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The Advantages of Pre Booking Taxis

Taxis are an essential component of our lives. Taxis are the lifeline of everyday commuters, especially in places where alternative modes of transportation are limited. Taxi are a blessing for the developing white-collar or pink-collar segments of society.

In India, there are several types of taxis. There are simple carbs accessible for hailing on the route.   Other cities (such as Bangalore and Hyderabad) rely solely on radio taxis like Ola, Uber, and others. Taxis are more than simply four-wheeled motor vehicles.

You also have transportation like bullock carts, vegetable carts, and so on that are regarded as similar to cabs in rural and semi-urban regions and are part of the unorganized sector that has never paid any taxes. 

What exactly is just a radio taxi?

GST describes radio taxis as any taxi, including a broadcast cab, that has two-way radio contact with a centralized power center and can be tracked using the GPS navigation system (GPS) through General Packet Service (GPRS). This includes ride-hailing services like both Ola and Uber.

The Effect of GST on Cabs

The same will be confirmed under GST, with radio cabs and AC buses subject to City Taxi Toronto. Metered taxis and rickshaws (including e-rickshaws like Ola Auto) would be exempt from GST. Without the ITC, the Rate of GST will be 5%. Uber will charge the passenger a 5% GST here on the fare.

Mechanism of Reverse Charge

According to the reverse charge announcement, radio taxi firms must pay GST on a chargeable basis. Previously, rent-a-cab services used a partial reverse charge method. If the providers (drivers) did not obtain a reduction, the service receiver (rent-a-cab services) was obligated to pay 50% under RCM. The service provider was responsible for 50% of the costs. However, if the service provider receives a reduction, the service receiver must pay 100% of the service tax owed on the diminished value. To eliminate such ambiguity and problems under GST.

How will it function?

Ola Cabs hires drivers to transport clients in automobiles. Ola’s chauffeur/driving services are provided by drivers. Ola seems to be the service receiver, and drivers are paid a portion of the fare received from passengers. A driver, for example, will earn Rs. 100 as a fare share. Ola will pay the driver Rs. 100 plus a deposit of Rs. 5 with the government. 

Ola would collect GST here on a fee after providing its service to the client. On a reverse charge basis, Ola pays GST on the services provided by its drivers. Ola can recover the ITC on RCM AC Taxi paid and offset it along with output tax liability. The goal of reverse charge would be to bring this unorganized sector under taxation. It also eliminates the Individuals with low means (drivers) who bear the burden of tax compliance, whereas giant corporations (Ola) bear the burden.

Public Relations and Media

Businesses such as Uber also use traditional media and public relations strategies to extend their consumer base and attract new customers. You may publish intriguing tales in local newspapers and even generate material for radio and TV. You may hire a public relations agency to handle things if you don’t have in-house skills.

Effective public relations will raise brand recognition, build the brand, and leave customers with a favorable view of your company. PR methods might also help you turn your viewers into consumers.

Advertising with a Purpose

Your chances at conversion rise when you target an individual who has shown interest inside a ride-hailing service; this is true with advertising!

You may target your target client group across several platforms by using algorithms and consumer behavior and preferences. If they see your adverts, they are more likely to choose your service.

Pay-per-click (PPC) advertising can be used to target certain audiences. When someone searches for taxi services, your advertisements display on web sites and in search engine results. You should pay for each click on the link made by a viewer.

Fleet Identification

You’ve probably seen the Uber or Ola brand emblem on the car that comes to pull you up. Putting your logo on your fleet vehicles or covering them in your company’s branding is a terrific way to reach out to new consumers.

More than 3,000 individuals in a busy location see a car with corporate logos and graphics. Other drivers notice ads on vehicles 91% of the time, and 35% pay careful attention to them.

Branding your vehicles is a low-cost investment with high benefits. Fleet branding is a popular and successful way to grow your taxi business.

Recruitment of Drivers

To manage your taxi company, you will have to hire drivers. Companies like Uber use drivers who own their automobiles because it lowers the expense of constructing and maintaining a workforce.

Your drivers not only constitute the backbone of your company, but they can also serve as excellent public relations agents and accomplish wonders for it. Drivers often engage with passengers and can inform them about your firm for free!

You may ask 100 drivers the signup and try out your app, and they will quickly bring on additional drivers through recommendations. Your fleet will grow with the number of users, and your company will realise the success you’ve been hoping for.

Promotions and Offers

Customers can be offer discounts immediately through your cab dispatch software, text, or message. The promos may also be shared on social media or your website.

You may also distribute leaflets, fliers, and vouchers in high-traffic places such as theatres, retail malls, bars, concerts, and other events. It may bring you a lot of business because firms estimate roughly 18% of future investment to originate from clients who took advantage of a discount or offer.

Marketing via Referral

People are more prone to believe the advice of their family and friends. A similar strategy is employee in referral marketing, in which a consumer suggests a service or item to a friend in exchange for a discount or other benefit. You may include the system in your taxi booking applications, allowing users to share a promotional coupon with their connections. The new number then uses your app, similar to Uber, and recommends it to their relatives and friends. This keeps your business thriving by bringing in new consumers through referrals.

Customer Response

After the journey, passengers may rate their drivers and offer real-time comments and reviews on the taxi booking app. The rating system allows you to follow drivers with poor ratings or take corrective action.

You should also respond quickly to any concerns or criticism and remedy the big or minor issue. Client feedback increases customer happiness, brand loyalty, and customer engagement recipes for building a cab business.

Final Verdict

Because everyone now has a smartphone, cab-hailing applications are becoming more popular. You can do much more with the taxi-hailing software while improving brand image and client loyalty, making it an excellent business investment.

You may also grow your taxi business to include other payment options in your taxi service app, collaborate with transportation companies and hotels, and run advertising campaigns. Could you also give discount vouchers to your customers to increase client interaction, or you could combine your services with the other business centers to gain additional users.

Jon Alex
Kate Johnson is a content writer, who has worked for various websites and has a keen interest in Guest blogging and Guest post outreach.