The Transformation of the Taxi Industry: Embracing App-Based Solutions

By: Alina Gorbatch, Ride-hailing Expert and Consultant at Onde

The taxi and mobility industry has undergone a remarkable transformation in just a few short years. What was once a world of connecting passengers and drivers via call centers and WhatsApp messages is now becoming almost entirely app-driven. A recent report projects that the global ride-hailing market will surpass USD 181.7 billion in 2025 and continue growing steadily, led in large part by North America.

For many local taxi business owners, this shift has reshaped how they work, grow their companies, and even live their lives.

Saving Time and Energy

Take Brandy Grey, co-founder of Loyal Transportation in Canada. In the early days, her business revolved around one dispatch phone. From 7 a.m. until midnight, she answered every call herself, handling pickups, drop-offs, and customer requests without pause.

When the company switched to an app-based model, nearly all of her bookings—98%—started coming in through the app. This freed her from the constant pull of the phone and allowed her to focus on bigger picture growth while reclaiming time for herself.

Her story mirrors what many small and mid-sized operators are finding: technology is about giving back hours of the day.

Making It Easier for Riders and Drivers

Convenience is a powerful magnet. For Loyal Transportation, moving to an app didn’t just streamline operations; it drew in new customers. Since making the transition, the company’s customer base has grown by an average of 30% each year.

Drivers, too, started noticing the company more often. Offering a locally owned, app-based alternative to Uber and Lyft gave Loyal Transportation an edge that drivers were attracted to.

Clarity and Control

Cash has long been a cornerstone of the taxi business, but it comes with challenges: human error, disputes, and even theft. App-based payments changed that dynamic. Every ride became traceable, every payment accounted for, and financial records transparent.

For business owners, this kind of visibility offered insight into where revenue was generated and where inefficiencies could be addressed.

Breaking Growth Barriers

There’s a natural ceiling to growth when everything is managed manually. Apps remove that ceiling. Expanding into new neighborhoods, adding service types, or handling more bookings no longer requires additional dispatch staff or endless hours. For many taxi business owners, it opens the door to scale in ways that once seemed impossible.

Choosing a Path Forward

For companies ready to make the leap, there are several ways to approach the transition:

• White-label Solutions: Pre-built, customizable platforms can be branded with a company’s own name and colors. They offer a balance of speed of launch, affordability, and reliability.

• Custom Development: Building in-house or outsourcing app development gives full control over features and design. However, this path requires significant investment and ongoing maintenance.

• Low-cost Clones: These are quick but often unreliable, with risks around security and long-term support.

Many mobility business managers have found white-label platforms to be the sweet spot: reliable and feature-rich enough to grow with them, but not as expensive as building from scratch.

The Road Ahead

The ride-hailing market is only accelerating, and consumer expectations are changing just as quickly. For business owners, the decision is no longer just about adopting technology—it’s about positioning themselves for the future. Stories like Brandy’s show what’s possible when tradition meets innovation: more time, more growth, more control, and a business that can truly scale.

The taxi industry is evolving. The question is whether your business will evolve with it.

Embracing the Future of Mobility

As the landscape of the taxi industry continues to shift, embracing app-based solutions is not just an option; it's a necessity. The integration of technology into daily operations can lead to significant improvements in efficiency and customer satisfaction.

By adopting these innovations, taxi companies can enhance their service offerings and remain competitive in a rapidly changing market. The future of mobility is here, and it’s time to take the leap into the app-driven world.

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