So, if you are one of those entrepreneurs who want to change the mobility industry with the taxi app, but not sure how to branch out your taxi booking app business by overcoming post app launch challenges, you have come to the right place.

In this blog, we will discuss the ways to expand your taxi booking app business internationally. But to make the outcome of this blog more rational, we will study the case study of Starbucks which has messed up its global expansion process totally. But first, let’s understand why you need to stop napping and start crafting business expansion process for your taxi booking app business, now. 

► Advantages of business expansion

 
Business expansion is the term all entrepreneurs are keeping in their mind while kicking off a small business in a small town. They start preparing themselves to expand their business globally if, during the initial period, they manage to earn well from the narrow market. However, government regulation, business expansion cost, and tedious planning are making it one of the toughest challenges to overcome. We will discuss the possible ways to overcome these challenges later in this blog. For now, let’s be familiar with the advantages of business expansion. 

» Multiple revenue streams

 
One of the reasons why you need to expand your business or start thinking about business expansion is the revenue stream. Because expanding the business is nothing but providing your services and products to the new users and that new users will give you the opportunity to boost the number of revenue streams. 

» Global talent

 
One of the fundamental requirements to expand your business is hiring new staff from the location where you are planning to expand your business. This staff hiring process makes you accessible to the global talent which you might have not acquired from the local market. 

» Branding opportunities

 
It is known to everyone that a globally available company is more popular than the company which is operating its business in the local market. So, if you successfully establish your company into the global market, it will automatically generate brand recognition and people will start using your services. 

» More funding

 
Getting funded is the dream of every entrepreneur. But a company which is targeting only a small market, even though on a very great business idea, cannot be the apple of investor’s eyes. They are more likely to invest in a global company. Thus, expand your business globally to get rewarded with six-digit funding amount.

If you have made it so far, you must be thrilled to start crafting a business expansion process for taxi booking app business. But keep your shirt on, business expansion is not an easy-breezy process. It is so complicated that big companies also screw up their ambition to establish themselves in the global market.

So, in the next section of this blog, we will get to know the methods you should avoid while crafting the business expansion plan for your taxi booking app business. But to understand it in a very comprehensive way, we will study the case study of Starbucks which failed to expand its business into Australia.
 

Common business expansion mistakes you have to avoid to expand your taxi booking app business successfully

 
Starbucks is a Seattle-based coffee company and coffee house chain. It is operating its business in all major countries and serving coffee to more than 15 million users. But the business Journey of Starbucks in Australia is nothing to get excited about for both, Aussies and Starbucks team.

In July of 2000, Starbucks opened its first store in Sydney and from there, it expanded to other major cities of the country. But when they studied the business growth in 2008, they came to know that almost all stores were under-performing and so, they needed to close all underperforming stores which were counted 61. (According to CNBC)

What went wrong? Why a company which is earning well in USA, UK, Canada, and China failed in a very business-friendly market, Australia? Let’s find out. 

► Had no affair with the local users

 
Starbucks which has been doing business in the USA for many years didn’t bother to know the preference of Aussies while expanding their business in Australia. Thus, they offered the same USA menu to the Aussies who are fussier than Americans. 

» Learning:

 
When you are expanding your taxi booking app business to another city or another country, make sure you spend some time to know the preferences of local people and make changes into your app or business model according to the need of your new users. For example, when Uber started its ride-sharing business in Bangladesh where cars aren’t as popular as motorbikes, Uber offered motorbike taxi service to keep themselves parallel with local user’s need. 

► Drove the money factor while being selfish

 
When Starbucks opened its stores in Australia with the same menu and the same price they are charging from Americans, Aussies simply avoided Starbucks for their morning dose of caffeine as many more local stores were offering better coffee at the better price tag. 

» Learning:

 
Knowing the financial status of users is the very popular practice of earning more money among entrepreneurs. But when you expand your business into a new market with the goal to establish a new identity, study the financial status of your new users for their benefits only! Offer them the service which they can afford. For the sake of longtime growth, it is acceptable to bear a little financial loss during the first two-quarters of your business as initial growth define the future of your business in a new market. 

► Didn’t tie up with local companies

 
Starbucks has been earning really well in USA, Canada, China, and the UK and so, they didn’t share words with Australian companies to tie up. That decision of Starbucks forced Starbucks to build the business infrastructure in a less-known market on its own. To do so, Starbucks invested so many resources without actually caring about the proper utilization of it. According to sources, Starbucks lost $104 million in Australia during its first 7 years. 

» Learning

 
Being a partner of a local company which has already studied the market well is one of the smartest moves you can make to expand your business. If you cannot find a proper partner by yourself, leave it on a London-based startup named Splyt which helps you to integrate your taxi booking service into the some of the very popular apps of the region where you want to expand your business. 

► Confused? Let’s understand it briefly.

 
Splyt that has recently raised $8 million, holds a vision of the universal global ridesharing service. It allows taxi booking app companies to integrate its services in other popular apps, so you as a taxi booking app owner doesn’t need to establish a new IT infrastructure in a new market.

Recently, Splyt has integrated Grab ride-sharing service into the Alipay app. So, now app users of Alipay can book the Grab cab by the Alipay app itself.
 

Want to learn more about business expansion methods? Connect with our business growth hacker, now.

Coruscate is the top taxi app development company which has entertained several taxi app development related queries. We accommodate highly skilled app development team who develop taxi app solution which is accepted globally. Moreover, our business experts assist you to expand the business boundaries of your taxi booking app business.

With our rapid app development technique, we will deliver your taxi app within 45-55 business days and under $10k. To know more about features and ask for consultation, visit our taxi app development page.

The post How to not expand your taxi booking (app) business like Starbucks? appeared first on Coruscate Solutions.

Million dollar or billion dollar companies never reveal their major source of earning. But a few business analysts peep into moneymaking companies to find out the hidden attributes of their business models they have never revealed. One such attribute, especially in the taxi booking app business, is customer segmentation. Though it is the very exhausted concept among entrepreneurs, a few of them let it fall between crack easily as they don’t know the fact that a simple practice to distribute their customers into the different groups can double their revenue. How? Let’s find out.

In this blog, we will study the customer segmentation and how this very easy practice is helping top taxi booking app providers to earn well. We will also discuss how you can also double the revenue of your taxi booking app business and how much does it cost to develop a taxi app with premium features.
 

What is customer segmentation?

 
Customer segmentation is nothing but a practice to divide customers into different groups based on their similarities, like personal characteristics, preferences, financial situation and behaviour. The process to divide customers into different groups requires a workable strategy and understanding of behavior analysis.

For example, as a taxi booking app provider, you need to identify those users who use your one particular service actively and those who use your other service once in a while.
 

But why it is required to do so? Why you can’t follow the ‘one-size-fits-all’ approach?

► Importance of customer segmentation

 
Customer segmentation is the most important attribute in the business model canvas. Any company which is successful allocates dedicated resources to identify the users and place them in different user groups to offer personalized service – the first advantage of the customer segmentation. 

Following are some more advantages of customer segmentation.

► Effective marketing

 
Marketing requires a big budget and so, it should be effective and efficient. But without knowing the customers and their preferences, it is impossible to present your service to potential users. It is similar to driving a car in the night with headlights off!

However, customer segmentation breaks down users in different user groups, making it easier to reach to the only target audience with the service which they want. This will boost the efficiency of marketing and turnout ratio. 

► New market opportunities

 
During the process of fitting users in various user groups, you sometimes end up finding a totally unidentified user group which is profitable but you haven’t introduced any service for them. So, If you find such a user group, you can craft a different value proposition for them and start earning from them too.

When Uber launched their services in Bangladesh, they found out a totally different user group who prefer to ride only on the motorcycle taxi due to many factors, so Uber introduced a motorcycle taxi for them. 

► Premium business model

 
Using customer segmentation technique, companies identify groups that require premium services. All moneymaking taxi booking app providing companies work on this simple principle to double their revenue. They craft premium business models for only premium users as 20 premium users help companies to make more money than 100 economy users.

To understand the concept of the premium business model more rationally, let’s consider the Uber and its premium service.

Uber is providing Uber Go, economy service and Uber Black, a premium service. The major users of Uber’s Uber Go service are students, women, and commuters who are charged a very affordable fare. Whereas, only premium users utilize Uber’s Black premium service which is, of course, cost more. That means Uber generates more revenue per employee from premium users than Uber Go users.

In the aviation industry also, they are putting more emphasis on business class seats than economy class seats, as the money they earn from 20 business class seats compared to 20 economy class seats is very high.

 
Since you now understand the importance of customer segmentation, let’s find out the different strategies you can take into account to identify the users and to place them in user groups.
 

► Customer segmentation methods

 
Customer segmentation is an easy process but only for those who choose the right method to determine common features of users and their buying habit.

You can start distributing users according to their demographics. It discloses all the important features of users like location, age, gender, life stage, and marital status. To get rid of a prolonged and tedious process, you can use Facebook and other social platforms which often have all these information of users.

Another important method is knowing their decision-making status which says a lot about their financial status and their ability to pay for your premium service or economy service. To know their decision-making status, hold personal interactions with users or conduct an online survey which blows their job title wide open.

Knowing the history of users is also a very useful method as it unfolds the future behavior of users. From the database of your company itself, you can study the usage data (how long each customer had used your one particular service) of your users. 

How Coruscate helps you to double your revenue from the taxi booking app?

 
As we have discussed earlier, Uber is earning more from its premium service than economy service. So, if you want to follow the legacy of Uber, we, at Coruscate, accommodate a few highly skilled business and development team members who have earned expertise to craft a premium business model for your taxi booking app business and to add premium features in your taxi booking app.

With our taxi app development solution which cost you only $10k, you can get the following premium features into your taxi app.

• First of all, we integrate economy and premium services in a single app to eliminate the need for more IT resources. Users can easily select the type of service they would like to use. Moreover, all information like what users will get in each service is well documented in the app.
• If the user opts for premium service, the app shows him the all available drivers nearby with their ratings and car model. User can then select his desire driver.
• User can request the driver to wait up to 10 minutes at the pickup location.
• From the app itself, the user can even request the driver to help him with his luggage.
• User can demand to maintain a certain car temperature during the ride.
• An airport pickup is treated differently as we write a different algorithm for the airport.

 
To know more about premium features you will get into a taxi booking app, contact us today.
 

How much does it cost to develop a taxi app with premium features?

 
Coruscate is the top taxi app development company which has entertained many taxi app development related queries. We work in 5 simple steps – requirement check, planning and designing, front end development, back end development, testing and implementation, to deliver a next-gen taxi booking app which dominates the market quickly. We will not only develop your taxi booking app, but we will also be the strategic business partner to help you to get everything out of the taxi booking app and a robust admin panel.

With our rapid app development technology, we will deliver your taxi booking app within 45-55 business days and under $10k. Click below to get Free taxi booking app and admin panel demo.

The post How to double your revenue in a taxi booking business with this simple yet profitable technique appeared first on Coruscate Solutions.