Taxi Industry Taking Best Out of Referral Marketing

by Ritesh Patil co-founder & Blogger

Haven’t we all found ourselves in those unnerving situations where we are unable to find a cab when it is needed the most? Luckily, the arrival of a simple app that sends a cab to your doorstep, has brought about a major change to these unfavorable dynamics.

Whether it is Uber, Ola, or Lyft, hailing a cab has now become a whole deal easier. With companies and services using cab app for drivers, all you have to do is mention the location you are at, and you will immediately have a cab at your service. Those who use these services would be aware of the extreme ease and efficiency they offer.

Impact of Referral Marketing on Taxi Demand

If you think back on how you first came to know about Uber and other cab services, you will probably realize that it was an E-mail or a social media post that caught your attention. However, this major revival of people relying on taxi services does not precede more than 6 years. It began when Uber first appeared on the scene.

Once the first customer saw how efficient and reliable these cab services were, the word spread like wild fire and it was this publicity that was generated by its initial few users, that improved its demand, creating scope for its growth. To utilize this service, customers needed to download a mobile app that is synced with the cab driver app, so that merely typing your location would alert drivers in the area and the one closest to your location would come to your aid.

This ease of usage leading to incredible user experience is what created a major boom in the taxi and ride-sharing stratosphere. An increasing number of startups took initiative after glimpsing the success of Uber cabs and began venturing into it. This happened due to the strong word-of-mouth publicity that glorified the efficiency and trust that these cab services were offering. So not only were they being seen as a convenient option, they now become the most sought-after option.

Using In-App Referrals to Boost the Cab Industry

When friends share referral links with you, especially those that have something appealing attached to them, you are tempted to know more. You will appreciate the fact that your friend thought about you. Since you know the source of the message, you will consider it to be genuine and not spam and all of this will make you happy. Now you won’t be the only one benefiting from such referrals because they usually carry benefits for both – the referrer and the user. So people don’t really mind sending these referrals around.

Cab Services that are Thriving Due to App Referrals

Uber, known for their cab driver app, was the forerunner of this entire cab revolution and this is because of its popular in-app referral program. Whether you signed up to be a driver or wanted to avail of the services, you would become a part of their referral program. The best part is that both the referrer as well as the new customers obtained benefits with this program.

Designed to tackle and implement better community ride sharing, Lyft hitched itself onto the wagon of referral marketing and is now being seen as the major competitor to Uber. This whole idea of cab app for drivers has taken the industry by storm. Cab sharing apps, in particular, have witnessed a growth in the last couple of years as well.

Looking at some exciting players

● Relatively new on the cab scene, the company Side Car is gaining pace in the industry too. Aiming to promote community ride sharing, they have a referral program that is aimed at obtaining new drivers. Thus, referring drivers to the company would give you access to certain incentives.

● GrabTaxi which has dominated the South East Asian taxi industry, has a referral program for their drivers which has enabled them to grow bigger each time. However, they lack a referral program for passengers. The presence of such a campaign would have possibility enabled them to reach greater heights.

● Get Around is another company that uses friend referral programs. This car sharing app can be shared from peer to peer. Apart from these popular ones, there are still a number of cab driver apps out there that are enabling cab companies to reach newer heights.

Benefits of In-App Referrals to an App Developer

In-app referrals have already proved that they are very effective in increasing app downloads. This increase helps promote durability of the service. The Journal of Marketing showed that the commitment of referred customers is 16% higher than that of non-referred customers thus causing them to spend more on your services.

Effective Ways to Utilize In-App Referrals for a Cab Service App

For in-app referrals to be effective, they need a personal touch. Perhaps an attractive landing page coupled with something that shows appreciation to your key supporters will stand you in good stead. An analysis of your data will help you figure out who your key loyalists are.

The In-app analytics are important in determining if your marketing techniques are working or not. By making use of the holistic app development services of Mobisoft Infotech, not only will you get acquainted with in-app analytics but you will also be able to identify spammers so that rewards are shared only to actual or genuine users.

Ease of Implementing In-App Referrals

Although it may seem cumbersome to implement in-app referrals, with the help of Mobisoft Infotech, developers of cab app for drivers can run referral campaigns in as little as 30 minutes. With the demand for cab services picking up, your company can ensure to have taxi apps as well as in-app referrals for your business if you want to stay ahead in the game.

By promoting app downloads of users, the industry will be able to market itself better as well as increase its customer base. After all, by ensuring ease of use, cab companies will be able to instill lifelong loyalty in their customers.