Artificial Intelligence (AI) is everywhere in 2022. From your smartphone apps to global search algorithms, AI is changing the way we interact with technology. In fact, AI has simplified decision making for enterprises and enhanced convenience for end users.
Autonomous cars are a big breakthrough for the transportation sector when it comes to AI. According to Allied Market Research, self-driving technology will grow from $54 billion in 2019 to $556 billion by 2026.
Self-driving technology is just the tip of a magnanimous iceberg. AI provides significant potential for disruption, innovation and growth for the on-demand cab industry.
How Artificial Intelligence Is Changing the Future of Ride Hailing Services?
Startups are leveraging AI to build smarter systems in the cab-hailing and transportation domain. And one significant use case has emerged in the form of an AI-enabled taxi dispatch system.
An AI-enabled taxi dispatch system is a potential gamechanger. It allows startups to achieve efficiency in operations and also promise enhanced user experience.
Cab startups around the globe are integrating AI in their routine operations. One of the biggest success stories is from Japan.
JapanTaxi worked closely with Toyota, Accenture & KDDI Corporation to build a taxi dispatch support system for predicting demand. The system uses predictive analytics on data sourced from service logs and integrates it with weather data and public transport availability. Several trials suggested 94.1% accuracy in its prediction about occupied taxies in Tokyo region.
JapanTaxi offers the data to drivers and gives them suggestions on the best routes to find a passenger at a time. This reduces wait timings for passenger and higher earnings for drivers. A win-win situation for everyone.
Improving Your Taxi Booking Startup with AI
JapanTaxi's success with AI-enabled taxi dispatch system depicts the potential of AI in on-demand taxi startup domain. So, when you think of developing a mobile app for taxi business, harnessing AI will help you beat competition. Here are some potential use cases that you should keep in mind during taxi app development:
1. Real-time Demand Prediction
Artificial intelligence and predictive analysis can help in analyzing historical data effectively. Data mining on historical data along with post analysis helps taxi startups in build a powerful demand prediction algorithm.
By correlating historical data with predictive analytics and data mining, demand can be predicted in real time. As said earlier, it means shorter wait times for passengers, better earning potential for drivers and efficient mobilization of available resources.
2. Route Optimization
AI-powered mobile app for taxi business can optimize routes and availability. A reasoning algorithm can be integrated in the app for accurate optimization which saves time and minimize chances of getting stuck in traffic. At the same time, route optimization helps drivers find the fastest route to destination.
Reasoning algorithm sources data from movement of other drivers on same routes and analyzes for time and direction. Within the app, the driver gets real time suggestions that helps him navigate easily and improve their efficiency.
3. Automated Dispatch
Well, this is quite an interesting use case and the pivoting feature of an AI-based taxi dispatch system. By using pattern recognition and data mining, startups can automate taxi dispatch and eliminate chances of error due to human intervention.
A lot of times, if the system isn't automated, it can lead to longer wait times for end-users leading to bad experience. Using AI to simplify data analysis for mobilizing resources helps startups deal with dispatch issues and ensure standardization of dispatch times and faster turnaround.
4. Personalized User Experience
Everyone is betting big on personalization these days as consumers love personalized experience. When you're thinking of building a taxi booking software solution, AI capabilities can help you gauge your customers better and offer them a remarkable experiences, too.
Just like eCommerce startups take note of historical browsing choices and purchases, AI can help smarten the experience for your users, too.
You can use data analytics to give smart choices to a user on every ride pertaining to their most visited locations, ride type, and other minor personalization. All this will add up to the entire user experience, making a great brand image in their minds.
5. Make Smarter Business Decisions
Data is the new gold you must have heard a million of times. And AI can help you create meaningful connections and derive actionable insights.
Using AI-based prediction and data analysis models in your taxi app would give you in-depth understanding of the core operations and take data-backed decisions every single time. You can use data to understand consumer growth, operational issues and more and take corrective/scalability decisions with confidence.
6. Decrypting Rider Psychology
Who knew that technology would help in analyzing a person's mindset? Well, AI can effectively be used to understand consumer psychology. The ride patterns, payment mode, usage history and schedules can give a lot of insights into the thoughts of your ideal customer.
This would help a startup in understanding customer better, create a data-backed user persona and target effectively through marketing endeavors. Not only does data backed insights help in marketing, but will improve the entire user experience, as discussed earlier.
7. Smart Driver On-boarding Process
The convenience and automation quotient of AI integration quotient is limitless. Not only for the riders, AI can help the operators in creating a streamlined on-boarding experience for drivers too.
AI can be integrated in the form of a chatbot with answers to common queries and AI-powered training modules can be delivered in real-time whenever driver is stuck with an issue.
This will delight drivers and help in creating an empathetic face of your brand, motivating more drivers to connect and thus grow your taxi network, organically along with several other operational benefits.
SEE ALSO : Mobile App Ideas for Startups
Wrapping Up
AI will definitely change the way people move around in the future. And if you don't think of a way to integrate AI in your process soon, you have a chance to become obsolete. So, if you're planning for taxi app development and want to harness AI Taxi, our experts can help.
We, at Websoptimization, have rich experience of building AI-powered solutions for growth-oriented startups. If you're keen on AI and its potential, let's connect and explore the possibilities together.
