Taxi Dispatch Software: What to Look For in a Dispatch System and Booking App

Taxi companies shopping for dispatch software are usually replacing one of two things: a radio and a dispatcher's memory, or an older system that takes phone bookings but gives riders no app. Either way, the new system has to keep what works, including phone bookings, cash, and experienced dispatchers, while adding automatic dispatch and a booking app riders can use. This guide covers what to look for and what to ask, with a checklist at the end.

Automatic dispatch, with a human override

Automatic dispatch offers each trip to a driver without a dispatcher choosing. The questions that matter:

• How is the driver chosen? Straight-line distance is a weak guide. Pickup time by road is better, because the closest car on the other side of a river or a highway may be the furthest away in minutes.

• How long does a driver have to respond? Offers need a countdown, and a decline or a timeout should move the trip to the next driver without anyone touching it.

• Can two drivers accept the same trip? They shouldn't be able to, even if both tap at the same moment. Ask the vendor how they prevent it.

• What happens when nobody accepts? The rider should be told, and any card hold released, instead of being left waiting.

• What if a driver cancels after accepting? The trip should go back to the front of the queue, not the back.

Automatic dispatch handles the routine requests. Dispatchers still matter for the exceptions: a regular customer who asks for a particular driver, an airport run that needs a larger car, a driver who has gone quiet. Make sure dispatchers can assign any trip to a specific driver, move it, or cancel it from the console, and that they can see every car and every open request on one map.

Phone bookings

Many taxi riders still call, including older riders, hotels booking for guests, and businesses with standing accounts. Your system should let a dispatcher enter a phone booking in a few fields and send it into the same queue as app bookings, so it's dispatched the same way. Ask how a phone booking appears in reports and on the trip record.

Ask about scheduled bookings too. Airport runs and regular pickups are often booked ahead, and the system should dispatch them automatically before the pickup time.

Metered vs upfront fares

Many taxi markets require metered fares, and many app-based services use upfront prices. You may need both.

• Metered fares are calculated from distance and time during the trip. Some jurisdictions require a certified physical taximeter, and some accept an approved software meter. Check with your regulator before relying on an app-based meter.

• Upfront fares show the rider the price before they book. Because the rider agreed to the price in advance, the route taken doesn't change it.

• Flat fares suit airport runs and fixed routes, such as a set price between downtown and the airport.

• Fees and minimums include booking fees, minimum fares, cancellation fees after a free window, and no-show fees after a set wait.

Whichever you use, the fare breakdown should appear on the receipt and on the trip record, so dispatchers can answer a complaint without guesswork.

Cash reconciliation

Cash is where many taxi companies lose hours every week. When a driver collects cash, the system should record it against the trip. Over a week, you need to know for each driver: card fares collected by the company, cash collected by the driver, tips, fees, and the net amount owed in either direction.

Ask vendors to show you the weekly view for one driver with a mix of card and cash trips, a tip, and a refund. If the numbers don't net out on screen, they won't net out in your office.

The driver app

Drivers use the app all shift, so small details matter:

• A clear offer with pickup distance, route, and earnings, with sound, vibration, and a countdown

• One tap to open the navigation app they already use, such as Google Maps, Waze, or Apple Maps

• Arrive, verify the rider, start, and end the trip in as few taps as possible

• A no-show button that becomes available only after the wait time you set

• Earnings by day and week, including cash collected and payout status

• Location shared only while the driver is online

• Document uploads and expiry reminders, so licenses and permits don't lapse unnoticed

Reporting

You can't manage what the system doesn't record. At a minimum, look for:

• Trips and completion rate by hour and day

• Time to match and pickup time

• Cancellations by riders and by drivers

• Revenue by payment type: card, cash, and account

• Driver hours online, acceptance, and earnings

• A timestamped timeline for each trip: who was offered it, who accepted, and when the driver arrived, picked up, and dropped off

The trip timeline is the report you'll use most. When a rider complains that no car came, it shows in a minute whether the trip was offered, declined, or accepted and then cancelled.

A checklist for comparing taxi dispatch software

Whatever a vendor tells you about meters, confirm it with your regulator yourself.

How Levy fits

Levy's taxi dispatch software covers the checklist above. Requests go to the available driver with the shortest pickup time, with timed offers and automatic re-offers after a decline or timeout, and only one driver can accept a trip. Dispatchers assign, reassign, and cancel trips and enter phone bookings from the console, and scheduled rides are dispatched automatically before pickup time.

Fares can be metered where your market requires it, upfront, or flat, with booking, cancellation, and no-show fees. Cards are paid through Stripe with an upfront hold, cash is tracked per driver, house accounts are invoiced monthly, and contractor drivers are paid weekly through Stripe Connect with cash and tips netted. Riders book in an app under your company's name or on your website, and drivers use the Levy Driver app.

For more on matching and the console, see ride dispatch software. If you're weighing a custom system instead, read white-label ride-hailing app vs custom build, or book a demo.