In this blog post, we’ll discover the ride-hailing apps’ market and competition strategies. How many apps do you make for one taxi-booking business? We’ll learn how to build an app like Uber and highlight its essential and advanced features. How much does it cost to build an app like Uber? We’ll also share the estimated time and cost to create an Uber clone app. Being aware of these factors and strategies helps when you make an app like Uber or just use a similar business model to build and promote a taxi app of your own.
Table of contents
Finding the Niche Market for your Taxi App
How to Create an App Like Uber
Finding the Niche Market for your Taxi App
How to Get Started with a Taxi-hailing Business
Are you planning to start a ride-hailing business? Its long-time success would be impossible without an app like Uber. If you’re reading this blog post, you probably acknowledge that, but let us explain the reasons in more detail. 1. Mobile apps for ride-hailing are already replacing most traditional taxi services. According to Pew Research Center survey, the number of American adults who have ever used such an app has twice increased during 2015-2018. Today, the popularity of quick and convenient taxi-hailing is growing in many parts of the world, including Eastern and Western Europe, China, Middle East, and India. This is why companies are wondering how to make an app like Uber to stay on top of global tendencies and give their customers the expected experience. 2. The taxi booking app development is your chance to survive in the heated competitive environment. Statista predicts the considerable growth of the worldwide taxi booking market – $126,521 million by 2025. Taxi app development has become a must for both startups and existing businesses. Here are the crucial stages of making your project a reality:
- Research. Identify a target audience, an app’s purpose, and market niche.
- Planning. Choose revenue models and create a detailed business plan.
- Investment. Plan the budget for taxi app development and promotion expenses.
- Partnership. Choose your technology partner among software development companies.
- Community. Invite drivers, check and organize their data, create other in-app content.
- Product. Design, develop and launch an MVP.
- Marketing. Promote your taxi app, build an audience, collect users’ feedback.
- Growth. Make changes and updates with your technology partner.
Your main steps to build an app like Uber
However, having a mobile application doesn’t guarantee that you’ll win enough customers from your competitors. There are huge players like Lyft, Uber, Gett, and many more with millions of paying customers, and you should persuade potential users to choose your app. How do you win a competition? The primary ways include coming to the market with a valuable offer (after you build a taxi app), enhancing users’ loyalty, and gradually making a well-recognized, trustworthy brand. There is another success factor – a technology partner. It may appear non-obvious but becomes an absolute game-changer in the long run. By choosing a reliable taxi app development company, you’ll get:
- an effective MVP to enter the highly competitive market;
- top-quality tech support for future changes, updates, and expansion.
How Taxi Booking Apps Typically Work
If you study ride-hailing app development (like Uber, Lyft, or any other famous product), you might notice that most of such solutions work in a similar way. Typically, as you build an Uber clone, it will offer different functionality for a passenger and a driver.
Passenger App and Driver App require different functionality
What a Passenger can do:
- request a ride;
- enter key details (an instant or a scheduled ride, pick-up and drop-off spots, etc.);
- confirm details and accept a ride’s cost;
- match with a driver;
- receive information on the estimated arrival time;
- track a taxi approach;
- make a payment automatically via an app by a connected card or cash;
- rate a ride and a driver.
What a Driver can do:
- receive requests from taxi app users nearby;
- checks the trip details and then accept or reject the ride;
- receive a request that was denied by another driver;
- meet a passenger and bring them to their destination;
- check if the system receives a payment;
- rate a passenger.
Exceed Team’s experience: Mutial rating is significant for an Uber clone app, as it enhances the reliability of your services for both passengers and drivers. Another distinctive feature of such an app is that the system estimates the price before a trip. It’s incredibly convenient for a passenger, and cashless payments make the overall experience safer.
Taxi App Development – Best Examples
Do you want to learn more about the Uber clone app development? Then you should study the examples of the most successful taxi apps from all over the world. It’s very likely that their founders once asked themselves a question, “How to create an app like Uber for my taxi business’ success?” and found a unique answer. Despite heavy competition, these companies are performing well. What is their secret?
|Name Of The App||Users’ Favorite Features||Revenue|
|Lyft||Book a ride with one tap
Rate professional drivers
Use real-time tracking
Pay quickly via payment gateway integration
|Grab||Choose cars, bikes, or other options
Use car-sharing services
|DiDi||Choose various transport options
Set emergency contacts via an app
|Cabify||Select preferences (music, air conditioning, opening the door for you, etc.)
Share your trip tracking with friends or family
Rate and choose best drivers
|Curb||Choose from licensed, insured drivers
Hail a car on the street
Pay by card, PayPal, or cash
Use referral links for free rides
|Bolt||Set a destination quickly
Rate a driver and overall experience
Pay quickly via payment gateway integration
|Careem||Choose the class of a car and a ride
Get a fare estimate
Track in real-time
Pay safely in-app
|Gett||Choose a ride class
Schedule a trip
Track in real-time
Share your rates and reviews
Contact 24/7 support
|Uber||Share your trip tracking with friends or family
Add several drop-off points
Schedule a trip and view trip history
Rate drivers (passengers)
Choose a preferred driver
Electronic taxi-hailing via a mobile app is more popular than other ways to get a car
Let’s discover more information about these (and some other) companies and their mobile products. It’ll help you to understand how to create an app like Uber and find a suitable niche for its promotion. Lyft Launched in 2012 in San Francisco, California, it initially connected drivers and passengers via Facebook. Today, the Lyft application with its presence in over 600 American and 9 Canadian cities, is the main competitor of Uber. That’s why you should consider Lyft's advantages if you wish to make an app like Uber. The most significant feature is a strict rating system that allows only the best drivers to stay with Lyft. The company cares about passengers’ safety and has the $1 million liability insurance. Besides, the app beats its main competitor with more affordable prices. Cabify It’s a Spanish product that you should consider if you’re interested in taxi app development. Each user enters their destination and can choose the type of car (Lite, Easy, or Executive), music preferences, and other conditions. The main focus of Cabify is convenience and comfort. Gett Study this example of a taxi booking application if you’re planning to create an app like Uber. Founded in 2010, Gett now operates in over 1,500 cities in the US, Canada, and Europe. This taxi app’s two main competitive advantages is scheduling a ride two weeks in advance and resolving issues with passenger support. The main focus of Gett is corporate transportation. Careem Based in Dubai, the company works in over 100 cities across a dozen countries in the Middle East, Africa, and South Asia. The product is popular among citizens and tourists. This is an excellent example of how to create an app like Uber with a range of innovative features helping in hassle-free journeys to work, airport, meeting points and other places. Bolt Previously working under the name of Taxify, this Estonia-based app is highly popular for taxi booking. These days, it’s available in more than 100 cities across 30 countries all over the globe. The main focus of Bolt is affordable rides when a customer receives a price estimate before a trip and also chooses a pick-up location without knowing the precise address. Grab This company’s experience is helpful for a business interested in taxi app development like Uber, Gett, Lyft, etc. Grab offers cost-efficient services for customers from Southeastern Asia (Thailand, Singapore, the Philippines, Indonesia, and some others) and remains very popular with a wide selection of options and services (Taxi, Hitch, Family, Bike, and Share). DiDi This China-based company delivered a product that you can call a perfect example of an Uber clone app. Available in over 400 cities and popular with over 550 million users, DiDi offers lots of taxi-hailing services, including Designated Driving, Express, Bike Sharing and many more. Curb It’s the world’s first ride-hailing app, founded in 2008 and previously named Taxi Magic. US-based, it’s working across 65 cities nationwide, including megalopolises like New York City and Los Angeles. Passengers can choose from a scheduled or instant ride or simply hail the Curb taxi on the street. Services also include the choice of music, air conditioning, wheelchair, baby seat, and other things one may need. The company focuses on comfort and lower prices to compete with Uber. Uber Launched in 2009 in San Francisco, it’s one of the world-famous taxi booking apps. Today, it's available in over 600 cities and still expanding all over the globe, while many startup owners ask themselves how to make an app like Uber and how much it costs to build an app like Uber. The service offers various categories (UberBlack, UberX, UberGo, etc.) to suit each customer’s needs and budget. The company is constantly experimenting with formats, adding food delivery, parcel delivery, etc. Was Uber a pioneer in taxi booking app development? Many people believe so, though it’s not true. Curb was launched a year ahead (as Taxi Magic), and the two apps have always been competing in the American market. Uber eventually spread wider around the world, and these days its primary competitor is Lyft.
Exceed Team’s experience: Have you heard the word “Uberization”? It was included in the dictionaries and originally came from the name of this taxi app development company. Uberization means changing the whole market through mobile technologies to provide a variety of on-demand services, from taxi booking to delivery of different kinds of goods. Here at Exceed Team we offer cutting-edge app development and can make an app like Uber for any business, from a restaurant to car repair.
Taxi App Development – Unique Examples
Are you interested in Uber clone app development? You already know that it’s not enough to build an app for a taxi-booking experience and that your business should offer something unique and valuable to stand out among competitors and solve problems that no other Uber-like app could before. You may achieve that by finding your niche. At first glance, it seems like there are not many options apart from the standard taxi services. But that’s wrong – we’ll share with you some insight on how to build an app like Uber but make it more special. Environmentally-friendly taxi services, like Green Cabs from New Zealand. You can build an Uber clone, but for the premium electric car taxi, as today more and more people don’t want to feel guilty about their input in air pollution and prefer ecologically safe options. Apart from using electric vehicles, you can add a tree-planting donation to a ride’s cost. Children’s taxi services, like Kango or TaxiMom. You can apply to a taxi-booking app development company to create a helpful app for parents. Maximized safety and real-life tracking options are must-haves for such an app. Women’s taxi services, like Safr. You can create an app like Uber, but with increased safety measures (e.g., Passenger-Driver identification via a taxi app) and the majority of female drivers who went through special training for emergencies. Motorbike-hailing services, like GrabBike from Southeast Asia, Rapido from India, or LimeBike from London. Motorbike taxis are also popular in China, US, and Brazil. If your business is oriented at these countries’ markets, you can opt for such type of app development – like Uber, but with motorbikes. The top features are fast and safe travel through the city, and an option to send a package with a bike driver. Shuttle services, like BRIDJ, that operates as on-demand public transport for office workers in Boston, Massachusetts. Being a typical example of Uber clone app development, this solution brings its customers some valuable offers, e.g., significantly lower price, onboard Wi-Fi, and faster traveling during rush hours.
How to Create an App Like Uber
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What Core Features Are to Develop for Your MVP?
An app like Uber is actually two apps – for a passenger and a driver. There is also a dispatch panel to administrate rides, payments and user activity; it’s based on the web. Let’s look at a number of essential features you should include in your MVP if you’re looking for ways to make an app like Uber for a taxi-hailing business.
Passenger’s functionality in the Uber clone app
|Core Feature||What it does||How it helps|
|Registration and Profile||Log in with a phone number and SMS verification, create and manage personal info||Makes users feel safe and comfortable on your app|
|Cost & time estimation||View the ride details after placing a request and setting a destination (or several destinations)||Fosters your clients’ trust by letting them know the price and a car’s arrival time beforehand|
|Geolocation and routing||An app defines a passenger’s location using Google Map API integration||Increases customers satisfaction|
|Payment integrations||Listed payment methods to choose the preferred one||Makes in-app transactions easy and safe to build users’ loyalty and trust|
|Waiting & Tracking||Enables a countdown for the driver’s arrival, tracking their location, and canceling the ride or changing its parameters||Provides a better experience to enhance clients’ loyalty|
|In-app call or chat||Enables a passenger-driver connection||Allows the parties to find each other on the street, enhances clients’ loyalty|
|Push notifications||An app informs on the ride request approval or cancellation, the received payment, the driver being nearby, etc.||Builds passengers’ trust by providing a better experience|
Exceed Team’s experience: How do you show users that your app is worth staying with? Provide them with convenience and time-saving! Excellent UX and UI design is significantly important in taxi app development, so make sure to choose a professional with over three years of experience.
Driver’s functionality in the Uber clone app
|Core Feature||What it does||How it helps|
|Registration and Profile||Log in with a phone number, verify car registration and bank account info, manage personal details||Makes users feel safe and comfortable on your app|
|Geolocation||Enables navigation via Google Maps||Helps to easily find and pick up a passenger|
|Rides||Shows detailed info on each trip and search parameters||Makes work conditions transparent and enhances driver’s loyalty|
|Ride request confirmation/cancellation||Enables a driver to accept/decline a passenger’s request||Provides convenient workflow||Visibility||Updates a driver’s active/inactive status on the in-app map||Enables drivers to manage their working hours||Driver reports||Collects an outline of the driving style||Helps in building a trusted network of employees and partners|
|In-app call or chat||Enables a passenger-driver connection||Allows the parties to find each other in the city, provides convenient workflow||Push notifications||An app informs on ride requests from passengers and other important events||Keeps alerted about essential work procedures|
How to build an app like Uber and manage all activity on it? This is why you need a web-based admin (dispatch) panel. Here is its typical functionality:
- Login and profile for admins;
- Drivers/Passengers/Cars menus (for adding, editing, and deleting any lists and information);
- Driver’s rates;
- Payments (all transactions and users’ payment information);
- Ride history.
What goals do you achieve? They include managing your drivers’ payrolls, analyzing user data, and reviewing all business processes. You should remember the admin panel’s functionality when discussing details with specialists from a taxi-booking app development company.
Read also: How to Start a B2B Marketplace
What Killer-features Will Make Your App Stand Out?
Once you created a big, long-lasting business, you’ll be extending it and looking for more exciting opportunities in taxi app development. It means adding some advanced features to your app. Advanced Uber clone app development for passengers:
- Schedule a ride – as long as you’ve gathered a loyal client base, it’s worth giving them a technical opportunity to book a trip beforehand via your app;
- Book a ride for someone else – it significantly increases each user’s loyalty to your taxi brand if they can use their in-app profile to arrange a trip for a family or friend;
- Split cost – passengers get more loyal if they can share rides and pay together with people they know;
- Free cancellation time – it’s usually two minutes in the app like Uber, when a passenger can cancel a ride when the taxi arrives, meaning that after that time they pay the full cost.
Advanced Uber clone app development for drivers:
- Route building – optimizing your drivers’ routes to increase efficiency and, correspondingly, profits;
- Driver’s preferred location – helping partner drivers choose their work area and receive requests from the one;
- Heat maps – real-time demonstrating city areas with the highest demand;
- Auto-generated reports – creating and sending each driver some information on their weekly/monthly ride history and earnings.
Exceed Team’s experience: We advise you to ask and study feedback from your audience, as it helps understand their pain points and expectations. And of course, watch your competitors’ updates and the taxi industry trends to choose the right features for advanced app development, like Uber and other big players do.
How Much Does it Cost to Build an App Like Uber?
Back in 2009, the investment was several million dollars from nine sources, and within a decade, Uber Technologies had raised over $22 billion in funds as a taxi booking app development company. According to NextWeb’s research, it takes around $1.5 million to build a taxi app of that scale, with passenger's and driver’s solutions. Do you have to raise so much funding to cover the Uber-like app development cost? Businesses are usually interested in making MVPs with basic functionality that can later be advanced and extended. How do you achieve that? How much does it cost to build an app like Uber with the most vital functionality for the market? Let’s look at some estimations of Uber-like app development cost and time. These approximate numbers work well for both iOS and Android platforms.
|Feature to Build||Time||Cost|
|Login and signup||from 56h||from $1600|
|Passenger profile||from 32h||from $960|
|Driver’s profile||from 47h||from $1400|
|Driver’s preferred location||from 42h||from $1300|
|Matching||from 16h||from $480||Waiting & Tracking||from 62h||from $1800||Geolocation & Routing||from 47h||from $1400||Request a taxi||from 52h||from $1500|
|Schedule a ride||from 110h||from $3300|
|Book a ride for someone else||from 240h||from $7200|
|Ride cost analysis||from 40h||from $1200|
|Online payment||from 62h||from $1800|
|Split cost||from 16h||from $480|
|Notifications & SMS integration||from 70h||from $2100|
|Trip request confirmation||from 32h||from $960|
|Rating||from 24h||from $720||UX/UI design for iOS||from 120h||from $3600||UX/UI design for Android||from 100h||from $3000|
So, how much does it cost to build an app like Uber? Depending on the project’s scale and sophistication, the end-product might cost you between $70,000 and $150,000.
Exceed Team’s experience: What are the ways to bring down the price? We recommend you consider the hourly rates of developers from different regions of the world, as it’s one of the main price-influencing factors when building a taxi app. In Eastern Europe, for instance, there are plenty of software development companies that offer top-notch quality and affordable prices ($30-40 per hour, compared to $100-250 in North America) .
Business Models and Monetization for a Taxi App Like Uber
How did Uber expand to dozens of countries? One of the ways is acquisition – for instance, at the beginning of 2019, the company made a $3.1 billion agreement with Careem. Do monetization models affect competition? Greatly.
For example, Curb became Uber’s great competitor due to the absence of dynamic pricing – which means the ride fare with Curb remains the same even at the peak demand time. This transparency and lack of controversy allowed the company to win a lot of loyal clients, even though passengers pay in-app commission for each ride.
What are the proven ways to make and monetize an app like Uber? You can try:
- 20-25% commission per trip;
- cancellation fee (but remember 2 minutes of free cancellation as well);
- additional services;
- in-app adverts from other companies;
- collaboration with brands (for example, Uber arranged huge promotional campaigns for Spotify, Pepsi, and others).
Exceed Team’s experience: When you combine several monetization strategies, it allows you to convert your startup into a growing, money-making business. This kind of a business model is being implemented by Lyft, DiDi, Grab, and other apps like Uber.
Looking Forward at the Taxi App Development
What will be the future of taxi-hailing services? At the moment, customers expect convenient solutions in transportation, so an app like Uber becomes a must for your business. In the coming years, many digital industries may be highly influenced by the blockchain technology that makes data transactions quicker, simpler, and safer. Another possible change is self-driving cars that lower the operating cost. For example, General Motors started producing such vehicles through their long-term partnership with Lyft. Driverless cars are also in Tesla Inc.’s development pipeline, shaping the face of both the car-building industry and the taxi-booking app development. Google's company Waymo launched its own self-driving taxi services, in some cities of Arizona in 2018 and in San Francisco in early 2021.
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Choose Exceed Team as Your Tech Partner
To summarize, professional app development (like Uber or Lyft) requires a serious investment of time and money. One of the significant steps will be choosing a reliable and supportive team of developers. Working with Exceed Team, you’ll get in-depth business analysis, advanced UX/UI design, and cutting-edge app development for your taxi-hailing project. Contact us, and let’s turn your concept into a reality.
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