If you study the economy of on-demand, you will see an image of growth in which companies that utilise this model are incredibly efficient and have become the top investment choice. Of all the categories, the one that has seen continuous demand and funds influxes is the taxi booking app development on demand. With the advent of Uber app in the market, the demand to develop an app like Uber is also on high-rise.
Today, the on-demand marketplace comprises several different types of services like reservation of rides, food delivery, at-home services and even job on demand. This has resulted from the constant increase in the gross value of bookings over the years.
Ride-Hailing Revolution: Global Impact and Prominence
According to the Statista report, the revenue generated by the ride-hailing industry is predicted to rise to £165.60 billion in 2025. In addition, with an expected CAGR of 6.83%, the worldwide market is predicted to be around £215.70 billion by 2028.
When you examine the market for taxi booking apps that are available on demand, Uber and Lyft control the majority of the globe.
But, when it comes to investing in the development of app like Uber and scaling, the primary inquiry that comes up is the cost during the development process.
Average Uber app development expenses can vary from £40,000 to £300,000.
This blog is designed to provide the most important aspects affecting Uber app development costs. Uber-like app development costs are in addition to other elements essential to a practical app launch. Let’s get deep into the details!
Types of Taxi Applications
A key aspect to consider when creating the taxi booking app is the type of business model you intend to adhere to. The business model is the basis for your App’s development process and directly affects the development price.
There are two kinds of taxi apps: dedicated taxi booking apps and taxi aggregator applications.
Dedicated Taxi Booking App
This model is ideal for businesses with an established taxi company. They’ll have an array of taxis and drivers. A taxi booking application allows them to conduct business on the web, making it easier for customers to use taxi services.
Furthermore, it gives the possibility of reaching customers from a wider base.
The transactions are conducted directly between the taxi services without intermediaries. Customers input their pickup address, preferred car and other details. The taxi service dispatches a driver to drop them off at the desired location at predetermined rates.
Taxi Aggregator App
This model has been embraced by taxi-booking apps such as Uber and Ola. These apps act as platforms for taxi firms or individual taxi drivers to register their vehicles and provide services to passengers.
Taxi aggregators collaborate with taxi drivers to offer transportation. Taxi aggregators usually pay a convenience charge to provide their service.
The model can be used in two ways: easy and on-demand
Simple taxi booking application: The apps do not require an internet connection. Only one application allows taxi drivers to sign up for their services and customers can call to order taxis from the App.
On-demand taxi booking application: This model requires an internet connection to run. Two apps are required: one for passengers and one for drivers. It allows taxis to be booked on-demand and comes with a variety of advanced features. This model is more expensive than other models.
The online taxi market is growing rapidly thanks to apps that are incorporating these diverse business models to expand their taxi business.
It is predicted that in 2025, the average annual increase of the worldwide ride-hailing market will be £126.521 million! This means that now is the ideal time to invest in advancing an online taxi service.
Cost To Develop An App Like Uber
The primary question right now is how much it would cost to build applications such as Uber, Lyft, Easy Taxi, OLA and Get, although it’s challenging to predict costs since the number of features may decrease or increase.
According to assessments, the estimating process is based on specific requirements.
- The specifics for what will be the App to be developed?
- The country or the area of development
- The appearance of the App can be developed, including an early version.
- The application for the platform must be developed according to Web, iOS android
- Applications have available features.
- Time Required.
The final cost depends on your professional organisation’s hourly rates. So it may be possible that the basic app cost estimate will range from £6000 to £8000. If we calculate the cost of building an identical application in UK, it will be £46,000 to £49,000.
Thus, the price of building an application similar to Uber in UK is typically around £200,000 or more. The cost for the final framework is different due to the complexity of these elements and their specific plan details, including incorporations, segments and other details employed, all as per the requirements of the IT provider you deal with.
Many people have also asked about the time it takes to develop an application similar to Uber to run on iOS and Android. If you decide to make an app for a driver like Ola or Uber, the process could take three to a half years. The timeline of events is linked to the most straightforward application version using either the iOS or the Android platform.
App for Passengers – Main Features Cost Estimation & Developer’s Insight
The estimates below show the time developers will need to develop specific features on the Android platform. The time needed to build similar features in the AppiOS app is approximately the same.
The estimates below are based on our experience developing app like Uber. We offer various hours and show low and high scenarios.
Geolocation (150 to 200 hours)
Finding the fastest route the first time will require a stable internet connection. In the future, users of the device could be offline because the route is saved to the phone’s memory. The phone can only provide information regarding the person’s precise location when they’re online via the Internet since using GPS alone can cause inaccurate results (up to a few dozen meters! ).
The entire journey information (pickup point location, destination, route and the driver and passenger) must be stored on the phone and accessible offline. This is because if the user switches off their phone (or it is discharged) and then re-starts it, all these details should be recreated to make sure that they can continue their journey.
Naturally, the driver or the passenger may change their devices during the journey (for instance, if it fails). In that case, the trip has to be recreated based on the foundation of the information stored by the computer. But this is an extreme situation.
Texting or Calling from App: 50-100 hours
If the passenger and driver cannot locate each other or have other issues before embarking on a journey together, they need to communicate directly. Setting up an internal chat to deal with such situations is a good idea. In the same way, calling features must be handled through an exchange phone because of the privacy of users’ telephone numbers.
Ride States: 100 to 120 hours
Each trip is governed by states that need to be synchronised with the backend to inform the driver or passenger app of the change in trip status (e.g., cancellation). Beginning from the starting point, an app could include statements like make an entirely new ride accepting the Ride, in the middle, near the pickup point, at the pickup location and heading to the area, arriving on the way to your destination, Ride completed or canceled.
Ride Cost Estimation: 16 – 32 hours
To ensure that the trip is both technical and business-related, the driver and passenger must know the initial (driver) and maximum (passenger) price of the journey.
From a business perspective, the customer can understand the approximate cost before the trip and ensure that the driver will not try to demand more. It is often the case for travelers from other countries who aren’t aware of local costs and fraudulent taxi drivers may profit from this.
From a technical point of view, estimating the cost of the trip at the beginning is crucial due to possible problems (such as the absence of internet connectivity or GPS). Otherwise, the expense of the trip may be incorrectly billed, which could result in a loss to the driver or the passenger.
Payments: 105 – 175 Hours
When developing this feature, you should consider two things: User Experience (UX) and safety. It is best to utilise native applications like Apple Pay or Google Pay, which offer quick and secure payments.
Also, it is essential to consider cash transactions. Making payments through the App could be a problem in areas that don’t have internet access (this is contingent on the area in which you plan to launch your application).
Push Notifications: 90 to 160 hours
It is crucial that server-client communication takes place through push notifications since they can reduce network activity (primarily for servers) and the application will quickly notify users of the happenings, even while operating within the background.
Personal Data Management and Registration: 90 to 150 hours.
It is essential to ensure that the registration process and login are swift and simple for users. The best approach is to use your phone number and permit you to read the SMS using the verification code. This way, the user will just be required to go through a few steps before utilising your application and you’ll reduce the time needed to complete them.
Make sure you verify your users’ information by using an authentic document as, in certain countries, people may be concerned about whether the driver is female or male due to cultural reasons.
Persona Profile: 40 to 60 hours
The profile information can be edited in the program. Information like card and phone numbers should be checked automatically to ensure that no one within the company has to verify them manually.
If you are editing the profile photo, capturing it and transferring it to the server can be quite simple. Verifying it is much more difficult. Photos can be checked via the server side with the aid of specific algorithms or through a person in the customer support department. You have two options to consider. Pick the one that is more affordable, quicker to use and safer for you. We typically prefer the first option.
App for Drivers – Main Features Cost Estimation & Developer’s Insight
As previously mentioned, the estimates below indicate the number of hours needed by developers to build a component for the Android platform. The time it takes to build features similar to those available for iOS is about the same.
The estimates below are based on our real-world experience developing app like Uber. We offer a range for both low and high cases.
Note that a few features of the App for passengers listed above are relevant to apps for drivers. We’ve described them previously; therefore, we won’t go over them here.
Driver’s Reporting Time: 16-24 Hours
This is a crucial feature of the App, as feedback is essential for both the passenger and the driver. The average rating can also affect the pairing of passengers’ and drivers’ algorithms. For instance, a driver with a higher rating could receive rides more quickly and more frequently than a driver who has low ratings. Reviewing driver reviews can help increase trust among passengers.
Route Optimisation: 24-hours
Both drivers and passengers typically want to travel the least amount of time and reach their destination as quickly as possible. However, choosing the most efficient route is not always the best option. The application should be connected to the Internet to download the latest traffic data before calculating the route.
Furthermore, the price of a journey is typically determined by various factors such as distance and time. These factors must be considered when planning the route to ensure that neither the passenger nor the driver suffers any loss.
“Active/Inactive” Option: 30 to 50 hours
When you choose the “Active” option, it is essential to ensure that the driver is notified of an immediate trip request. This is why the App has to provide the driver’s current position and status to ensure they’re prepared for future orders. On the server side, keep in mind that it’s the sole method to identify the available drivers.
The Daily Report or the Monthly Report on Bookings and Earnings 70-110 hours
This key app feature allows drivers to view historical data about their travels. It is a simple interface for users to filter, browse and calculate the price of their journeys. A map showing the route taken can also prove helpful in the case of complaints. It is essential to ensure that reports are accessible offline.
Texting or calling the Driver Straight from the App Between 50 and 100 hours
Creating a direct line of communication between drivers and passengers is equally essential for drivers as it is for passengers.
Drivers can contact passengers who don’t recognise them at the pickup location or have other issues. The App may also include an internal chat option to enable the calling feature via a phone exchange to ensure maximum data security and privacy.
Backend Development (2,500 to 3200 hours)
In order to run any app like Uber, you’ll need a backend, which is a central remote application. While there are mobile applications that do not have a backend whatsoever or even have an uncomplicated backend version (like Firebase or Serverless), the majority of app like Uber will be complicated and require the development of a custom, fully-fledged backend application.
In general, even if you have multiple mobile apps in the same field (like an app for drivers and a passenger app within your Uber replica), it is recommended that you have a common backend that is used by each. Mobile apps utilise the same information and show it from different angles that are specifically designed for the user who is a passenger or driver.
It’s not uncommon for an application’s backend component to be priced higher than other applications. This could be the case for your Uber replica. The more computations and data synchronisation an app requires (Uber-like apps require a lot of these), the more of it must be performed in the backend.
In the background, mobile applications or web-based applications, as well as admin panels, can only issue commands (e.g., “find me a driver”) and ask (e.g.,” How much will I pay?”) For information that is created to be partitioned, stored and logically calculated at the remote location. It’s all a lot of work.
The responsibilities typical of the backend component in Uber-like apps include:
- User authentication and authorisation
- Data consistency – journey status, drivers availability
- Algorithms (like picking chauffeurs for the trip or calculating the cost of the trip)
- File storage and storage for data
- Managing payments, subscriptions, premium status, etc.
If properly set up, the backend will be automatically scaled on demand. This means it only costs for resources currently in use, based on the number of customers (drivers or passengers) using the App currently.
It is okay to forecast the number of users coming in the near future. Auto-scaling backends can be very useful for handling different amounts of customers (and optimising cost) for shorter-term cycles (like night-day cycles) as well as long-term cycles (for instance, an app that was just released in the stores in contrast to one that’s been in the market for five years).
For a high-quality product, ensure that your backend team is within the same office or company as the rest of your development group. Your taxi app development company needs to work closely together on many problems, like knowing the requirements and establishing the right API and prototyping tools.
Communication between backend developers, mobile developers, QA engineers and other team members is vital every day and can help you tackle these issues. Outsourcing backend development typically results in lower product quality and a longer development time. Working with the team that created the mobile application is a good idea.
Admin Panel Development (350 to 500 hours)
Administration panel is where you and your back office personnel (“admins” in the application) can view various information regarding the App and alter its configuration. In general, there is no limit to the available information types.
The more information displayed, the more expensive the administration panel will be. Also, any value entered within the application may be set via the admin panel.
The balance between what to show and how much you can make adjustable can be challenging. On one hand, you’d like to give your administrators the most power. But everything comes with a price. A large admin panel can make the entire project more costly and complicated and could delay the App’s release.
Usually, during the MVP stage, admin panels are necessary to allow an early launch. As the project progresses, we will get more details on essential information from users (and administrators!). Be aware that features can be added to admin panels at a later time.
In our instance, the MVP section in the administration panel had:
- Editing and deleting admins
- Controlling admins’ rights
- Looking through the list of drivers
- Updating drivers’ data
- Driver verification
- Change the cost of the cost of
Factors that affect the cost of building an app like Uber
Why do the costs of creating a taxi booking application such as Uber change so drastically? Here are five of the most significant causes.
App Features and Complexity
The number and complexity of features you want to incorporate into your taxi app will significantly influence the cost. Monitoring location in real-time, optimising routes, offering different payment options, calculating fares, rating drivers and tracking trip history are just a few of the features that could increase the price and complexity of the taxi app development.
Mobile Platforms
The cost of creating an application for various operating platforms (such as iOS or Android) or introducing a web version to them can be different. Development and design efforts are essential for each platform, which could increase the overall cost.
Maps and Location Services
A vital element of a taxi app is integrating map and location services that allow real-time tracking and navigation. Fees for integrating APIs such as Google Maps may apply.
Security and User Authentication
Implementing secure user authentication, data encryption and measures to protect user data is crucial to gaining users’ trust and adherence. These security measures require more effort in the creation phase and may result in higher costs.
Backend Development and Scalability
It is essential to create a solid backend infrastructure that can handle driver and account management, ride requests and payment processing. However, the costs associated with creating an efficient backend that is scalable enough to cope with increasing user demand without compromising performance could increase.
Tips to Build a Taxi Booking App
The online market for taxis is highly competitive. Many people are concerned about how to design an app that can make a mark and be successful. These suggestions can help you figure out specific issues.
Develop an MVP
The term “minimum viable product” is a minimal version of the application with only the essential functions, also known as a minimum feasible product. You can develop an MVP and then release it to the market so that people can download and utilse it. This can help increase the time it takes to launch your product.
Furthermore, user feedback will provide you with a clear idea of what’s not working in your application and ways you can improve it. Thus, you can develop an app specific to your users’ needs.
Keep it Simple
The most popular apps are different from those with filled-in features. They are easy and user-friendly. Taxi apps such as Uber provide a great illustration of why simplicity is the best method for success.
Have a Unique Vision
A distinctive value proposition is what makes the App stand out from the others. It would help to think quickly and clearly about creating a unique taxi app. What features can you offer your App that users will enjoy and won’t find anywhere else?
It could be affordable prices, unique rewards, or the ability to ride in just five minutes. Provide anything you believe the market lacks and you could fill it through your service.
Find your Niche
Many people are unaware that there are a variety of niches in the taxi business. Electric taxis might be one such niche that’s suitable for those who are looking for eco-green transportation.
In the same way, bike taxis are in demand, which is another reason why people think hiring a cab is pricey. Another option is taxis that are female-friendly with female drivers. Explore various niches and pick one that you believe will succeed in the market you want to target.
Choose the Monetisation Scheme Wisely
There are various ways to earn money from your taxi booking application, such as commission fees from passengers, service charges from taxi proprietors and third-party promotional or advertising charges.
Whatever method you decide to use, pick it up before development begins. Be sure that the monetisation scheme does not interfere with the user experience since it may turn people off from using the App.
Conclusion
Developing a taxi app similar to Uber needs careful planning, a thorough understanding of key elements and a substantial investment. Companies can design an application tailored to their requirements by carefully evaluating essential or advanced options.
A reliable taxi booking app development company such as Bestech will make the development process more efficient and satisfying. Their experience ensures a secure, user-friendly and scalable app that can meet the ever-growing demands of today’s taxi industry.
Contact us now and transform your taxi service by utilising a cutting-edge mobile application that can help you stay ahead of this thriving digital market.
