HOW TO MAKE A RIDESHARE APP AND IS IT WORTH DOING?
11 min
Dec 16 2020
Nikita L How to Make a Rideshare App and Is It Worth Doing?
Nikita LBusiness analyst
Danil L How to Make a Rideshare App and Is It Worth Doing?
Danil LWeb Developer
Rideshare is a kind of apps for finding drivers and fellow travelers in real time.
Why are Rideshare apps so popular? Rideshare is a fast-growing industry. Such a system helps society to alleviate or solve the following problems:
In a world where travel is becoming more and more in demand. Such a system has become a "magic wand" for people who have to constantly travel and spend enormous amounts of money on it. This led to the division of Rideshare into ways of interaction:
There are subtypes of applications, which are actively developing on the market for each of the listed types. However, many aspects of such travel still need to be improved as a number of countries still reject the idea of Rideshare. In many ways, the stagnation of Rideshare development rests on the incomes of the residents of the countries, but already regional startups are taking the idea into service and coming up with ways to make it even more acceptable.
The idea of Rideshare has many ambitious implementations. For example, systems for renting cars, bicycles and other forms of transportation can be picked up and dropped off anywhere in the city, are taken from the idea of Rideshare.
With the beginning of the pandemic, many analysts predicted a decline in the use of apps like Rideshare. But in reality, the decline has occurred in part. Since many public transportation and taxi systems were busy or out of order, people switched to ordering cars through Rideshare apps. After all, it was a quick and convenient way to reach your destination without taking serious risks. But applications such as BlaBlaCar suffered financial losses. Since the desire to travel with fellow travelers, where anyone can be infected with COVID-19, people feared.
If you want to create an application like Rideshare, you should know all the trends, positive aspects, requirements and risks of this business.

SUCCESSFUL RIDESHARE APPLICATION EXAMPLES

Getting inspired to create your own app is always easier by looking at popular examples. This allows us to understand why customers love them, what are their disadvantages and what functions they implement.
At the end of 2019 and half of 2020, the top popular Rideshare applications were compiled:
  1. Standard rides like a taxi;
  2. Private car trips;
  3. Travel in luxury business class vehicles;
  4. Food delivery.
These services were not immediately formed at Uber. The latter appeared at a time of an acute shortage of delivery companies, which were particularly busy due to the COVID-19 pandemic. Uber is the app that sets the pace for the entire industry. The application operates in 65 countries around the world and develops new markets every year. However, these factors do not address the shortcomings of the Uber system:
  1. Travel can be very expensive during rush hour or due to bad weather conditions (rain, heavy snow, etc.);
  2. The application has received criticism from several countries for the security system.
The company is actively working on these disadvantages. However, these factors allow us to understand how you can create a ridesharing application to avoid the pitfalls of popular software.
  1. Traveling by business class car;
  2. Standard trip like a taxi.
Unlike Uber, this app has earned a reputation for being safe. Because drivers are required to undergo background checks. Lyft drivers also maintain a friendly service. In return, the company looks after its drivers for being friendly with customers. Despite this, Lyft could not avoid problems:
  1. Lyft criticized for lowering driver hiring standards;
  2. Its work is carried out only in the United States and Canada, which does not allow you to feel the difference in service to the countries in which Uber operates.
  1. Calling a taxi, business class cars and limousines;
  2. Lower prices than US companies.
But, the application also has a drawback:
  1. Difficulty calling a taxi during rush hour.
And although there is only one drawback, it gives a big advantage to Gett's competitors.
  1. Many types of trips, from business class to motorcycle order;
  2. The ability to order a trip with other passengers, which is more budgetary for long-distance trips;
  3. 24/7 support for drivers and customers in the call center;
  4. The opportunity to find and rent accommodation during the trip in the place where the client comes.
Despite the extensive and developed logistics, the application is developed only in a number of Southeast Asian countries and is experiencing difficulties due to the following factors:
  1. The application has caught on only in a few countries in Southeast Asia;
  2. The price of the trip depends on the time of day on the same routes;
  3. Sometimes drivers may not find a client or even refuse a trip when it has already been agreed.
BlaBlaCar has become especially popular in countries with large territories, such as Canada, Russia and others. This service is cheaper than all of the above and is the leader among applications like it. It helps both on trains inside the city and outside it (many people use BlaBlaCar to travel).
However, this software has problems:
  1. Travel disruptions;
  2. The passenger may not be satisfied with the condition of the car, the cabin, the manner of communication and driving of the driver;
  3. Stressful situations associated with the negligence of drivers or the behavior of passengers;
  4. Many drivers ask to take few things with them, which is not always convenient for passengers;
  5. Opportunities for crime stories that alienate many customers from the service;
  6. Competition among drivers can prevent passengers from getting to their destination;
  7. A passenger can look for a driver for a very long time, so he decides to go where he needs to go.
Despite the long list of cons, BlaBlaCar is still the market leader as it works to improve the software and tries to develop more features for the safety of passengers and drivers.
There are many more types of Rideshare applications. Looking at the work of market leaders, it becomes clear what these applications are aimed at.

HOW DO RIDESHARE APPS WORK?

From examples of popular applications, you can see the general mechanism of online services. Each of them works to maintain three sides of the interaction:
  1. Driver;
  2. Passenger;
  3. Dispatcher (or application support staff).
The scheme of the application is built from these three parties of interaction. This process looks different for each side (also the level of functions depends on the elaboration of the software stack of applications).
General view of the application operation algorithm:
  1. The client enters the application and gives a ride request. The passenger notes where he needs to go, what class of car and how quickly the driver should arrive. Of course, an application like BlaBlaCar has different rules - the client gives a general request for a trip location, and then selects the drivers along the way. Also, most customers agree to the car, which is closest. But with this request, the application process begins.
  2. The driver and the passenger choose each other. If they are not embarrassed by anything in the driver's reviews, the condition of the car and the reviews, they agree to the trip.
  3. The passenger can “wedge” into the route with fellow travelers. So one car can compose its own logistic route based on the convenience and requests of each passenger.
  4. Start of the trip. It can be two variants for a passenger: an empty car and a taxi with passengers. During the trip, the driver and passenger interact and give an impression of each other. If something confuses a passenger, there is a special signal function in the application like "share trip with your friends" This function sends a signal to the call center that it is better to track the route using a navigator. Also, such a function can warn a person on social networks that he is driving from point A to B. This function is still imperfect and has not been introduced into all applications. And in applications like BlaBlaCar it is considered partially impossible.
  5. Payment. Payment is made in cash and by bank transfer. Often you can pay for the trip before you start. In BlaBlaCar, payment is made in cash to the driver, only after the trip. But bus tickets in this application can be purchased online.
  6. End of trip and review. A number of apps have made post-trip reviews mandatory. This is necessary to improve the quality of service and the orientation of drivers and passengers at the second stage of this algorithm.
This system allows applications to run uninterrupted and get better. However, as already mentioned, certain services have their negative aspects of work.
Improving Rideshare apps allows them to stay on trend and increase their appeal to their audience. All major trends are associated primarily with improving the safety of passengers and drivers.
Security trends include:
Many of these trends are already working and are actively used in popular Rideshare applications. If we are talking about new products, which enter into this area, their general trend is in the following technologies:
These trends can be realized if the application already has the required technology stack.The basic features that every user of the Rideshare app expects to meet at the time of 2020 are:
These functions are basic for applications like Uber. However, the creation of such applications bears the risk which is better to know.

RISKS OF CREATING A RIDESHARE APP

Most of the risks have an impact on human factors. Common problems of bad reputation of apps like Uber and BlaBlaCar are:
All these risks require a huge number of logistics, management and economic decisions. However, they can be solved by an original idea, which at a stage will prevent all the listed threats.
If, after all the enumerations and risk studies, you are determined to develop Rideshare applications, the “Exceed Team” has prepared the stages of developing such applications for you.

STEPS TO CREATE A RIDESHARE APP

Stage 1. Development of a business idea

A business idea is something that allows you to build a harmonious work, create the most convenient application and stand out from your competitors. To formulate a business idea, you need to analyze the consumer market. It is convenient to do this by studying your competitors and the reviews of people on their sites. What did the customers like? Why are they angry and not want to use the competitor's app anymore? All these nuances must be studied to form a business idea.

Stage 2. A documentary description of the project and its functionality

After you've formed your business idea, you need to write down how your Rideshare application should be.
To make the task easier, at Exceed Team we offer a plan for writing project documentation that will allow you to structure your thoughts and describe all the details more succinctly:
  1. Business idea;
  2. Objectives (main and secondary);
  3. Who is the audience of the app?
  4. What problems does the application solve?
  5. What functions can it provide to its users?
  6. How does it perform these functions?
  7. How to ensure the security of the application clients?
  8. What features or management approaches differ the app from the competition?
This list is very short, but it will help to give a structure to the first thoughts that come to you. If you want to seriously work out the idea of the application and its potential, we'll advise you to develop a business plan.
Let's look at the functionality of the project in more detail. The Rideshare App Trends section described the basic features of the apps and the trends that the market is starting to adopt. In addition, we can provide you with a list of advanced features that can make your application more unique and easier to use.
Advanced features of Rideshare apps:
Having described the functionality of the application you need, it remains to contact an experienced development team that they are ready to take on your project.

Stage 3. Search and cooperation with the software development team

Exceed Team recommends contacting an experienced team of application developers, since the teams officially working for the company, taking on your project, undertake to:
You can read more about the stages of cooperation and what aspects you need to consider in order to select the most suitable development team for yourself, you can read in our blog.
When you have already started cooperation, the project moves on to the next stage.

Stage 4. Choosing a platform for the application

The most common use of Rideshare applications with mobile phones. This shrinks the platform choice to Android and iOS. From the experience of creating applications, the “Exceed Team” assures that it is best to implement your application on both of the proposed platforms so that users of any software can easily open and use the application.
If we turn to the statistics collected during the CIRP survey for 2020, the numbers will be next:
This high use of the Android system is due to the overwhelming majority of mobile and other device companies choosing Android for their products. But the final choice of the platform should be based on the issue of regionality. So, in the United States, the overwhelming number of users work with iOS, while in China, on the contrary, Android. Research your local market to find out who uses which device the most. But a more concise solution would be to choose a location on two platforms at once.

Stage 5. Project design

Design development is a very important part, which will determine the usability of the application, its harmony and exclusive look.
With design, it's not just about the color scheme, but about the overall look and interaction of the app with its users. That is, a general view of the menu, registration field, location of cards, etc. is being prepared, which will be filled with functionality at the next stage.
The general trend in app design is minimalism. This is something to keep in mind when designing the kind of application. Too many details will distract the user and exacerbate the likelihood of using the main application function.
At the same stage, the entire technological stack, which was described before, begins to be arranged as conveniently as possible for future users.

Stage 6. Application development

This stage connects all the functions outlined in the design and allows them to work as efficiently as possible. Application development is also divided into several stages:
This concludes the work of the web application development team. But not yours, because the application needs to be made public.

Stage 7. Advertising of the application

The advertising campaign of your application is largely based on the original business idea and the written differences from competitors. Rideshare form applications are most logically advertised using the Internet:
Also, radio is a popular method of advertising your Rideshare app. Many car enthusiasts turn on the radio on the road for a variety of trips. This will allow you to attract potential drivers and passengers.
Returning to the Internet environment, and specifically social networks, the following social networks are best for such a business area:
The content and appearance of your ad is also based on the design that was given to the application in the sixth stage. This concludes the development of the application.

HOW RIDESHARE APPS MAKE MONEY

It's time to talk about the most enjoyable and key point - the monetization of the Rideshare app. In such applications, it is done in three ways:

LET'S DISCUSS YOUR IDEA

Rideshare apps are both progressive, but they also take risks in their work. However, it may be your idea that will make the Rideshare application space even better.
If you want to create a similar application and consult on this issue - write to us.
Exceed Team will consult you and select the perfect software development solution that fully satisfies all your ideas.
Most popular questions

What are some examples of successful rideshare applications?

The market leaders in many countries are Uber, Lyft, Gett, Grab, and BlaBlaCar.

What is a typical feature set for any rideshare app?

  • User registration and profile
  • Search for a trip
  • Reject/Accept
  • Chat
  • Receiving payments
  • Push notifications
  • Rating

What are the monetization strategies for rideshare apps?

Transaction interest may be fixed or elastic. Partnerships with taxi companies or other services allow you to expand the staff. Advertising is a great additional source of income. Paid services are relevant when a company is popular.
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Igor TeterevlyovHead of Sales Department
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