Annual Subscription Model - An Innovation in the Online Taxi Dispatch System
In 2004 Meru cab gave Indians their first taste of organized cab rental. Six years later, the first taxi booking app came up in the Indian market. Rest is history. Today with Ola, Uber, and many other online taxi dispatch systems, the whole online booking has become positively competitive.
But all is not well in the taxi industry. Recently, Uber axed about 400 employees to cut cost. The Uber model is thus definitely not working out. The smokes are already coming from their precarious business plan.
Now, let us analyze the models that online taxi businesses are following today. Uber follows a predatory approach in which they funneled significant investments, taking an initial loss. Later, they tightened the driver’s purse by charging massive commissions per ride. It is as excessive as 26%, which makes it quite difficult for the drivers. Ola also follows a commission per ride approach.
PIU is emerging as a player in the industry with its innovative business model and state of the art taxi dispatch software built by Mindster technologies. PIU charges only a nominal annual subscription fee.
PIU, a small startup, hopes to compete with MNCs through this constructive pricing. The current Uber and Ola model allows only 21% for the driver after deducting the expenses on fuel, monthly EMI, maintenance, and other miscellaneous expenditures.
The PIU model, on the other hand, allows the driver to take home salary 46% of his/her total earnings. It is poised to change the very profit-sharing structure in India. Here, the annual subscription model is a win-win situation for all stakeholders.
Companies like Uber and Ola with their global reach and capital follow a “kill the competitor” approach in the taxi app development industry. They form about 95% of the taxi market in the country. PIU intends for a pan-Indian expansion.
The PIU model has an added advantage when the outlook is concerned. It pitches on the PPP approach i.e., a harmonious balance of the People, Planet, and Profit. It is a proven fact that autorickshaws burn nearly 1 liter of fuel in just searching for the commuters. When taken along with the number of rickshaws amounts to a significant loss. PIU’s ‘tuk-tuk’ takes auto- rickshaw as well into its ambit.
PIU offers the Ride Profit Share (RPS), which ensures genuine privilege to the riders. The ‘earn while you ride’ scheme provides Golden Customer(GC) status to the one who prompts five other users to download the app and use them. The only condition is that the customer himself should complete a minimum of four rides a month.
The annual subscription-based model provides multi-dimensional advantages. It ensures that the fluctuations in price are not invasive and dubious. Another advantage is that it creates a rapport between the brand and the customer in a more intimate way. Hence, it pays off well from the brand loyalty angle as well.
The PIU business model fits perfectly into the modern mobile app development services that top companies like Mindster offers. Hence, the mobile app saw an instant success within a few days of its launch. Drivers are now rallying to expand PIU model across the country. The PIU model will inspire many emerging startups to take bold, innovative interventions.
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