Do you have an idea for a rideshare app that will unseat Uber? Or have you been workshopping a ridesharing app concept that will capitalize on one of the many niches that larger rideshare companies have neglected?
Perfect, you're in the right place.
The following article can give you an idea of what goes into launching a successful rideshare business. We'll discuss how to
We will tackle designing your rideshare app and take a deeper dive into legal requirements in future blog posts.
Ridesharing is a service is a company that, via websites and mobile apps, matches passengers with drivers of vehicles for hire. A ridesharing company is an entity like Lyft or Uber that facilitates rides between drivers and passengers. Ridesharing companies and the services they offer take many different shapes and sizes to fill various gaps in the market. We've all heard of the companies above, but have you heard about Kidmoto, the rideshare app that provides families with young children airport car service or school transport in vehicles with pre-installed car seats? Or Spoton.On the rideshare app that helps humans hail rides for their pets?
After hitting a speed bump, better known as the global pandemic in 2020, the rideshare market is back on track and expected to exceed $61 billion in revenue inside the US alone in 2022.
Signs the rideshare market is speeding up
Understanding the market you want to enter will help you create a product with a built-in clientele.
Here are some quick tips for getting to know the market you'll be operating in.
The scenic route
Doing your research now will pay huge dividends down the road.
As you develop your rideshare business, you'll want to immerse yourself in the market. Log miles with each of the rideshare businesses in your area, noting what you like and what you think could be improved. Determine what market they serve (the type of customers they target and the areas they operate in) and what advantages their feature set gives them over their competition. Look at the vehicles they offer and determine how they help them best serve their target market. E.g., is it a budget rideshare option that employs mostly hybrids, or does the company specialize in serving rides in classic cars at a premium?
Speak with rideshare drivers and find out what they like about partnering with their chosen services. Is it the availability of passengers? How much money do they make? Ease of use? Ask them what they want to see from apps in the future and what features would persuade them to drive for another business.
Speak with your connections that use rideshare and ask what they look for in a service. Find out what apps they use, what they use them for (e.g., picking up furniture they bought secondhand or going to and from medical appointments), what they like about them, and what they don't.
To best serve your customers, you have to know who they are.
Here are some questions you'll want to answer about your customers:
After combining this information, you should be able to form a service around your target market.
Occupation: Camera operator
Primarily uses rideshare to get from home to the airport. Her job requires that she carries lots of gear when she travels. She prefers to schedule rides well in advance.
Price sensitivity: She expenses the majority of her rides. She cares more about convenience than price.
Current Rideshare app: Grace mostly uses Uber XL because she likes that she can pre schedule a large vehicle. She dislikes how limited Uber’s reward program is.
The scenic route
When creating a business plan, you must outline your target market (a particular group of consumers your product is aimed at). That's not to say that folks outside your target audience won't still be able to use your product (adults can eat all the Trix cereal they want), but by defining your core consumer, you'll be able to build your app around the features that matter to them.
Defining your target market will help you streamline your product offerings and allow you to give your customers the best possible experience. Remember, in a market filled with choices, it is better to be loved by some than liked by many.
A target market can be defined by various factors, such as shared demographic characteristics or traits. The research you completed earlier around gaps in the market is a great place to start when outlining your target consumers.
For more information on how to define your target market and why it matters take a look at this INC article.
Use your market research to help you choose a niche for your company that will differentiate you from your competitors.
Your brand is how the world perceives your business.
Use the checklist below to ensure you've thought about each element of your brand.
The scenic route
Much of your brand's personality will be based on the service you provide and the market segment you serve. When writing for your brand or deciding on a logo, think about your target consumer. What would resonate with them? Think about what makes you stand out in the marketplace. For example, does your fleet management software help you provide rides faster than your competitors? Maybe your brand colors should be red and yellow to give your touchpoints a feeling of speed.
One of the most critical pieces of establishing your brand is deciding on a name. Blue Ribbon Sports, Phil Knight's first choice for a business name, doesn't quite have the same ring as "Nike."
In her book, Hello my Name is Awesome, veteran business namer Alexandra Watkins outlines the elements that make a business name resonate with your audience.
According to Watkins, a good business name is
In her book, she also dives into what to avoid when naming your business
You'll need to file the correct paperwork to become a legalized profit-oriented business. This can include tax and trademark information.
For instance, in the USA you'll have to regulate your ridesharing business with the Public Utilities Commission (PUC), and you have to trademark your business (brand or product name).
For further instructions on US business registration and proceeding, click here.
How you price rides and the percentage of each fare you give to drivers will influence how many customers and driver partners use your app.
Pricing is a three-way balancing act where you need to account for
A few things to keep in mind
A fleet management system is a software that helps dispatch managers automate and optimize various processes critical to their rideshare business.
In 2020, nearly 80% of fleet managers used fleet management software daily, and 72% of livery companies used a fleet tracking system. According to a 2021 report, 32% of businesses using fleet apps attained a positive ROI in under a year.
You could eat up time and resources developing your own fleet management software, or you can deploy EverTransit, the only fleet management system that’s available on-demand.
Using an advanced suite of cloud-based fleet software, EverTransit lets you automate everything from booking to billing inside your rideshare service.
With Evertransit, you can
Get in your fleet’s driver’s seat with technology that saves time, maximizes productivity and facilitates day-to-day operations.