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Advantages and disadvantages of taxi applications

Taxi applications have given a new face to the business industry; due to their successive growth. People who required transportation had to either walk up to a train station or stand on the street to hail a cab, now they are not required to do that. They can travel around at cheaper rates without exerting themselves or wasting time; the system has become more efficient. However, with taxi applications; users are able to commute more easily with just a simple click.

But just like any other thing, taxi applications too have their advantages and disadvantages. And here’s an example of a few;

Advantages of taxi applications:

Taxi booking app usually have an edge over traditional taxi services due to their methodical services that they offer to their users.

Labour-saving services:

Rather than chasing a cab or calling a taxi service and waiting for the cab to arrive, users of taxi applications can hail taxis from any location and have it arrive at within a matter of minutes. It does not end there, customers have the option to travel without cash and use other payment methods instead. Making it easier for them, since they will not be required to head to an atm machine to especially withdraw cash for the ride. They can simply connect their bank account to the application and pay for the ride, then and there without facing any hindrances.

Competent assistance:

Cabs are driven by professional drivers who have in-depth knowledge when it comes to catering customers seeking rides. They come with proper commercial insurance; once the customer has been accepted by the driver, both the driver and the user are given the option to look into each other’s location.

As for those drivers who are unprofessional, they are removed from the service on the basis of the rating they receive by their customers. Making it easier for the application and services, remain credible. A constant low rating is a massive hit for the taxi company, therefore no risks are taken. At a place with high population rates and taxi usage, average citizens can opt for driver’s job; enabling an increase in the number of drivers present to cater larger population, enhancing users’ experience.

Reasonable rates:

One of the major advantages of taxi booking applications is that they offer exceptional services at lower rates that are user-friendly and help them retain customers. As compared to traditional taxi services, cab applications have more promotional features as well that help the user to gain more out of the services.

Safe and secure for the users:

Safety and security are one of the major concerns for users and drivers. Allowing drivers to get paid through different payment methods apart from cash, decreases their chances of being robbed; since they won’t be required to carry a bundle of cash along with them.

The rating system hasn’t been incorporated for the drivers only, it is present for the users as well. Drivers have the choice to rate their customers as well, on the basis of their behaviour. This way customers that become a hindrance for the service are weeded out, making it easier for everyone. Compared to traditional taxi services, cab booking applications have fixed timings for their drivers; providing them with greater freedom and flexibility.

Also, Read About: TMS And ERP

Disadvantages of taxi applications:

There aren’t many downsides to this application apart from a few that can be taken into consideration.

Efflux in pricing:

Surge pricing is a common term that is used within industries that change their rates depending on their service’s supply and demand. It can be overwhelming for customers to face sudden changes out of nowhere, especially when they were expecting something better. As for taxi application, an efflux in pricing is usually witnessed when drivers or cabs are short and when passengers are too many. Depending on the intensity of the situation, prices are either raised or lowered by a certain percentage. Especially during super peak times.


Although this newer version of taxi services is extremely effective, it can cause issues for users when their trip gets cancelled after being assigned to a driver. It can come off as a major disruption.

Price competition:

Price competition amongst different companies from the same industry can be devastating, especially when you are working through implementing traditional methods. Older taxi services have faced an issue for the most part after the appearance of taxi applications, and that has to lead to a downfall for traditional taxi services, their demand is depleting.

Low fares causing obstacles for drivers:

Driver depends highly on surges to earn better than their usual days. But due to price competitions, the average earning is constantly decreasing; that is making it harder for drivers to keep up with it. In return, they have to work extra hours to earn more and fulfil their quota.


These are the few advantages and disadvantages of the taxi application. However, the service has managed to keep itself up and grow unconditionally through their consistent efforts and hard work.

Muhammad Asad Raza

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