How a Digital Solution Can Improve Driver Retention for your Taxi Business during Covid-19?

How a Digital Solution Can Improve Driver Retention for your Taxi Business during Covid-19?

December 10, 2020 20 By mindmingles

Before starting your own taxi service, you should think about ways to attract drivers to your business along with how to improve customer retention? After all, they are the main driving force of your brand and the volume of your taxi’s monthly profit will depend on their comfort. Here is how digital solutions can improve driver retention for your taxi business in this Covid-19 pandemic sitiuation.

What does the employee want? Undoubtedly, the fundamental factors for work are: a convenient work schedule, acceptable commission fees to the dispatcher and full workload with orders. Otherwise, the driver will simply not want to cooperate with you.

It is best to provide the same working conditions for all employees. This is easy to do, plus there will be no confusion. But the lack of individual working conditions can encourage drivers to look for a taxi service where employees are treated personally. As a result, you will increase the percentage of not taking out orders, and then increase the popularity of competitors.

There are numerous ways to improve driver retention, and we will describe the most effective in today’s article.

How to motivate employees to work?

It is also worth considering that each driver may have their own motivation tool. For some, it is enough to increase the percentage of deductions, for someone a weekly bonus is suitable, and some drivers prefer overwork. To determine what motivation methods work specifically in your taxi service , you need to open a vote.

Such an action will make it clear what is better to implement in your taxi. However, not every software allows you to organize various methods of motivation in an automatic mode. But our taxi software gives you tons of tools to flexibly control and incentivize drivers.

Method 1 – Organizing the work of the taxi dispatch service by shifts

Alas, life is a very unpredictable thing. Each driver may have his own life situations, because of which he is able to work at a certain time. Therefore, if the work of your taxi is focused only on 12-hour shifts, then get ready for the fact that you will lose a lot of drivers, and then profit. Focus on employee opportunities – break work into shifts. After all, some can work 12 hours a day, while for others such a working day is unacceptable.

How to organize a taxi dispatch service for shifts? Now the following types of work are more and more popular:

  • hourly shifts;

The driver is able to work for about 4-5 hours a day, then he has family business in the evening. But during this time he can take out about 10 orders with a check of 150-200 rubles – this is an approximate figure. Thus, you will receive a net profit of 1500-2000 rubles from one driver. And while he still goes out to work for you.

But if you additionally increase the percentage of his salary from each order, then the daily profit will grow even more. The percentage of orders taken out will not suffer, but will even grow. In the end, this will suit both you as an intermediary and a driver.

  • unlimited shifts;

This type is suitable for those taxis that have a certain order limit for each driver. Establish an unlimited shift for those employees who have been in your state for a long time or bring you a lot of profit. The bottom line is that unlimited provides great profit for the employee and increases the income of your taxi dispatch service.

  • stable 8-hour work shifts;

Some drivers prefer to work in a clear and stable way, for example, when organizing a full 8-hour day. At the same time, the percentage of the order remains fixed.

The above shifts are just an example. Experiment, create different variations of the organization of work, and then your taxi dispatch service will regularly increase profits and gain a foothold in a market that is so crowded with competition.

Method 2 – Cash Incentives for Each Employee

Works anytime, anywhere. Set a specific plan for fulfilling orders and assign a solid bonus for overfulfilling it.

Thus, each driver will strive to exceed the plan in order to receive this monetary incentive. The consequence of this will be a rapid increase in profits and a decrease in the percentage of not taking out orders. However, it is worth remembering that the plan must be set sane, taking into account the popularity of your taxi service in a particular region. Otherwise, this method will not pay off.

Also, there is another way of monetary stimulation. It’s about the good work of your employees. Pay financial incentives to those workers who perform their duties best. This will “kill two birds with one stone”: Improve Driver Retention to keep a good frame of work, and improve the performance of all other employees. As a result, the profit growth of your taxi dispatch service is guaranteed.

How to implement these methods using On-Demand Delivery App Maker?

Flexible taxi software like on-demand delivery management software will help with this with the help of a software development company. Our utility for dispatch services is highly functional. In it, you can not only distribute orders, but also organize an execution plan for which a bonus or other monetary incentive will be paid.

Worry about attracting drivers needed at the stage of designing the service, namely before, how you decide to open a taxi. With the condition that you take into account all the nuances of competition and develop a personal USP, the growth of the popularity of your business will be ensured. This means that the number of clients will also be greater and you need to serve all of them as soon as possible.

And how do you do it with a minimum number of drivers? The answer is simple – no way. Therefore, initially, develop a campaign to attract employees and ensure a comfortable working environment. This is guaranteed to increase your bottom line and strengthen your position in a competitive market. Also, do not forget about the regulation of your percentage depending on the region.