Why Geofencing is Important in Taxi App Development?

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Modern times have seen a massive rise in online cab services. It has undoubtedly made our lives much easier with the lesser hassle and saves us a couple of bucks. It is very common to see people used cab and taxi services rather than public transportation. More than the added benefit of comfort, there are many ways other reasons people prefer them. It connects us with even remote areas and regions at an affordable price range.
Even among all the pros, the one major area of concern is the safety of the passengers. It is highly like that you have read such concerns in newspapers. So how do you tackle this problem? How can we ensure a better traveling experience for our passengers?
This is the right moment when Geo fencing came into the limelight. This, when added on along with a Taxi app development, helps in keeping a track of a particular cab and also provides some messages and timely notifications. You can know more about taxi app development here.


It is a process through which geographical barriers are laid out. Much like the literal meaning, it is setting boundaries on physical locations.
It is most commonly used for GPS and acts as a security trigger that will go off if the set device goes into a different territory than required. Its use for actively tracking devices or people in the region.
uber like taxi app development
uber like taxi app development
With the advent and use of smartphones by every person, Geo-fencing has demarcated itself into two different types that are active and passive.
Active is when the user decides to keep the location services on and passive is when it is automatically one of the smartphones is in working condition.
This active feature is now immensely used in the Taxi application Development industry because of the safety concerns that such platforms are facing.
Now we will delve deeper into how exactly Geo fencing use in this Taxi app development industry.

Significance of Geo-Fencing in Taxi Industry:

1. Relevant Customer Base:

You may have noticed how you get notifications for hailing taxis in and around Airport when you are in there. A relevant customer base Chalke out and send messages and notifications to. This is extremely important because when you target a particular audience and curate notifications, it will give rise to higher conversion rates.

2. Money management:

Geo-Fencing when added to the industry makes you manage the money and invest it only in marketing to your target audience and not on the stray crowd. This database helps in identifying who are all looking for cab-hailing services and marketing do accordingly which saves a huge amount of money. This is giving them what they want kind of tactic. You understand what is the customer base wanting, who all are relevant, and then providing them with your services which is highly beneficial to your business.

3. Using data smartly:

The data collected keep under different groupings and the services that the taxi industry provides can be specially curated for the customers using the data clusters.

taxi app development blog
taxi app development blog

4. Understanding customer needs:

Any business or enterprise soars high only when the customers’ needs fulfill and Geo fencing helps in the understanding surge in the services in a region, helping you get your taxis lined for the area.

Specialties of Geo-Fencing:

Geo-fencing when added to apps gives a wide range of functionalities. SO when it comes to taxi apps, we have a bunch of features they offer that are quite useful when applied correctly.
1. Tracking:
This helps in understanding the location of the user currently and also clocks in the number of times the user has used that location. When you understand the frequency of the passenger to a particular area, we can line up more services in that particular area which will be highly useful for your company.
2. Getting notified:
When you spark an interest in an area within the geographical boundary, the taxi drivers would notify and this feature could use for a better customer experience.
3. Fixed Fares:
This helps in fixing a fare for you when you initially provide the data of where you need to head to. The most significant application of this is surge pricing. When your prices hike, there is a rush in the particular geographical fence you intend to head to.
4. A Better understanding of customer behavior:

What type of customers are opting for premium taxis, what are their regular routes, what is their traveling frequency like. All this helps understand what the customer is looking for and thus provide them with that opportunity.

taxi app development cost
taxi app development cost
5. Traffic Updates:
With the help of Geo fencing which integrates into the taxi applications, it shows the approximate amount and time that you need to spend in a traffic block. When you can compare two different roads leading you to the same destination, you can very easily choose the one with less traffic and get to your end location within the stipulated time.
It is no wonder that Geo fencing will in time emerge as the future of this Taxi Industry. When we are adding this into the Taxi app development, there are myriad advantages.
The use of location through smartphones has sure helped in the creation of marketing strategies that are very specially curated for the target audience. This in turn helps in managing the budget well and improves customer satisfaction levels.
Geo-Fencing helps companies having an overview tab on all the taxi services that it owns which can easily look into any kind of safety issue and immediately can act on it. With very high data collection of the customers, this helps in curating a very personalized customer experience. It also helps in attracting potential customers within budget by sending necessary notifications and alerts.
This is sure to increase customer loyalty and trust which in turn will be beneficial in creating a long-term relationship with the customer and you can know more about taxi app development here and take your company to new heights.


Hermit Chawla is an MD at AIS Technolabs which is a Web/App design and Development Company, helping global businesses to grow by Global Clients. He loves to share his thoughts on Web & App Development, Clone App Development, and Game Development.

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