Taxi 107 Referral Program Use Case

Natalia Korol
Jul 21, 2016

Referral program works night and day giving a constant organic flow of new users. It generates loyalty that can catapult your business to new heights.

Referral program

One of the most powerful strategies to get new customers is Referral Programs. It has become widely-spread and popular in the taxi business.

Referral campaign is based on ‘word of mouth’ principle. It’s a powerful marketing channel because people trust the opinions of other people in their lives, whether they are family, friends, social media influencers or big stars.
World’s most popular companies such as Airbnb, Netflix, AT&T, PayPal, Uber and many others have already proven, that this tool works.

In fact, a study conducted by The Wharton School of Business revealed that referred customers are nearly 20% more likely to remain loyal to a company when compared to non-referred customers.

Thinking of putting together a customer referral program and need some ideas?

Here is one of the referral program examples with real numbers, held by one of our customers.

Taxi 107 Use Case

‘Taxi 107’ launched a summer promo campaign acquiring 450 new clients for only $1.


Promotion of the passenger app and orders online. New users acquisition.

Program settings:

Budget – unlimited;
Campaign time activity – unlimited;
Single coupon expiration time – 30 days;
Everyone who gets an invite will be able to invite as well.


New users acquisition – 450;
Actual client’s cost – $1;
Coupons issued – 528;
Coupons used – 274.

Let’s have look at the main performance indicators of the referral program:
referral program

Cost per new customer is your single most important metric. It shows you the cost of a new user acquisition.

Cost per new customer = (Used coupons cost) / (Number of new customers)

Use this number to analyze the efficiency of your referral campaign in comparison to other marketing tools.

Why is it important to set unlimited budget?

Don’t be afraid of a large amount of budget money. For example, used coupons cost in Taxi 107 referral program was 15 times less than the virtually spent total, which equals to only 7%. Virtual money in coupons will only turn into real liabilities when they are redeemed. In taxi 107 case, 51% of all coupons were redeemed, which is higher than the generally accepted 20-25%.

Why referral programs are more beneficial?

Within a referral campaign, you only pay for an actual user of your service, since a user has to take a ride to redeem the coupon. While when you advertise you pay for app install, but that at the same time doesn’t mean the user will use your service. The average user acquisition cost for an app install on Android ranges between the US $1 to the US $2 per download/install for Android.

But the cost per download/install for iOS users might be higher ( $3 to $5+) as iOS users are more lucrative and inventory is more valuable as iOS users transact more. Another factor that influences cost per install is geo location.

Where to promote promo codes?

Sharing Coupons Offline

Consider making up flyers with promo codes to attract more customers and leave or hand them out in public places. It will work effectively in crowded public places such as cinemas, exhibitions, sport and art events. If you provide a high-class service, the coupons value can be higher and spread among the appropriate audience. Be creative when thinking about who and where might use taxis. Think about top restaurants, luxury stores, business centers, etc.

In case of middle-class customers, the promo codes can be promoted at local bars, restaurants, colleges, grocery stores, hospitals and so on. Free rides coupons will work good at some local popular events (e.g. sports competition, concerts, food festival), covering a wide range of audience.

Sharing Coupons Online

Make sure that all the existing and potential customers are aware of your referral campaign. Social proof is very important in our digitally connected world. Publish posts with promo codes on all of your social media accounts.

Also, mind that our system gives customers an opportunity to share the promo code via viral sharing that exists within the passenger’s app.

The Bottom Line

Referral programs are an excellent hack for boosting app installs and engagement. Login to your company panel and reward your riders.