How to grow taxi customer base in LATAM: 7 tactics

Traditionally, street-hailed, cash-paid, and manually operated taxis have been a significant part of the LATAM shared mobility market. However, with the rise of ride-hailing services, attracting new taxi customers has become increasingly challenging. Ride-hailing companies offer a more convenient booking experience, are cheaper during non-surge periods, and provide drivers with flexible schedules, transparent earnings, and multiple income opportunities.

According to Statista, by 2029, the user penetration rate for taxi businesses in LATAM will drop to 15.5%, while ride-hailing services will hold steady at 30.6%. To stay competitive, it's essential for taxi businesses to upgrade their services. In this article, we'll outline 7 plus techniques to help your taxi business thrive in the LATAM market.

Tactic 1: Automate Booking a Taxi for Your Customers

Having an opportunity to book a taxi via an app makes the booking process convenient for a large number of customers and relieves call center operators or company managers of manual work. In Latin America, smartphone subscriptions are already at 80% and are forecasted to reach 90% in 2030. A mobile-first approach ensures an influx of new customers. Automation also allows company founders and managers to focus on other business tasks, such as marketing and business development.

Implementation:

• A customer app integration will make the booking process as easy as possible with features like:
  • One-tap bookings
  • Live ride tracking
  • ETA updates
  • Multiple payment options (including cash and contactless payments)
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Tactic 2: Grow Your Driver and Customer Base with Multi-Service Options

Diversifying your taxi service to include delivery services, courier options, or even grocery delivery not only creates multiple revenue streams but also attracts a wider range of drivers to your platform. Expanding beyond passenger transport allows you to maximize the use of your existing fleet and driver resources. The beauty of this approach is that you can introduce new services to your loyal customer base, people who already trust your brand and are more likely to try out what you offer.

Implementation:

• While this tactic can be implemented without a dedicated app through traditional dispatch methods, it becomes significantly more efficient and scalable with a proper technology platform.
• Using a ready-made taxi app like opran makes implementation straightforward, as the taxi software comes with ready-to-launch options specifically designed for business diversification.
• The taxi platform allows you to easily add and manage multiple service types and add food and grocery delivery.

Tactic 3: Simplify Driver Onboarding

If your taxi company is struggling to expand due to a lack of drivers, this tactic could be the solution. By reducing the onboarding process from days or weeks to just a few hours, your company becomes a driver-friendly choice. Even if simplifying the regulatory compliance process isn't possible, taxi companies can still streamline in-person visits, minimize paperwork, and reduce delays to improve the driver experience.

Implementation:

• The easiest way to simplify driver onboarding is to integrate a driver app with features like:
  • Simplified registration via mobile apps
  • Easy document upload
  • Online training modules with knowledge verification
  • Local language support and intuitive UX make it accessible to every driver

Tactic 4: Improve Service Quality by Motivating Drivers

Driver satisfaction directly correlates with service quality, making driver motivation a critical factor in growing your taxi customer base. Creating systematic driver incentives and recognition for exceptional service transforms drivers from mere service providers into enthusiastic brand ambassadors.

Implementation:

• Taxi companies can create physical driver recognition boards at their office to display top performers each week or month.
• Establish a structured bonus system based on customer ride feedback and ratings, with clear thresholds for rewards.
• Organize regular driver meetings that include training sessions and public recognition of outstanding performance.
• Taxi services can also use taxi business software to automate the gamification and reward process.