How to grow taxi customer base in LATAM: 7 tactics
Statista projects that by 2029, the user penetration rate for taxi businesses in LATAM will drop to 15.5%, while ride-hailing services will hold steady at 30.6%. Now is the right time to actively upgrade your taxi service to stay competitive.
To help your taxi business grow, we’ve outlined seven growth techniques to consider.
Tactic 1: Automate booking a taxi for your customers
Having an opportunity to book a taxi via an app makes the booking process convenient for a large number of customers and relieves call center operators or company managers of manual work. Switching to an app-based approach from traditional taxi ordering approaches ensures an influx of new customers. In Latin America, smartphone subscriptions are already at 80% and are forecasted to reach 90% in 2030 on the continent. As a mobile-first region, Latin American customers are looking forward to app-based services. In addition to that, automation allows company founders and managers to focus on other business tasks, such as marketing and business development.
Implementation:
A Customer app integration will make the booking process as easy as possible with features like:
- One-tap bookings
- Live ride tracking
- ETA updates
- Multiple payment options (including cash and contactless payments)
Tactic 2: Grow your driver and customer base with multi-service options
Diversifying your taxi service to include delivery services, courier options, or even grocery delivery not only creates multiple revenue streams but also attracts a wider range of drivers to your platform. Additionally, expanding beyond passenger transport allows you to maximize the use of your existing fleet and driver resources.
The beauty of this approach is that you can introduce new services to your loyal customer base — people who already trust your brand and are more likely to try out what you offer. Meeting multiple customer needs under one platform improves customer retention and drives revenue growth.
Implementation:
While this tactic can be implemented without a dedicated app through traditional dispatch methods, it becomes significantly more efficient and scalable with a proper technology platform.
Using a ready-made taxi app like Onde makes implementation straightforward, as the taxi software comes with ready-to-launch options specifically designed for business diversification. The taxi platform allows you to easily add and manage multiple service types and add food and grocery delivery.
Tactic 3: Simplify driver onboarding
If your taxi company is struggling to expand due to a lack of drivers, this tactic could be the solution.
With so many options available, drivers tend to choose taxi or ride-hailing services where they can start working quickly. By reducing the onboarding process from days or weeks to just a few hours, your company becomes a driver-friendly choice.
Even if simplifying the regulatory compliance process isn’t possible, taxi companies can still streamline in-person visits, minimize paperwork, and reduce delays to improve the driver experience.
Implementation:
The easiest way to simplify driver onboarding is to integrate a Driver app with features like:
- Simplified registration via mobile apps
- Easy document upload
- Online training modules with knowledge verification
- Local language support and intuitive UX make it accessible to every driver
Tactic 4: Improve service quality by motivating drivers
Driver satisfaction directly correlates with service quality, making driver motivation a critical factor in growing your taxi customer base. Creating systematic driver incentives and recognition for exceptional service transforms drivers from mere service providers into enthusiastic brand ambassadors.
Exceptional service generates powerful word-of-mouth marketing, creating a continuous stream of new customers without additional marketing costs.
Implementation:
- Taxi companies can create physical driver recognition boards at their office to display top performers each week or month. Establish a structured bonus system based on customer ride feedback and ratings, with clear thresholds for rewards. Organize regular driver meetings that include training sessions and public recognition of outstanding performance.
- Taxi services can also use taxi business software to automate the gamification and reward process. With Onde’s software for taxi business, for example, the Driver levels feature automatically adjusts Driver plans based on performance, keeping drivers motivated. The company manager customizes the plans and switching criteria.
Tactic 5: Attract new users with discounts and referrals
Strategic discount programs, loyalty programs, and referral systems encourage new customers to try your local taxi service while motivating existing users to spread the word. First-time user discounts lower the entry barrier and increase the chances of repeat business and long-term customer value.
Implementation:
- A traditional taxi business without apps can implement these strategies through physical vouchers, SMS codes, or business cards with discount offers. Print unique referral codes on receipts or business cards, so current customers can share them with friends.
Create location-specific promotional codes for distribution at high-traffic areas like shopping malls, hotels, or tourist attractions to track which locations generate the most business.
- Taxi companies can automate the entire process in their Customer and Driver apps. Ready-made platforms like Onde allow the generation of unique promo codes, tracking referrals, and distributing rewards through an integrated system that provides valuable analytics on campaign performance. With Onde, passengers can easily share promo codes using the built-in sharing tool in the app to get a discounted trip, while drivers can send other potential drivers codes to join the app and get rewards.
Tactic 6: Expand into specialized or protected niches
In markets dominated by ride-hailing apps like Uber and Lyft, traditional taxi companies can thrive by pivoting to "protected niches" where compliance, specialization, or institutional partnerships create competitive moats. These niches allow taxi businesses to sidestep direct competition with tech giants while securing steady, low-churn revenue.
Example niches: Non-Emergency Medical Transportation (NEMT), airport/corporate partnerships, and vulnerable populations.
These niches favor smaller operators through recurring contracts (government/Medicaid), specialized assets (wheelchair vans), or local relationships (hospitals, airports). Giant ride-hailing apps avoid these areas due to thin margins, local regulations, or lack of business scaling.
Implementation:
- Partner with local institutions like hospitals, airports, or eldercare facilities to secure recurring contracts.
- Develop relationships with local niche communities.
- Promote these services through targeted outreach, such as flyers at medical offices or senior centers.
Tactic 7: Focus on areas with low tech adoption
Across Latin America, many regions still rely on traditional LATAM taxi and cab services due to low tech adoption. Smaller cities and towns in Bolivia, Paraguay, rural areas of Colombia, Ecuador, and Peru, as well as some metro neighborhoods with limited smartphone use, low-quality internet access, or digital payments, present key opportunities. Residents in these areas prefer familiar transport systems with cash payments and face-to-face service.
Implementation:
- Collaborate with local communities. This can involve participating in local events or partnering with local businesses to promote your services.
- Partner with local businesses, like markets or gas stations, to act as booking hubs.
- Develop marketing strategies tailored to these regions, focusing on face-to-face interactions and traditional advertising methods like print media or local radio.
- Allow customers to use web browser booking options for ordering a taxi instead of apps only
Conclusion
As you can see, incorporating mobile apps is a powerful driver of taxi customer growth, but simply having an app isn’t enough. To achieve continuous expansion, you’ll need to actively promote it and define what sets you apart from global giants like Uber and Lyft (if they operate in your region).
To support taxi businesses in this challenge, Onde goes beyond just providing taxi apps — it also offers app promotion and built-in marketing services to help you compete effectively.
And we have proof that Onde drives customer growth.
People also ask
Here are answers to common questions taxi business owners have when exploring ways to grow their customer base in LATAM.
What is the future of the taxi market?
Taxi businesses that only work offline are likely to decline. Adding online booking helps them stay competitive while preserving their strengths.
Besides, the global autonomous vehicles taxi market is set to grow significantly by 2030 as technology becomes more affordable and widely adopted.
How to leverage social media marketing to grow a taxi business in Latin America?
- Choose the platforms used by your audience.
- Share engaging driver stories regularly using social media templates to humanize your brand.
- Launch referral campaigns with discount coupons that customers can share with friends.
- Post traffic updates for your service area to demonstrate customer care.
- Collaborate with local influencers who align with your brand vision.
- Invest in targeted taxi advertising on social media to reach specific customer segments.
Best practices for partnering with local businesses to grow a taxi service in Latin America
- Identify potential local business partners such as hotels, airports, restaurants, etc.
- Use Facebook Analytics to find the most popular companies in your area.
- Contact these businesses and establish the terms of cooperation.
- Utilize tools like Onde's "Partner dispatcher" to manage taxi partnerships and facilitate services like taxi transfers.
