Cost to Develop Taxi Booking Apps like Uber

This post guides the entrepreneur or app developers about how one can make or start the process of building an online Taxi Aggregator or cab booking app like Uber. Remember when we just walked across the road and waited for a cabbie to stop and take us to our destination? It is a story from almost a couple of decades back. As time passed, we walked a long road where we would get a cab in just a click. The rising demand for taxi app development has made commuting to various places within a city more accessible and convenient. If you are looking forward to monetizing the trends of taxi booking apps like Uber, all you need to do is hire the right mobile app development team to help you.

Global Taxi Hailing Market Size

The global taxi industry has one of the most significant market revenues of around $100 billion and is ever-increasing.

• According to projections, the revenue in this market is expected to reach US$165.60bn by the year 2024.
• Furthermore, the annual growth rate (CAGR 2024-2028) of 6.83% is expected to result in a projected market volume of US$215.70bn by 2028 worldwide.
• In terms of user numbers, the Ride-hailing market is expected to see a significant increase, with the number of users projected to reach 1.97bn users by 2028.
• The user penetration rate is projected to be 22.6% in 2024, while it is expected to reach 24.6% by 2028.
• China is expected to generate the most revenue in the Ride-hailing market, with a projected revenue of US$63,280m in 2024
• Japan has the biggest and the most lucrative cab business in the world having more than $25 billion of cab business in Tokyo itself.
• Global net revenue amounted to 37.28 billion U.S. dollars in 2023.
• Global ride-hailing and taxi users 1.7bn
• Uber brand awareness in the U.S. 89 %
• Uber drivers completed 9.44 billion trips in 2023, almost two billion more than in 2022
• 137 million people used Uber in 2023
• Source
• Uber generates value by facilitating and overseeing transportation services between drivers (supply side) and riders (demand side). The company earns revenue by taking a 25% commission on each transaction. From Q1 2022 to Q1 2023, Uber’s overall commission rate for its Mobility/Rides segment ranged from 23.5% to 28.9%. – Source

Biz Model Canvas Uber Taxi App

Why should one develop a taxi mobile app?

Do you have a successful taxi business and aim to gain more recognition and earn more revenues? Well, in that case, creating a taxi mobile app would be just right for your taxi business. There are some countries where taxi mobile solutions have revolutionized the market as they are ideal for enhancing user engagement and retention rates. Therefore, if you are a budding entrepreneur, who aims to create a taxi booking mobile app like Uber and charge a percentage of ride fare, then it is just a great idea for a mobile app.

Types of Services A Taxi Booking App Like Uber Can Offer

You can deliver the following services by developing a taxi booking app like Uber.

Ride-Hailing Service

Ride-hailing apps like Uber and Lyft are the most common taxi-booking applications. These platforms connect passengers with drivers of vehicles for hire via a mobile app. Users can request a ride, see the estimated fare, track the driver’s location in real-time, and pay through the app.

Ride-Sharing Services

Ride-sharing apps, such as BlaBlaCar and Carma, facilitate carpooling by allowing drivers to share their rides with passengers heading in the same direction. This type of app aims to reduce travel costs by maximizing vehicle occupancy. Users can search for rides based on destination, view profiles of potential carpool partners, and arrange shared rides, often at a lower cost than traditional taxi services.

Corporate Taxi Services

Corporate taxi booking apps cater to businesses needing to manage employee transportation efficiently. These apps, like Uber for Business, provide features such as centralized billing, ride management, and reporting tools. Companies can streamline travel expenses, ensure safe and reliable employee transportation, and manage ride policies, all from a single platform.

Luxury and Limousine Services

Luxury and limousine taxi booking apps cater to high-end customers seeking premium transportation. Apps like Blacklane and Carey provide access to luxury vehicles and professional chauffeurs. Users can book these services for special occasions, business travel, or a more comfortable ride experience. These apps emphasize quality, comfort, and exceptional service.

Bike and Scooter Taxi Booking

Taxi apps like Uber, Gojek, and GrabBike offer a quick and affordable alternative for short-distance travel, especially in congested urban areas. These apps allow users to book rides on motorbikes or electric scooters, which can navigate traffic more efficiently than cars. They are popular in regions with heavy traffic and are often more cost-effective than car-based services.

How Does a Taxi Booking App Like Uber Make Money?

A taxi booking app generates massive revenue through the following methods:

Commission on Rides: Every ride scheduled via the taxi app’s platform incurs a commission. This is typically a portion of the fare taken from the rider’s payment before the driver receives the remaining amount.

Surge Pricing: The app’s dynamic pricing approach, known as surge pricing, is a key revenue generator. It allows the taxi app to adjust prices during times of high demand, maximizing revenue potential without compromising on service quality.

Subscription Fees: Some apps provide subscription models for drivers and riders. Drivers may have to pay a recurring price to use premium services or get more ride requests, and riders may join loyalty programs to get exclusive offers and first-booking preferences.

Advertising: The app may make more money through advertising. This may include displaying ads within the app, promoting other services, or collaborating with local companies to target advertisements.

Service Fees: The app may impose additional service fees in addition to the base fare for things like making reservations during busy times of day, selecting a premium car, or ordering another one like baggage handling or waiting time.

Collaborations & Sponsorships: The app’s strategic partnerships with businesses like eateries, lodging facilities, or events not only generate revenue through sponsored advertisements but also improve the taxi booking app’s value proposition by providing cooperative services, thereby attracting more users as well as potential investors.

Top Players in the Taxi-Booking app arena

Well, there are quite a few established names in the domain, like that of Uber and Lyft. The top five players have been mentioned below:

Uber: Uber Technologies Inc. is a major peer-to-peer ridesharing, food delivery, taxi cab, bicycle-sharing, and transportation network company that has its headquarters in San Francisco, California, with operations in 785 metropolitan sites across the globe. All of the platforms can easily be accessed through its mobile apps and websites. Uber has played a major part in the sharing economy. Its effects have been so huge that the changes brought by it are referred to as Uberisation. Uber was started up in 2009 as UberCab by Garrett Camp.

Lyft: Lyft is another major on-demand Transportation Company headquartered in San Francisco, California. Lyft develops, markets plus operates the Lyft car transportation mobile application. It was launched in June of 2012 and operates in around 300 U.S. cities including of NYC, Los Angeles and San Francisco. It provides more than 1 million rides per day. Five types of rides in Lyft shared Ride, Lyft, Lyft XL, Lux, Lux Black, Lux Black XL. Lyft was developed in 2012 by Logan Green and John Zimmer as a service of Zimride which was a long-distance ridesharing company founded by them in 2007.

Ola Cabs: Ola Cabs is an India-based online transportation Network Company which was developed by ANI Technologies Pvt. Ltd. Company was estimated at around $3 billion in April 2017. The Ola Cabs was founded in December 2010 in the form of an online cab aggregator in Mumbai and right now it is located in Bangalore. The company has now expanded to a wide network of over 1, 000, 00 vehicles across 169 cities. Ola offers varying levels of service that range from economic to luxury travel. They claim to achieve 150,000 bookings per day on average and boss 60% of the total market in India.

Gett: Gett which previously was known as Getting a Taxi, is a world-famous global on-demand mobility company that connects various customers with daily transportation, goods, and services. Customers can easily order a taxi either via the company’s website or by the use of the company’s GPS-based smartphone app. This app was developed and launched by the Israeli company GetTaxi. The application is compatible with both Android and iPhone platforms. This app at present operates in over 100 cities including that of the United States, the United Kingdom, Israel, and Russia.

GrabTaxi Holdings Pte.: Ltd. Grab is a major Singapore-based technology company that offers ride-hailing, food delivery services, ride-sharing, and logistics services via app in Singapore and surrounding southeast Asian nations Indonesia, Malaysia, Philippines, Vietnam, Myanmar, Thailand, and Cambodia. According to reports, it competed with Uber but Grab’s acquisition of Uber’s Southeast Asian operations in March of 2018 stamped it as the only quality ride-share service around the region. Grab is also thinking of opening a new development centre and office set up in Seattle to act as a major tech hub in order to attract talent in the US.

How to Get Your Uber-Like Taxi App Developed?

As you hire our team to develop an Uber-like taxi booking app, we make sure to take care of all the aspects that would impact your product. A bit by bit direct on the best way to make an application for taxi booking:

Step 1. Offer an Extraordinary Incentive

To stand out in the crowded market, start by offering an extraordinary incentive to attract users and drivers. This could be in the form of discounts, referral bonuses, or unique features that add value to their experience.

Step 2. Discover Your Niche

Identify a specific niche or market segment that your app will target. This could be based on geographical location, a particular type of service (e.g., luxury rides, eco-friendly cars), or specialized features (e.g., female drivers for female passengers). Understanding your niche helps tailor your app to meet specific needs and stand out from competitors.

Step 3. Picked the Income Model

Determine how your app will generate revenue. Common income models include:

• Commission-based: Taking a percentage of each ride fare.
• Subscription-based: Charging drivers or users a subscription fee.
• Advertisement-based: Displaying ads within the app.
• Surge pricing: Increasing fares during high-demand periods.

Step 4. Shape Your Vision

Define the vision and goals for your taxi booking app. Outline the core features, user experience, and long-term objectives. Consider creating a detailed roadmap that guides the development process and aligns with your business goals.

Step 5. Make a Taxi Booking Application with Specialized Documentation

Create comprehensive documentation outlining the technical and functional requirements of your app. This should include:

• Detailed feature descriptions
• User interface and user experience (UI/UX) design
• Technology stack and platform choices (iOS, Android, web)
• Backend infrastructure (servers, databases, APIs)
• Security measures and compliance requirements
• Development timeline and milestones

Step 6. Build Your Uber-like Application’s MVP

Develop a Minimum Viable Product (MVP) with essential features to launch your app quickly and test it in the market. Key features for an MVP may include:

• User registration and login
• Booking and ride tracking
• Payment processing
• Driver and passenger profiles
• Rating and review system
• Basic admin panel for managing rides and users

Step 7. Test and Launch

Thoroughly test your MVP to identify and fix any bugs or issues. Conduct beta testing with a small group of users to gather feedback and make necessary improvements. Once you’re confident in the app’s performance and user experience, launch it in your target market.

Read Also: How Much It Cost to Develop a Bike-Sharing App Like Mobike

Key Features To Consider for Developing Taxi App Like Uber

However, the app developer needs to develop two formats for the app: one for travelers or customers and another for drivers. The basic features could be similar to any application, and if you want us to add something new, let us know. The taxi app development cost is heavily driven by the features you want us to integrate into your application.

The following aspects of Uber, like taxi booking app development and Features of a Taxi Aggregation App, are described herein below- App Features

App Features

Passenger Panel: Uber Like App

• Register or Login: The first section is, as usual, a login or registration window. Users can register via their phone numbers, email or social networking profiles.
• Home Screen: Here the user can book for a cab or check the distance between the destination and his current location along with the estimated fare.
• Driver Rating: In this section, customers can leave reviews or feedback for every individual driver.
• Payment: Under the payment section, users can pay for the fare in addition to securely saving the credit or debit card credentials if they want faster transactions.
• Push Notifications and Messaging: In this section, the user of the app can switch between push notifications on the app or messaging option so that the user can text the driver about the current status.
• Ride History: This format displays not only all the previous ride history and transactions but also allows re-booking the same trip in one single click. (Ex. Work to home or vice versa)
• Real-Time Map Plotting: The feature allows the user to see the driver/cab coming. This increases user engagement and loyalty.
• Schedule Ride: The user gets the option to either Book Now or Book Later. Ride Scheduling is an excellent feature that provides users with added functionality.

Driver Panel:

The Driver Panel section has the same options as the registration, login, messaging, help and push notification as developed for the passenger panel but there are some additional features which are unique such as –

• Driver Status and Profile: This section is for driver details as they need to add extra verification proofs like license, tax numbers, and other identity proofs.
• Ride Alert: Drivers will get the alert if someone books the trip and they also can set the status of their availability on or off just by toggling on to the screen.
• Navigation: This panel helps the driver to find out the shortest route from one place to another.
• Reports: It gives a peek at the overall invoices, total earnings per day and all the rides the driver did in one day or during a month.

Also Read – Car wash app development services from top developers

Admin Panel: App Like Uber

Like every taxi aggregator app like Uber, this app would also have an admin panel so that the taxi or travel agency owner can manage and keep track of all that is happening daily.

The Admin Panel also offers a quick sneak peek or overview of the payroll and the data. Such an Admin Panel would make the complicated process look hassle-free and transparent.

Developing an Admin Panel is one of the most challenging parts of any Uber-like cab booking app development life cycle. Therefore, it needs to be done regularly. The administrator can also link Google Analytics and other monitoring tools or devices to get a visual overview.

Advanced Features to Consider to Develop Taxi Booking App Like Uber:

Bill Splitting: This feature enables two or more people going in the same direction to share the same car or taxi, with the option to split the bill for each of them with just a few clicks.

Real-time Data Analytics: This feature offers the Admin an overview of trip statistics, payroll & earnings. It gives a fair idea to the drivers about their earnings through the app. Using this app functionality, the user can use the pie charts and other third-party APIs with the help of travel data. With charts & help, users will be able to visualize things way better than raw datasheets.

Intelligent Queue Algorithm: This functionality allows the taxi service providers to distribute jobs between drivers fairly and handily. The app forms a queue of all the drivers who are reachable within five minutes to the customer and sends a job request to the available driver.

Automated Dispatch with Driver App: The driver app is built with sheer perfection, so it gets easier for the drivers to navigate the crucial data. This data can be managed easily with their smartphones. This functionality is useful for sending clear order instructions on the driver panel. It helps the drivers to get clearly visible orders with important data on the screen. It improves accept or reject decision-making and a lot more can be done using this feature.

Automated Drivers Billing & Payouts: This feature is useful to automate payment acceptance from the drivers. Different subscriptions, payment methods, and payment schedules can be set, like drivers can be charged per monthly/weekly/daily/or per-order basis. A fixed percentage and amount of total earnings can also be charged. It can combine different payment subscriptions as well as automatically calculate and charge drivers on a set billing period. At the same time can also be transferred to your drivers on a weekly/daily basis.

Personalized Service: This feature is useful to offer personalized service to the app users, for instance the locations can be suggested as per the past bookings and a lot more can be done.

Role-based Dashboard: A role-based dashboard in a taxi booking app provides tailored interfaces for different user roles, such as passengers, drivers, and administrators. Each dashboard is designed to display relevant information and functionalities specific to the user’s role

Favourite driver: If the rider or tourist is comfortable with a particular driver, the concerned passenger can book the same driver again for future rides.

Free in-app calls: After booking a taxi or car, the passenger can make free calls to the driver from the app itself.

Vehicle selection: This feature allows users to select their preferred vehicle and pick their pickup and drop-in locations from their GPS. Taxi aggregator portal development ensures that the estimated distance and the actual distance don’t vary marginally.

Voice Assistance: This feature allows the users to control the app or book a ride via voice commands

Waitlist: At peak hours, users can add their names to the waitlist so that they get a ride automatically when a cab is available and don’t have to search for a free ride again and again.

Heat Map: This is a new feature that apps like Lyft and Uber have enforced. The heat map shows the busiest time of one location.

It also helps to see the real-time driving map of the cars so that the concerned passenger or tourist can make a better decision about choosing the driver more accurately. It also helps to keep track of the surge pricing on the app itself.

Read Also: E-Scooter App Development like Lime, Nextbike, Spin & Bird – Cost and Key Features

Geolocation Tracking and Routing: This application or app entirely depends on the GPS tracking system in the form of maps. The car is tracked 24/7, and the location is updated in real-time. The fare is also calculated based on the distance covered. Google Maps is currently the best option due to its extreme customization and functionalities. However, the user can also use or apply MapKit for Apple apps and other third-party APIs or SDKs if needed. The map also shows a detailed path of every small destination lane, calculates the shortest route, and then suggests various travel options to the driver within a few seconds.

Communication (Push Notification, Call, SMS, Chat): A transparent and efficient communication platform is essential for the driver and the user. It allows for clear communication of information such as pickup points, nearby landmarks, expected arrival time, and any delays. For push notifications, the Firebase framework is recommended. This open-source framework is not only easy to implement but also secure. For iOS devices, the Apple Push Notification Service can be used, or communication can be enhanced with the integration of Twilio, Sinch, Plivo, and Nexmo.

Payment Integrations: The app offers various Payment Gateways, such as Braintree, Stripe, and PayPal’s Mobile SDK for payment, or Apple Pay for iOS devices. The inbuilt payment system of this app is a time-saving feature that helps the user to make hassle-free payments, saving them a lot of time.

Real-Time Data Analytics: A successful taxi operator should also have a team to handle the response from the server and process these responses through real-time data analysis.

Data will be in huge numbers, so data analytics makes it easier to differentiate between them. When the traffic is high, the estimated price will also increase or be shown on the app dynamically. Though some may not have issues with this extra cost per minute, others may think they are having a ride or being cheated. However, the app user can use a real-time data analytics tool for their benefit.Real-Time Charts & Dashboards Through this app feature, the user can use pie charts and other third-party APIs with the help of travel data. Charts and tables help users visualize things better than raw datasheets. Real-time charts and data play a major role in determining how much it costs to build an app like Uber.

Multiple Payment Option: This feature allows passengers to make easy payments using their Debit/Credit cards, Braintree, PayPal, Stripe, or other multiple payment modes to pay for their ride charge. This can be done by adding your card to the system and then the payment can be made in a hassle-free manner.

Technology Involved to create App like Uber Taxi

Depending upon the size of the app and preferred platform, there are quite a few technologies used for different purposes. Taxi app developers in India have changed the way things function.

Cab Booking Apps like Uber for iPhone:

• For location monitoring, this app uses the Core Location framework
• The app suggests the shortest routes and directions by using the MapKit framework
• By using this app, the user or traveller uses Bluetooth beacon and Wi-Fi or both to increase the location tracking from GPS

Uber Like Taxi Booking App for Android:

• Google Location Services API is used by this app and easy API for this kind of task.
• This App can handle all types of requests from routes to directions to navigation. A user or tourist can also use the OpenStreetMap API. As an alternative in case of both Android as well as iOS.

Cost for Developing Uber Like Taxi Mobile App

The main question is, how much does building an app like Uber cost? However, predicting the charges is tough as the number of features can be reduced or increased. Still, as per the estimates, pricing depends on specific features such as

• The platform that the operator wants to build the App – such as for Android, iOS, or Web, etc.
• The technicalities of the App to be developed?
• The version of the App to be developed such as a beta version or a full feature-packed market-ready app?
• The development centre. Countries like the USA, UK, and Australia are expensive while taxi app developers in India are quite inexpensive.

Price According to Region (US, UK India, Australia)

The price for developing taxi aggregation apps depends more on the region and competition among various app developers. Most companies charge according to the person-hours they spend creating the app. 

• In North America, for instance, the price is around $60-250 per hour; in the United Kingdom, it is $60-150 per hour; and in Western Europe, the companies charge around $40-120. Rates are less comparatively low on the eastern side of the globe. In Eastern Europe, the charge begins from $20 per hour and can go up to $100.
• For those seeking the most affordable option, India stands out, offering taxi aggregation app services at an impressively low rate of $20-$80 per hour. This significant cost difference could be a game-changer for businesses looking to develop their app on a budget.

Development Stage/Component	US	UK	India	Australia
Basic App Design	$5,000 – $10,000	$4,000 – $8,000	$1,500 – $3,000	$4,500 – $9,000
Front-end Development	$10,000 – $20,000	$8,000 – $16,000	$3,000 – $6,000	$9,000 – $18,000
Back-end Development	$15,000 – $30,000	$12,000 – $24,000	$4,500 – $9,000	$13,500 – $27,000
API Integration	$5,000 – $10,000	$4,000 – $8,000	$1,500 – $3,000	$4,500 – $9,000
User Interface (UI) Design	$7,000 – $14,000	$5,600 – $11,200	$2,100 – $4,200	$6,300 – $12,600
Database Setup	$3,000 – $6,000	$2,400 – $4,800	$900 – $1,800	$2,700 – $5,400
Quality Assurance (QA)	$5,000 – $10,000	$4,000 – $8,000	$1,500 – $3,000	$4,500 – $9,000
Project Management	$3,000 – $6,000	$2,400 – $4,800	$900 – $1,800	$2,700 – $5,400
Total Estimated Cost	$53,000 – $106,000	$42,400 – $84,800	$15,000 – $30,000	$47,700 – $95,400

A cab booking app in India, if you are going to build an MVP product, then costs around $22,000 to $40,000, and if you want to develop an inclusive application that is compliant with complex features like business intelligence, AI, kind of then the cost may rise to $100,000 to $150,000.

Finding the Right App Development Partner

With a modular approach and the right development partner, the Uber-like taxi booking app development cost and time can be reduced by almost 30%. To ensure this, it’s crucial for operators to take the reins and thoroughly investigate the past track records and project completion rate of the On Demand Taxi Booking App Development Company before finalizing the development of such an app.

It is better to compare the reputed app development partners/firms regarding their experience, goodwill, and costs involved in developing the Taxi Aggregation App.

What Team Engagement Model to Choose For Developing an App Like Uber

The taxi operators can choose from three engagement models from various software development procedures.

Offshore App Development

The offshore engagement model involves hiring a development team from another country or region, typically where development costs are lower. This model is cost-effective and offers access to a larger talent pool. However, it may come with challenges such as time zone differences, potential communication barriers, and cultural differences. Effective project management and communication tools are essential to mitigate these challenges and ensure smooth collaboration.

Onsite App Development

The onsite model offers a reassuring level of control and visibility for the operators. In this model, experienced Taxi Aggregation App developers are stationed at the operator’s office, working on the project daily. This setup, coupled with individual task allocations and daily task status reports from project managers, ensures the operators are always in the loop and can monitor the project’s progress closely.

Hybrid App Development

The hybrid model is a testament to our commitment to efficiency and timely delivery. It combines the best of both worlds, allowing the operator to maximize the use of available resources and time. With the onsite team working during office hours and after, and the offshore team operating from a remote location, this model ensures a 24/7 development framework. This is particularly beneficial for firms or taxi operators with a pressing need for swift app completion.

Development Team Architecture

Project Manager: To manage the project and ensure that all the milestones are delivered on the due date. Connect with the client for reviews and mediate between the clients and developer.
Designers: Bring on the screen class solutions that are easy to navigate and in accordance with the target audience. The ease the audience gets in using the application the more popular the application.
Developers: They turn the idea into reality. The app development team takes care of the fact that the best languages are used to deliver solutions that can help you get the best results in some times.
UX/UI Experts: They bring on the screen the experience that makes it easier for the end-users to use the applications.

The team should comprise every single specialist from a Quality assurance team to backend developers to handle the most complex queries and database. The dedicated Android and iOS app development team develops the whole framework, and the project managers enable the team to synchronize.

The Key Takeaway

As we delve into the market, we observe the rapid growth of taxi booking applications, particularly among other travel-related start-ups. However, with a unique and innovative approach, a clear vision, and the support of a robust application development organization, there is still ample room for you to make a mark. Our team of taxi app development experts is ready to bring your product to life, incorporating all the essential elements and any additional features you may require.

To make a taxi application for your space, you can utilize our element list or request that our business examiner select highlights customized to your offer and business objectives.

Likewise, be careful with potential engagements and the possibilities of innovation that can be included in mobile application development.

Rest assured, our taxi application services are not only backed by a dedicated team but also adhere to the guidelines set by local authorities and transportation associations. When you engage us to develop an application for public taxi services, we take into account the specific regulations of your area, as well as any recommendations for user data, privacy policy, and security.

So, now that you are all set to enter the market with a taxi application, we are here to help. Let us know your thoughts on business, and we will make an honest effort to bring it into the real world.