Insights for Entrepreneurs

How to Create A Taxi Booking App: Features & Cost (2023)

create a taxi booking app

6 min read

The rise of taxi-booking apps like Uber has disrupted the traditional taxi industry and has made it easier for people to book a ride at the tap of a button.

If you are an entrepreneur looking to enter the online taxi market, you must be wondering how to create a taxi booking app like Uber.

In this article, we will provide a step-by-step guide on how to build a successful taxi booking app without much hassle.

What is a taxi booking app?

A taxi booking app is software that allows people to request and book rides with a taxi or other ride-hailing service.

Taxi applications have grown in popularity in recent years because of their convenience. They are often used as an alternative to traditional taxi services or public transportation.

How does a taxi booking app work?

A taxi booking app typically works as follows:

  1. The user downloads the app from the app store on their smartphone and creates an account by entering their personal information and payment details.
  2. The user enters their pickup and drop-off locations using the map or by entering the address manually.
  3. Then they can select a vehicle option from the available vehicle options, such as a standard taxi, a luxury car, or a shared ride.
  4. The user taps a button to request a ride, and the app connects them with a nearby driver who has accepted the ride request.
  5. The driver arrives at the user’s pickup location and begins the trip. The app tracks the driver’s location in real time, and the user can see their estimated arrival time.
  6. At the end of the trip, the user pays for the ride using the chosen payment method on the app.

Steps to create a taxi booking app

Step 1: Research the market

Before beginning the development process, it is critical to conduct extensive market and competitor research. You will be better able to understand the situation and spot any potential opportunities or difficulties as a result.

Some questions to ask yourself while doing market research:

  • Who are the main players in the market?
  • What are their strengths and weaknesses?
  • How do they differentiate themselves from competitors?
  • What are the current trends and challenges in the industry?

Understanding the market will also help you identify any gaps in the market and determine how your app can stand out and offer a unique value proposition to customers.

Step 2: Define your target audience

Once you have a solid understanding of the market and competition, the next step is to define your target audience.

Who will be using your app? Will it be tourists, business travelers, or locals? Understanding your target audience will help you tailor your app’s features and marketing efforts to meet their needs and preferences.

Step 3: Determine your business model

There are several different business models for ride-hailing apps, including:

Peer-to-peer (P2P): This model involves connecting riders with drivers who are using their own vehicles to provide rides. This is the model used by Uber and Lyft.

B2C: This model involves hiring professional drivers who use company-owned vehicles to provide rides. This is the model used by traditional taxi companies and some newer ride-hailing apps like Flywheel and Curb.

Car-sharing: This model involves a platform for people to share their vehicles with others. This is the model used by car-sharing apps like Zipcar and Turo.

Each business model has its own pros and cons, and the right model for your business will depend on your target audience and the resources available to you.

Step 4: Create a minimum viable product (MVP)

Before investing a lot of time and resources into the development process, it is a good idea to create a minimum viable product (MVP).

An MVP is a stripped-down version of your app that includes only the most essential features. The goal of an MVP is to test the concept and gather feedback from users to see if it is worth continuing to develop.

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Some key features to include in an MVP for a taxi app might include:

🧑 User app:

  • One-click registration.
  • Ride booking.
  • Live tracking.
  • Payment options.
  • SOS

👨‍✈️ Driver app:

  • Dynamic routing.
  • Earning management.
  • Online and offline toggle.
  • Document upload for verification.
  • Ride notification.

🤴 Admin panel

  • Riders management.
  • Drivers management.
  • Driver payout management.
  • Approvals & rejection.

Step 5: Develop the app

Once you have a clear understanding of the market, your target audience, and the business model you will use, it is time to start developing the app. There are several key considerations to keep in mind when building a ride-hailing app:

User experience: The app should be easy to use and navigate for both riders and drivers.

Scalability: As the app grows, it should be able to handle increasing numbers of users and ride requests without crashing.

Security: Ensuring the security of riders’ and drivers’ personal information is of the utmost importance. This includes encrypting sensitive data, implementing secure payment systems, and complying with relevant laws and regulations.

And there are several different approaches that can be taken to create a taxi app:

1. To hire a team of developers to build the app from scratch. It is the most convenient option if you have tons of money and all the time in the world to start your taxi business. If you are short on time, you have another option.

2. Using a white-label solution: White-label solutions are pre-developed apps like uber clone script that can be branded and customized to meet the specific needs of the user. This approach is generally quicker and more cost-effective than hiring a development team.

The right development approach will depend on your business needs and the resources at your disposal.

How much does it cost to create a taxi booking app?

The cost of creating a taxi booking app can vary significantly depending on a number of factors, including the features and functionality of the app, the platform (iOS or Android), the geographical location of the development team, and the level of customization required.

Typically, the cost of developing a taxi booking app can range from $50,000 to $100,000 for a single platform (iOS or Android). This cost may increase if the app includes more advanced features or requires integration with additional systems, such as a payment gateway.

It is important to carefully consider your budget and priorities when planning the development of your app.

If you are planning to go the second route of creating the taxi app using the white-labeled solution like uber clone, you can reduce the cost of development by 50 to 60%.

How long will it take to create the app?

The development timeline for a taxi booking app can vary depending on the features and functionality of the app, the size and experience of the development team, and the complexity of the project.

It can take anywhere from 3 to 6 months to develop a taxi booking app from scratch.

🏎️ Let’s start the ride

We have covered everything you need to know before creating your taxi booking app. Now, it’s your time to execute the things we saw and build your dream project.

If you are stuck somewhere or need help with the development process, never hesitate to get in touch with us. We are just one text away.

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Natheem has prolific experience creating content that resonates with the audience and ranks on search engines. He specializes in SEO marketing. His work has been published in YourStory and other reputable publications.