Modern technology has always influenced changes in traditional businesses. Customers evolve as their needs changes around them and the taxi industry is no different. The subtle shift to the digital world of mobile apps has altered the foundations of traditional taxi hailing industry to an on-demand one. Ventures armed with fully functional mobile apps worth their salt have brought in the trend of providing better service to the passengers by booking taxis at ease with a click of an app.
According to recent statistics, the total revenue in the ride-hailing services amounts to $82,437 million in 2019 and is expected to experience an annual growth rate (CAGR 2019-2023) of 12.8%, albeit resulting in market volume of US $133.4 million by 2023. User penetration is 8.1% in 2019 and is expected to hit 10.6 % by 2023.
This ever-growing and profit churning taxi industry is now in the process of adopting automation and AI in all its daily workflow. The biggest challenge in any taxi hailing venture is the fleet management, and this is where both automation and AI can make it work without any hassles.
Automated Delivery Dispatch
Dispatch and delivery tasks can be automated with the help of AI-powered algorithms. This technology can help optimize dispatching processes by considering a number of factors like the nearest available vehicle, distance of the passenger’s location, and other parameters.
Cutting Down Costs and Improving Performance
An automated taxi system will improve dispatching efficiency and streamlines the cash flow on all fronts. By eliminating several human errors along the way, the automated dispatch will increase the number of bookings without missing any requests. Also, provide back-to-back trips to improve your drivers’ needs and performance.
Route Optimization
The fleet management industry is faced with severe poor route optimization and paper trails for pickups leading to losses. With automated route optimization, you can save almost 50% on fuel cost. By this optimization, the automated dispatch directs the vehicle through the fastest and shortest possible routes. It can also track other tasks such as single pickup, multiple deliveries, etc..
Safer Rides
Gigabytes of user data along with ride details and payment details are being stored in secure servers. By integrating the automated system, the data is protected with the highest level of security standards. This ensures that the data is not hacked by any means. Another way of making rides safer is to use customized IoT devices for the fleet. By using this feature, if the vehicle and passenger are in any form of distress, the vehicle can send automated warning signals to the dispatcher.
Investing in Customer Experience
Passengers are looking for convenient ways to book a ride and expect vehicles to arrive on time for a pickup or drop. The automated dispatch system will spontaneously dispatch vehicles and assign drivers for passengers along with the rate card. This will increase the reputation and reliability of the company.
Wrapping-Up
The unprecedented speed of the innovating taxi industry has paved the way for entrepreneurs to start their own venture in the market. With a reputed taxi app development company, you can Kick-start your venture with the right tools, services, and extensive research. Introduce automation with AI to optimize your taxi business on the next level and stand apart from your counterparts in the market.
