A robust taxi app, powered by cutting-edge dispatch technology, always helps taxi business owners reach more users than usual, maximize profits and take bookings in a hassle-free way. Other than offering seamless riding experience to the passengers, taxi apps help the drivers do their job with complete ease and efficiency. But are these features enough to make a taxi booking app the most beneficial software solution for taxi businesses? Well, no they are not.
To make the entire business operation smooth and efficient, a taxi app should offer a seamless financial management process too. And that is why a taxi booking app must have an automated driver billing and payout system.
So, if you are planning to launch your taxi-hailing app, this post will help you have a thorough idea of why you must include the automated driver billing system in your app. In this post, you will get to know the wide benefits you can get if your taxi app has automated billing service. But before diving into that discussion, let’s talk about the challenges you may face if your taxi business lacks an automated billing system.
The Challenges A Taxi Booking App without Automated Billing System Brings
- Hassled Process of Collecting Commissions
Gone are the days when taxi business owners used to collect commissions from the drivers manually. Now being an owner of a large taxi business, if you continue collecting commissions manually, it will cause a headache. When you have a large group of drivers, it is next to impossible to go to every driver for collecting money. Also, you cannot just ask everyone to visit your office and give in the commission amount. This way a huge amount of time will be wasted and a chaotic situation will be created.
- The Burden of Paperwork
Following the process of collecting commissions in a manual way requires lots of paperwork. Such level of service is dependent on individuals and this puts a need on management to maintain a record of each driver. So, the more drivers join your business, the more will be the paperwork and eventually, the tougher will be the management process.
- The Unavoidable Risk of Errors
Whenever paperwork increases in a business, it takes a great amount of effort and physical space to keep track of paper documents, find information and keep details secure. And as everything gets managed by human manually, the risk factor of making errors in managing details remains high. And this results in your loss.
In a nutshell, when your taxi business grows, billing challenges associated with your business expands rapidly. And if you opt for the manual billing system, you will waste your precious time and money. Thanks to the automated billing service, you can solve all the challenges that you may face with a manual system, keep your invoices flowing smoothly, increase revenue and optimize your earning potential with efficiency.
Let’s have a look at how automated driver billing and payout system works and keeps you free from facing all the difficulties that you can face with the manual billing system.
The Solutions A Taxi Booking App with Automated Billing System Brings
A taxi booking app, having an automated billing system, includes two sections - driver wallet and driver settlement. Let’s have an overview of how these sections work and solve all the issues associated with the manual payment system.
- Driver Wallet
Every driver is allotted to an individual wallet system in a taxi app. This wallet system is utilized for collecting commissions and sharing incentives. There are actually two ways you can make your app’s driver wallet function - one is similar to a prepaid plan and another is the same as a postpaid plan.
If you opt for the first option, your driver has to pay a certain amount of money to fill the wallet. Then every time the driver will finish a ride, the commission automatically is deducted from the wallet. When the cycle will end, which can be of a day, a week or a month, you can check the wallet balance and calculate the payment and commission accordingly.
On the other hand, in the second option, the driver’s wallet amount remains cashless at the start of the cycle. As after every ride, there should be a certain amount of commission deducted from the wallet, at the end of the cycle there will be a negative sign in the wallet balance. To make the balance zero again, the driver needs to pay the collective amount of the commission and start the next cycle.
- Driver Settlement
This includes two segments - Pay In and Payout.
Pay In denotes a certain amount of money that your driver has to pay after considering various factors such as incentives, commissions, penalties, taxes, etc. at the end of the cycle. Payout denotes the amount of money to be paid to your driver after considering the above-mentioned factors when the cycle ends.
The major benefit of using driver settlement in your taxi app is you get the authority to manage the entire finances according to your need, preference, and convenience. It saves your time, meets your requirement whenever you are in urgent need of money and makes the entire process of payment system management hassle-free.
Hope you have understood that having an automated driver billing and payout system in your taxi app can help you manage your finances with ease. Do you think these are a few benefits you can get if you opt for an automated system for billing and payment? Well, actually there are more. Billing automation in a taxi booking app can offer other advantages as well. Without further ado, let’s talk about these advantages.
Advantages You Can Get from Billing Automation in Your Taxi App
- Speedy Billing Process
In the automated billing system, you need to set up your driver’s billing only once. Based on this one-time setting automation speeds up the delivery of invoices. This way a great amount of time gets saved and eventually, the overhead costs get reduced.
- Precision in the Billing Process
The manual billing process is not completely error-free. Therefore, it may cause user dissatisfaction, increased churn rate and harm your brand reputation. But if you choose automation for the billing system, you can protect your taxi business from all these inconveniences with excellently error-free processes.
- Insight on Real-time Financial Information
With automated billing service, you can have all the business information in real time. And this real-time data will help you make better financial decisions for your taxi business and gain profits.
- Streamlined & Flexible Approach
Automation makes your driver billing system streamlined. Also, you can offer a user-centric approach by modifying the payment method as per users’ preferences. In a nutshell, the flexible and user-focused approach of automated billing system in your taxi app gives you the opportunity to maximize your revenue and have a competitive edge.
Undoubtedly, the automated driver billing and payout system for taxi booking apps are here to stay and the entire process of managing a taxi business is about to change forever. So, are you thinking about managing your taxi business finance in a fast, efficient and error-free way? Do you want to make your taxi business operation streamlined and systematic? Then have your own taxi booking app with the feature of automated billings.
Nitin Lahoti is the domain expert of Logistics and Transportation. He has 12+ years of experience in Design, Business Development and Startups. His expertise is in Product Ideation, UX/UI design, Startup consulting and mentoring. He prefers business readings and loves traveling.