Traditional taxi and limousine services have lead the transportation industry for a long time. But, the rise of ride-sharing services like Uber and Lyft have captured the market and put a sizeable dent in the taxi and limo industry due to their flexibility, cost-effectiveness and accessibility.
With the market disrupted, limo and taxi service providers need to make significant changes to their business strategies to better compete with ride-sharing services. Here are a few ways they can do so.
1) Fare Flexibility
Many people find Uber and Lyft to be more convenient alternatives to taking a taxi or limo. This is because these ride-sharing services can adjust their fares based on demand whereas the fare rates of taxi and limousine services are fixed. However, surge-pricing during rush hour or late-night drives is an issue. To compete with Uber-like services, traditional taxi and airline limousine services need to account for fare-adjustment. They should implement fair pricing that charges by mile and provides different deals and offers, instead of offering flat rates on the basis of zip codes and areas covered.
2) Invest in a Mobile App
Creating a mobile app is something limo companies need to stay competitive. Online transportation services are flourishing because they have a wider reach due to their mobile apps. Customers can book their rides instantly, communicate with the driver, track their rides and make online payments with the help of these functional apps.
By creating mobile apps, taxi and limo services will be able to offer instant pick-ups to their customers. Some limousine companies such as Airline Limousine, have already launched their mobile app for this reason.
3) Focus on Group Transportation
Not everyone can afford to pay the entire fare of a taxi or limousine. Group transportation or pool services offered by Uber enables the riders to reach their destination at a comparatively lesser fare by sharing their ride with others on taking the same route.
Taxi and limo service providers can focus on group transportation to target other niche demographics. They can look for other avenues of business by investing in shuttle and van services. This can expand their area of operation and help them cater to the needs of customers that their competitors are offering.
The state of the market is changing and with it, what customers expect. Taxi and limo service providers can compete with Uber-like services by adapting to the market changes. It’s never too late to steal the show and lead the transportation industry again.