The Ride Hailing Revolution
Ancillary revenues are now a common way of achieving growth and increasing profitability in the highly competitive Travel & Hospitality industry, airport transfers in particular. But the taxi market has gone through a digital disruption that opens the door to greater opportunities for airlines and hotel chains, and any other brand willing to grab a share of the hyper-growth Mobility as a Service (MaaS) market with minimal capital investment.
The next wave of digitisation comes with the rise of the API industry. It’s about allowing automated brokering on your sites and apps, and enjoying the corresponding commissions.
Karhoo allows you to do exactly that. By integrating taxi e-hailing services on your platforms, you not only offer a better end-to-end travel experience, you also create new revenue streams. This is a typical case in which going digital breaks the correlation between investments and potential revenues. Integrating an external API is cheap; potential revenue is unlimited!
How unlimited? Well, it’s enough to look at the size of the taxi hailing industry today and its growth estimates to get a bit of an appetite. Conservative predictions expect it to reach a value of $120 billion by 2024, witnessing an annual growth rate of 13% during 2019–2024. More optimistic estimates foresee an annual growth rate of 20% during 2018-2025, reaching a value of $218 billion.
It’s a two-digit growth rate across major markets around the world.
Don’t miss this MaaSive opportunity!
Yes, Mobility as a Service (MaaS) offers tremendous revenue streams, even if your business is not even in the mobility sector. Yet, the opportunity for collecting these golden eggs won’t last forever. Over the next years, we will see consumer behaviour adapting to MaaS technologies with a new sense of loyalty. The new loyalty is not a to a specific taxi brand; on the contrary, the digital market allows real-time comparison between competing brands, cars, distances, and prices. The new loyalty will be rather to best digital interface; to a specific website or app.
Once I get used to a website which offers me access to the digital taxi marketplace, why should I switch? If I’ve been using Kayak or Skyscanner for the past few years for finding flights – I’m still using the same interface, regardless of the change in offer or airlines. The same will apply to chauffeur services. Once consumers pick their preferred gateway, they are likely to stick to it. Their gateway to chauffeur services might as well be their city portal, public transport app or even a supermarket site or dating app. It’s all about the loyalty of the user to the interface and the interface’s ability to provide new and relevant services to the user!
This was well understood by some major brands like Accor, SNCF and Booking.com who went ahead and added the Karhoo API to their websites. They understood that early adopters of the service will be the ones to enjoy its massive traffic (of revenues). These pioneers are facing the same marginal deployment investment as they would if they joined in 5 years from now. But those who plug-in already will bear the fruits of the MaaSive digital revolution, leaving crumbs for the late adopters.
Today Karhoo are happy to announce that they’ve made the first steps in this journey towards full open source access products.
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