In the competitive world of corporate transportation, the survival of a taxi company no longer depends solely on keeping vehicles on the road. Instead, it depends on how efficiently those vehicles are used to meet real customer demand. Efficiency is the bridge between a costly operation and a profitable one. To successfully manage a fleet, companies must move from intuition to data-driven fleet management.
Digitalization through a Transportation Management System (TMS) or fleet management software provides the visibility required to measure, analyze, and optimize performance.
This article outlines the five key KPIs every taxi or corporate mobility business should monitor continuously to ensure maximum efficiency and profitability.
Vehicle Occupancy Rate (VOR)
The Vehicle Occupancy Rate (VOR) is perhaps the most critical efficiency metric because it measures the productive time of the fleet. It represents the percentage of total time that a vehicle is actively transporting a passenger or performing a paid service.
Formula:
VOR = (Total time with passenger ÷ Total active connection time) × 100
A high VOR indicates that the fleet—and its taxi dispatch system—is operating near maximum potential.
A low VOR, however, means vehicles spend too much time waiting for assignments, traveling long distances without passengers, or sitting idle.
Low occupancy can also indicate:
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Fleet oversizing
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Poor demand distribution
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Inefficient dispatching algorithms
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Deadhead Mileage Rate
This metric is a direct indicator of logistical inefficiency and one of the strongest enemies of profitability. Deadhead mileage measures the distance a vehicle travels without a passenger—specifically between the last drop-off point and the next pick-up location.
Formula:
Deadhead Rate = (Total distance without passenger ÷ Total distance traveled) × 100
Every kilometer traveled without a fare represents pure cost: fuel, maintenance, and vehicle wear—without generating revenue.
A well-optimized fleet strives to keep this percentage as close to zero as possible through smarter route optimization, demand prediction, and dispatching. -
Average Passenger Wait Time
Passenger wait time is the KPI most directly tied to customer experience (CX) and the competitiveness of your mobility platform. It measures the average time between when a passenger requests a ride and when the vehicle arrives at their location.
Formula:
Wait Time = Σ (Taxi arrival time – Request time) ÷ Total ride requests
In the on-demand and corporate mobility market, speed is everything.
Platforms like Uber and DiDi have conditioned users to expect very short wait times. Excessive delays lead to app abandonment and encourage users to switch to competitors.Keeping this metric low is essential for customer satisfaction and loyalty.
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Preventive Maintenance Compliance Rate (PMCR)
This KPI measures the percentage of scheduled preventive maintenance tasks that were completed on time.
Formula:
PMCR = (Completed preventive tasks ÷ Scheduled preventive tasks) × 100
Fleet efficiency collapses when vehicles are taken out of service due to failures.
Corrective, emergency repairs are always more expensive and time-consuming than preventive maintenance.
A 100% compliance rate ensures vehicles remain in optimal condition, directly improving:-
Vehicle availability
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Occupancy rate
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Passenger wait time
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Driver Trip Acceptance Rate
This metric reflects how aligned and engaged drivers are with the SaaS-based taxi dispatch system. It measures the percentage of assigned trips that drivers actually accept.
Formula:
Acceptance Rate = (Accepted trips ÷ Assigned trips) × 100
Low acceptance rates—or high rejection rates—are red flags that directly impact efficiency.
If drivers reject rides, the system must reassign them, increasing passenger wait time and lowering customer satisfaction.High rejection rates often indicate:
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Perceived unfair pricing
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Unprofitable pick-up zones
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Trips that are too long or too short
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Lack of driver incentives
Understanding these patterns helps optimize both pricing and dispatching logic.
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The Equations of Success
Measuring taxi fleet efficiency requires a holistic approach that connects vehicle performance, customer experience, and financial outcomes.
By consistently monitoring:-
Vehicle Occupancy Rate
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Deadhead Mileage
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Passenger Wait Time
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Preventive Maintenance Compliance
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Driver Acceptance Rate
…companies can identify bottlenecks, optimize operations through taxi software, and secure their position as efficient leaders in the mobility market.
This is especially important in corporate transportation, where reliability, cost control, and operational transparency are essential for maintaining strong business relationships.
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