Skip to main content

Taxi Service Apps Disrupt the Traditional Companies

Although an increasing number of taxis are equipped with embedded telematics units, this is being overshadowed by the rapid rise in popularity of smartphone-based taxi apps, which enable passengers to order a taxi and the driver receiving pick-up requests directly via their smartphone.

According to the latest market study by ABI Research, most capital cities nowadays boast a number of smartphone-based taxi service apps.

Some of the better known online services include Allocab, Hailo Cab, Uber Taxi, Easy Taxi, Kabbee, mytaxi, GetTaxi, Taxi.eu, Didi-Dache, Huaidi-Dache, MiniCabster, Chauffer-Prive.com, and Yongche.

However, not all the smartphone software applications are the same, although the majority operate on a peer-to-peer basis -- thereby by-passing the traditional taxi companies.

"Some, such as Hailo, work with the independent taxi drivers, but not the established taxi companies," said Gareth Owen, principal analyst at ABI Research.

Others such as Uber compete against both established taxi drivers and taxi companies, while a third type such as Kabbee offer a smartphone-based price comparison and booking service for established taxi and private hire fleets.

Taxi apps thus have the potential to disrupt and transform the traditionally heavily-regulated taxi market in many major cities around the world forever. However, the taxi companies are fighting back and the industry is planning to make life increasingly more difficult for the app start-up companies.

In a number of countries, the regulatory authorities plan to issue guidelines on the use of taxi apps, particularly in relation to driver distraction issues, as well as dealing with problems concerning fare payments via smartphones.

In China, where telematics is mandatory in all taxis, the authorities have banned the use of taxi apps in some cities.

Despite the regulatory uncertainty, taxi apps companies, many of which are backed by high-profile tech entrepreneurs, are now embarking on a global expansion campaign in a bid to gain market share.

Although it remains to be seen whether these companies will ultimately become profitable, the sheer convenience of these taxi apps means that very few of those who have used them will want to do without them, and so taxis apps are probably here to stay.

Popular posts from this blog

Digital Talent Demand Exceeds Supply in Asia-Pac

Even the savviest CEO's desire for a digital transformation advantage has to face the global market reality -- there simply isn't enough skilled and experienced talent available to meet demand. According to the latest market study by IDC, around 60-80 percent of Asia-Pacific (AP) organizations find it "difficult" or "extremely difficult" to fill many IT roles -- including cybersecurity, software development, and data insight professionals. Major consequences of the skills shortage are increased workload on remaining digital business and IT employees, increased security risks, and loss of "hard-to-replace" critical transformation knowledge. Digital Business Talent Market Development Although big tech companies' layoffs are making headlines, they are not representative of the overall global marketplace. Ongoing difficulty to fill key practitioner vacancies is still among the top issues faced by leaders across industries. "Skills are difficul

Global Digital Business and IT Consulting Outlook

Across the globe, CEOs and their leadership teams continue to seek information and guidance about planned Digital Transformation initiatives and the most effective enterprise organization change management practices. Worldwide IT and Business Services revenue will grow from $1.13 trillion in 2022 to $1.2 trillion in 2023 -- that's a 5.7 percent year-over-year growth, according to the latest market study by International Data Corporation (IDC). The mid-term to long-term outlook for the market has also increased -- the five-year CAGR is forecast at 5.2 percent, compared to the previous 4.9 percent. Digital Sevices & Consulting Market Development IDC has raised the growth projection despite a weak economic outlook, because of vendor performances across 2022, growth indicators from adjacent markets, increased government funding, and inflation impacts. The actual 2022 market growth was 6.7 percent (in constant currency), which was 87 basis points higher than forecast last year, alth

Mobile Device Market Still Awaiting Recovery

The mobile devices market has experienced three years of unpredictable demand. The global pandemic, geopolitical pressures, supply chain issues, and macroeconomic headwinds have hindered the sector's consistent growth potential. This extremely challenging environment has dramatically affected both demand and supply chains. It has led to subsequent inflationary pressures, leading to a worsening global cost of living crisis suppressing growth and confidence in the sector. In tandem, mobile device industry stakeholders have become more cautious triggering market uncertainties. Mobile Device Market Development Operating under such a backdrop, the development of mobile device ecosystems and vendor landscapes have been impacted severely. Many of these market pressures persisted throughout 2022 and now into 2023, borne chiefly by the smartphone market. According to the latest worldwide market study by ABI Research, worldwide smartphone shipments in 2022 declined 9.6 percent Year-over-Year