@taxi_industry_weakness

@uber_exploits

@devastating_effec

New technology does not have to spell the end for
traditional taxi and limousine companies

Arghon Transport's passenger connecting technology empowers Taxi and Limousine companies to thrive in today's techology driven world. To fully undestand why taxi companies need Arghon Transport's ground-breaking technology, taxi companies must first understand the seven key weaknesses of the taxi and limousine industry .

The Seven Weaknesses:

  1. High Cost of Technology: Small taxi and limousine companies cannot afford expensive technology
  2. The taxi industry is too fragmented to mount an effective campaign against major ride-share apps
  3. Using outdated methods to fight cutting-edge technology threat
  4. Difficulty overcoming Ride-Share's first mover technology advantage
  5. How to match Ride-share's : One App Everywhere Advantage
  6. Taxis have no strong brands or cool technologies like Ride-shares
  7. Taxis have not kept up with the changing ridership demographics

Most taxi businesses are small and cannot afford expensive software

There are over one million taxi companies around the world. The overwhelming majority of them have fewer than five cars. Companies that small simply cannot afford the staggering cost of building a software solution capable of competing with global ride-share apps. Companies' current attemps at meeting this challenge involve creating software to perform basic tasks, like managing rides and tracking minor business functions - a solution too small to empower taxi companies to compete with ride-share while remaining comfortably under budget.

Adding insult to injury, these costly individual efforts are not all-encompassing enough to encourage ride-share users to leave the major ride-share apps. For major ride-share companies, it can cost as little as $40.00 to enter a new city. This does not even begin to compare to the hundreds of dollars required to register and licence a single taxi. In sum, taxi companies pay through the nose to build an individual taxi apps that are not a viable option for most of them.

Licensing Arghon Transport's sophisticated technology makes it easy for even the smallest taxi company to overcome the exhorbitant prices of individual taxi app development.
Arghon Transport is the only technology company of its kind offering affordable access to sophisticated, yet easy-to-use, fleet management, driver and passenger software.

Taxi companies are too fragmented to mount an effective campaign against ride-share

Some 97+ percent of taxi companies are not only small (having less than five cars), they are also spread out across countless cities in their respective countries, with different rules governing each company's operation. A small number of these companies have developed some baisic strategies for competing against ride-share, but most have not. Even larger taxi associations, capable of gathering the combined resources of all member taxi companies, still have not managed to match the global scope needed to compete against technology companies now operating ride-share. The truly global reach of ride-share apps, able pop up in new locations with low cost and little-to-no warning, has not been matched by regional, or even national, taxi companies and associations.

Arghon Transport combines the power of individual taxi companines.
Arghon Transport combines the individual promotion efforts of millions of taxi companines, across the globe, for its single taxi app. Arghon Transport matches and, even more accurately, it exceeds the efforts of ride-share apps to better serve taxi passengers. Taxi companies are empowered to take back their market share of passengers.

Arghon Transport is the only technology service of its kind built for such a collaborative marketing effort.

Using outdated methods to fight a high-tech threat

Faced with a profound change in passengers' technological expectations, the taxi and limousine industry reacted too slowly and ineffectively to its new technological threat. Taxi companies and their drivers demonstrated, petitioned local government, and even threatened the major ride-share companies with law suits and worse.

Though this reaction is common in industries faced with economic threats, it does little to stop users' eventual adoption of new technologies. The ultimate solution for taxi companies looking to succeed in the industry's changing landscape is for them to fight new technology with even better technology. Partnering with collaborative technology companies, like Arghon, allows taxi and limousine companies to stay ahead in a competitive market.

Three common forms of protest:

  1. Demonstrations (strikes, sit-ins, block streets, etc.)
  2. Petitioning the elected officials to pass laws to stop or impede the technology's adoption.
  3. Industry participants come up with quick but ineffective technology solutions.

1) Taxi and limousine drivers have conducted demonstrations against the major ride-share companies in many cities around the world. While these actions may make the news, they do nothing to deter these technology companies, looking for multi-billion dollar paydays, from going after taxi companys' passengers. The technology companies's primary concern is whether or not their technology will keep up with the growth their business models predict. The effects of this on taxi and limousine companies are significant: income reduction that pushes some taxi companies out of business.

2) Taxi companies and their drivers petition elected officials to pass laws limiting the scope and impact of the offending ride-share technology on taxi companies. Legislation requires huge efforts but buys taxi industries little reprieve. Technological changes are much faster than the ability of legislators to pass laws. Taxi companies have tried to legislatively limit the functions of ride-share, only to be outdone by even more technology advancements.

3) There are hundreds of taxi apps with less than one hundred downloads. These apps were typically expensive to build and prove to be a poor return on investment. Even if a taxi company has deep pockets, a significant portion of their app's audience, riders looking for taxis, is not local. It is not feasible for these companies to advertise nationally or even internationally when their app can only be used locally. A better, more cost effective, solution is for taxi companies to partner with a collaborative technology company like Arghon, whose technology and services operate both nationally and internationally.

Difficulty overcoming Ride-Share's First-Mover Advantage

When a company is the first to introduce a technology to consumers, it gains what is called, 'first-mover advantage' over its competitors. For a competitor to overcome someone else's first-mover advantage it must offer better, lower cost, and even easier-to-use technology. In the taxi industry, one particular ride-share app popularized in-app ordering of private vehicle rides. Taxi companies wishing to compete with the major ride-share companies must provide a more compelling user experience and more innovative services beyond just the scope of taxi ordering. Adding to the difficulty of overcoming ride-share's first-mover advantage are the challeges and weaknesses outlined on this page.

Getting a consumer to use a basic taxi app instead of a ride-share app can be difficult even in cases where the ride share user is marginally satisfied with the ride-share service. People are reluctant to change habbits unless there is a compelling reason to do so.

Arghon Transport is a compelling and innovative new service helping taxi and limousine companies to take away ride-share's first-mover advantage.
Arghon and Arghon Transport are not subject to the effects of ride-share's first-mover advantage because Arghon's technology is simply miles ahead of all ride-share. We offer Arghon users access to thousands of non-ride related services from within the Arghon app. These services are totally integrated with Arghon's taxi ordering feature.

One app everywhere keeps it simple

In a typical city, there are multiple taxi companies. If each company has an individual mobile app, passengers would need to download all of these apps to guanrantee themselves access in the event that any one particular taxi company is fully booked.

Many cities, like Atlanta, New York, London, and Miami, have well over 70 taxi companies operating in them at one time. Some of these companies are limited in where they can pick up passengers. A typical consumer is not going to put up with these highly specific and hard-to-navigate complications; these are simply a non-starter for them. Passengers will not install multiple taxi apps on their mobile devices, instead they will use one of the major ride-share app, everywhere they go. For passengers, these ride-share apps are much simpler and more convenient for them to use.

The Arghon app allows Arghon users to order rides in any city in any country and on any continent at any time. In addition, the Arghon app has many features that riders enjoy, including everything from seeing movie showing schedules to finding restaurants. Arghon users get everything they need from their singular Arghon app.

No branding or cool factor

Having a recognizable brand is a major part of customer acquisition and retention. The trademark yellow color used by most taxi companies around the world is instantly recognizable to most passengers. Yet, trademarks like taxis' yellow color have also come to signify a business model that is well over one hundred years old. Traditional taxis do not represent modernity and sophistication to the average passenger, and they certainly do not have the "cool factor" of modern ride-share apps. Looking at today's ride-share companies, their logos and branding have come to signify cool technology and sophistication. This is a large part of why ride-share apps caught on so quickly with college students and then spread to the general public.

The Arghon Transport logo not only signifies cool technology, it signifies futuristic Artificial Intelligence, the ultimate cool. The Arghon brand displayed on partnered taxis and limousines tells the world the taxi industry is back and ready for business in a big way.

The Millennial Effect

Millennials, also known as Generation Y, are the largest human demographic group. The term millennial generally refers to people under the age 35. This group has grown up with, embraced, and are completely at ease with technology. This is even truer for mobile technology. Millenials see smart phones as indispensable tools for access to information and services from anywhere. It is no surprise they have embraced ride-sharing apps which allow them to summon a ride from anywhere and to even know when that ride will arrive.

Comparing millennial's need for instant access to information and services with their parents, who are used to making calls to taxi companies and waiting an indeterminate amount of time for their ride to arrive, it is clear why the technology changes affecting the taxi business grew as millennials grew.

You could call this the perfect storm of technology and the rise of millennials.Though these changes are permanent and industry altering, Arghon Transport is the solution for Taxi companies unwilling to concede to unfair ride-share practises. Arghon Transport makes it possible for taxi companies to keep up with the changing demographics and thrive in a new technological world.