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7 effective driver retention ideas for successful on-demand taxi business



driver retention

No doubt, smartphones and mobile apps are ruling our lives, and every business is getting a clear edge. The on-demand taxi business is serving its passengers and drivers with a well-designed taxi app. You can create your taxi driver app to encourage your drivers for longer working hours and more earnings.

One such company which has revolutionized the taxi industry across the world is Uber. According to Bloomberg, Uber is aiming for a valuation of about $80 to $90 billion in its initial public offerings. These facts show how successful it could be to rely on technology for the on-demand taxi business.

The on-demand taxi app has made it possible for many people in the cities to book a cab by merely tapping their smartphones. It leads a successful business model for the budding startups yearning for an Uber-like app.

While running a taxi business, you might face many hurdles, including finding new customers, cost construction and many others. One such challenge that you might face is to retain the interest of your drivers. Here’s how you can maintain and engage them for a successful on-demand taxi business.

Be Friendly 

You need to ensure that the drivers follow the contract and have no objections to it. You should let go, drivers, minor mistakes and should not impose fine on them. It might cause dissatisfaction in them, which might negatively affect your business. You should conduct quick meetings to help them understand the goals of the company. Educate them about their roles and responsibilities.


Rewards and Referral bonus

One good idea to retain your driver is to offer them a bonus based on passenger ratings. It will make a significant impact on their performance. This referral bonus will make a clear list of the reputed drivers and their vital services. This also boosts up their performance and confidence level. Besides, it is also the right way of recruiting new employees.


Open Communication

Transparency is the basis of trust. Being transparent with the drivers earns you their loyalty. You need to keep every detail clear and transparent, including their rewards, their trip status, and their earnings. On the other hand, the driver should also provide feedback about their trips, their needs, the problem faced by them, and their customer’s reactions. This kind of open communication will help you to build a strong foundation for your successful taxi business.


Make them feel valued

In every business, every employee wants to work happily without hesitation. You need to value the drivers who work hard beyond the working time, which may sometimes disrupt their health conditions. You can provide them with health benefits, which in turn make them feel valued.


Embrace technology

In this tech-savvy world, technology is the key to success. You need to invest in technology like taxi dispatch software instead of following conventional methods. The taxi booking app will offer many more features for your drivers, which helps them to manage their customers efficiently.


Flexible working hours

Unlike the conventional system of fixed driving hours, the on-demand taxi app will provide spurs based on the number of working hours. In this way, your drivers will carry more rides instead of signing off after a fixed schedule. 

It is a smart way to lure your drivers to achieve their targets. The flexible working model can encourage more drivers to work for your company during their free hours. Flexibility even brings work satisfaction amongst the drivers and helps them to reach their earning. 


Incentives for good performance

Incentives are one of the most common strategies for maintaining employees in every business. In the taxi business, you can provide incentives to drivers who follow good driving habits, offers less maintenance, minimizing downtime, and work hard in peak hours.

Final thoughts

Since the profit of the taxi business relies on the number of rides, which depends on drivers, retaining them becomes vital. It often becomes difficult for business owners to pay equal attention to customers and drivers. With the help of the above-listed ideas, you can retain your existing drivers and attract the new ones. A reputed taxi booking app development company can create a smart way to address all your taxi business challenges.



Mushahid Khatri is a solution consultant at Yelowsoft, one of the leading Taxi Booking app development company in 2017. It is known for developing Taxi Dispatch Software of unmatched quality. He believes in sharing his strong knowledge base with a leaned concentration on entrepreneurship and business. 

Barjunaid Cadir is a Content Writer in The Weekly Trends, Web Developer, SEO Content Manager, LinkedIn Specialist, Social Media Manager, and a University Researcher at Anadolu University in Eskisehir, Turkey.