The term ‘innovation’ has numerous meanings and point-of-views. According to historical sources, the word ‘innovation’ comes with the Latin word ‘innovatus,’ which means ‘to change or renew.’ Change! That is all it takes to innovate something. You needn’t come up with out of the box ideas. Adding something new or unique to an existing one is, in itself, innovation. A majority of budding entrepreneurs out there use the word invention synonymous with innovation. An entrepreneur’s role has nothing to do with inventing something.
A successful businessperson identifies critical problems faced by people in society and comes up with ‘innovative’ ideas to solve them. Right from the pioneer Uber to the latest Zoom, almost every on-demand app aims to make lives simpler and convenient. Upgrading a system to facilitate a specific need is an innovation as well. Are you an entrepreneur aiming to transform your ride-hailing business and take it to a whole new level? Have you come up with strategies to launch your innovative ride-hailing app and compete with the giants of the sector?
This blog caters to those ingenious strategies and techniques that can help you enhance your ride-hailing business comprehensively.
Vital aspects to consider before innovating your ride-hailing business
You cannot innovate your business overnight. Burning the midnight oil is the only way out as your business needs to adapt to the renewed way of doing things. Some of the vital elements that require the utmost attention before innovating your business include,
- It’s a team effort: As an entrepreneur, it is your responsibility to steer your team and business towards innovation. When everyone in the organization has a clear approach to what you’re going to achieve, you can gain better coherence, paving the way for easier understanding.
- Data, Data, and Data: Unless and until you leverage data, you’ll end up drawing castles in thin air. In this modern world of Artificial Intelligence (AI) and its subset Machine Learning (ML), data can help you explore areas of innovation. Besides, data enables you to make informed business decisions rather than going by your instincts every single time.
- Solutions for problems that matter: Identifying real-life problems is another crucial aspect when it comes to innovation. Innovating something that is of the least importance to people is pointless. Understanding customer pain points and your competitors’ weaknesses will enable you to have a sure shot of success with innovation.
- Assess the feasibility: Any innovation’s ultimate aim is to improve businesses and enhance profit rates. While you can accumulate a bulk-load of innovative strategies, only a few are feasible to implement from an entrepreneurial perspective. Always scrutinize the innovation for its feasibility and effectiveness.
- Do it the Pareto way: One of the highly-lauded principles in management is the Pareto principle. Also known as the 80/20 rule, the concept helps you identify Key Performance Indicators (KPIs) seamlessly. By coming up with innovative ideas for these KPIs, you can easily cater to people’s actual needs.
- Analyze your business reports: Besides your competitors, your business reports can help you identify areas of improvement as well. Real-time analytics has become an integral part of any on-demand business nowadays. By generating reports on various metrics, you can analyze your business from time to time, providing you an opportunity to escalate your way of doing things.
Innovative ideas for your ride-hailing business
In the market where there is neck-to-neck competition, there arises a need to stand apart from the rest of the lot. Experimenting with modernist ideas in your taxi business can help you achieve unprecedented growth. Let’s discuss a few ground-breaking ideas here,
Switching different business models
If you’re a traditional cab rental agency, try tweaking your business to that of the aggregator. If you’re following the footsteps of Uber’s aggregator model, try the highly-remunerative Software as a Service (SaaS) model. In the SaaS model, you don’t need to maintain or look after cabs. You can rent out your software to rental agencies and public transit agencies for a fixed fee. This way, you needn’t worry about daily sales or customers. You can enjoy a steady source of income.
Payment is one constant area of innovation
When you looked back a few decades ago, cash was the only means of financial transactions possible. Then came the credit/debit card wave that took on the world by storm. When people found entering card details during every transaction to be challenging, digital wallet solutions rose to the occasion. One of the most recent advancements in the ride-hailing business is integrating an in-app wallet in the Uber clone app. This e-wallet functionality enables rapid payments for rides without any hassle.
Leveraging technology for customer support
Resolving customer queries at the earliest can enhance user satisfaction rates significantly. While having a 24×7 support team isn’t economically viable, technology can be the way out. Integrating virtual chatbots will enable customers to chat and clarify their doubts instantaneously. Besides, with the chatbots, the room for error is negligible or nil. In this fast-paced world where engaging customers decide the fate of any business, utilizing technology to its maximum potential sounds a reasonable way to turn the wind towards your platform and reap substantial profits.
Addressing the COVID-19 fear
Taxi companies are resurrecting from the gloomy phase of COVID-19. With people hesitating to commute via public transport, all it takes for an entrepreneur is to instill trust among passengers. Some of the COVID-19 strategies that enable you to gain instant traction to your Uber clone app include,
- Restricted passenger count: Limit the passenger count to 2, 3, or 4 depending on the vehicle type and local conditions.
- Face mask recognition software: Automate the process of assessing drivers on their safety standards with software that detects face masks effortlessly.
- Safety ratings and reviews: Hear what customers have to say about your platform’s safety standards. Take corrective actions based on their feedback.
Innovating a business, in simpler terms, refers to identifying simpler and more efficient ways of solving customer problems. In the ever-changing taxi market, innovation remains the omnipresent factor that is fueling change among entrepreneurs. Master the art of innovation and propel your ride-hailing business to the next level in the shortest possible time!