading below
1. What is an Online Cab Aggregator Business?
An online cab aggregator business is a type of online transportation service that uses a digital platform like an app or a website to connect passengers with available cabs. These businesses are largely used in urban centres where internet connectivity and Cab services are well developed, but they are steadily gaining popularity in rural areas as well as there are limited options for public transportation.
An online cab aggregator business is a company mostly does not own any fleet of cabs or taxis or other vehicles. Instead, it rely solely on third-party Cab operators with local taxi fleets to provide their services to customers.
This type of business has become popular due to the rise of Uber Cabs, Ola Cabs etc. And also because the corporate professionals in the central business cities are increasingly opting out for such services.
2. Is Starting a Cab Aggregator Business a profitable business Idea?
There are many positive reasons why starting a cab aggregator business is a good and a profitable business idea. The Cab industry is a large and lucrative business in India with a huge and growing market.
There are 2 million taxi drivers in India alone. and according to official government data, the total number of domestic travellers carried by air, rail and road in India reached 26 billion in 2017-2018. The Cab industry in India is highly competitive, with the market share of taxi companies being as low as 3%.
India has a large and diverse cab Industry, with traditional taxi services as well as Cab Aggregator businesses. The current size of the Indian cab industry is predicted to be worth $12.8 billion U.S. dollars according to Statista. and is expected to touch $19 billion dollars in next five years.
3. What is the Cab Aggregator Business Model
The cab aggregator business model is a type of business model that is used to connect passengers with independent drivers through a digital platform. Cab aggregators are usually apps or websites that allow people to find, book, and pay for rides.
The business model of these companies is based on the concept of “network effects”. With the increasing number of users, more and more people will be using the service to get around in a city. The company can then charge more for rides, which is usually done through an app or website.
This type of business model has the following characteristics:
- Platform: It provides a platform for transportation providers to offer their services on
- Cab Providers: The company does not own any vehicles itself, but instead partners with drivers who offer their own cars as part of the service
- Commission: The company charges a commission on each ride booked through its platform
- Surge Pricing: To balance supply and demand, cab aggregator platforms use surge pricing during periods of high demand.
- User Ratings: To maintain quality standards, cab companies use a rating system to evaluate both drivers and passengers.
4. How to Research and Start a Cab Aggregator Business?
Starting a Cab aggregators business has great potential to generate massive revenue and wealth for an entrepreneur. There are many factors to consider before starting a cab aggregator business. Before deciding on starting a business, it is important to conduct market research and take into account the location and financing of the business.
Starting a cab aggregator business requires thorough research and planning. Here are some steps to consider when starting a cab aggregator business:
1. Conduct market research
Conduct Market research to gather important data on local transport, cab services, daily commuters etc., and analyzing the data about the market.
This should help you to understand customer demand, preferences, competitors, pricing strategies and overall scenario of starting the business. C
Conduct thorough research to evaluate the possible business opportunities in cab industry to identify any gap or shortcoming of the cab industry that you could exploit in order to increase profitability, and develop a USP (Unique Selling Preposition)
2. Develop a business plan
Develop a detailed Cab aggregator business plan that clearly highlights your company’s objectives, vision, and long term strategy.
Create a business plan that outlines your target market. and figure out what your customers want and how best to reach them. create a strong pricing strategy that will work best for the customer, and design a marketing plan which will bring in new customers.
Lastly, you need to set financial projections for the next year so you can accurately plan for growth.
3. Register Your Cab Aggregator Business
Register your Cab aggregator business and obtain all necessary licenses and permission you are required to obtain in order to operate a Cab aggregator business legally in India and under the directives of government regulations.
Registering your business is an important step as it prevents your business from being stopped by the government it also provides you with a number of benefits, including legal cover, protection against liability, seek government support and building a trust factor among the users.
4. Build a Development Platform
This is one of the most important factor of starting a cab aggregator business that is building a car aggregator website or an App.
Developing a stable and user-friendly mobile app or aggregator website that allows passengers to request rides, track drivers, and make payments is the single most fundamental aspect of the business.
Choose a stable platform for your car aggregator business for which you will need to carefully curate a number technologies depending on the specific requirements of the platform. Overall, a cab aggregator platform will need a range of supporting technologies to integrate together and work seamlessly to provide the best user experience.
5. Hire Competent Cab Drivers
Drivers is the most important part of of your cab aggregator business. They are the face of your business, and they have a large role to play in your success. Drivers are the first point of contact with new customers and allow your company to be ‘on-demand’.
Before you start registering drivers for your cab aggregator business make sure to set some standards for eligibility before advertising. t’s important that you find drivers who have some experience in driving and working in the transportation industry and are willing to take on certain responsibilities as well as pass background checks for any criminal records and drug tests.
6. Set Pricing
Carefully research and determine your pricing strategy. The car tariff prices should be fair to both the customers and Cab driver alike so to make an attractive deal for both the parties to participate on the app wilfully.
When determining the prices take into account factors such as fuel, distance, time, and demand. You should set policies for payment processing and clearly state the percentage of each ride fare that your company will collect and share with the drivers.
7. Launch your service
Launch your car aggregator website with full scale promotion and advertising. Market your services to potential customers, using social media, targeted ads, and other marketing strategies. Collect feedback from every customers and make necessary adjustments to keep improving your service in timely fashion.
Use Social media marketing for advertising and use social networks to connect and grow a community of supporters. This can be done through one-on-one conversations, advertising on social media, and using data analytics.
5. How to Build the Cab Aggregator Business Website
Building a cab aggregator website requires a combination of front-end and back-end technologies. Here are the general steps to building a cab aggregator business website:
Cab aggregator websites are web platforms that can connect passengers to find and book nearby Cab services. The Cab aggregator websites are designed to works with two end one end is with a Cab owners and passengers call front end and the other that works with a third-party service provider called backend.
Here are the general steps to building a cab aggregator business website:
i) Outline The Requirement
What features should be offered on your website? You’ll need a lot of time to do proper research and establish what works best for your users. Make sure you analyse what people are looking for and head those own — things like booking rides, tracking, payments, ratings, and reviews.
ii) Choose Development Platform
Choose the right development platforms available for the business. Whether you need a platform that is easy to use and affordable, or perhaps one that is more complex and powerful, there are many options to choose from. A development platform is an essential tool for any website or application.
iii) Develop the Website
Develop the website using front-end and back-end technologies.
Back-end programming languages are used to handle large amounts of data and information. The most common back-end programming languages are PHP, Python, Ruby on Rails, and NodeJS.
iv) Integrate API and Payment Gateway
Integrate the Car aggregator website or Apps with the best payment gateways for smooth and hassle free completion of all transactions. Users will always prefer online commerce website’s with good, versatile and robust payment systems with very low failure rates.
Integrate Car aggregator website with all third-party APIs such as Google Maps API, Ride Sharing API’s, Web API’s etc to enable location-based services and other third party services.
v) Test the Site Rigorously.
Conducting a rigorous testing exercise of website’s functionality and design plays a key role in the success of your site. This will help you to iron out any last minute errors or bugs that might affect the sites performance before launching your site live.
After testing the website, launch it and promote it through digital marketing channels like social media and search engines.
vi) Maintain Your Website Diligently
Your website is your business’s most important asset. If you don’t maintain it, you risk losing business and revenue. But maintaining a website is a lot of work, and keeping up with the latest trends takes time and energy. To save time and energy, hire third party companies that can maintain your website for you on a regular basis, so it stays up-to-date and secure.
Building a cab aggregator business website requires expertise in both the front-end and back-end technologies, with some features requiring to be outsourced. You have to make sure you’re being careful about how you plan and the budget is established beforehand.
5.1 Here are some of the most important features of a cab aggregator website:
A cab aggregator website should have the right features to make it easy to use, efficient and user-friendly. These features may include a map-based interface, booking process, payment options, ratings & reviews system, real-time tracking feature and others. Having these features in place can help both customers and drivers get the best out of their experiences with the website.
Some of the important features are as follow:
- Driver Registration: Drivers need to go through a registration process to join the fleet of an aggregator. This process involves verifying certain documents, including driving license, identity proof and vehicle registration.
- Online Booking: Having an online booking system. It should let people book a ride from any location at any time. Being able to schedule a ride, track it, and estimate the fare are some of the essential features you should include in the system.
- Payment Gateway: For online payments, the website should have a secure payment gateway. Customers can use their credit cards, debit cards and digital wallets to pay through this gateway.
- Real-time Tracking: Having a tracking system so customers could keep an eye on their ride and know exactly where the driver is. Real-time tracking is really helpful for customers.
- Customer Support: Having a customer support system, so customers could get in touch with support if they generally have questions or need assistance.
6. How Much Does it Cost to Start a Cab Aggregator Business in India?
The cost of starting a cab aggregator business can vary greatly depending on a number of factors which can inflate the overall budget of the startup
The following factors to take into consideration when determining the cost of the starting are alike;
- Technology Cost
- Vehicles Cost
- Marketing and Advertising
- Regulatory and Legal Costs
- Staffing and Hiring
- Your geographical location
Overall, considering the various factors the cost of starting a cab aggregator business can range from $30,000 to $1,00,000 i.e, ₹80 lakhs to ₹ 90 lakhs to start a mid-size company with limited capital and resources. And to start a mass scale business like UBER, OLA, LYFT etc the cost would range between $5,00,000 to $1 Million i.e, ₹5 crore to ₹10 crores
7. What are the licenses and Permission required to start a Cab Aggregator in India?
India has seen a surge in the number of cab aggregator Businesses since the entry of players like Ola and Uber. To ensure safe and legal operations, the Ministry of Road Transport and Highways, as well as state transport departments have laid down certain regulations for these services. To legally run a cab aggregator business in India, one needs to adhere to these regulations.
Here are some of the necessary licenses required to operate your Taxi business in India
- Business Registration: Register your business as a company with Registrar of Companies
- Vehicle Registration: The cab aggregator business should ensure all the vehicles on their platform are properly registered with the Regional Transport Office (RTO) in the state where they operate.
- Obtain Commercial Permit: Commercial permit is necessary for taxis or cabs to operate as a commercial vehicle. Cab aggregator business should ensure that all the vehicles on their platform hold the necessary commercial permit from the RTO.
- GST Registration: Cab aggregator business should pay the applicable taxes such as Goods and Services Tax (GST), Road Tax, and other levies as per the regulations in the state where they operate.
It is important to note that the process and requirements may vary depending on the state in India. To ensure that all rules and regulations are followed correctly, it is important to consult with a qualified legal professional who is familiar with the specific requirements in each state. This will help you know exactly what you need to do to ensure compliance.
Promoting your cab aggregator business can be a challenge, but with the right strategies, it can be done. Some of the marketing techniques to get your cab aggregator business off the ground and attract more customers.
We will cover topics such as online advertising, content marketing, influencer marketing, and more.
8. How to Promote your Cab Aggregator Business?
By implementing these strategies, you can create an effective promotional campaign that will help you reach more potential customers and make your cab aggregator business successful.
- Online Advertising: Online advertising is a great way to promote your cab aggregator business. There are many ways in which you can advertise your business online, such as by using social media ads and Google AdWords. Here is some information about each type of online advertising:
- Facebook Ads: Facebook ads allow you to promote your business or product on Facebook.
- Google AdWords: Google AdWords is an online advertising platform that enables businesses to promote their products and services on the world’s largest search engine.
- Social Media Ads: Advertising on all social media platform to widen the reach.
- Search Engine Optimization: Search engine optimization is the process of increasing a site’s visibility through search engines like Google., Bing etc.
2. Content Marketing: Create valuable content like blogs, informative articles, videos and infographics that your customers can appreciate. You can post them on your cab aggregator business website, or other related platforms or on social media sites to draw in potential customers.
3. Influencer Marketing: Link with popular influencers and bloggers to get the word out about your cab aggregator business. They’ll share how great your service is and encourage their followers to give it a go – meaning more customers for you!
4. Local Advertising: Get the word out there about your cab aggregation business! Advertising in local newspapers, radio, OTT Platforms and TV channels to reach a larger audience.
Sponsor local events like road shows, public events, cultural gathering etc. Also, sponsoring local sports teams or athletes are also good ideas to give your brand more visibility.
5. Partnership with Hotels and Restaurants: Partnering with big and small hotels chains and corporate offices is an effective way to expand your reach and build trust with potential customers. By providing seamless cab services, you can make it easier for customers to reach the hotel or travelling to office. This will help you establish strong relationships with these partners and grow your business.
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Conclusion: The Best Way To Start A Taxi Company That Will Make You Successful
Starting a Cab aggregator business company can be a great startup to make money, but it requires careful planning, hard work and positive approach. To ensure success, you must consider the type of services you will offer, how to attract customers, and how to manage the fleet of vehicles etc. With the right strategies in place, you can create an efficient and profitable cab aggregator business that will keep customers coming back for more.
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