Taxi Cab Services On Brink Of Ruin
Coronavirus has left the Taxi Cab Companies' businesses in the nation gasping for breath. Ridership has been down by at least 90% since June for some Cab companies in the nation — and just one in five of the city’s 13,500 yellow Cabs in NY even hit the streets, according to data the city Taxi and Limousine Commission. American Taxi Cab of Augusta is not left out in this decline. When New York became the epicenter of the outbreak in April, the amount of money yellow cab drivers grossed before expenses was down to $54 per day, a decline of 70% from the $176 per day they grossed in February. Their gross rebounded to $105 per day in June, but was still 47% lower than the $195 cabbies took in daily in June 2019.
Uber, Lyft and other app-based car services also hurt — but their drivers’ losses weren’t as steep. Nearly 50,000 app-based drivers stopped working between February and June, which helped driver pay remain stable.
It’s quite remarkable how Uber and Lyft have bounced back to a degree, while Taxis have much less. What you see in the numbers is more of the same of what you saw pre-pandemic, with Uber and Lyft doing much better than average Taxis both as an industry and for drivers individually. Now the outlook for their business is even worse.
Taxi Cab Company owners often blame decline of their businesses on coronavirus and Uber/Lyft existence.
Let's take a deep look at history of Taxis. A Taxi business can start from a few or a single vehicle, which can expand gradually as profit builds. You can even start this business in your home, and then subsequently move out to your own separate office after, you have acquired enough capital. Meaning, you can possibly start a taxi service with just $10,000.
If you were a beginner in the taxi business field and aspired to create your own taxi service company back then, for most start-up taxi businesses, all you needed then was register your business and get a vehicle and make money. As more money was coming in, more vehicles were bought and expansions occurred. NY and large cities then introduced medallion which cost astronomic amount forcing price hikes on Cab drivers..
Few years ago technology evolved and changed dynamic of Taxi Cab Service and every industry which involved use of Smartphones to search for Cabs rather than the old fashion Yellow book, Real Page, Yellow Pages and use of other Local office locations.
When Google was introduced as the Most Powerful Search Engine on most Smartphones, Companies that are Tech savvy took advantage of it. take for example of a search " Taxi Cab Service near me in Augusta", different search results will pop up on your phone depending on several factors used by google algorithm. Uber/Lyft with their Software knowledge worked with Google as Partners while most Taxi Cab Company owners were still playing with old technology. Many Cab Company owners are old fashion with little knowledge of Computer Software use for their businesses, while some do not know how to adjust to modern era technology either due to resistance to change or lack of fund. Using Google Search as a Business Owner such as American Taxi Cab of Augusta requires deep knowledge of its implementation. Google algorithm uses over one hundred factors to determine Search results and their algorithms often get updated as often as Google feel necessary. With the amount of information available on the web, finding what you need would be nearly impossible without some help sorting through it. Google ranking systems are designed to do just that: sort through hundreds of billions of webpages in our Search index to find the most relevant, useful results in a fraction of a second, and present them in a way that helps you find what you’re looking for. These ranking systems are made up of not one, but a whole series of algorithms. To give you the most useful information, Search algorithms look at many factors, including the words of your query, relevance and usability of pages, expertise of sources, and your location and settings. The weight applied to each factor varies depending on the nature of your query—for example, the freshness of the content plays a bigger role in answering queries about current news topics than it does about dictionary definitions.
As Business owners running Cab Company for example, knowing and understanding how algorithms work and implement them in GMB(Google My Business), gives exposure of the company to Customers who need it. Unfortunately, many Taxi Companies invest so little for their business in this field hence people find it difficult to get them on their phones. This is what Lyft/Uber took advantage of. Hopefully with time, Cab Companies will learn how to create exposure to Customers more on Smartphones.