Coronavirus hits hard on the e-hailing industry: Will it give start-ups a chance to compete with market giant players?
Before the Coronavirus epidemic, the global ride-hailing industry was on the rise. It was estimated that the industry would grow eightfold to $285 Bn by 2030. However, with the lockdown imposition in many countries, the ride-sharing industry’s growth is expected to stagnate in 2020.
With more people forced to stay at home, market giant players such as Uber, Lyft have experienced a major drop in their revenue earnings. As per the experts, Uber’s first-quarter GAAP net loss would escalate from $1.9 billion to around $2.2 billion. The cumulative impact of COVID-19 remains uncertain even six months after its outbreak.
So far, most of the profit share has gone to the big market players in the e-hailing industry. But the new wave of options post-coronavirus outbreak could give fair chances to start-ups too. How? Although the e-hailing industry is currently facing downtime, experts believe that post-COVID-19, the ride-sharing market size will grow exponentially. It will reach up to $ 117.34 billion with a Y-O-Y growth of around 55.6% by the 2021 year-end.
Factors contributing to favor e-hailing industry growth after COVID-19 outbreak
- Fall in car ownership
- Need for personal mobility
- The rise in on-demand transportation
- Increase in usage of smartphones (favoring app-based bookings)
- Target to reduce Carbon dioxide emissions
Furthermore, in the post-pandemic period, people will look for convenience and competitive pricing for online and app-enabled travels.
Roadmap to a profitable set-up of your e-hailing business
This pandemic has given you a fair chance to establish your start-up business against these giant players. You need to gear up with a full-packed action plan to stand and sustain the competition. Here is a brief overview of the roadmap that could bring desirable results to your e-hailing business establishment in the market.
Digitize your ride-hailing business
To begin with, you must own an app or software that can give you a digital presence. The prime reasons to prioritize the need to shift your ride-sharing business to the digital platform are:
- Almost every potential customer of yours uses a smartphone to book the ride
- Booking a ride through an app is effortless and quick
- From stationed cabs to on-demand cabs at the doorstep, the ride-hailing industry has redefined the overall public mobility experience
Automate your business processes
We highly suggest that you think about integrating a robust dispatch software in your e-hailing business that can automate the maximum of work. It will help in:
- Reducing the time and manpower investment in completing every task
- Helps in introducing surge charges/flexible charges
- Helps in making your customers engage with your business via offering promo codes/ gift cards
Stay open to different verticals
Coronavirus spread has brought down mainstream opportunities for ride-sharing businesses. At this crucial time, sticking to a specific vertical might limit your business expansion possibilities. As a start-up, you should be open to exploring the different verticals of the ride-sharing industry. You can introduce the on-demand ride-sharing segment as per the market requirements. This higher flexibility is much appreciated in such unpredictable times.
Track your business performance
Again, to be sure that you are on the right track, you should measure and track your business performance. Detailed insight of dashboard analytics will help in identifying the KPIs and in keeping an accurate track of your performance in the market. This will help in:
- Getting real-time analytics of your business
- Know the existing trends
- Helps in making future business-related decisions
“The best preparation for tomorrow is doing your best today”- H.Jackson Brown Jr.
If you wish to succeed, you need to begin today. Getting into the competition and chasing the race with big players is no cakewalk. Make sure you are strongly prepared to establish your e-hailing business in the market.
Still, have doubts and need to discuss? Get in a conversation with our experts today!