The world has quite literally been going crazy in the year 2020. The pandemic has made us re evaluate everything we know and change our ideas of normalcy. However, nothing can pin humanity down for too long, and once again we are slowly emerging from the shadows of the ghastly CoVid 19 Corona Virus Pandemic Lockdown. The world has started moving about once again and things are getting back on the road, so to speak. So, if you have been waiting for a chance to start your own on demand taxi business with the help of an app like the Uber Clone or the Lyft clone app, then this is the right time for you!
Why should you launch a taxi business in California?
California, or the Golden State as we like to call it has over half a million taxi drivers and the need for more taxis is continuously growing. With Hollywood and Los Vegas as 2 of its epicenters, this region receives a very heavy demand for on demand taxis.
Unfortunately, every successful business sooner or later comes across some legally binding clause that may hamper its growth. That is exactly what is happening to the taxi industry giants, Uber and Lyft in the current times.
A recent announcement sheds light on the fact that Uber and Lyft may soon be forced to withdraw their services from the Californian market owing to new laws that have been introduces. While the high court has currently put a stay on the order (latest hearing was on August 2020) the wheels have been set in motion and it is hard to anticipate any different outcome.
To this effect, a new and large void in the taxi business is anticipated. There are many people who are continuously dependent on ‘on demand taxis’ for their everyday needs. With these two industry mammoths out of the picture, it might prove to be a very sore spot for these regular travelers.
This is the biggest reason that makes this the best time for you to enter the Californian market of on demand taxis. With these big guys out of the picture, people will soon have to rely on the next best thing that replaces these on demand taxi systems.
Understanding the business model of Uber and Lyft and the implication of the new laws
The whole idea of on demand services hinges upon every one having a fair chance at getting jobs to be able to make money. Basically, it doesn’t require anyone to upload a resume, get an employment and so on and so forth with one entity in order to make their services available to the masses.
This is exactly how Lyft and Uber operated. If you’ve got a car and a license to drive it, you can register into these apps and start making money. The app acts as a digital platform that brings the services seeker and the services provider together. In exchange for utilizing this digital platform, the service providers pay a small fee to these digital platforms or apps.
However, the new law changes the entire game. The law dictates that rather than considering each driver as an independent contractor or freelancer using a digital platform to provide taxi services, Uber and Lyft will have to consider them as employees. This makes it very difficult to work with the existing on demand business model because now, instead of the service providers paying the platforms a fee for their services, the platforms will have to pay a fixed salary to the drivers, regardless of whether they take any rides during their shifts or not.
Then, how will you make it work?
Well, it is very simple. Your business model is not set in stone. You can adapt your new business to suit well with the laws, while essentially offering the same or similar services. Basically, if you are already a taxi business owner, you can easily buy a ready made on demand Lyft clone app and launch it as your own business.
The fleet that you already have and its drivers are already a part of your company, thereby making them employees. You get the entire money of the trip and then give your employees (aka the drivers) the salary that you have agreed upon with them.
How to start your own business?
To start your own on demand taxi booking business the first thing that you will need is the Lyft Clone or the Uber clone app. you can seek out the help of a professional team to build this app from scratch, but if you are on a budget and want to capitalize on the time (which is now) then you must opt to buy a ready-made on demand Uber Taxi Clone app or Lyft Clone app in California.
There are a few reputed white label on demand mobile app development companies that can help you with this. All you need to do is find out who has been in the market for longest and launched several taxi booking apps, take a trial run, or demo of their apps and then once you are satisfied you can go ahead and purchase them.
Once you finalize your purchase, the white label company will re skin the app with your company colors, rebrand it with your logo and brand name and then launch your app on the Google Play Store and the iOS app store under your server credentials in just 4 to 5 business days.
With a little promotion and marketing in the right direction, you can truly make use of the rising demand and grow more awareness about your new services and how you intend to help your end-users. This could generate a high rate of download right from the day of the launch of the app like uber which will in turn percolate into more sales and greater profits for you.