Business model: customer friendly taxi service

Since one objective of this blog is to encourage companies to provide better customer service in Germany and help them identify business opportunities resulting from good customer service, I will occasionally describe business models based on excellent customer service. Here is the first installment. 

Wouldn’t it be great if there was a customer friendly taxi company that doesn’t only get you from point A to B but also provides a friendly and pleasant experience along the way?  

It would start with ordering the cab. You could order the taxi by phone, SMS, or online. And if you called, the friendly customer representative would immediately recognize you and greet you by name. After initial registration, the company would know your preferences of let’s say non-smoking car or payment method to allow for a quick ordering process.

When the taxi arrives, you would be greeted by name by a friendly taxi driver who helps you with your luggage and then opens the car door for you. Inside the cab he or she would offer you newspapers and magazines to read. And maybe as a nice gesture for the kids, the driver would have some small candy for them.  

During the ride the taxi driver would initiate a friendly small talk and continue with it if you are interested.  

At the end of the ride the taxi driver would help you get out of the car and would have your luggage ready waiting for you. He or she would wish you then a nice day. 

That the business basics – like clean car, safe driving, being on time, asking the customer about preferred route, and accepting all typical payment methods (cash, credit card, etc.) – are covered goes without saying.

Let’s do now a cost-benefit analysis of such a customer-friendly taxi company.

Incremental costs:
– newspaper and magazines: ~10-30¢ per ride
– candy for the kids: ~30-50¢ per ride
– friendly taxi drivers: 0 (The taxi company should be able to sign up only taxi drivers who are deemed fitted for this role.)

Incremental benefits:
– higher tips for the driver: ~50¢-2€ per ride
– increased customer satisfaction, which leads then to higher preference, which in turn leads to higher market share and hence higher revenues for the taxi company

This customer friendly taxi company could build its brand name through word-of-mouth and/or targeted advertising. And its consistently friendly service would increase preference among its frequent customers. The company could leverage its online ordering system in cooperation with airlines and train companies, offering their customers an easy way to order a taxi together with the airplane or train ticket, which would increase revenues for the taxi company even more.

Overall, a customer friendly taxi service would benefit financially both the drivers and the taxi company itself. And its customer focus would of course benefit customers too.

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3 comments so far

  1. cab83 on

    I love your idea for a customer-focused taxi service. The marketing director for the company I worked for in 1997 said, “Everyone is your customer.”

    I open the door for old ladies and people with walkers, and I almost always help with luggage. I walked a depressed lady up to her apartment and advised her to stop drinking. Sometimes I give people discounts or free rides. I tell them they can always negotiate if they think the fare is too much or if they think I could have taken a shorter way. Above all, I try to create a comfortable atmosphere.

    I always apologize on behalf of the taxi company if my passengers have a bad experience with the phone people at the dispatch office, or if they’ve had to wait a long time.

    I believe in one thing: The most happiness, for the most people, for the least effort. I believe true happiness is effortless, once you know what happiness really is. The effort is in the long journey of finding out what happiness is not, then removing those things. I think happiness is most quickly approached through kindness.

  2. Thompson on

    Hello cab 83,

    Though this thread was created sometime ago, i do appreciate the message which is put across. Taxi business is a very profitable business, if good and effective operators are in place. The good operators being the drivers should have at least minimu requirements of some good customer care attitude.

    Like any other business, customers are attracted to the company by the good service their receive from the people who are in idrect contact with customers.Therefore, it it the responsibility of the company to take an initial care for their employees by educating them about customer relations and interaction. Once employees gets the vision of the company, it will be not later than sooner that a company will get an enhaenced profit trends.

    In healthcare business like hopsitals, nurses and other healthcare professionals are taught how to care for the sick. And according to the research conducted in most academic institutions in corabolation with goverments funding these institutions, it it found that, a hospital that invest in educating its hospital citizens in good quality care is rated higher than the ones that just offer health services. So like in Taxi company, the owners or managers of the companies should take full charge at making sure that its employees are updated with care information.

    Thompson Chima.

  3. agrislalk on

    Awesome, I did not know about this topic till now. Thankz!!


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