The taxi business is not just about mobility or the luxury of being able to get transportation easily. Today, commuting from one place to another is no longer a leisurely activity that is avoidable. With companies like Uber and Lyft having introduced the on demand nature of taxi booking, more and more people have become dependent on using a smart phone app for their daily movement requirements. However, the latest laws in California may pose a threat to the operation of these companies which will soon result in them shutting down operations in the Golden City.
While this can cause a whole lot of damage to around half a million taxi drivers working in California and a boat load of inconvenience for the users who depend on these platforms for their daily movement, this could also present an opportunity for you to prevent such a massive chaos by starting your own business in this direction and thereby making the most of the situation.
Not to be a naysayer, but people will not wait around for a miracle to resurrect this business. We live in a fast paced world where the moment something becomes obsolete, something new comes to take its place and replaces it. What was the rage yesterday is nothing more than a wisp of memory or a spoonful of nostalgia today. So, if there is someone waiting to jump on this situation and treat it like an opportunity, you better than someone else!
What should you do to start your taxi business in California?
Well, the first thing that you must understand is that the reason why Uber and Lyft are exiting the market is not out of boredom, but the fact that there is a law in place which is preventing them to execute their business model perfectly.
The first thing that you must do is to understand the law and identify how you can set up and establish your own on demand business and in doing so stay within the fringes of the law. According to the latest hearing in August 2020, the court has put a temporary stay on the matter, but things like this have a tendency to explode very soon.
The law dictates that instead of treating your drivers as independent contractors, the taxi booking mammoths should count them as employees and thereby offer them all the benefits that come within the purview of labor law. So, even if the drivers aren’t taking any rides during their shift, the companies ought to pay them something.
Well, you don’t want to do that any more than the big guys, Uber and Lyft want to. However, the difference between them and you rests in the fact that their business model is already set in stone but you are simply starting off and can approach a different path all together.
Here are two ways in which you can continue to operate and thrive with your own on demand Taxi Booking solution like Uber or Lyft:
1. Your Individual Service
Let us say for example that you own a taxi. You are an independent individual taxi driver and wish to continue offering your services regardless of the existence of Uber and Lyft in your state. To that effect, you can digitize your existing business and make your taxi services available using an app.
This would in turn mean that you are an independent business owner with your own taxi service and are using the app to make your personal taxi service more accessible. If you have already been in the industry for a while, you would probably have an idea of what are the hotspots in the market, what areas generate more requests and may also have a certain number of fixed clients.
Promoting your personal services slightly would ensure that more and more people start downloading your app and hire your personal taxi services for their daily mobility requirements. In no time, you will realize that the cost of the app is justified and you have a smooth sailing with your new business.
2. You have an existing Taxi Company
If you already have a taxi company with a fleet of drivers, by virtue of the business model that you already have, it would mean that your taxi drivers are already your employees. You can set up and establish any kind of deal that you see fit with them, whether it is a regular salary or a commission and make sure that your business continues to run smoothly.
Understanding the legal connotations of the law, the given directives and the regional labor rights requirements, is the first step in ensuring that even though this new law is coming into existence, it is not hampering any business for you.
Where to get your own On Demand Taxi Booking Solution?
The taxi booking business has become extremely popular not just in California, but all over the world. In saying that, many on demand mobile app development companies have started building their own versions of the app like Uber.
But you don’t want something that is exactly like Uber, because if so, what is preventing the law from banning your services? This is why; it is important to opt for a ready made digital on demand taxi booking solution built by a company that offers white label services. They will be able to give you a free demo of the taxi app so that you can take a look at it and then decide whether you want to spend any money on it or not.
Once you have made your decision, the company will white label the app with your logo, brand name, re skin it with your company colors and then launch it on the Google Play Store and the iOS app store under your server credentials.
