How to expand taxi buiness like starbucks

How to not expand your taxi booking (app) business like Starbucks?

Currently, the taxi booking app market is worth more than $50 billion and it is estimated to cross $200 billion by the end of 2025. But the harsh reality is, only a few big players are ruling this billion dollar market. New companies which start their business locally with the ambition to conquer the global market, fail to establish their services in the global market. And even if they expand their business boundaries somehow, a few big names acquire them.

So, if you are one of those entrepreneurs who want to change the mobility industry with the taxi app, but not sure how to branch out your taxi booking app business by overcoming post app launch challenges, you have come to the right place.

In this blog, we will discuss the ways to expand your taxi booking app business internationally. But to make the outcome of this blog more rational, we will study the case study of Starbucks which has messed up its global expansion process totally. But first, let’s understand why you need to stop napping and start crafting business expansion process for your taxi booking app business, now. 

► Advantages of business expansion

Business expansion is the term all entrepreneurs are keeping in their mind while kicking off a small business in a small town. They start preparing themselves to expand their business globally if, during the initial period, they manage to earn well from the narrow market. However, government regulation, business expansion cost, and tedious planning are making it one of the toughest challenges to overcome. We will discuss the possible ways to overcome these challenges later in this blog. For now, let’s be familiar with the advantages of business expansion. 

► Multiple revenue streams

One of the reasons why you need to expand your business or start thinking about business expansion is the revenue stream. Because expanding the business is nothing but providing your services and products to the new users and that new users will give you the opportunity to boost the number of revenue streams. 

► Global talent

One of the fundamental requirements to expand your business is hiring new staff from the location where you are planning to expand your business. This staff hiring process makes you accessible to the global talent which you might have not acquired from the local market. 

► Branding opportunities

It is known to everyone that a globally available company is more popular than the company which is operating its business in the local market. So, if you successfully establish your company into the global market, it will automatically generate brand recognition and people will start using your services. 

► More funding

Getting funded is the dream of every entrepreneur. But a company which is targeting only a small market, even though on a very great business idea, cannot be the apple of investor’s eyes. They are more likely to invest in a global company. Thus, expand your business globally to get rewarded with six-digit funding amount.

If you have made it so far, you must be thrilled to start crafting a business expansion process for taxi booking app business. But keep your shirt on, business expansion is not an easy-breezy process. It is so complicated that big companies also screw up their ambition to establish themselves in the global market.

So, in the next section of this blog, we will get to know the methods you should avoid while crafting the business expansion plan for your taxi booking app business. But to understand it in a very comprehensive way, we will study the case study of Starbucks which failed to expand its business into Australia.

Common business expansion mistakes you have to avoid to expand your taxi booking app business successfully

Starbucks is a Seattle-based coffee company and coffee house chain. It is operating its business in all major countries and serving coffee to more than 15 million users. But the business Journey of Starbucks in Australia is nothing to get excited about for both, Aussies and Starbucks team.

In July of 2000, Starbucks opened its first store in Sydney and from there, it expanded to other major cities of the country. But when they studied the business growth in 2008, they came to know that almost all stores were under-performing and so, they needed to close all underperforming stores which were counted 61. (According to CNBC)

What went wrong? Why a company which is earning well in USA, UK, Canada, and China failed in a very business-friendly market, Australia? Let’s find out. 

► Had no affair with the local users

Starbucks which has been doing business in the USA for many years didn’t bother to know the preference of Aussies while expanding their business in Australia. Thus, they offered the same USA menu to the Aussies who are fussier than Americans. 

» Learning:

When you are expanding your taxi booking app business to another city or another country, make sure you spend some time to know the preferences of local people and make changes into your app or business model according to the need of your new users. For example, when Uber started its ride-sharing business in Bangladesh where cars aren’t as popular as motorbikes, Uber offered motorbike taxi service to keep themselves parallel with local user’s need. 

► Drove the money factor while being selfish

When Starbucks opened its stores in Australia with the same menu and the same price they are charging from Americans, Aussies simply avoided Starbucks for their morning dose of caffeine as many more local stores were offering better coffee at the better price tag. 

» Learning:

Knowing the financial status of users is the very popular practice of earning more money among entrepreneurs. But when you expand your business into a new market with the goal to establish a new identity, study the financial status of your new users for their benefits only! Offer them the service which they can afford. For the sake of longtime growth, it is acceptable to bear a little financial loss during the first two-quarters of your business as initial growth define the future of your business in a new market. 

► Didn’t tie up with local companies

Starbucks has been earning really well in USA, Canada, China, and the UK and so, they didn’t share words with Australian companies to tie up. That decision of Starbucks forced Starbucks to build the business infrastructure in a less-known market on its own. To do so, Starbucks invested so many resources without actually caring about the proper utilization of it. According to sources, Starbucks lost $104 million in Australia during its first 7 years. 

» Learning

Being a partner of a local company which has already studied the market well is one of the smartest moves you can make to expand your business. If you cannot find a proper partner by yourself, leave it on a London-based startup named Splyt which helps you to integrate your taxi booking service into the some of the very popular apps of the region where you want to expand your business. 

► Confused? Let’s understand it briefly.

Splyt that has recently raised $8 million, holds a vision of the universal global ridesharing service. It allows taxi booking app companies to integrate its services in other popular apps, so you as a taxi booking app owner doesn’t need to establish a new IT infrastructure in a new market.

Recently, Splyt has integrated Grab ride-sharing service into the Alipay app. So, now app users of Alipay can book the Grab cab by the Alipay app itself.

Want to learn more about business expansion methods? Connect with our business growth hacker, now.



Coruscate is the top taxi app development company which has entertained several taxi app development related queries. We accommodate highly skilled app development team who develop taxi app solution which is accepted globally. Moreover, our business experts assist you to expand the business boundaries of your taxi booking app business.

With our rapid app development technique, we will deliver your taxi app within 45-55 business days and under $10k. To know more about features and ask for consultation, visit our taxi app development page.

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