One of the main challenge which the new minicab business model is facing from the rideshare services like Uber and Lyft. Their model includes all types of cars and their operation is online. There is no meter reading and bargaining system at all. These above-mentioned ride sharing services are covering the large area of the metropolitan. The main reason for their wider network is that they hire private cars which car not specified for using as a taxi.
Technologically advanced competitors:
Minicab business is facing threats from the latest taxi services because they are using technology at very advanced level. Their model is using mobile apps for their services. This method is very easy for a client to approach taxi other than to call a number and sometimes line busy or sometimes they didn’t fulfil the commitments they said to the clients. The mobile app gives clients the whole detail of the trip regarding location, time and price. The mobile app also gives you already set feedback and rating about the driver. These features are very powerful and effective for the growth of the business. If we talk about the minicabs they are missing all the feature said above.
The scope of minicab is very limited and it covers the very specific area to get clients. They can provide you services if you are living in the same area or you are going to get a ride in the same area. Let’s take an example if minicab has its stations is Tooting, then minicab will give you services in the nearby area. But if we talk about the ride-sharing Uber and Lyft then they are covering the whole city and they are equipped with a large fleet.
Minicab taxi business is best regarding fleet and latest model cars. These cars are on the other hand are expensive and their maintenance is also expensive. You need to be more careful about hiring the drivers. You need to select the expert driver so that they can earn the revenue which you have already spent on the cars but these drivers are also highly paid. But as for the ride share business is a concern, they don’t but their own cars but they get services from the people from the vendors. They don’t need to worry about the maintenance and car of the car. There is no specific budget for the cars to maintain and care.