Over the past few years, we have witnessed a drastic change in the world of ride-hailing services. Specifically, we point out the taxi industry market after the 2020 pandemic. In that case, we noticed that the entire cab sector has now started running more advanced, that is, by applying all the latest technical features to expand the business.
In other words, there is nothing wrong with saying that the traditional taxi industry is now smartly shifting toward an online ride-hailing service. It has successfully changed users’ preferences by providing a quick booking facility, ensuring safe and quick rides.
By analyzing the recent trend in the cab industry, we can easily predict that the taxi business’s growth will double its market size very shortly as more and more business owners are now working on converting their transportation businesses online. So, today, with the help of this blog, we will cover about 99, a ride-hailing service provider, and will take a deep dive into the 99 Business Model and its successful timelines.
What is 99 App? – Take a Look At its Successful History
As discussed above, the cab industry’s demand is increasing rapidly, and so is its growth. According to a report, the online taxi market size, as of 2024, is $278.65, which will be doubled, that is, $432.56 billion by the end of 2029, along with a CAGR of 9.01%.
Now, if we are talking about the 99, founded in 2012 in Brazil, it is popular for providing car rental and ride services to 500 Brazilian cities. The CEO, Tony Qiu, is the key person handling the 99. Moreover, the parent company of the 99 is DiDi Chuxing, a Chinese service-providing firm.
Brazilian cities loved the way 99Taxis imparted services to its customers. Not only that, but the firm grabbed the attention of 100M+ users within just 2.5 years, and today, 99Taxis stands at the top position in the ride-hailing app in Brazil. In addition to car rental and taxi services, the firm also offers several products like 99 Taxi TOP, which is limited, 99 Comfort, 99 Food, 99 POP, and 99 Taxi.
We also discussed its funding. On January 3rd, 2018, DiDi acquired the remaining part of the 99, but they haven’t revealed the amount. Still, based on a few sources, it is believed that the last acquisition was around $600 million, which makes the 99 the first Brazil start-up firm valued at over $1 billion.
If you wish to reshape your on-demand taxi booking app, then let’s get our 99 like app framed with all the latest integrated features and functionality.
Surprising Facts & Figures of 99 Business Model:
99, previously known as 99Taxis, is one of Brazil’s popular ride-hailing service providers, and DiDi was later acquired. Now, after collecting the information about the success of the 99, it’s time to note down some of the interesting facts & funding figures about the 99, which are already mentioned below;
Founded: 2012
Founder: Renato Freitas, and two more
Headquartered: Latin America
Previously Called As: 99Taxis
Parent Company: DiDi
Total Funding Amount: $244.3M
Now, to understand the firm scenario more clearly way, let’s check out its facts and figures, given below;
- 99 has a total of 6 funding rounds, and they raised funds from 15 investors, of which their recently added investors are Monashees and the SoftBank Vision Fund.
- The first and second funding rounds were conducted on June 5th and July 15th of 2013, and they raised $3M twice.
- Later, in 2015, the firm raised $15M and $25M from Tiger Global Management.
- On 5th January 2017, the firm raised the fund of $100M from DiDi.
- Lastly, in May 2017, 99 raised $100M from the SoftBank Vision Fund.
How does 99 works? Have a Look Towards Its Business Strategies
Nowadays, we know that the market size of on-demand ride-hailing apps is rapidly increasing, and this constant rise in demand opens up new doors for competitors to enter the market. However, it is also a fact that not every online cab reserving business can offer cut-throat competition; the main reason behind this is its different working business model.
But, if we talk about the 99, formerly known as 99Taxis, then it engaged a huge customer base using a unique but simple business model.
So, now, let’s check out the unique elements of the 99 Business Model and how it helps the business to expand its market worldwide.
Key Activities:
- Ensuring a smooth payment translation process
- Joining hands with a driver, as well as with the service providers.
- Constant marketing through various social media platforms is needed to grab the attention of more users.
- Manage all the day-to-day activities to run the business operation smoothly.
Value Proposition:
Value Proposition for the Users:
- Users can create custom rides by adding the required accessories, vehicle types, etc.
- Also, they can easily book the trip now or have the option to schedule it later.
- Competitive fare price of a rental package, compared to others.
- Passengers can use their preferred payment options to pay for the booking.
Value Proposition for the Drivers:
- The best option for those drivers who want or who wish to earn more income
- There is no fixed period to serve; drivers can select their preferred time to offer the services.
Customer Relationship:
- The business provides 24*7 services to its users
- Also, the platform includes an in-built chat & call support to solve customers’ queries.
- It also includes a feedback system for users to express their rates and reviews of the services.
Key Partners:
- Users are considered as the prime partners of the business.
- Tech service providers help your business run smoothly by installing all the required digital tools.
- Later comes the providers who are handling the entire ride management.
- Investors help expand your business and help you make various business decisions.
How Does 99 Make Money? – Glimpse at its additional Revenue Sources
Most of all, online taxi businesses make money through commission charges. However, aside from the commission charges, there are a few additional revenue sources that help companies earn huge profits. So, let’s quickly look at some of 99’s additional revenue sources.
Commission
Most businesses profit from commissions, which they take separately from their users, drivers, and service providers. The commission rate varies between 5% and 20% based on the brand’s popularity and market. Previously, 99 took a 9% commission, which might be increased nowadays based on the market.
Surge Pricing:
Many online taxi service providers charge a surge in pricing from their customers for a particular place or period when the demand exceeds the supply. This is an extra channel to make profits
Premium Ride Charges:
99 offers its passengers a range of vehicle options, but the fare will be more expensive if the users prefer to travel in a luxurious vehicle like a Limousine.
Apart from this, several more ways to generate revenue include advertisements & promotions, cancellation charges, etc.
Wrapping Up:
Finally, to conclude this blog, we hope you have a clear idea about Brazil’s 99 ride-hailing and car-rental service providers. To learn more about the firm, we have also shared in-depth information about the 99 Business Model, which helps you explore its additional revenue source. Also, we realized that the demand for transportation services is increasing worldwide, inspiring numerous business owners to start their taxi-booking businesses online.
However, starting an online business is challenging. If you have decided to proceed with your online business plan, connect with Elluminati, a prominent firm with deep expertise in the technical field. Our team will first analyze your overall business plans, serving areas, features you want to offer your users, etc. Later, the team will help you create your app like 99 by covering all your requirements and making it stand out from the market.
