Taxi App

Reimagining the Transportation Industry for the Next Normal : Taxi App Market Post COVID-19

  • Published on : September 28, 2020

  • Read Time : 7 min

  • Views : 2.1k

The COVID-19 pandemic has radically changed the way companies operate in almost every sector, where the transport industry is the biggest victim affected by the pandemic. From taxi drivers to airlines, the overall demand has tumbled by 11% in March 2020.

It is clear, the coronavirus has affected the bottom lines and demanded an urgent need for transport companies to reconfigure their operations and navigate to the next normal with full resilience.

Though the report says post-COVID-19, the global ride-sharing market size is projected to grow at a Y-O-Y growth of 55.6% from 2020 to 2021, to reach USD 117.34 billion by 2021 from USD 75.39 billion in 2020 yet the projection for 2021 is estimated to be down by 2% as compared to pre-COVID-19 estimation.

Covid 19 Impact On Ride Sharing Market
Source: Markets and Markets

The transport and automation companies have to rethink the growth drivers to disrupt the taxi-hailing and ride-sharing market.

Here, we attempt to cover the restructuring of the taxi app industry with the significant changes that will matter to companies to build and scale innovative methods and catalyze the reinvention of company during as well as post pandemic.

To better understand the concept, let’s start by analyzing how other leading automobile and taxi app companies have responded to the transportation challenges posed by COVID-19.

How are taxi app companies players adapting to the challenges posed by COVID-19?

Top taxi app companies, like Didi Chuxing, Uber, Grab, Lyft, and Ola, have implemented various safety measures. For instance, Didi Chuxing installed plastic shields, Uber introduced photo-based driver verification and suspended UberPool, Grab suspended GrabShare and GrabBike, Lyft distributed free cleaning supplies, and Ola made masks compulsory with sanitization. These steps showcase the industry’s response to the pandemic, prioritizing safety and hygiene.

Leaps Taken By Key Taxi App Market Players in The Face of Crisis

Didi Chuxing

  • Built disinfection stations by installing a plastic shield between the front and rare seats of the car in China to isolate passengers from the driver.
  • Invested about USD 14.3 million in this safety measure that involves installing protective plastic sheets.


  • Announced a series of new safety features and key policies across their product offerings like photo-based verification of drivers every time they log in. The new camera feature in the Uber taxi app for drivers does not allow the photo to be clicked unless the camera detects the mask.
  • The other remarkable feature enables the rider or the driver to cancel the ride if either of them is not wearing the mask.
  • Uber has suspended its ride-pooling app UberPool to extend physical distancing.
  • Drivers will have to sanitize their cars after each ride and Uber will provide them free health and safety supplies.
  • Developed a new ‘Work Hub’ app to help drivers find substitute jobs.


  • Temporarily suspended GrabShare and GrabBike to encourage safe, social-distancing practices.
  • The touchless online payment option in the taxi app solution is helping customers to go cashless with GrabPay.
  • Introduced a ride cover policy with ‘Chubb’ to include coverage for COVID-19.
  • Subsidized masks for drivers on GrabBenefits.
  • Financial Assistance to affected drivers while their account is on hold.


These were the steps taken by leading taxi-hailing companies to address COVID-19.

  • Distributed cleaning supplies like hand sanitizer and face masks to drivers for free.
  • Activated more than 500 partners through LyftUp to expand transportation access and avail free rides to those in urgent need.
  • Disinfects high-contact surfaces at depots periodically.


  • Made masks compulsory and sanitization before and after rides for customers boarding the cab.
  • Limited only two passengers per ride.
  • Encouraged to make cashless payments to avoid contacts.
  • Gave 500 vehicles to the government for Doctors’ commutation and COVID-19-related activities.

Reinvent Through Smart Mobility Trends in Transportation

End To End Digitalization Through Taxi App Development Solution

The lineup of touchless features in a taxi app solution ranging from photo-based (with mask) profile verification of drivers to contactless payments and SOS buttons to inform if they have come in interaction with a COVID rider or driver, etc. are helping in improving the responsiveness and speed to market.

Mobility As A Service (MaaS)

Mobility As A Service (MaaS) and Transportation Systems Management and Operations (TSMO) may leverage the benefits and functionally integrate the features provided by smart connected communities that facilitate extensive real-time data sharing and P2P communications, and contextual decision making through innovative technologies.

Increased Usage of Artificial Intelligence (AI) and Deep Learning in Transportation Apps

The impact of COVID-19 has triggered a rise in AI applications for addressing the changing customer needs and preferences in the face of safety and hygiene. Here are the areas where AI will be used to battle pandemic effects.

  1. Corporate decision-making, planning, and management
  2. Prediction and traffic/incident detection models
  3. Connected and autonomous vehicles
  4. Temperature sensors for regulating the use of public transport
  5. Optimization of operational efficiency during social distancing

Each of these areas will help in mitigating increased exposure to risk for minimizing human contact, optimizing operational efficiency during physical distancing by predicting the demand and supply of service. It can also be used to check the human temperatures before they step in to the use of public transport.

Source: Govtech

Before you go…

Is your transport company’s crisis-response efforts getting deployed in full motion? OR Are you dealing with acute slowdown and pullback in operations and battling to cope-up with the crisis with the help of mobility solutions? Codiant can help you in resolving issues at every business touchpoint with full scale, pace and depth of action needed with its advanced taxi app development solution forged with innovative technologies and future-proof features.

Navigate Your Next by Personalizing Taxi App Solution with Codiant


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