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In today’s taxi industry, it takes more effort to maintain and build an on-demand delivery app, among ride-sharing giants such as Uber, Lyft, and others. If you want to succeed in operating a taxi company, you must know how to market and promote a taxi company. So the marketing strategy is extremely important to the success of the company.   

Robust ride-hailing development is not enough to achieve success. Growing and maintaining your taxi business is much more than this. You should use appropriate promotion and retention strategies to ensure that your taxi company thrives seamlessly.

Referral marketing is a powerful strategy and one of the best marketing engines for sales and conversion. It is the process, where a person referencing a product, and the respondent buys that product because of that recommendation.
In this blog, we’ll discuss promo codes or referral marketing capabilities that can help you grow your business.

  1. What is Referral Marketing:

This is the essence of leading marketers. It is also known as the “Word of Mouth” principle. It is older than you imagined and more effective than you might think. On-demand delivery app development in referral marketing is the engine behind the act of such things that becomes viral when something is shared multiple times through the general population. 

  1. Referral Marketing Tactics:

The best referral marketing programs include the traits listed below to meet and retain new customers:

  • Make sure customers have tools to share your on-demand ride-hailing app, such as easy ways to post on social media.
  • Provide incentives for customers who make recommendations and recruit new consumers.
  • Offer excellent customer support in on-demand app development as users are more inclined to recommend a brand that provides instant dispute resolution.

Referral marketing has the ability to acquire new customers. Newbies are more likely to choose a brand that is based on a recommendation from a friend or family member because they rely on real people’s opinions rather than traditional advertising.

Providing rebates is also a key way to attract new customers to your ride-hailing solution. Benefiting from discounts and promotional offers makes consumers more susceptible to conversion.

Hence, referral marketing is an excellent tactic to first acquire some users and get them to like your service, then offer them rewards and deals in exchange for a recommendation. 

  1. How Referral Marketing Brought Change Into Taxi Business?

The pioneer UBER has revolutionized the ride-hailing industry. As an early adopter, it has taken advantage of many factors, including the exploitation of local and other growth opportunities. However, referral marketing has played a key role in its success story.  

With fierce competition from within the taxi dispatch app development industry and from local services, these cab start-ups became an overnight favorite due to the word-of-mouth publicity or referrals generated by their loyal users. In-app referrals emerged as the most practical way to engage users with the service.

Today, in a matter of a minute, you can reach up to thousands of people through social media posts and review websites. Therefore, most of the better cab services use referral marketing to promote app downloads, thereby increasing their customer base.


In addition, by providing discounts and other offers to your prospective customers, you may be able to overcome certain risk factors that may prevent them from diving in with your service. This in turn helps to build trust between new users and sets the stage for long-term relationships.

  1. How In-App Referrals Helps An App Developer & Users?

If used correctly, In-app referrals can do wonders for taxi app development success. It provides many advantages to developers.

  • It is a great tactic to stimulate app downloads. In-app referral increases the number of downloads. 
  •  A successful referral program allows you to increase your attendance during a longer period of service through the application.
  • The lifetime value of a recommended client is higher than that of an unregistered client.
  • In terms of revenue creation, the referred customer spends more than the non-referenced customer in the ride-hailing apps. 

Now let’s look at how app referral helps users:

Reference marketing influences user psychology in different ways.

  •  It makes clients feel considered.
  •  As it comes from a reliable source they believe it as an authentic deal.
  •  It provides a happy moment for the user with its attractive offers and discounts.
  •  The most important factor to take into account is that it is an attractive offer for both the referee and the user.

In A Nutshell:

For the growth of the ride-hailing service, strong referral or promotional code program capabilities are essential. It helps the business to attract more consumers in a cost-effective manner. Whereas the consumer who logs in via such programs retains for a longer period.
Also, consumer confidence levels have risen in the business & he or 

she feels thrilled by the special offers. It is therefore difficult for taxi companies to forecast the abilities of the referral program and promotional codes.

Shabbir Ahmad

Shabbir Ahmad is a freelance enthusiastic blogger & SEO expert. He is the founder of Shifted Magazine & Shifted News. He contributes to many authority blogs including porch, hackernoon & techcrunch.

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