Reimagining the Transportation Industry for the Next Normal: Taxi App Market Post COVID-19

The taxi sector has suffered greatly since the start of the health crisis all over the world. The last strong restrictions announced by the Concertation Committee risk pushing drivers and company managers a little more to the "edge of the abyss". “It's a total tumble” for many of them.

Like many professions in Europe, the taxi sector has taken the full brunt of the coronavirus epidemic. The health situation has deteriorated considerably in recent weeks, the Consultation Committee has taken a series of measures applicable since Monday, October 19.

The impact

Among these, the new closure of bars and restaurants announced by the authorities is yet another sledgehammer for taxi and car rental companies with drivers (LVC). Without catering, there is hardly anything left, the situation is catastrophic

A driver in Milan griefs "I do not see this situation well. We have lost tourists, businessmen, a good part of our turnover. Without the hotel and catering industry, there is practically nothing left. The situation is catastrophic. We are all the same. obliged to ride and be available to the public." 

The taxi sector is doing very, very badly. The onset of the crisis in March directly caused activity to drop by more than 90%. Business was starting to pick up but without sparking. There was no not enough income to catch up and get back on track. 80% of small businesses with salaried employees have not resumed their activities and their workers have been sent into economic unemployment. 

Less use of public transport

A quick survey was conducted late last month and focused on changing consumer habits. A fact that emerges very strongly is that after the coronavirus emergency, people are less willing to take public transport (buses and metro), as well as taxis.

The reluctance towards public transport is clearly due to the fear of contracting Covid-19 due to their promiscuity. The collapse of the preference for public transport has led, by contrast, to the exponential growth of people who declared they want to buy a car within six months (equal to 66%).

Buying their own car

77% of respondents (who do not own a car they own) said one reason for wanting a new car is to reduce the chances of infection, compared to using public transport.

Another factor that emerged from the survey is the increase in the number of people looking for information relating to cars on the web, focusing their attention on "health features" such as interiors made with antibacterial materials and climate control systems with antibacterial filters.

Changes in the transport industry 

Tesla, for example, who is always quite adept at understanding changing consumer habits, announced the availability of military-grade Hepa filtration last year. On early versions of the Model S and Model X as well. Of course we're not saying that the filter Tesla's Hepa is effective against the coronavirus, but it is clear that these characteristics will be increasingly sought after by consumers.

The desire to stay away from the crowd has therefore led to the desire on the part of the consumer to close the process of formalizing the car order exclusively online. And also with regard to this aspect, many manufacturers are adapting. FCA has taken this new trend into account and in fact the new 500 electric can be ordered exclusively online.

The survey analyzed, although incomplete and partial, provides some interesting insights. The car world, after the shame of the Dieselgate and the subsequent (and bloody) race to electrification, must fight this invisible enemy that led to the stoppage of production with billion-dollar losses. The automotive sector today is a very fluid sector with very unstable and not very marked boundaries and balances. Until a few months ago it was argued that sharing and sharing would represent the future of the car. At least until the advent of the coronavirus, which called everything into question. Once again.

The epidemiological emergency of the coronavirus has had repercussions on the whole industry. Particularly affected by the pandemic was the auto sector which saw manufacturers opt for the total closure of production plants: FCA , for example, stopped eight of the Italian and European plants, as well as Tesla, which after a long push and pull with the authorities, he stopped production until March 24, in Fremont, California, and Gigafactory 1, Nevada.

Ipsos, a market research consulting firm, looked into the impact that the corona virus has had on the world of cars in China and, specifically, on consumers. It is understood that the dynamics of the Chinese car market are quite particular (we are talking about a rather young market), the ideas that emerge from this research work are nevertheless very interesting.

Taxi app development on the rise

But what will the taxi booking software world be like after this lockdown? Many are wondering and several observers are looking at China, a country that after a practically total closure has managed to come out of the epidemic and is gradually returning to a normal situation.

Taxi booking app development will be definitely on high demand. Online taxi booking service will be one of the most secure solutions that can help the taxi app market post COVID-19.

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  1. author
    27 Aug 2019
    Tomas Mandy

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    1. author
      27 Aug 2019
      Britney Millner

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  2. author
    27 Aug 2019
    Simon Downey

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