5 Fatal Mistakes When Launching a Taxi App — How Not to Lose Customers and Drivers

Launching a taxi service is not just about technology, but also about balancing supply and demand. We have studied dozens of cases and identified 5 critical mistakes that cause companies to lose money, customers, and reputation.

1. Imbalance of Supply and Demand
Mistake: Invested the entire budget into the customer app but forgot about the drivers.

• Customers download the app, order a taxi, but there are no drivers — wait times increase, users delete the app.
• Consequences: Even if drivers are attracted later, customers won't return — they've already gotten used to Uber/Bolt.

2. The Reverse Situation: Drivers Available, But No Customers
Mistake: Actively recruiting drivers but not thinking about orders.

• Drivers register, but there are too few orders — they return to other services (Uber, Bolt).
• Consequences: A reputation as a "dead" app; drivers won't return without mass demand.

3. Custom Development from Scratch Instead of White-Label
Mistake: "We need our own, unique solution!" Allocating a budget from €250,000 and a year of development.

• Custom development (iOS, Android, server, admin panel, dispatch system) does not pay off for local services.
• Expensive support and modifications.
• Consequences: Lost profits (while you're developing, competitors with white-label solutions are already capturing the market) and a financial pit (Even after launch, an additional €50–100K/year is required for support, bug fixes, updates).

4. Ignoring Untapped Niches
Mistake: "We're just a regular taxi service, like everyone else."
Yes, competing with Uber/Bolt in "regular" taxis is difficult (especially on price), but you can win by focusing on narrow segments where large players lack flexibility. For example, these niches are often open:

• Corporate clients
• Women's taxi (female drivers).
• Taxi for people with disabilities.
• Tourists (multilingual interface).
• Delivery services

5. Skipping Beta Testing
Mistake: "Let's launch for everyone at once!" and, as a result, getting chaos.

• Drivers can't figure out the interface.
• Dispatchers lose orders.
• Customers encounter bugs.

Conclusion
The taxi business is an ecosystem: if there are no drivers, customers will leave; if there are no orders, drivers will leave. Custom development is a luxury for corporations. For a local taxi business, a white-label solution saves money, time, and nerves.
The Optimal Start:

1. White-label solution (savings of €200K+).
2. Balanced promotion (both customers + drivers).
3. Test on a small scale → fix mistakes → scale up.