Introduction to South East Asian Taxi Business Market
Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam are all the major countries in South East Asia or SEA. With a population density of 154 per Km² (399 people per mi²), the region is booming with opportunities for entrepreneurs to kick-start taxi businesses. Currently, the ride-hailing and taxi segment in SEA is valued at US$21.14 Billion. As per the market analysis, the valuation will grow to US$ 30.23 Billion in the period of five years, that is, 2023 to 2028. It won’t be wrong to say that the market has some bright scope for taxi startup.
Various startups and regional players like Gojek, Geab, and TADA, have already earned the edge over competitors.
However, there is still a lot of market space for other taxi startups to try out their hand in the ASEAN industry.
There are plenty of benefits entrepreneurs can reap from starting their own taxi business in SEA.
Mentioned below are the most prominent benefits. Caution! Reading through these benefits may make you want to invest in launching a taxi booking app in the region right away.
The taxi market in South East Asia is growing at a quicker-than-expected pace.
The taxi market growth in the region is driven by various factors, including the availability of round-the-clock services and scheduled pickups and drop-offs.
Other factors that contribute to the growth are the automatic estimation of fares before the ride begins, free 4G internet connections, and enhanced comfort measures.
Moreover, the region is speedily racing towards urbanization and economic enhancement, making it an even stronger market for taxi businesses.
As already mentioned, the population density of South East Asia is rising. “687,358,473” – this is the current population as of May 8, 2023.
Such a huge population means that startups and other businesses have the opportunity to attract a large customer base. To be more specific, a large population to serve implies that businesses can expect higher ride request frequency and increased revenue generation opportunities.
The cost of investment to start a taxi business in South East Asia is considerable. And, by being “considerable”, it means that any entrepreneur, even with a jam-packed budget can start a business in the region.
There is no budget range to specify how much it will cost to establish a taxi booking business. However, there are a few key factors that play a role in defining the cost, including:
- Obtaining permits and licenses to operate the taxi business legally in different SEA countries and cities.
- Marketing and promoting the business in order to reach more people and build brand awareness. The cost of advertising, social media marketing, and other promotional strategies may add to the total investment requirements.
- App development cost also plays a critical role in defining the cost. Currently, entrepreneurs depend a lot on pre-built solutions like Uber Clone or Grab and Gojek Clone to launch taxi booking apps. These solutions are cost-effective, quick to launch, and offer easy maintenance.
- Buying insurance coverages and other safety measures to protect the infrastructure also add to the cost of starting a taxi business in SEA.
By and large, starting a taxi business in the region will bring in profits and also cost you less if you properly conduct the cost analysis. It is best to look at the local market conditions and other regulations when making the budget. Also, it is recommended to consult a professional who is familiar with the economy and scope of South East Asia.
Here are some profitable taxi business startup ideas that you can invest in. Each of the ideas has a promising potential to bring the best returns in South East Asia.
Have a look!
Ride-sharing services are high in demand as of the current market scenarios. People prefer sharing rides with other passengers who want to travel to the same destination or the same route.
Taxi pool services are highly demanded by people who are looking for comfortable and convenient rides at affordable rates like students or people traveling to the office every day.
In short, in South East Asia, there is already a large potential customer base for taxi pool mobile apps.
Online car rental mobile apps are also one of the favorite choices of people in SEA. It is most useful for people who want a chauffeured city ride for a day or a few hours.
Here, users can choose the car type they want, select the number of hours for which they want to rent the taxi, and their preferred payment method.
After booking confirmation, the taxi driver soon arrives at the location and starts the ride.
Well, the car rental startup idea is already booming and has huge potential in the market.
To establish a successful car rental business, entrepreneurs need to carefully study the market, analyze the pros and cons, current churn rate, and so on.
Besides hiring cars, people in South East Asia also like to travel in two-wheeler taxis to avoid getting stuck in traffic congestions. On top of that, booking moto rides is cheap and enables riders to reach on time, avoiding the crowded roads.
Moto rides are preferred mostly by students and job-goers. In simple words, taxi business owners already have a larger market size to capture in the region.
Currently, launching single-purpose taxi apps has become the talk of the past.
All-in-one taxi apps, on the other hand, are the new highly demanded platforms. Entrepreneurs are investing in Uber Clone solutions to build and launch an Uber-like app that has multiple taxi services.
These apps offer more than one taxi service, including airport rides, quick cabs, car rentals, taxi pooling, and moto ride booking.
Think of it as all the taxi apps combined in ONE! Put simply, launching these apps will help business owners to get more sales, generate more revenue, and thus, earn more profits.
Another important aspect of launching a game-changing taxi business in South East Asia is – planning clever strategies to keep the business thriving.
Therefore, figuring out which startup idea suits the SEA marketplace the best, start building the strategies to set the right foot in. Remember, the main goal is to keep the business flourishing.
The following are the strategies that will help achieve the goal.
Prioritizing customer-centricity will help the taxi business to gain the user’s attention more effortlessly. The more you understand the user and implement the solutions to help them, the more they will want to invest in you.
Having a customer-centric approach means you as the business need to focus on three key things –
- Customer development
- Customer retention
- Customer acquisition
In short, to keep the taxi business thriving, one needs to stay connected with customers, create content that they can relate to, and engage more and more customers.
Taxi businesses can use several ways to gather customer data, but mainly, entrepreneurs use their Uber-like taxi apps for this purpose.
If you don’t already know, there are a number of perks of gathering and using your customer’s data such as-
- Optimizing the mobile app and other operations for the user’s best interest.
- Improve the overall customer experience.
- Provide more personalized offers.
- Build effective marketing strategies and campaigns.
- Define the upcoming trends in South East Asia’s taxi industry.
- Refine loyalty programs to attract and hold customers.
Establishing a taxi business in South East Asian countries and cities means you have to always keep ‘PEOPLE’ in mind.
The mentioned taxi startup ideas are considerable for every entrepreneur who wants to launch a business and make it one of the strong contenders of existing players.
To keep your taxi startup idea always thriving in the region, build user-friendly applications. Invest in developing a perfect taxi booking app and other technologies. Using these solutions, you can expand your business everywhere in the SEA region.
It is highly recommended for entrepreneurs to look for white-labeled taxi app solutions. With less investment, more gains, and ease of operations, these advanced solutions will help you launch a thriving taxi startup in no time.