When we speak about the on-demand ride-hailing enterprises, they are sailing smoothly when it comes to revenue and fame from all across the globe. This category of business is also guaranteed of more significant ROI. So for entrepreneurs who want to take a plunge into this business, they need to know what is the present condition of the same and what is in store when looking ahead.
Let’s begin by getting some insight into how this business is getting the upper hand in its war against COVID -19 induced lockdowns.
It is typical to conclude that the pandemic has negatively impacted the taxi business because of all the curbs and restrictions on the economic world. The lockdowns and other travel restrictions have sealed the fate of several enterprises, and many are shutting down amidst this time of crisis. However, on the bright side, the on-demand based businesses are thriving well enough with enhanced customer loyalty and greater profits. Although the banking and electronic sectors are struggling to stay afloat, the positive growth of cab business is set to surge even further.
That brings up the next question – How is the on-demand ride-hailing business reigning supreme despite the global recession caused by the COVID-19 pandemic?
But first, before jumping to reasons, let’s see some stats concerning the market.
- The ride-hailing business domain’s total revenue is estimated to surpass the milestone of $200 billion on or before the year 2025
- Another fact is that the CAGR of the taxi industry is expected to reach 17.5% in 2025, which is a tremendous increase from the previous numbers.
- Further estimated is that in the same period (2025) the user penetration will touch a record high of 20.5%
- An exciting bit of news is that the Asia-Pacific region of the globe has skyrocketed when it comes to the contribution of the market, and there is a significant increase in customer loyalty.
- This Asia-Pacific region accounts for more than 70% of the market share about the ride-hailing business domain.
The facts, as mentioned above, summed up the points that this enterprise is gaining the upper hand when it comes to market share and the total profits generated.
Now is a time where public transport is not going to resume anytime soon and private vehicles becoming way too expensive.
It is why on-demand taxi mobile apps prove their worth for a given set of people who need them regularly to travel to their workplaces. The COVID-19 pandemic has resulted in the shutdown of public transport across the globe because of safety purposes and rules. This situation was seen as an opportunity for taxi business-based companies where they comprehended the shift in the market and thus integrated safety precautions into their daily functioning. Thereby it piqued the attention of the public, and they started to see how beneficial this was when we speak about transportation.
This on-demand ride-hailing service providers offer the best when it comes to convenience and connectivity. A notable exemplar is the ride-hailing giant Uber which now operates significantly in the areas where formerly public transportation services plied. Now, as a result, the entire commutable route in the USA is wholly integrated and managed by these respective mobile apps. Further, it looks like long haul-based travels are also proposed. This service was earlier carried out only by the giants in the taxi business.
On-demand based industries are associated with more significant revenue, and ride-hailing business is also integral to the same as the risk factor is very minimal. Because of this, there is intense rivalry in the market to reign supreme as the best and generate greater profits.
The current situation is the right time to jump into the fray with a start-up idea related to ride-hailing business, and sooner the firm begins, the better the prospects will be.
If you are on the lookout for a reputed mobile application development team that has the expertise in developing ride-hailing mobile apps, then you can approach Uberdoo. Our team has developed a cost-effective Uber Clone Script that has everything necessary to start a well thriving on-demand taxi business in no time. The source code is 100% customizable, and we have also integrated safety features in the solution in light of the present pandemic to facilitate a safe and secure ride.
Contact us at Uberdoo.com to know more.