Why embracing technological breakthroughs Is a Mandate for Cab rentals

Posted by Timothy Neeble on January 16th, 2020

Consumer demands are fast evolving and so is modern technology. Businesses that fail to adapt to the changing market dynamics will lose the competition and other players are likely to kick them out of the game. Not to sound too negative but the reality is technological breakthroughs have made it easy for anyone to run a business successfully.

Competition is high and the niche is saturated with different possibilities. Following the immense success of rideshare services like Uber and Lyft, the riders are spoilt for choices. And, the next best thing they do is to drop cab rentals from their phones altogether.

But, embracing modern technology such as hiring car rental software services might save the day for them.

Market Statistics of the Cab Rental Industry

There is some great news for Cab rental services, though!

According to a recent Market Analysis Report, the global car rental which was valued at 78.7bn US$ in 2018 is expected to reach 122.6bn US$ in 2024. In India, the car rental segment is estimated to reach a market volume of 1,552m US$ in 2023, which is 7.3% (annual growth rate), from 1,172m US$ in 2019, as per Statista Report.

However, this slower growth rate can be attributed to the fact that renting cars offline is still very much in practice, not to mention the strong presence of on-demand cab services. And, even though car ownership underwent a fundamental shift with riders opting more for carpooling and peer-to-peer car rentals in favour of easy access, the lack of marketing, damaged reputation, and other logistical difficulties have proved to be major hindrances for the cab rental companies.

Also, the rising popularity of ride-share services has slowly penetrated the market of the cabs for rent. 63% of customers have already cut down their spent on car-for-hire services and 56% of the frequent riders have stopped using the service altogether, according to a recent study.

Already, cab rental companies have lost nearly 3.2bn US$ to ride-share services, as per the same study.

But, all is not lost. Car rental software development companies make it possible for cab rental services to stay ahead in the competition with their state-of-the-art technology.

Example - Cab Genie

Cab Genie offers a complete system for a minicab or a taxi company. This software will provide your cabs with a strong online presence along with the ability to manage bookings and payments seamlessly. It is easier to track client database, manage cab drivers, and enjoy full control over sales and net cost modules.

Other benefits of Cab Genie –

•          View real-time vehicle availability,
•          Get a complete panel displaying booking details,
•          Options to add, delete or edit bookings,
•          Advance ride search options.

Changing Customer Preferences – A Threat or a Boon?

Digitalisation and innovative technologies are the biggest drivers of change. Today, Customers have evolved as Kings in a true sense, courtesy Internet, social media platforms and mobile technology. They can access more information whenever and wherever they want, not to mention the bundle of options available at their fingertips.

They have the power to make or break a venture in a matter of a few minutes. So, it has become imperative for companies, mostly the cab rentals to evolve with the changing preferences of the customers and exploit places where opportunities are in abundance.

The first step towards achieving that goal is to identify potential customer segments and then understand their pain points.

Identify customer types

This is easy. The cab rental companies have to just identify their target customers by verifying existing customer records and their feedbacks (both online and offline). Post customer segmentation, effective service models and marketing plans are designed to target the specified group, identify the customer requirements and offer the right service/solution accordingly.

A study by Epsilon-Conversant identifies two sets of customers who prefer car-for-rent services over rideshares –

•          Retired households who are unlikely to have kids
•          White-collar, educated baby boomers with strong discretionary spending and grown children.

Mobility or anytime, anywhere service

Prompt response to on-demand requests is what customers expect from the service providers.  The new age Millennials and Generation Z are intolerant of waiting or standing in long queues. On-demand cab service providers like OLA and Uber have grabbed this opportunity to expand their businesses, thereby robbing the market from the car rental companies.

An opportunity missed is an opportunity lost.

But the rightful implementation of modern technology has turned the game around for many. And, mobility is that force which will enable car rental companies to cater to customer demand anytime, anywhere, especially during rush hours and receive payments remotely.

Also, cab rental software makes it possible for such companies to maintain real-time information about their fleets, vehicle allocation, and monitor their movement easily.

The purpose is to develop the ability to give prompt responses to different market needs for enjoying a competitive edge over other key players in the game. So, yes! Changing customer preferences is both a threat and a boon in disguise.

To quote Einstein, in the middle of difficulty lies opportunity.

Where is Cab Rental Business heading?

Putting yourself in the shoes of the customers is the best way to differentiate your services from that of your competitors. Sooner, the cab rental retailers realise this truth, the better it is for them. Also, developing the ability to be flexible enough in responding to different market needs can work in favour of the local car retailers.

For example –

Instant cabs in India offer ‘car with driver’ service which is available for rent on a two-hourly basis. This gives customers the luxury of a private mode of transport minus the hassles involved with self-navigation.

But, with years customer preferences evolve. So, it is important to understand where is this particular industry heading?

Connected cabs for hire

Multi-dimensional connectivity and third-party services such as online cab rental software enable fleet retailers and travellers to exert complete control over their rental experience, right from remote access to keyless operation. Today, cabs for hire are all connected to basic mobile platforms via on-demand service provider applications. But, the connected car technology will give more power to both the rental retailers and riders

Data collected about a vehicle enable cab rental retailers to easily track fleet mileage, control fuel consumption, as well as arm drivers with shorter routes to their destinations and so on.

There are untold benefits, a few examples can be cited here –

•          Understand your fleet’s impact on the environment to reduce their carbon footprints
•          Reduction in fleet mileage costs
•          Pre-warnings about heavy traffic and undesirable road conditions save travel time

 Autonomous cabs or self-driving vehicles

Self-driving cars or autonomous vehicles are no more distant dreams for many. Experiencing less traffic and roadblocks, emission reduction, assured the safety of the riders and better travel experience are few of the benefits one can enjoy once self-driving cabs become a reality.