A little baffled by the title? Before going to it, let me tell you what business qualifies as a startup? A business in its first stage and entirely bankrolled by its founders are startups.SpotnRides Product
A firm is a profit-oriented institution that gives a new product or service which is a result of innovation, novel production method, and major technological advancement.
Few startups have become firms and unfortunately, not all startups can qualify as a firm. Uber is a firm which started as a startup. Uber presented an innovative taxi mobility solution which was new then. But, the taxi companies that came after Uber, like Lyft, Ola, and, Go-Jek which provide Uber-like taxi services don’t qualify as firms.
Taxi firm Uber is highly valued and investors throng to them with huge funds. So, if you are a taxi startup who can provide innovative and new solutions then, you are no longer a startup. Entrepreneurs and new businessman who are keen to enter the on-demand taxi market should aim to turn their startup into a firm. Let us see how it can be done.
Discover a new operational model
There are thousands of taxi firms that work on apps across the world and all of them work with the same model. All the stakeholders have an app and cab booking is done in it. This model can be changed to be more convenient and secure to the users.
An area that is still untapped in the on-demand taxi business but which has a huge potential is the blockchain technology. Blockchain is a decentralized system that can give a new lease to the traditional taxi companies and change them into a firm. Blockchain-based taxi startups eliminate the need for a central institution.
Create new values
There can be a plethora of companies in any given area, but only a few of them can be stand out from others. It is because they create values even though the service provided by them is the same as others.
To create value, you have to find a problem and set a target audience for it. Now, build a solution that is unique and innovative and that it should not be the same as others.
Zoho is an Asia based startup which is not only a highly valued firm but also a company that created an ecosystem. An ecosystem in the sense a lot of similar startups have mushroomed from Zoho. Its solutions are unique and their focus is not only to create large profits and attract investors. Zoho created value to its employees and also its surroundings.
In such a way, you can also create an ecosystem and value by starting a taxi service focussed on rural area and for physically challenged, elderly, to name a few. This is just an example. Value creation is not only for the firm but for the surroundings and people working in the firm.
Knowing your business skill
To be frank, while delivering something new, you will be in completely new waters since it hasn’t been tried before. In building a taxi firm, you won’t have any examples to look forward to. So, in such a case, it would be good to engage an experienced business professional. Also, it would be easy for a seasoned entrepreneur to start a firm.
When building a firm, it is important to believe in intuitions and take bold decisions. And this is a business skill that only few can do it.
Try piloting and focus on a small area like, for example, a limited release. Doing this will let you analyze the reception for service. This may help you to take a decisive next step.
Be different from others
I know this sounds a bit stereotypical but it is worth it. Be different from your peers. Do this at least for the sake of investors and VCs. Establishing a taxi firm by bringing new things is a tedious task and investors who are ready to invest in it are a boon.
Sometimes investors can be a pivotal point in changing a startup to a firm. Only one in hundred Startup will be selected by the investors and that particular startup has a very good chance of being a firm.
To be the one among the hundred, the idea of providing innovative service in your taxi business should be highly engrossing, new, and should address a real problem.
Being a firm has its advantages and you can see the live example of Uber. A startup being a startup for a long time is detrimental to its health in the sense that it will die soon because of no funds, internal rifts, poor market, etc.
All the above-said strategies are applicable only if your taxi startup has a new and innovative solution or idea. So, if you have any doubt in that, go and focus on your solution. Even if you are a taxi firm which uses uber clone scripts as an app solution, you can transform into a firm by offering some innovative and creative solutions in the business model or in the app or in the service.
Just like Uber, firms can create new markets and an ecosystem where other startups can gain a lot. And, this is what a passionate entrepreneur want to do?