Ever since the inception of Uber, the ride-hailing segment has been witnessing unprecedented growth. In addition to Uber, the parallel success of apps like Ola, DiDi, Careem, 99, and Lyft only go out to prove that the market is promising and profitable.
The market projections show that Asia is all set to dominate in terms of value and number of users. With populous countries like China and India on the list, it is not a surprise to know that about 50% of the global market will be contributed by South and Southeast Asia. While we look at the massive markets like India and China, we should not forget that there is quite a lot of scope for growing economies in the far Southeast Asian region. The success of Grab and GoJek has already proved to the world that this market pocket has the capacity to radically alter the landscape of profits in the global scene.
One of those promising markets is that of the Philippines. The Philippines is a picturesque archipelago with Manila as its capital. It has presented itself as a viable outsourcing market and with lower costs, it could be looked at as an alternative for the supremacy that India has established over the past couple of decades.
The Philippines is also an important center of tourism. Considering all these factors, the Philippines market is an ideal candidate for launching an app like Uber.
Launching an Uber-like app in the Philippines mandates that the entrepreneur takes care of a few vital steps. Some of them are quite generic and might apply for almost every app-based on-demand cab booking business. Some of them, however, are specific to the Philippines market.
The important questions that need to be asked are:
- What is the market like?
- Is there any legal hassle involved?
- What are the prospects and probabilities of profitability?
- How do I get my Uber-like app in the Philippines?
- How do I market it?
- How do I establish an ongoing loyalty with my customers?
The questions asked above seem rather simple but every entrepreneur knows that having answers to these questions is all about making a business successful!
What is the market like?
The revenue reported from ride-hailing services in the Philippines was about $571 million in 2020 and it suffered a massive blob of about 35% against the last year because of the COVID-19 crisis. This only goes on to prove that once the Philippines market recuperates from the crisis, it might not be surprising to see the valuation hit the $1 billion target. The number of users, in spite of the coronavirus onslaught, has been growing at 1.3% against 2019.
All the statistics only go on to prove that the Philippines is an ideal candidate where users could possibly on board with an unprecedented degree of craziness, resulting in massive profit. The expectations from an average Philippines citizen has also been altered. They have been tuned to look for comfort and convenience beyond just the utility.
As you all may have known, Uber made an infamous exit from the Southeast Asian market, and it was all left for Grab to rule the Filipino market. However, there has been a new flurry of entries into the ride-hailing segment including but not limited to Owto, Hype, and GoLag. The success of these players shows that the market is quite ideal to accommodate another new player that can offer unique features and exceptional customer-centricity.
Is there any legal hassle involved?
The problem with any new business is that the legal system might not be ready for the business model, ending up in that business biting a lot of legal battles. Thankfully, for a lot of on-demand ride-hailing services, Uber fought that battle. It has been made relatively easy for entrepreneurs to start their on-demand cab booking business. This, however, has translated into increased compliance regulations. As a blessing in disguise, you can be assured that your on-demand taxi business will not face any hassles because of noncompliance. It is highly recommended that you hire your own legal team to ensure that your business and your app are completely compliant with the norms mandated by the government.
What are the prospects and probabilities of profitability?
The average revenue per user for ride-hailing abs is expected to be in the order of about $85 per user. Even if we are looking at 1 million users, it still translates to about $85 million. While he might not be able to look at the Philippines market, we can learn a bit from the London market. An average cab driver in London makes about €775 per week and pays a commission of about 30% to the platform. The revenue for the platform that driver adds up to about €800 every month, and with this data, it is not difficult to extrapolate the profit per driver in the long run, and the profit that the platform will make with so many drivers already on board!
Without question, an app like Uber for the Philippines market is surely a lucrative business idea.
How do I get my Uber-like app in the Philippines?
A lot of companies have already laid out the skeleton of an on-demand taxi booking app. In spite of this framework, it might be an expensive affair to build the app from scratch. You can, however, make use of an Uber clone app. A white label Uber clone app is easy to customize and can get your business up and running in a short span of time.
The customizability also gives enough room for you to work on the features that could be garnished to make your offering unique. To put it simply, the white label clone gives you the advantages of quicker lunch, cost-effectiveness, and dependability on the product as it will not have any bugs.
You can get in touch with a company that specializes in creating and customizing the Uber clone app, and get your business rolling.
How do I market it?
A great product might not attract the success it deserves if it is not marketed effectively. Marketing your app should be a combination of online and off-line efforts. On the online front, it is quite easy and straightforward. Simple digital marketing strategies like search optimization, App Store optimization, social media engagements, and interactive video ads on platforms like YouTube do the trick.
It is the offline region that poses challenges. You will need to work on strategic partnerships with existing brands and if possible, even get the backing of the government and local bodies to ensure that those endorsements build trust on your brand. This is where the importance of a unique selling point comes in. The customization that you did when you worked on your white label Uber clone now becomes a strong marketing point.
How do I establish an ongoing loyalty?
You will see a lot of businesses talking about something called the lifetime value of the customer, commonly abbreviated LTV. As you may have inferred, the lifetime value of the customer is the possible revenue that they can bring to the app all through their strength of association with the app.
The lifetime value can be increased only when you can retain the customer for an extended period of time, which is a direct offshoot of loyalty. You can increase customer loyalty by providing discounts and offers every now and then, marking milestones, and also by bringing in some cross-platform engagement like an ability to order food to their home by the time they reach the destination.
The Philippines is an interesting market for any business. It is probably in its adolescence of becoming a full-fledged and dependable market, and of late, the Philippines has been quite intense in adopting technologies.
The rapid success of Grab and other parallel players in the market is the sign that an aspiring entrepreneur should be inspired by. All you need to do now is get your Uber-like taxi app solution ready and customized, so you can strike the Filipino market and strike big in terms of profit.