Key Technologies to Use When You Set Up a Fresh Taxi Business

Before delving into the technical aspects of on-demand taxi solutions, it is necessary to define the term On-Demand Taxi Service. So, what exactly does the on-demand taxi app solution mean? On-demand taxi solutions are nothing more than a system interface that allows users to connect with transportation services at their request. Therefore, users can book a taxi from their starting point to any destination using a connecting platform, most commonly a mobile-friendly taxi app.

However, an on-demand taxi service requires extensive performance optimization and channel-wide connectivity. It must be equally effective on the front end and the backend. As a result, it will always be ready to provide services to users as and when they are needed. The Taxi booking app-like Uber is the best example, as it owns the most taxis and has the most users worldwide. And, much to most people’s surprise, it does not just own a single vehicle. So, what is it about Uber that is so compelling? It is both on-field performance and technology that is at work.

One thing is clear: you can’t do it without a proficient technology system to support your operations, communication, and on-demand offerings at the customer level. It clearly shows that selecting the right technology stack is vital for an effective on-demand taxi solution. But what are the key digital technologies that will enable a taxi operator to compete? And how can they build a profitable taxi business in a market crowded with taxi-hailing apps? Understanding this becomes easier once you’ve divided your services into smaller modules and features.

Here, we explore:

  • Key Technologies to Use When You Set Up a Fresh Taxi Business
    • Backend of a Taxi Booking App
    • Inter-App Communication
    • App Development for iOS/ Android
    • Taxi Dispatch Software
    • Payment Gateway
  • Wrapping Up

Get Started!

Key Technologies to Use When You Set Up a Fresh Taxi Business

# Backend of a Taxi Booking App

As the name implies, the backend is the application’s backbone, and as such, its development should get done with great care. A backend is in charge of connecting the app functions to their respective outputs. It is also the very first stage in taxi app development. For connecting the app to the appropriate interface, the two most commonly used programming languages are JavaScript and Python.

Next, you must choose a database where the app’s data is securely stored. MySQL, PostgreSQL, SQL Server, and Redis are used commonly for this purpose. Backend development is time-consuming and usually necessitates a large number of resources. Therefore, keep in mind that a solid foundation will benefit your taxi booking app in the long run.

# Inter-App Communication

When using an on-demand taxi service, two apps establish communication with users. The first is for the passengers, while the second is for the drivers. At some point, these apps must communicate with one another to carry out service flows and operations. These two apps serve as service interfaces, connecting both ends – allowing passengers to book services and drivers to perform services while also having access to the app for additional support and assistance.

Here’s how these two apps communicate with one another in multiple ways:

  • Send/accept a ride-booking request
  • Real-time tracking of the current location
  • Direction tracking
  • Automated Ride/Fare calculations
  • In-App chat and messaging
  • Ride rating and review
  • Ride cancellation request – both ways

These apps, however, communicate with one another via mobile data or Wi-Fi, which can be encrypted or unencrypted depending on the provider’s preferences. An application server routes the data to the destinations. Again, the data quality depends on the supporting system and the data exchange resources.

# App Development for iOS/ Android

Many businesses that want to create a customized mobile app, whether for online taxi booking or something else, have difficulty deciding on the best mobile app development platform. Because Android and iOS are the most popular platforms, the decision is essentially between these two. However, the condition should not have existed in the first place. Businesses should develop apps for both platforms to avoid missing out on either user base.

# Taxi Dispatch Software

Earlier, telephone operators used a two-way radio to receive passenger inquiries and dispatch jobs to drivers. They will have to assign jobs manually to the nearby drivers, but the process was slow and prone to error, not to mention that operations were frequently costly and inefficient. However, the recent technological advancements in Taxi Dispatch Software, GPS Tracking, Mobile Communications, and a myriad of other technologies have ushered a revolution in the booking and dispatch process and other aspects of taxi operations management.

Nowadays, having a robust taxi dispatch system allows for more than just simple dispatch. Typically, it will provide a possible resource to manage the following:

  • Customer information
  • Customer inquiries
  • Customer bookings
  • Scheduling
  • Dispatch
  • Routing and tracking
  • Fleet management
  • Driver management
  • Fare Estimates
  • Invoicing
  • Payments
  • Driver communications
  • Reports management

Moreover, it will also integrate with channels where customers can book a taxi, such as company passenger apps, websites, phone calls, and third-party aggregators. Taxi Dispatch System, being such a powerful platform in place, it becomes much easier to make crucial decisions on the spot and predict planning for forecasting and future income and, thus, growth. Furthermore, modern cloud-based pricing models that charge a small fee per vehicle per month allow private hire companies to grow and scale their operations without the need for high capital investments that were once the norm in the industry.

# Payment Gateway

The most crucial aspect of any on-demand taxi service app is payment, and it depends on a cashless payment system accessed via a payment gateway. Braintree is a market leader in the mobile payment segment, with high-profile clients such as Uber. Stripe is another payment service option that is a well-known player in the industry and provides equally dependable and prompt service.

These services also offer a split payment option, making the entire billing and payment process more user-friendly. Another fantastic addition to the service is PayPal’s payment scanning service, which allows your phone’s camera to scan credit cards and is available for iOS and Android users. Both apps have the same backend interface. Only the tools used in the development and the framework chosen will differ.

Wrapping Up

With everything moving toward digitalization, you must act quickly to give your taxi business a technological makeover. Meanwhile, if you believe you are doing a good job technically with your business, it is time to take it to the next level to avoid being eroded by the growing competition. Even if you have a unique idea for an on-demand taxi app, these technical details will help you bring the desired purpose and shape. All you have to do here is keep an eye on them, compare them for compliance with your objectives and requirements, and apply them as needed.

By integrating these technologies highlighted in this blog, you can build a robust taxi-booking mobile app. How carefully you researched the pain points of your target audience and how successfully you market them determines how quickly your app achieves popularity. As a result, if you’ve done your homework in advance, you’ll be ready to give your online taxi booking business the boost it needs.

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