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Latin America: An ocean of opportunities in the ride-sharing industry

(Image credit: Image Credit: Moyan Brenn / Flickr)

As the number of players in the taxi dispatch industry dwindles, expanding geographically is proving to be the next best strategy to determine who will triumph in the ride-hailing market.

The cut-throat competition in the online taxi dispatch business is the highlight of the decade. The success story of Uber, Lyft, and DiDi in China are notched up due to the entry of many new players. Special attention is dragged by regional players geared up to pose equal challenges to international players.

According to Goldman Sachs, the ride-hailing industry will grow eightfold to $285billion by 2030. Surprisingly, Didi Chuxing, a leading taxi dispatch app of china is surpassing the success records established by Uber, a global startup. Interestingly, DiDi showed no signs of slowing down the pace.

Post victory in the Chinese mobility market, DiDi is all set to expand its horizon in Latin America e hailing service. Let's see how Latin America is emerging as a land of potent taxi opportunities.

Latin America: An ocean of endless potent ride-hailing opportunities

With the growing urban population, Latin America is a new set stage for the taxi dispatch business. The population of Latin America is 649 million people and expected to rise to 711 million people, out of which 83 percent of them reside in urban areas.

The growing population poses new challenges to transportation and other related infrastructure. The cities like Sao Paulo, Mexico, Bogota cannot afford to put any more vehicles on road without an infrastructure overhaul.

Large metros are already crowded with vehicles making it jammed in peak hours. As a result, commuters are paying the least attention to owning personal vehicles.

Latin America is still reliant on conventional public transportation such as buses, trains, and subways. This scenario just sets the perfect environment for the rise in on-demand taxi booking app.

Latin America is urbanizing at a rapid rate and it is often associated with digitization as well. Thus, more and more people are restoring on-demand services apps like bike-sharing, ride-hailing, and car-sharing. These services are going to get popular in these regions for sure.

Key factors making latin america the next great frontier

  • The Latin Americans are eager to embrace the alternative modes of on-demand transportation solutions because of the huge gap existing in commuting services.
  • Millennials constitute one-fourth of the Latin American population. These sections of the population are favoring more on-demand taxi services rather than owning a personal car.
    As mentioned above, it's relevant enough to say that Latin America is the second-fastest-growing mobile market. Almost 73 percent of the population has access to smart phones and this will gradually rise in the coming future. Easy access to mobile and the internet has increased the demand for online taxi booking app.
  • The convenience and easy to use features of the taxi dispatch app are worth mentioning when talking about its popularity.
  • Additionally, Latin Americans are faced with safety issues in public transportation. Thus people are diverting more towards taxi booking apps because of its safety features like real-time tracking and in-app navigation tools. GPS tracking provides transparency in prices as well.
  • Moreover, these services have also come up with only women ride-sharing in cities like Sao Paulo, Brazil.

All these factors add up to make it market pooling with opportunities.

Ridesharing market statistics of Latin America

We talked enough about the factors that make Latin America a perfect next destination to venture upon with your on-demand taxi dispatch app; now let the market statistics do the talking. Let's peep into the growth market figures of the mobility market of Latin America

According to statistics, the rise sharing market is expected to cross the $1 billion mark by 2023 which would be four times to that of $518 million recorded in 2018. A giant growth must say! The revenue is also expected to book a high annual growth rate of 16.6 percent by 2023.

Four key factors to consider while developing a taxi booking app for the Latin American market

Now that you have decided to venture into the Latin American mobility market, before approaching a taxi app development company, it's imperative you do your homework. Let's see what are the essential features to incorporate into your taxi dispatch software for the Latin American market.

  • A Thorough Study Of The Geographical Battleground: choosing a geographic location to either start your taxi dispatch business or to expand it can be a crucial task. How can you choose a perfect battleground for your taxi business?

Consider answering the following questions to find out the perfect location for you to start with:

  1. How many potential customers are there in the targeted area?
  2. What is the paying capacity of the target audience?
  3. How many rivals are present in the competition?
  4. What made the rivals succeed in the target area?

All these question's answers can lend you the solution as to where you need to float in your taxi booking app. A well-chosen battleground can help you succeed.

  • Provide Customers Centric Solutions: customers are the priority for any business and the same holds in case of the online taxi booking business. Provide services that directly mean to them. Provide real solutions to real-world problems of the customers. Address the pain points of the clients like safety issues. Affordability is another major concern of the customers. Try to provide affordable yet high-quality services to the rides to attract and retain them.
    When focusing on customer-centric solutions, let your taxi booking app do that for you. Build an on-demand uber like taxi booking app with the following simple yet all essential features:
  • A simple registration
  • Real-time tracking
  • In-app payment
  • Push notifications
  • Ride history
  • Online help has support
  • Driver's reviews and ratings.

These are a handful of important features that are customer-centric and you can't afford to miss them in your taxi booking app.

  • Put Customer's Convenience On The Top: convenience is the key. Derive lessons from the top players like DiDi, Uber, Beat, easy taxi, etc. You will find the primary focus is the convenience they offer to their riders. The riders can easily find a cab parked near them and book it. The riders find it very convenient and they revisit your taxi booking app and turn to loyal riders.
  • Bridge The Gap By Providing What Your Competitors Lack: something extra or special to the customer goes a long way in turning just rides to loyal ones. Yes, analyze what your competitors are lacking in their service. Try and come up with better-upgraded solutions to real-world problems of the customers to get that cutting edge over your competitors. People will surely choose your e hailing service.

Wrapping up:

I hope that this article opens up a new opportunity you can unleash on the land of Latin America. Whether a startup or a prolific entrepreneur, you have to make articulate decisions before venturing into a new direction. I hope this article provides you with ample insight regarding the opportunities in store and how to use it in your favor. Get set go and drive high.

Manu Bhardwaj, Marketing Research Analyst