Advancement of technology and taxi aggregators have changed the way we commute on a daily basis. Taxi aggregator helps in organizing an unorganized and populated network where the firm collects the information about the services they provide to people. The approximate population of India as of 2019 is 1,350,438,098 which, provides Taxi aggregator business with great potential and a huge market opportunity in India. With the millions of ride, everyday taxi aggregators have changed the way business works. The best example of taxi aggregators in India is Uber and Ola as they provide with affordable cabs, better service, and great customer experience.
Without further ado, let’s discuss how taxi aggregator business works in India and know how one can start a taxi aggregator business in India.
How Does Taxi Aggregator business works?
Taxi aggregator business works exactly the same as the market aggregator. Taxi aggregator is not the owners of the cab which provides services to you. They just combine different cab operators to provide services under their name. Taxi aggregators basic work is building their brand, getting more market share, and providing users with on-demand cab services to the ultimate user.
The aggregator business model is a network model where firms collect goods & service information from different providers and make the providers their partner, and sell their service under its own brand.
With the explosion of cost-effective technologies and the rise of smartphone users and mobile apps, entrepreneurs are looking for new possibilities in taxi aggregator business. It doesn’t own any physical assets as all the taxis are owned by several providers. Uber and Ola undoubtedly have built an exceptional reputation in the market and have become major players in India.
Taxi Aggregator Business in India: How to Start
With the rise of technology and on-demand services, the aggregator model is playing a crucial role, bringing the structure and equilibrium with the organized space across several industries. To start, taxi aggregator business one must follow the given steps:
- Start Online taxi booking app development and create a rich website.
- Focus on the unique feature of taxi booking app.
- Promote flexibility and transparency.
- Launch the fully functional app and offer real-time information with great services.
- Focus on marketing your app through social media channels.
- Provide with secure payment gateway.
Characteristics of Aggregators
- Customer: – In the aggregator model, there is two of fold customer strategy. One is service consumer and other is service providers. Both works as the customer of the company.
- Quality: – Quality is one of the biggest characteristics in taxi aggregators as they provide with standard quality to every user.
- Industry: – All the service providers in the aggregator business belongs to the same industry.
- Partnership Model: – All the service providers are not the employees of the aggregators they act as partners in the business.
- Brand: – Taxi aggregators have a brand recall value as all the services provided by aggregators are from a single brand but different providers.
Taxi Aggregator business Plan and Model in India
To start a taxi aggregator business in India, one must have a great business plan. Online taxi reservation systems based on an aggregator model in India act like any other online aggregator. It collects all the offers from a partner, taxi service providers on the basis of data provided by the visitor. There are multiple types of car rental business plans:
- Cab Aggregator
- Rental Fleet Business
- App-based Cab Aggregator
- Small Investment business by attaching your car with Ola Cabs.
All these plans work considering the market demand, projected annual revenues and expenses, and your startup investment. There are multiple revenue lines in India:
- Fleet Management via TeleSales
- Percentage Commission from Trips being served through its platform (Trip-Based Commissioning)
- Corporate Tie-Ups / Event Tie-Ups
- Vehicle On-Boarding Fee
- In-Cab Advertisements
- Fleet Leasing (To Drivers)
- Car Type
- Peak Time Charges
One can choose as per their business plan and strategy.
How big are the competitors?
Competition in the aggregator business model is intricate to handle. In taxi aggregator, the same partners might work for competitors too. Ola, Uber’s biggest competitor in India, received a total equity funding of $903m and is currently valued at $5B.
Uber has a global market value of $72 billion and it has generated $12 billion in gross bookings in the most recent quarter.
5.9 Million people use Ola in India and there are approx 150 Million Ola customers globally.
Ola, Uber’s biggest competitor in India, received a total equity funding of $903m and is currently valued at $5B.
The Current Picture of taxi Aggregator business in India
Ola rides on an average 1.5 million rides per day. Which clearly represents its value in the market. https://expandedramblings.com/index.php/ola-statistics-facts/
Total venture capital raised by Uber stands at $24.2 billion, its valuation in 2018 was $72 billion.
Uber and Ola both the companies have witnessed great rapid growth in India and plan to grow stronger. With millions of rides around the globe, they provide with great transportation services.
How to Register a Cab or taxi Aggregator business or Company in India
To register a cab or a taxi aggregator business or company in India one must prepare a business model and plan. Once your business model is ready there are a lot of ways you can register your company in India like Register as Private limited Company or Solo firm. There are websites like myonlineca which, helps to register the firm and choose the right legal entity for your cab business in India.
To run a car rental company in India license is a must. Apart from that you have to apply for the service tax registration as a cab service provider and recover the service tax from the customer and pay to the government.
Aggregator Revenue Model
The process of generating revenue varies from business to business. In aggregator business service providers play a vital role. Here we have listed some points to help you understand how they generate revenue.
➢ The aggregator provides organizations with the customers and in return charge any commission.
➢ The associate request the list price at which they’ll operate and the aggregators, after adding up the take-up rate, quote the final price to the consumer.
Aggregator model creates an environment where a firm collects information on goods and services from various competing sources at its website.
Author Bio: Yatendra Singh
Holding years of rich experience in Content Writing on different niches and exploring ways to learn more. Majorly talks about Traveling, Games, Software, Mobile App Development, Lifestyle and attempts to spread knowledge about the latest trends and technologies.