The taxi market is a niche highly competitive these days. And a mobile application is essential to being competitive.

After the Uber revolution, many businesses have begun to focus on the development of ride-hailing apps and have adopted the same business strategy to earn a profitable income.

Want to be part of the taxi booking industry?

We’re going to tell you in this article not only about how to build a taxi booking app like Uber and the cost of development but also about strategies to beat Uber and gain your market share.

Now let’s get started.

Opportunities for Taxi-booking Mobile Apps Market

As we said, in the last few years the demand for taxi booking app

has expanded significantly. Today, Uber stays a pioneer in the industry. Uber’s global market cap currently stands at $72 billion.

  • In the most recent quarter, Uber generated $12 billion in gross bookings.
  • Uber has more than 5 billion rides to complete.
  • Uber accomplishes 40 million trips per month in the USA.
  • Taxi booking apps such as Uber, Lyft, and Ola gained a large market share of over 40 percent in 2017.
  • As Statista notes, taxi service revenues in the US are forecast to hit $2.81 billion by 2020.
  • And by 2024, the global taxi industry is projected to display an annual compound growth rate of 9.22 percent.

Taxi service revenues

In conclusion, the taxi industry is expected to grow, as is the number of mobile apps that are taxi-hailing.

 

Now, you should take a moment to create a platform for cab service and gain market share.

Top Industry Leaders

1. Lyft

Founded in San Francisco, California, Lyft is the most common ride-sharing app currently operating in more than 640 United States cities and 9 Canadian cities. Considered the second-largest U.S. ride-sharing company with a market share of 28 percent, this taxi app provides advanced quality taxi services at affordable prices.

The rider can book a ride with Lyft with just a single tap of a button, and get picked up by a nearby driver who will take him to his destination immediately. So, instead of waiting for the bus or shouting a taxi right in the middle of the road, download Lyft and book a ride from high-rated drivers. Below are some of the highlights of this Taxi app:

  • Book a trip on the phone with just one easy tap
  • Tracking a driver in real-time with an estimated time of arrival
  • Integration of payment gateways payable directly from the app
  • Professional and top-notch drivers to fly with

2. Cabify

A Spanish taxi booking service, Cabify, is a commonly used transport app that allows users to travel around the city with a private car and driver easily and safely. A car with a chauffeur waiting to drive the driver wherever he wants, in just a few minutes. And with a health standard, all that. With a total funding amount of $477 M, this taxi company aims to expand its taxi services and enter numerous other cities.

Open the app, enter your destination, and choose the type of vehicle you want to travel in, such as Lite, Executive, and Easy Taxi. Discover all the options the city has to offer, enjoy the ride without any trouble. Some of the features this taxi must have

  • Ride with top and top-rated drivers
  • Use preferences such as music, AC, talk and the door open
  • Know the price before traveling
  • Share your story, and feel more comfortable

3. Curb

Curb is the most common U.S. ride-hailing app that lets riders call a taxi using their smartphone. Unlike other taxi apps, the Curb app allows riders to book professional and insured drivers, rather than sharing a private car ride. Earned an Apple App Store ranking of over 4.5, this taxi solution has received a combined $10.7 M funding as of now.

Already accessible in 65 U.S. cities including New York City, Boston, Chicago, Los Angeles, Las Vegas, Miami, Washington, DC, and Philadelphia, these cities’ residents can conveniently travel from one place to the next. This taxi app also provides unique preferences such as a wheelchair, air conditioning, baby seat, and audio. Any of the best features of the taxi app:

  • Link with licensed and fully insured drivers nearby
  • Allows you to pay your taxi fare by credit card, PayPal or cash
  • Gain free Curb riders by exchanging personal reference code
  • For the easy price, obtain an e-receipt at the end of every trip

4. Bolt

Based in Estonia, Bolt is a popular taxi-booking app that enables Estonian people to book a fast and affordable ride anywhere and anytime. The ride-hailing service has so far earned a total of $244.4 M in funding. This taxi service already has more than 10 million passengers and 500,000 drivers in over 25 countries including Latin America, Spain, and Portugal.

The driver can see the trip price upfront when scheduling a bus, and know-how they’re going to pay. The app helps you to set your position for pickups and even if they don’t know the exact position. Riders will rate the driver to provide feedback and this ride-sharing app helps improve the quality of service. Here are some of the top Bolt App features:

  • Place your destination and ask for a ride
  • Allows passengers to learn the quality of the journey firsthand
  • Take advantage of the driver and riding experience
  • Integration of payment gateways payable directly from the app

5. Careem

The largest Dubai-based transportation network service, the Careem taxi app operates in more than 100 cities across 14 Middle East, Africa, and South Asia nations. This taxi service, estimated at over $2 billion, was recently purchased for $3.1 billion by Careem. The on-demand taxi service retains an independent brand as part of the contract, which operates independently.

Whether the rider travels to work, airport, and family visits for a get-together, Careem is a trouble-free transportation app that makes it easier for riders to travel from one location to another. Equipped with a range of apps, this taxi app solution is a must-have for residents of Dubai, who don’t like driving. Check out some of Careem’s top features: The largest Dubai-based transportation network service, the Careem taxi app operates in over 100 cities across 14 countries in the Middle East, Africa, and South Asia. This taxi service, estimated at over $2 billion, was recently purchased for $3.1 billion by Careem. This on-demand taxi service retains an independent identity and is a part of the deal

  • Choose a type of car and choose Ride type now or Ride later, depending on the need
  • The selected place to get a fare estimate
  • Track a ride in real-time and know the estimated time of arrival of the driver
  • Pay safely through the app

6. Blackblane

Champion of the Best Ground Transportation Company, Blacklane is the most competitive, professional cab booking app available at 600 + airports and 300 + cities across 60 + countries worldwide. So far, in the funding rounds, that top taxi application has raised over $77M.

If a rider travels for business meetings, leisure events, or for some other purpose, this private chauffeur taxi solution is available as the next move from the airport, hotel, or any event.

  • Riders can book a trip by pressing their button and plan it one hour in advance or months in advance
  • The app allows single-way transfers or a chauffeur to make several trips by the hour
  • Book a personal chauffeur for direct pickup from the arrival gates
  • This also allows you to select from the appropriate class of vehicles, such as a taxi, taxi van / SUV, first-class or Green class

7. Gett

Launched in 2010, Gettaxi is the most popular taxi booking app which has so far raised the total amount of funding to 813M. The strategy of this top taxi app is to grow a sustainable company that focuses primarily on corporate ground transport. With this on-demand taxi app, riders can select chauffeur and limousine services, from ride-hailing and taxis.

Unlike other taxi apps, it’s understood that Gett offers the experienced riders are searching for. In this Uber-like taxi app, riders can experience secure, user-friendly, and effortless ground-travel. Furthermore, after completing their ride riders can schedule a ride for later and share ratings and reviews. Here are some of Gett’s awesome features:

  • Choose a form of the ride from ride-hailing to taxis, from chauffeur to limo services and book a ride by clicking
  • Schedule a later trip and relax in the back
  • Track driver in real-time, and know the estimated time of arrival
  • Share ratings and reviews on experience with riding

8. FREE NOW (mytaxi)

FREE NOW is a legal program for ride-hailing which was introduced recently in 2019. This black cab and taxi app is available in 9 European countries, enabling riders to easily book a ride, pay in-app quickly, and complete the trip without any trouble. The rider only has to get in the area, book a nearby taxi, monitor the arrival of their taxi driver, and pay the fare directly from the app.

The greatest part about this taxi app solution is-last minute or up to 4 days before your flight, riders are allowed to book a cab. Regardless of when the rider wants a pickup service, this Uber-like app allows you to book a cab at any time and anywhere from the 9 European countries available.

  • Allows motorists to book a taxi up to 4 days in advance
  • Hassle-free option for riders to pay in-app
  • Riders will share the trips in real-time with their mates
  • Take prices and post driver feedback

Why Uber Can Deal with Your Taxi Booking App

Uber remains a formidable rival for all taxi-booking companies, with more than 91 million monthly active users.

Still, as mentioned below, here are some ways to compete with Uber.

Uber US Statistics

Provide a Single Value Proposition

Your taxi service app will be appealing to drivers as well as passengers alike. To that end, both sides need to create a specific value proposition.

Here are only a few examples:

The Customer’s value proposition. Passengers would be inspired to use your service by giving them something your rivals don’t have.

This may be:

  • The option of tracking the arriving driver
  • Often, free drives or promotions
  • A fixed price for every destination like Railway or Airports.
  • The key to making cashless transactions in-app
  • Estimated travel time and expense

The Driver value proposition. How do you encourage drivers when there are so many competitors to your taxi services? You can vote for the following:

  • Deposit insurance
  • Chance to gain more in peak workload
  • The low obstacle to entry or no investment to join the company
  • Working hours Flexible
  • Simple Mobile Payment process
  • There could be many more possibilities to draw consumers to your app and to stand out among competitors.

Let’s carry on.

Taxi Booking App

 

Expand Your Business  To Other Countries

When considering how to make a taxi app, you shouldn’t limit your business idea within your own country’s borders.

Because that may sound strange, but there are still countries that don’t have Uber. This situation provides a great business opportunity for you as for the prospective taxi app owner to develop your taxi-hailing services.

Uber is not currently on display in Brunei, Oman, Malta, Iceland, Luxembourg, and Cyprus.

Sounds amazing, doesn’t it?

Now that you have an idea of how Uber’s going to beat your taxi app, let us start.

Your app should be profitable for your company, even with an incredibly unique value proposition.

But, how do you launch an application like Uber and make money from it?

Find out more from these articles

Better ROI with least spending

If you’re building a simple taxi app like Uber, a lot of possibilities await you to expand your company. Expanding your business network without having to invest in any further transport vehicles becomes easy for you. Just develop an app like Uber is all you need to do, and drivers who would join your app would be responsible for bringing their own vehicle – just like Uber. In commission form, you’ll collect revenue.

Speaking about growth, let’s look back now at how much it would cost to make an app like Uber or Careem and split it out to your audience.

Before we begin with how much the development of the Taxi app costs, there’s one thing we need to beat on – When you get into the development of an Uber-like on-demand taxi booking app, you’re not investing in creating one app but three.

Revenue Model of The Uber-like Taxi-Booking Mobile App

Uber has two earning sources:

  • Drivers have to pay commission for the app.
  • Uber also conducts marketing campaigns with other businesses.

Now, let’s just take a closer look at them in more detail.

Fees and Commissions

Drivers and passengers pay commission charges. When any driver receives an online booking request via the app, then Uber charges a commission for each and every booking. The commission differs between 20-25% of the total cost of the ride.

Fees for service

Besides driver commission, Uber also imposes charge passengers a flat booking rate. On applying this model, you might add other costs like security, service, or money transaction.

Cancellation fees

In case the passenger cancels a trip, you can charge this type of payment.

Promotional collaboration and advertising

Uber makes money from commercial partnerships with famous brands such as Hilton, Coke, Spotify, etc.

Uber Promotional Collaboration with Spotify

In this scenario, both involved are in a win-win situation. Although Uber collects advertising money, advertisers connect with users of the app, and the users of the app receive marketing campaign rewards, incentives, and treats.

You can use this alternative if you aren’t ready to run marketing campaigns with popular brands. You can charge local businesses a cost-per-click or cost-per-mile fee for running their advertisements in your application.

Many ways to monetize an app, right?

Uber Taxi Business Model Canvas

Now let’s check which features your potential Uber-type application would require.

Uber-Like App Feature List

Here’s a key to knowledge about Uber before we dive deeper. A set of 3 different products were used by Taxi App developers. These are two separate passenger and driver apps, as well as an administrative dashboard.

Passenger App

Features Description
Registration Users can register directly on existing social media using their profile in the app, or create a new one.
Taxi booking The user will later call a taxi or reserve a taxi. Your taxi booking app can either retain or provide just one of those options.
Payments Adding this feature allows a passenger app to be registered and auto payment provided privilege from the app.
Push notifications Display all travel details when the driver approves the request. Also includes vehicle information such as model, passenger count, color, car number, and average arrival time (ETA).
Ride History Display a complete transcription of previous journeys.
Fare Calculator It calculates the expense of the trip
Driver’s review and rating Shows comments from customers about the driver, his car, and other passenger’s travel safety.

Advance Features

Features Description
Pickup Location A passenger can point out his exact location without typing an address by using the built-in GPS module.
Payments break Provides a separate payment option between a few passengers.
A selection of vehicles Allows one driver to be chosen for the journey.
Built-in Messenger Ensures Passenger-Driver contact right in the system.
Discount Gives a discount by inserting code or digital coupons for trips.
Voice Recognition Enables the use of taxi-hailing voice commands.

Uber’s Drivers App

Several other features of the driver’s app may clash with the taxi booking app for the passenger. Registration and personal profile editing, for example (with an additional option to upload documents and driver’s license), push notification and messenger, etc.

At the very same time, drivers do have other unique features:

Features Description
Status Allows a driver clear in an app and on the screen, if a passenger is ready to pick up.
Booking alert Reports about a new ride, and shows details of the payment and the route. Even it allows instructions to be issued or canceled.
Navigation The app displays the passenger’s route and the best itinerary for the journey.
Estimation It ensures travel costs and discounts count.
Reports Shows complete statistics about trips and earnings.

Admin Panel

An admin panel is typically a web-based software that helps to store databases and manage the activities of passengers and drivers.

The dashboard provides an overview of all processes, offers driver and trip logistics, and manages all financial issues. It could also be associated with the Google Analytics tool. The last function is important for tracking marketing activity and can be the starting point for overhauling the entire business process.

There’s one more important thing to remember when preparing the creation of a taxi booking app. According to legislation in some countries, the admin dashboard is highly appropriate even though it seems technically redundant in your country.

How to make an Uber Taxi app?

To create your Uber-like app, the following steps should be taken by you and your taxi app development team to:

Uber-like app

Auditing & Research

This stage covers:

  • Evaluation of the business concept of the product, market research for new possibilities, and niches in the product, revenue generation perspectives.
  • Gather taxi mobile app development specifications and changes that can be made, and explore new, better ways of producing the product.
  • Defining the scope of the research and creating a plan for the project.
  • Setting a practical MVP App budget.

Creation of documentation for Taxi booking app

The Development Team here will:

  • Develop comprehensive technical requirements of the features of the device, the design of the app and the software stack to be used.
  • Establish project specifications such as non-functional requirements for a system’s general features and functional requirements that explain how a product will behave, what features and functions it has.
  • The team then shares these documents with interested parties. After changes by stakeholders, the steam begins at the next level.

Deployment of taxi-booking app

At this point, the team’s going to:

  • Developers of Taxi apps deploy the software into the live environment to ensure it runs correctly on all computers.
  • Submit your taxi booking app to the App Store, Google Play, or other marketplaces of the software to allow users to download.

Uber-like app technical support

The developer of a taxi app offers technical assistance and maintenance to customers for the following reasons:

  • Some errors can occur after a few days after the deployment
  • You may want to make some changes to your app
  • Operating systems such as Android and iOS may release new versions impacting the functionality of the app.

And now it’s time to use your timers.

Why?

As we’ll now estimate the expense of creating the taxi app.

How Much Does Developing a Taxi App Cost?

The Uber-like method of creating an app starts with the development of a minimum viable product. MVP provides the framework for both supply and demand, and the dashboard, but with minimal features.

For instance, the first version of the Uber app did not have any gamification or cost-splitting functionality. But, it helped connect drivers and passengers, and allow payments to be made directly from the app.

You can test the strength of the concept and market facilities after the first version is released, and start adding features.

The cost of designing Taxi Apps depends on a number of variables and features to introduce.

But even so, for each scope of work, there is an essential set of parameters and time required that can be taken into account and calculated at the early stage of development.

List of Services App Development Company in India App Development Company in USA, UK & Canada
Hourly Rate $20 $45-250
Cost of Taxi App Development $20000 – $45000* $45000-$150000
Support After the App Development 3 to 6 months without any charges Extra charges after the development of the app
Privacy Strict NDA rules Strict NDA rules
Testing & Analysis Latest devices & algorithms Latest devices& algorithms
Coding Standards Expert guidelines Expert guidelines

The charts below show the average amount of time for each stage of work.

The time needed to develop the Taxi app is:

Features Integration Estimation in hours
Maps and Location • Google Maps for GPS direction
• MapKit for Apple apps
• Android framework location APIs.
• Geolocation 32 hours
• Create a ride 35 hours
• Track a ride 73 hours
Payments • Stripe
• Braintree
• PayPal
• Google
• Payment gateway integration 60 hours
• Add/scan a card 40 hours
• Get price 14 hours
Log in and profiles • Facebook
• Email
• Phone number
• Sign in/out 8 hours
•Registration/authorization via email 18 hours
•Registration/authorization via social media 8 hours
•Registration/authorization via phone number 32 hours
• Profile editing 47 hours
Communication • Apple Push Notification Service for iOS devices
• Google Cloud Messaging Service for Android
• SMS notifications.
• Push notification 40 hours
• SMS integration 30 hours
Cost calculating algorithm • The custom algorithm to calculate the ride cost based on time spent or miler driven • From 300+hours
Total   737+ hours

Conclusion

Even after Uber’s large market share of the taxi-booking app and aggressive strategy for expansion, there is still a niche for innovations.

By using our guide, you can create a unique value proposition for your taxi booking app, find your niche, and execute a sustainable monetization strategy.

But, don’t chase the apps and technically advanced solutions. Like you, our team tends to come up with a rideshare solution that fits your needs and achieves your business objectives. That’s why we first help to create MVP that can save you up to 30% of your time and costs. To address your proposal, drop us an email at [email protected].

FAQ

When you approach a proficient service provider for the development of taxi apps, the experts there would brief you on some options. Another of them is the wallet in-app. Uber also has the in-app wallet that helps users to pay for their trips and earn cashback, discounts, and more.

Oh, geolocation lies among a taxi app’s main apps. It helps the admin to get the vehicle tracked. It also helps connect drivers and riders by updating them from one another's real-time location. It makes the experience much easier, and the facilities more effective. One thing to note though is that it adds up to the expense of creating a service like Uber.

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