EVs are on a roll nowadays and will be in the future, without a doubt. People prefer sustainable options while they make small decisions in their day-to-day lifestyles. Choosing EVs for transit is one such change they are adopting. Everyone together is bringing change and opting for energy-efficient and pollution-free transportation.
Besides, the increase in the on-demand taxi-booking business had abundant growth over the past few years. Many taxi players have contributed a huge share of the taxi market. We see a lot of buzz around entrepreneurs looking for answers and ways how to start an EV taxi booking business online.
Fare optimization, quality improvement, and personal safe rides are increasingly attracting more people and, therefore, businesses. And one major reason is convenience and accessibility for both.
If we look at the next 5 or 10 years, the online taxi booking statistics are mind-blowing. +growth in the users of the online taxi business, taxi booking business growth, and increasing the metro city population.
When we think of the relationship between EVs and the on-demand taxi business, although futuristic, it does not seem entirely convincing. Here in the blog, we will figure out how to start an EV taxi booking business.
Let’s begin by uncovering facts about the EV.
EV and the Future: Numbers to Not Miss Out
The 2023 outlook for electric cars is bright
In the year 2023, the boost in electric vehicle sales is bolstered as endowed by cost reduction and improved policy support in key markets such as the US. The upcoming years will be broadening markets, reducing the gaps between the entrepreneurs, and launching a taxi booking business, including EVs in their business model.
Source: BloombergNEF
As you see in the numbers above, 2040 will have 730 million passenger EVs on the road. This mobility market is ever flourishing, and it gives us the check to the entrepreneurs to launch an EV taxi business.
We have a few more statistics to convince you.
As per Statista, EV market unit sales are forecasted to reach 17.07m vehicles in 2028. Further, the revenue is forecasted to show a compound annual growth rate (CAGR 2023-2028) of 10.07%, resulting in a projected market volume of US$906.7bn by 2028.
What Role Uber Health is Playing?
Numerous businesses have already stepped forward in this subject. One of these is Uber launching Uber Green India, Australia, North America, etc, targeting 140 cities globally. It is giving a greener alternative to the convenient choices people make every day.
Uber is trying to uncover the complications for the drivers to get the EV charged at the right time so they do not miss out on the peak earnings.
Besides, the major EV taxi players are
- Ola Cabs
- eee-Taxi
- Blu Smart Mobility
- Taxi Electric
- Connexxion
- Uber
- Say Taxi
- Prakriti
The Idea of EV and Taxi
The growing rage of EV taxis is due to many reasons. And that is for both customers and businesses. It’s an effective solution for the environment as well.
Well, when we think of as entrepreneurs, we should be learning from both sides. What could be the drawbacks and advantages of a business? Which then will let us know the priorities of the business.
All this idea of EVs and taxis is not that feasible, it seems. There will be issues with battery charging, finding the appropriate charging hub, managing the rides, and again reaching the charging points, EV maintenance costs, and much more.
Although these are the things taken into consideration, they are expected to be less problematic, or we can say more accessible resources.
To prove it here, we have a few numbers.
With the increase in the number of EVs, there was an upsurge in demand for charging stations. All the prominent countries like China, the US, and Germany of EV vehicles are significantly investing sustainably in the EV charging setup.
The EV charging station market is foreseen to reach $76.9 billion by 2027, at a CAGR of 45%, as forecasted from 2022 through 2027. Installing charging points is not just installing, it also includes locations, maintenance, surveillance, etc.
Moreover, there is also a steep rise in wireless charging for EVs. The international wireless charging market for electric vehicles size is foreseen to boost from $80 million in 2023. By 2030 with a CAGR of 48.4%, the market is envisioned to expand with $1279 million.
The aforementioned numbers are enough to convince us that there are enough possibilities in the EV market. And thus, we can now, without delay, move to the next topic – how to start an EV taxi business online.
Want to know more about the readymade EV taxi platform? Here is everything you need to know about.
How to Start an EV Taxi Booking Business?
We will be exploring some of the consequential and basic steps to build an EV cab business. There will be a few differences and similarities in the goals when compared with the online taxi booking business process, as both are the same industry.
The aforementioned numbers are enough to convince us that there are enough possibilities in the EV market. And thus, we can now, without delay, move to the next topic – how to start an EV taxi business online.
Understand the Market
Market awareness is crucial. Also, when you are trying to aim for a flourishing industry. The EV taxi market has a huge scope, as seen in the numbers above. Besides, understanding the competitors is where you can get the competitive edge on your business model. Learn what you can do better for all.
Understand your Competitors
When you start any business, research is crucial. As we have seen so far in the blog, EV taxis are a flourishing market. Explore your niche market to learn about the competitors and do better than all of them. It will also help in preparing an exceptional value proposition for your business.
Build a Unique Value Proposition
You can strategically set up your EV taxi company, deliver better services, and discover methods to stand out in the market by knowing who your contenders are. You’ll be better able to make educated judgments, customize your marketing tactics, and ultimately supplement your possibilities of success in the cutthroat taxi business.
Prepare a Regions
The plan is to launch in regions where you can estimate the highest results, such as Tier 1 and Tier 2 cities that launched. Also, be specific regarding the routes and areas for your business, analyzing the rider’s behavior, time, and preferences in each of the areas. In such a way, it would be more painless to evaluate the effectiveness of a business.
Business Model and Revenue Channels
Plan your business with short and long-term goals, value propositions, investments, and, most importantly, revenue strategies for your business. Follow the strategies to increase the popularity of your business that will generate more awareness amongst the audience, and they will be converted into potential users.
Estimate Investment
You will require a significant amount of investment for EVs and the online platform you build. Since the EV market has not yet prospered, you have to spend a lot on EVs. There will be a significant amount of investment for awarding users about the benefits of EVs over other convenient fuel vehicle rides. Besides, investments in on-demand platforms will also be one of the major needs of the business. Get insights into the funding-raising possibilities for your app.
Build a network of EVs and Drivers
When you launch your business, you have a prepared network of EVs and professional drivers. Build a team of drivers who could work full-time and those who desire part-time employment. You can also hire drivers with EVs or new drivers who can do this job for you.
Launch Your Business
Launch your business EV taxi platform with all the steps you are prepared for. Every business has its own circumstances. So besides these steps, be prepared for all of the surprises. But that will be the part of your business. Dealing with a new task every day and moving on. EV taxi business is yet a new concept for all.
How To Manage a Fleet of Electric Cabs? Role of Hubs and Driver
Overseeing the electric taxis and dedicated drivers will be a paramount situation, and therefore we are trying to break it down for you.
EV Hubs and Charging Station
Set up a few hubs in the region where you want to launch the EV taxi business. The hub owners will be operating the EVs and drivers for each EV and will oversee the EV rides that are booked. They will know the rides assigned to the hub, then the drivers assigned for that ride, and they pick the EV. Until the driver keeps the EV back in the hub station.
Customer’s App
Build a taxi app for customers where your users can book the EVs, with price and time estimation. Offer multiple payment gateways to your riders, giving away the customer’s app. Offer them impressive features for taxi apps like real-time taxi tracking, pre-price estimation, and digital invoice generation.
Let’s Get Started
There we sum up our answer to your question, how to start an EV taxi business online, breaking down the process. Initiating a business that brings an endurable impact and making it profitable is a difficult task. There will be a bunch of hurdles to be faced. But with the exemplary business model and you have an exemplary platform, profits would be more accessible.
If you are looking for a company that can build a taxi app platform, Elluminati is your go-to place. We have a prebuilt taxi app script with all the necessary features and functionalities for an EV taxi business. Reach us today and get the tailor-made and robust platform.
