Whether you have a taxi or ride-hailing service in Singapore, this type of on-demand transport remains hugely popular for residents and tourists alike. From a business perspective, it’s important to constantly aim for improvement and identify creative ideas for the taxi business and challenges you might face offering taxi and ride-hailing services.
Are you interested to find out more? Let’s start unpacking.
If you’ve ever used a taxi in Singapore, you probably know that taxi drivers tend to be very picky about who they pick up and which destinations they’re willing to drive to, which is not such a big thing with ride-hailing drivers. Here are some more differences between these services you may want to know about, especially if you want to start or boost your taxi or ride-hailing business.
While there are some main differences between these services, and despite taxi services experiencing a recent decline, each has its function in Singapore society, and some individuals favour one over the other, making both relevant and in-demand businesses.
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No matter how successful your business is, every business owner knows it’s important to always be on the lookout for further improvement and new approaches, especially with shifting market trends and emerging technology. Our four tips start at the foundation of creating a solid taxi or ride-hailing business so you can re-evaluate and optimise your entire operation from the ground up.
If you want to climb the ladder of taxi or ride-hailing business success in Singapore, the best place to start would be with the basics. Even if your business is already up and running, it’s never a bad idea to review your business needs, as these “basics” may not be as simple as you think, especially regarding their potential effect on business success.
Identify your financial needs with effective budgeting
Every business needs a budget, and the ultimate goal of effective budgeting is to allow yourself to make smarter business decisions and focus on the most important expenses that will help your taxi or ride-hailing business grow. If you’re starting out, it may help to ask how much it cost to start a taxi business, while if you’re already in the swing of things, optimising the way you budget is a necessity.
Finally, make sure you re-evaluate your budget regularly, as your cost requirements may change.
Upskill yourself on vehicle acquisition and care
What would a taxi or ride-hailing business be without vehicles? Whether you plan on starting a taxi business with one car or have a fleet of 50 vehicles, this industry requires know-how on basic vehicle acquisition, maintenance, and care.
Invest in vehicle tracking and fleet management technology
Having no visibility of your driver’s movements leaves you in the dark and prevents you from making informed decisions before a situation with a customer escalates. Cartrack’s advanced fleet tracking and fleet management system, which offers GPS tracking and telematics-based and real-time insights, gives taxi and ride-hailing business owners the power to keep an eye on their drivers and make smart, proactive calls before difficult situations escalate.
Brand building offers massive business growth support, including increased brand credibility, boosting brand awareness and recognition, and positive word-of-mouth marketing.
Identify and understand your market
To understand your market, determine your current market position and take it from there. Valuable tools like the SWOT analysis give you crucial insights that enable you to identify and understand your market:
This analysis model gives you a comprehensive overview of where you need to start and what needs to change for you to begin boosting your taxi or ride-hailing business.
Enhance your online presence
If you’re wondering how to boost your taxi and ride-hailing services online, there are many great methods you can use.
For any fleet-based business in Singapore, compliance with road rules and strict LTA-issued regulations is a must, whether they directly target your drivers and driver behaviour or your fleet of vehicles. Here’s what you need to know.
Stick to the latest vehicle regulations
At the start of 2024, the LTA or Land Transport Authority announced that a new and revised version of taxi and other point-to-point (P2P) transport business regulations will take effect:
Monitor driving habits
To ensure your fleet adheres to Singapore’s strict road rules and regulations, you need a smart driver monitoring system. An ideal solution is Cartrack’s telematics-based driver Risk Reports, which provide information on dangerous or risky driver behaviours like speeding, sharp cornering, over-revving the vehicle, or even harsh braking. These data empower you to help drivers improve and correct their mistakes.
Is the customer always right? If you want them to use your business again, it’s important to take away as many possible opportunities for them to be “wrong,” meaning giving them a wide range of options and premium service. Here are some direct and indirect ways you can boost your customer retention.
Convenient payment methods
Taxis usually have metered systems, so customers only pay when the ride is over, while ride-hailing services allow customers to see how much they’ll pay before they decide to get into the vehicle. In both cases, however, making the payment options as simple as possible will make both rides more convenient for customers.
This means providing as many payment methods as possible. Consider the following options:
Customers have different payment preferences, and catering for as many as possible helps you attract and retain a loyal following.
Responsible and courteous driver behaviour
Nobody wants to get into a vehicle with a rude, ruthless, or irresponsible driver, so making sure your drivers behave professionally and are always courteous and polite to customers plays a significant role in customer retention. Luckily, there are advanced tools out there to help you keep an eye on your drivers, like:
Cartrack’s SmartCabin camera technology allows you to live stream footage of your drivers to give you full visibility of their conduct and the ability to investigate customer and insurance claims with solid proof in the event that you need it.
AI-powered technology that provides automatic driver behaviour detection helps you stay in control of driver behaviour management, which is directly linked to customer satisfaction. After all, nobody wants to get into a ride with a rude driver who smokes in the vehicle.
Driver promotions and incentives
Constantly monitoring drivers can demotivate them if there’s no upside, which is why using a driver rating system like Cartrack’s Driver Scorecards to provide incentives and bonuses can help provide this necessary boost and make a notable contribution to a positive customer experience. Driver Scorecards rate drivers out of three stars based on their driving behaviour, so you can reward those who consistently get high ratings. Consider these ideas to create a successful driver incentive system:
Keeping your drivers happy helps keep your customers happy, which, in turn, protects your bottom line.
Irrespective of whether you’re starting your taxi or ride-hailing business as a driver or if you already have a driver to work for you, here are some of the main challenges to focus on overcoming to boost your taxi and ride-hailing business:
Fluctuating fuel prices
As with all fleet-related businesses, fluctuating fuel prices play a significant role in taxi and ride-hailing businesses’ ability to budget and even offer consistent and competitive pricing. According to a news article published in December 2023, popular Singapore taxi companies like ComfortDelGro added surcharges to their fares to help drivers cover operational costs. While this may help partially bear the financial brunt for drivers, it can affect customer loyalty as long-time customers may start looking for cheaper options elsewhere. For ride-hailing services, fluctuating fuel prices directly influence the trip price, which can also affect customer loyalty.
Difficult customers
Getting positive feedback from customers is crucial for brand trust and business growth, but these situations cannot be 100% ruled out; no matter how many measures you put in place to ensure customers have the best experience, there will always be a chance of having one being dissatisfied. The main reasons include:
An aggressive or argumentative customer can even pose safety issues for both themselves and the driver, making it essential for drivers to master early detection of these types of situations and know how to respond to diffuse potential conflict. Offering a supportive work environment and providing drivers with the tools they need to handle difficult situations can help them diffuse difficult situations, turn negatives into positives, and even reduce staff turnover by offering them the support they need.
Safety concerns
Statistics show that taxi crashes are a very real concern in Singapore as taxis, which account for almost 3% of the Singapore vehicle population, have been involved in over 14% of road traffic accidents in the past few years. This does not mean that taxi drivers are always at fault, though, but compared to other modes of transport, taxis have significantly longer running time on Singapore roads, which links directly to higher taxi-related crash rates. This, of course, is a significant safety concern, and the best way to combat and increase safety for taxi or ride-hailing drivers is to look at their driving behaviour shift duration and try prevent distracted driving.
Cartrack’s telematics-based Risk Reports are also useful here, as they allow you to pinpoint bad driving behaviour that causes safety issues. Combining our driver Risk Reports with our Coaching platform allows you to pinpoint behaviours that need attention and develop effective driver training.
Vehicle wear and tear and unplanned downtime
A major part of providing successful taxi or ride-hailing services is ensuring your vehicles are fit to be on the road as much as possible. Vehicle downtime means fewer rides, leading to reduced profits and less earnings for your drivers, who, if working on commission, may end up feeling demotivated and looking for other work. Taking a proactive approach to managing mechanical issues allows you to keep your fleet in top shape and avoid expensive vehicle repairs with early issue detection.
Cartrack’s CANBus-enabled vehicle diagnostics give you real-time alerts for issues like engine faults and other problems, allowing you to act immediately instead of only discovering these issues when they’ve already led to bigger problems that need more expensive repairs. Coupled with intelligent preventative maintenance scheduling and alerts based on your vehicles’ odometer readings and most recent service dates, you know exactly when vehicles are due for maintenance or services, helping you to plan ahead, manage vehicle wear and tear, and keep your fleet’s productivity alive and kicking.
Can ride-sharing be a viable alternative to taxis and ride-hailing? There are some notable differences, so let’s compare them and find out:
Unless you regularly travel to a specific location and know others in your area who do the same, using a taxi or ride-hailing business will not only be easier to find, but you will also score on safety and convenience, even if you may end up paying a bit more.
Behind every successful taxi or ride-hailing business is superior technology tailored to optimise and simplify your operations. Cartrack is the all-in-one solution you need to boost your taxi and ride-hailing services and get the results you want.
Contact us today for a free demo.
Discover the top tips for boosting your taxi and ride-hailing services and how to overcome industry challenges with Cartrack’s advanced solutions.
