Taxi Booking App Development – Step-by-Step Guide

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 the bygone era, surely the memories remain. It was later replaced by taxi operators who would provide you 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 taxi booking applications. Surely, over the years the on-demand taxi booking app development industry has grown by all means.

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

These numbers are taken from a study published on Statista

  • By the end of the year 2022, the Ride-Hailing and Taxi Booking segment is expected to reach around US$314,244m.
  • By 2026, the growth is expected to be at the annual rate of 5.03% (2022-2026), which reflects the market volume of around US$390,000m.
  • Not just the amount, the number of users by 2026 is expected to touch the 1666m mark in the sector which reflects a clear demand in the rise of the taxi booking app development domain. 
  • For now (2022), 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 & Taxi segment, it would contribute around 50% of total revenue by 2026.

These numbers are just the 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 seems profitable, isn’t it? The next big question is how to build 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.

How Does My Taxi Booking App Functions?

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 Start a Successful Taxi Business in 2022

How to Build 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 basic functionalities and features and taking it to the market isn’t where your real energy is invested. It is in 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.

Step 1:  Be Aware of Your Business Objectives and Needs

Building a successful ride-hailing mobile application needs 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 is 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 of the application? Where can I get the best product at the most affordable rates?

This is the 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 a better cab booking app design.  This helps you save a lot of money, be specific with your requirements, and communicate easily with the taxi booking 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, 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 booking 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 with.

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 would have to let go of some of the team members putting up 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 Suit You Best

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

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

Step 6: Impress Your Users with Interactive and Intuitive Interface

It is significant that your taxi app architecture 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 would surely abandon your application. Taxi booking apps like Uber or Lyft offer one-click taxi booking 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 bring up a solution that is aesthetically impressive and technologically advanced.

Step 7: Development of the Backend

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 technology 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 build a taxi booking app, 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 in case, 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 affirm what you take to the market is flawless and generates great profits.

Step 9: App Launch

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

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

As discussed earlier you need to be aware of the business model of your application. So, let’s talk about the value proposition and monetization strategy of your application 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 application over time has gained popularity and now targets the universal audience.

Who Can Be a Driver with the Application?

Anyone who has an eligible driver’s licence 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 the commutation purpose. You would be paid a certain commission and your vehicle can 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 for connecting 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. 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 business as you use their advertisements to grow your revenue.

These are the most sought 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.

  • Easy Onboarding Process: With the ease of the on-boarding 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 the 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 Driver: 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 reference that they want to.
  • 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 mobile 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 in a few clicks.

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 for 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 the fellow drivers too 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 laden 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.

  • 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 decide the fare depending on the distance. They can set per mile rates and the fare can be auto-calculated.
  • 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: One would be updated with all the rides that would take place. In case of emergency, they can cancel or de-route any ride.
  • Vehicle Management: The details of the vehicles that are registered with the application are available with the admin. They need to check and get the papers updated regularly.
  • Review Driver’s Orders and Payoffs: It is the admin who would review 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 notification messages dropped to the passengers and drivers are managed and generated by the admin.
  • Driver and User Support: It reflects in the driver and user support. If anyone has any problem with the app interaction, you can always reach the admin.
  • 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 It Cost to Build a Taxi Booking App?

Taxi booking app development cost depends on various factors like the technology used, features integrated, and the country from which the team is hired. The average cost of developing a basic taxi booking application would be around $15k to $25k.

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

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!


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