Major challenges new age entrepreneurs faces in the ride-hailing industry in 2019? –Solutions to overcome them

Uber like app development

For every business, there is the stage of innovation, the stage of perfection, the stage of exploration, the stage of standardization, and the stage of saturation. The business of ride-sharing services is probably in the last stage. Since Uber has demonstrated the possibility of success in ride-sharing business, a lot of entrepreneurs around the world have taken to creating their own ride-sharing platforms and applications.

It cannot be denied that the opportunities are still wide open to accommodate a lot more competition. However, any new entrant in the market is bound to face a few challenges. When considering the development process, choosing Uber like app solution will easy to create a taxi app.  Let us look at the challenges faced by entrepreneurs in establishing a ride-sharing business.

Regulatory Frameworks of the Government

There are, sadly, cases where the government is not as advanced as the technology for business models. Europe, which is known for its progressive policies, been quite complacent when it comes to accommodating ride-sharing services. However, governments of countries like Singapore and the United States have been quite accommodating and have drawn strict regulatory frameworks to govern the functioning of ride-sharing operators like Grab and Go-Jek.

It is also to be noted that when you create ride-hailing businesses serving multiple countries, the challenges are bound to be more complicated. For example, Go-Jek was denied entry into the Philippines. The laws of the Philippines Government were not accommodating enough to support the functioning of the business.

Costs and Loyalties of Convenience

When here are a lot of players in the market, there are intense discounts that are happening. The discounts are aimed both at competitors and drivers. There have been instances where, in China, the company Dianping has challenged its competitor DidiChuxing by providing three coupons of 13 yuan each.

However, some players chose to play different games. While Go-Jek in Singapore is offering huge discounts, Grab has decided not to go on the price war but focus on customer experience and long term profits.

The cost is ultimately what matters to the customer, and this would mean that they are not committed to using a single ride-hailing app. To win customer loyalty, everything needs to be done by companies. Loyalty programs that give customers monetary incentive. In addition to that, it is also a good idea to focus on auxiliary aspects like the design of the application.  The security offered in terms of digital payments also helps develop loyalty.

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Incentivizing the Driver

It will not be an exaggeration to say that the drivers are as important as the customers are! In a competitive market where drivers are connected to multiple service providers, it might be difficult to get drivers. It is important to understand the market before you get the drivers.

Let us take two countries, for example. Australia has a lot of people who own their cars, and some people would like to make an extra income by driving for companies like Uber or Lyft. In Singapore, the public transport system is so efficient that people barely use their own cars. Here, a car is more of a luxury than a utility. In Singapore, people tend to lease their cars to taxi services to ensure that their car is at least utilized.

Also Read: Uber like app development: How 99 & Yandex have achieved success in ride-hailing segment?

We are looking at two different markets where driver availability is attributed to two different factors. It might also be a good idea to give auxiliary benefits to drivers. For example, Grab has started its own academy and also provides a driver welfare program. It ensures that the drivers have enough training through training videos. This translates into a better experience for its customers.

May other business opportunities are available

Since the ride-hailing option involves drivers to transport person to their location, apart from ride-hailing, adjacent business verticals can also be considered. There are a number on-demand services people will require and based on the suitable business model, an entrepreneur can choose to provide the services. Take a look at some of the possible business verticals that can be in-relevant to the ride-hailing business.

Peer-to-peer delivery services

For example, Uber has initially started with ride-hailing service and moved on to food delivery and now provides complete end-to-end on-demand services. The concept of Uber for X is the most sought out business model. Likewise, you can improvise with the delivery option for almost any kinds of material/things.

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Payment services

There may be default options to pay for the services through credit and debit cards but it will be a good choice to offer wallets or any other options for your customers. For example, you can offer monthly pay out option or allow them to pay later by paying through the wallet.

Financial services

Many ride-hailing businesses are partnering with the lending platforms to let their customers get loans or small amounts of money as a credit service. This will improve the customer retention rate and overall enhance the image of your ride-hailing business. This doesn’t stop here, there are multiple adjacent business ideas with the ride-hailing which can deployed easily. The first and foremost thing here is get your business achieve success with the ride-hailing business and move on to find the other business options you can find. Most often businesses which doesn’t innovate regularly will not get serious attention from the customers especially the millennial.


If there are no challenges, you are either the first or the last. In the business of ride-sharing, the second option is the most possible. Therefore, having challenges is a great sign that your business is healthy and kicking. With the strategies in place to encounter challenges, and with the technical support from the right partners to create your clone applications for ride-sharing, your success in the business of ride-hailing is assured!

Author Bio

Jennifer Atkinson is a Growth Hacker at Appdupe, a pioneer in app development is a one-stop solution for all your ride-hailing business needs. Also a blogger and a growth hacker who loves to find new business ideas and help startup entrepreneurs with business consultation.

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