organising cab industry through a single platform
The cab industry in India needs more organisation as the shadow of fragmentation, lack of regulations, and need for standardisation in the service quality keep taxi services from maximizing their business potential. Riders, too, remain wary and concerned about hailing a cab alongside the road, worried about their safety and changing price variations.
This is where we, Pulpit Mobility, a subscription-based cab aggregator, bridge the gap for riders, as well as drivers in the cab industry. Wondering how? Keep reading!
Growth of the Cab Industry in the Light of Digitalisation
With the advent of on-demand booking options with digital platforms, the ride-hailing services and taxi service industry is receiving a much-needed boost towards growth. Let’s look at some statistics that support this claim:
- By 2027, experts predicted the users of such platforms to reach 110.30 million, with a user penetration to hit 7.5%.
- In 2023, the ride-hailing and cab industry to generate $13.41 billion in revenue.
- By 2027, the market to be worth $13.83 billion, an increase of 0.77% CAGR.
Given these encouraging numbers, a stable and well-structured platform that can handle the increasing demand for taxi services while catering to all the participants is a must. Currently, two types of ride-hailing service platforms play a part in organising cab industry in India:
1. Commission-Based Platforms
Through a commission-based model, each journey booked via the cab aggregator’s online taxi booking platform results in the driver paying the company a commission fee. Commission fees are often expressed as a fraction of the whole price and can be anything from 10-30% of the total fare, as set by the individual aggregators.
The commission-based approach is advantageous in a way that it enables drivers to be self-employed while making use of the aggregator's resources to get business. The aggregator handles everything from payments to customer service, so drivers can focus on expanding their client base and earning more money.
Unfortunately, drivers may lose a sizeable chunk of their profits due to commission costs in a commission-based business. Competition from additional drivers on the network might also reduce driver wages and make employment less secure.
2. Subscription-based
Subscription-based models have appeared as a substitute for commission-based ones in recent years. In a subscription-based approach, drivers pay a regular price, often once per month, to use the aggregator's online taxi booking platform. The membership cost covers the driver's usage of the network to discover clients and finish rides. In contrast to the commission-based approach, the driver keeps the full amount of the fare billed to the rider.
Drivers that value financial autonomy and are prepared to pay a monthly subscription fee in exchange for access to a bigger pool of potential riders may prefer subscription-based business models. Without concerns about changing rates of commission or vying with other drivers for trips, this approach may additionally offer more certainty and predictability for drivers.
How Pulpit Mobility Plays a Part in Organising Cab Industry in India
Pulpit Mobility emerges as a pioneer of the subscription-based cab aggregator model in India. We provide ready-to-go cab services for riders across the country while providing unlimited opportunities for taxi services to maximise their business potential without charging any commission fees. We provide a solution to an unorganised cab industry in India with a taxi app in the following ways:
Single Platform Accessibility
Currently, the cab industry in India is highly fragmented, as several small cab aggregators operate independently. Customers struggle to choose between operators to book fast and reliable cabs. With a single platform for both riders and service providers, we make on-demand booking much more efficient.
Customers can book comfortable cabs through our partners over our mobile taxi booking or website and enjoy complete transparency with prices, routes, arrival times, driver ratings, and more. With this information, riders need not delay their plans and make a decision on the spot and get going.
Safety and Security
Unregulated cab services have been abundant in India due to the lack of strict law enforcement controlling the cab industry until very recently. Customers hailing cabs on the road still cannot have any way of knowing if their journey is going to be secure in areas where regulations aren't taken seriously. Because the sector is so disorganised, there have been complaints of taxi drivers pestering passengers and rising crime rates. Because of this lax oversight and responsibility, passenger safety is often compromised.
At Pulpit Mobility, the safety of our riders and drivers is a priority. We have implemented training programs to make sure that the drivers using our online ride-hailing platform are trustworthy and well-versed in traffic laws, customer service, and other relevant topics. To further assure riders can book safe cabs, we run thorough background checks to learn about drivers' credentials. Our customer feedback and review system allows users to assess their satisfaction and provide comments on the taxi app so we can pinpoint problem areas and strive to fix them at the earliest.
Cost-Effectiveness
Another major issue that riders across India are wary of is price variations in the cab service. At Pulpit, we strive to provide affordable services to all. With a subscription-based model, drivers and partners need not worry about losing a chunk of their earnings and compensating for commissions. They can provide fair fares to earn enough without charging extra to riders.
Riders, on the other hand, can compare prices and choose a ride that fits their budget. They can rest easy knowing we have no hidden charges, implement strict measures to eliminate fraud and secure payments made in any way.
To enhance customers’ and partners’ experience on the app, we provide various offers and promotions to all the parties involved, be it regarding subscription discounts for partners and drivers or for riders to book pocket-friendly rides.
User-Friendly
We dedicated excessive efforts to making our taxi app easy to use for people of all ages and different walks of life. With our easy-to-navigate interface for both drivers and riders, we make sure that there is efficiency in matching supply and demand.
Riders can get a ride with our mobile taxi booking app or website, as per their needs, by simply choosing the type of journey and inputting the time and pick-up/drop-off location. They can then select from the rides offered based on their budget and the number of passengers. Drivers benefit from the simple interface of our taxi app to choose their own working hours and get real-time ride demands. We only show relevant trips to both parties, so there is no confusion and delays.
Conclusion
With a subscription-based model, Pulpit Mobility organises employment opportunities for taxi services to grow their business without worrying about any sneaky commission fees. At the same time, we mobilise our resources for riders to enjoy safe and reliable cabs with an on-demand booking platform that prioritises transparency to fight fragmentation, safety concerns, price variability, and poor service quality in the cab industry. Want to book a ride with us? Simply download our app or use our website. If you’d rather book it over a call, reach out to our customer service agent at +91 80520 80501.