Remember the days when we needed to commute to our nearby relatives and we would call that cabby umpteen times? Well, although it is the story of a bygone era, surely the memories remain. It was later replaced by taxi operators, who would provide you with a taxi as and when required from their network. It was more convenient as there would be a single point of contact that would connect with various available drivers. And then this human operator was replaced by our cab booking app development. Surely, over the years, the on-demand taxi booking app development industry has grown by all means. Do you also want to know about the taxi app development company, and how to make a taxi app by hiring the best taxi booking app developer, taxi app development cost, and key features, then keep reading this article.

These applications played a platform where the taxi drivers and the customers would connect with each other directly and avail services. It is not just the rise in demand but also technological advancement that is making taxi booking apps with the best taxi booking app developers one of the most sought-after businesses.

If you have an idea and want to enter the market with taxi booking app development, then this is the right time to invest.

Market Stats to Reflect on Your Taxi Booking App Development Idea!

Before you decide to hire a taxi app development company and enter the market with a well-defined solution, here are a few numbers that you need to consider. The numbers are a clear reflection: if you partner with the right techies, you are going to make great profits in less time.

Here are These numbers are taken from a study published on Statista

  • By the end of 2023, the ride-hailing and taxi-booking segment is expected to reach around US$314,244 million.
  • By 2026, the growth is expected to be at the annual rate of 5.03% (2023-2026), which reflects the market volume of around US$390,000m.
  • Not just the amount, but the number of users by 2026 is expected to touch the 1666 million mark in the sector, which reflects a clear demand for the rise of the taxi booking app development domain.
  • For now (2023), the user penetration is around 20%, and by 2026, it is expected to hit 21.1%.
  • If we consider the user group and the utility of these applications, the average revenue per user is around US$205.92.
  • When talking about just the online ride-hailing and taxi segments, they would contribute around 50% of total revenue by 2026.

These numbers are just estimates; the real results could be greater than this depending on the new patterns and situations the world may be put in in the next few years. Building a taxi booking app with the best taxi app developers seems profitable, isn’t it? The next big question is how to make a taxi app. Before we talk about the details of the development process, let’s have a quick look at how a basic taxi booking app functions.

taxi booking app development

How Does My Taxi Booking App Function?

Any taxi app architecture is defined by the needs of the customers and the ease of service providers. The functioning of such applications is quite easy, and thus the mobile app development process can be accomplished within a stringent deadline.

For the Passengers

  • Simply log in and create an account.
  • Enter a pickup and drop location.
  • Choose a payment alternative.
  • Connect with nearby drivers.
  • Choose your driver and enjoy your ride.

In most cases, one can schedule the rides for a later time or book for someone else.

For the Driver

  • Simply log in and create an account.
  • Check the requests on the application.
  • Pick a ride.

For the Admin

  • Be updated with the ride details.
  • Intervene in case of emergency.

This is basically how your taxi booking application would function. The working seems simple and least complicated, but when it comes to adding features and functions during cab booking app development, things become a little complicated as there are a lot more things that are to be considered.

To help you through the process, we share here the Step-by-Step Guide to Developing a Taxi Booking Application.

Read Also: Taxi Business Ideas: How to make a Taxi App Business Successful in 2023

How to Make a Taxi App That Makes Travelling Simple and Convenient?

When it comes to talking about convenient and simple travel choices, there are a lot of things to be considered. Building an application with the best taxi app developers with basic functionalities and features and taking it to market isn’t where your real energy is invested. It is the homework that goes behind that is a herculean task. To stay ahead in the market, you need to understand the market, find loopholes, find solutions to these loopholes, and then move forward to car hire app development.

taxi booking app development

Step 1:  Be Aware of Your Business Objectives and Needs

Building a successful ride-hailing mobile application with the best taxi app developers, requires you to establish a brand that your audience loves and relies on. It is only possible if you offer them a great value proposition and great services. If the customers see a solution to their problems in your application, you are already in the top players of your domain.

A few things that you need to reconsider, even before talking to the development team, are:

  • Why do you want to build a taxi-booking mobile app? (this would help you have a clear picture of your expectations from the application.)
  • Who are your competitors in the market? What are the loopholes in their products? (their drawback can surely be your advantage.)
  • Is there a solution to the loophole that has been identified? If yes, is it feasible, and will your customers like it?
  • Do you need to hire a freelancer or a taxi booking app development company for your product? 
  • What is the expected budget for the application? Where can I get the best product at the most affordable rate?

This is part of the basic research that you and your team would need to do before you get into the development process.

Step 2:  Read Your Market and Understand Your Audience

When you hire a team for any on-demand mobile app development project, you need to be aware of your audience. Understand the demographics, their basic requirements, and the problems they are facing with the current solutions in the market.

Once you figure out the loopholes and the problems, you can come up with better cab booking app development and design. This helps you save a lot of money, be specific with your requirements, and communicate easily with the taxi app development company.

Since your application deals with the current problems your target audience is facing, it is expected to reflect better and help you earn great profits in a limited time.

Step 3: Be Sure of the Business Model

Be ready with a basic business model to proceed with. Adding new ideas and experimenting during the course is fine, but having a roadmap to follow is crucial. Once you are ready with the road map, discuss it with your taxi app development company and move ahead. Talk about the basic feature set, monetization strategy, marketing strategy, services offered, functions, third-party integrations, native app development or cross-platform app development, etc.

With everything prepared beforehand, things become easier for you and your development team to coordinate.

Step 4: Hiring the Right Development Team

If you’re thinking of hiring an in-house development team, it would be a great loss of resources and time. Also, the risk factor here would be greater. Once the app development is accomplished, you will have to let go of some of the team members who gave a bad impression of the organization in the market.

Hiring an on-demand taxi booking app development company from the market can make things easier for you. Some of the advantages of hiring a third-party app development team are:

  • Pay only for the services you avail of; in short, better savings.
  • They are market experts and can help you with better ideas. They want to build a reputation in the market, and their business objectives would help you make a better business. Mutual growth is the key here!
  • You are always a part of the development process, so you have a team that works for you without actually hiring them on payroll like your employees and without the fear of firing them. Phew.

Step 5: Research Technical Specifications and the Technology That Suits You Best

As you are ready with the business model and feature set, you need to do a little research on the technology that you would like to integrate with your cab booking app development solution. However, the app development team you hire will come up with the best technologies based on cross-platform app development or native app development, whatever you choose.

Our team has experienced technologists who can help you have a competitive edge in the market with an optimized application that is scalable and flexible. The taxi booking app developers associated with us are keen learners and keep themselves updated with the latest happenings in their field.

Step 6: Impress Your Users with an Interactive and Intuitive Interface

It is significant that your cab booking app development is engaging and easy to navigate. If your users need to go through a long process or have to wait for various steps to book a cab, they will surely abandon your application. Cab booking app development like Uber or Lyft offer one-click cab booking app development solutions, so your app needs to meet at least these standards.

The UI/UX Design team associated with us understands how important it is for you to have an interactive app. We tend to follow the latest trends and come up with a solution that is aesthetically impressive and technologically advanced.

Step 7: Cab Booking App Development – Backend System

Now comes the real action!

The backend. If your backend is developed flawlessly, you are almost there. If you are targeting a market in third-world countries initially, hire Android app developers.  This would help you study the response to the application and also make a base in the market. You can later scale your app to the universal platform. If you choose to enter the market with a cross-platform application, instead of native, the most common technologies that your team may use are Swift, Go, Python, and Java for the development.

For database management, the most dominant technology is MongoDB.  Along with this, you can get a clear tech stack from your mobile app development company during the initial discussions of the app development.

Not just this, you can also experiment with third-party app integrations like GPS location, Maps, Payment Gateways, Contact Sharing, etc.

Step 8:  Test the Application for Its Functionality and Operability

As we work on Cab Booking App Development, we make sure to keep you in the loop. Our team follows an Agile Development Method that lets you stay in touch with the development team and be updated with the daily developments of the application. If any functionality or feature doesn’t respond as expected, you can ask the team to modify it.

Also, our Quality Analyst and Software Testing Team test your application on all aspects to confirm that what you take to market is flawless and generates great profits.

Step 9: App Launch

Now that you are sure that your app is ready, you need to take it to the market and wait for the audience’s response. Check what works well for you and whether there are any reviews. If anything is troubling your audience, get it fixed with the experts.

These are the basic steps to consider if you are looking forward to developing a cab booking app for your business. But the story doesn’t end here. As promised, we will help you through all the details of the app development process.

As discussed earlier, you need to be aware of your application’s business model. So, let’s discuss your application’s value proposition and monetization strategy in detail.

A Well-Defined Business Model to Help You Stay Ahead in the Taxi Booking App Business

The taxi-booking app works on a simple business model of the passenger entering the journey details and the driver taking up the ride.

Who can book the rides?

Anyone with an account on the application can book or schedule their rides easily. These are basically the office-goers who do not want to commute via personal vehicle, tourists who want to travel from one spot to another in the city, college students, or elderly people who can barely drive or walk to the places they want to visit.

Taxi booking applications have gained popularity over time and now target a universal audience.

Who Can Be a Driver with the Application?

Anyone who has an eligible driver’s license can be a driver with the application. If you want, you can simply register your vehicle with the application, and it can be used for commutation purposes. You would be paid a certain commission, and your vehicle could be used in general.

What is the monetization strategy of the application?

Before you reach the taxi booking app development company, you have to be sure of the monetization model. The way you want to earn revenue from the application has to be in line with the development model. The most popular strategies are:

Online Commission 

This is the most common way to generate revenue. Here, the driver needs to pay a little commission to the application to connect it with the rider. This is the basic revenue model behind Ola, Uber, Lyft, etc.

Cancellation Fees

Another factor that you have surely paid for is If the driver has moved from his initial location and the passenger chooses to cancel the ride, they are charged a minimal amount for the inconvenience caused.

Pre-Booking Fees 

As we talked about scheduling rides, sometimes you may be charged to book a ride in advance. Later, it may be adjusted with the ride amount with a little addition as a security that you would not cancel the ride at the last moment.

In-App Advertisement 

With in-app advertisements focused on a similar target group, you can manage to earn some great revenue. Let others use your customer base to grow their businesses as you use their advertisements to grow your revenue.

These are the most sought-after ways to make money with a cab booking application; other than this, you can also opt for a freemium or subscription-based model.

Expert’s Advice: Considering your business domain, freemium and premium models would only be setbacks!***

Read Also: Enrich the User Experience with these Features in your Taxi Booking Mobile App

What Features Can Make Your Taxi Booking App Loved by Passengers?

There are certain features that your taxi booking app development company cannot miss to include in your application. These features make you stand out from the competition and help you make better money.

Taxi Booking App Development

Easy Onboarding Process

With the ease of the onboarding process, you can expect a negligible bounce rate from the application.

Create Profile

Once the profile is created, the user can bookmark their frequently visited places which would save time for entering the complete address over and over.

Book Cab

Enter the pick-and-drop location, and your user can see all the available alternatives from the locality.

Calculate Fare

Considering the distance and time taken, an estimated fare can be shared with the passenger.

Track the Driver

Once the ride is booked, the passenger can track the driver via the app itself.

In-App Payment

We integrate an app payment feature and app wallet so that the user doesn’t have to struggle with switching between the booking and payment applications.

Push Notifications

The passenger is updated with the journey taken, and other offers, discounts, and rewards available with the application.

In-App Messaging

With an in-app messaging feature, we let the driver connect with the passenger without sharing their personal contact details.

Rate and Review drivers

The rider gets to rate and review the drivers, thus making it easier for the admin to know who is creating trouble and helping co-travelers know which driver is safe to travel with.

Travel History

The passengers can check their travel history for any references that they want.

SOS Button

If the passenger doesn’t feel comfortable or suspects something fishy, they can always make use of the SOS button in the taxi booking app.

Auto-Pickup Location

The app picks the passenger’s location by tracing the location of the mobile device. One can even edit the pickup location if they are booking a ride for someone else.

Split Payment

If the passengers are traveling in a group, they can always split the amount amongst themselves via the app itself.

Interactive Map

The taxi booking app developers make sure to integrate an interactive map that makes understanding the journey easier.

Multiple Language Use

Since the app targets a universal audience, the language in the application can simply be changed with a few clicks.

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What Features to Integrate for an Interactive Taxi Booking App for Drivers?

To make the app interactive and interesting for driving, it must be easy to use and understand.

  • Easy On-Boarding Process: Easy onboarding is the most significant feature of any application. It reflects how easy it would be to interact with the cab booking app further.
  • Driver Profile and Status: It can easily be tracked if a certain driver is available for the ride or not. Also, it reflects the trips the driver has taken to date.
  • Receive and Track Earnings: As we talked about the in-app wallet, the driver can receive and track their earnings per ride, daily, weekly, or as they want.
  • Optimized Route Guidance: The driver is shown an optimized route to the destination that saves time and helps the driver take more rides for the day.
  • Push Notifications: With push notifications, the driver is updated with the requested rides and can select the passenger they want to move ahead with.
  • Passenger Rating and Review: If there is some issue with the passenger the driver can rate them on the app, to make sure that fellow drivers are aware when taking the ride with the same.
  • Quest Earnings: The driver can earn extra from various tips and rewards by passengers and admin.

What Are the Features That Make It Easier for the Admin to Take Care of the App?

Let your taxi booking app development company load the admin panel with features that make it easier for them to interact with the application and keep a check on passenger and driver activity.

Taxi Booking App Development

Secure Login

The admin needs a stronger and more secure login panel to make sure the data is safe.

Locations and Fare Management

The admin can determine the fare based on the distance. The admin can also establish per-mile rates, and the system can automatically calculate the fare.

Driver and Passenger Management

In case there are complaints against any driver or passenger, the admin can easily review them via the admin dashboard.

Booking Management

We will update the booking management system with all the rides scheduled to take place. In the event of an emergency, you can cancel or change the route of any ride.

Vehicle Management

Admin has access to the details of the vehicles registered with the application. They need to regularly check and update the papers.

Review Driver’s Orders and Payoffs

It is the administrator who reviews the drivers’ performances and payoffs.

Check Ratings and Reviews

Depending on the ratings and reviews of the drivers and passengers, the admin can take certain strict actions if needed.

Notification Management

The admin manages and generates the notification messages sent to passengers and drivers.

Driver and User Support

Driver and user support reflect the ability to reach the admin whenever anyone encounters any issues with app interaction.

Manage Refunds

The refund requests are managed by the admin. They would review and process the refund as expected.

Promotion and Discount Management

Any festive discounts or rewards on the application are announced by the admin.

SMS Alert Settings for Specific Trips

If the passenger or the driver needs any specific reminders or updates, the admin would drop it in a click.

Read Also: Cost of Developing a Taxi Aggregator App like Uber, Lyft

Other than this, the admin takes care of country and currency settings, future ride settings, prices, etc.

If you are looking forward to developing an Uber-like taxi booking app, this business model is going to give you a competitive edge.

How Much Does Taxi App Development Cost?

Taxi App Development Cost depends on various factors like the technology used, the features integrated, and the country from which the team is hired. The average and basic Taxi app development cost would be around $15k to $25k.

If you are looking forward to building an advanced solution, the price would rise to around $75,000.

Related Post: Automotive Mobile App Development

Wrapping This Up!

Now that you are all piled up with the details to work on your own taxi booking application, what are you waiting for? Simply do a little homework, hire the right taxi booking app development company that can help, and turn your app idea into a functioning mobile application!

Taxi Booking App Development
Digital Marketing Manager

Driven by a deep curiosity and a thirst for knowledge, Mann constantly seeks to uncover the latest trends and innovations in the tech industry. His ability to dive into complex concepts and distill them into engaging content sets him apart as a reliable source of information for his readers.

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