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App Development

How to Start a Taxi Business in India?

written by Harshita Khangarot | Sep 15, 2022
taxi app development company

The taxi market is buzzing all around the world, and so is technological advancement. The ever increasing demand for the taxi market has led the taxi business to grow in leaps and bounds.

Have a Quick Glance on How to Start a Taxi Business in India

Witnessing these changes today, every young entrepreneur dreams of starting a business like a taxi hailing service that gives the user ease at affordable pricing.

If we are talking about the increasing demand for online apps, there is an app for everything. If we need to talk, we need an app; if we want to listen to songs, we need an app; if we need to shop, then we need an app; if we need to commute, we need a taxi booking app, just for everything we need an app. So we are listing here all the points that will work as a milestone and will describe how to start a taxi business in India.

What Seeks you to Invest in a Taxi Booking Business?

Today advancement has changed the way we commute in our everyday lives, be it for short routes or long routes. These days we are looking for a taxi that picks us from our desired location at affordable costs. 

India is a land of optimistic approach as India’s approximate population is more than 135 million, which provides great potential and a huge opportunity for the taxi business. 

Online Taxi Booking Business has significant growth as it works as a market aggregator, it’s like a pool of people providing the services with their own cab under one particular brand name. OLA and Uber’s enormous success has revolutionised hope in every young aspirant’s life. It brings a perfect market opportunity to aspire to young talent to get things done and how tostart a taxi business in India that gives you immense growth. 

Must-Have Features While Developing a Taxi Booking App

Must Have Features While Developing a Taxi Booking App

In a taxi booking business, Chauffeurs are as important as customers. Because they are the one who plays a vital role in the success of a taxi booking business, they are the one who serves the customers and are responsible for customer satisfaction. So to make sure they work efficiently, you need to provide the resources and tools to run your business efficiently. 

Hire a reputed taxi booking app development company that caters to all your business needs and helps you grab the attention of millions while providing impeccable taxi booking app development solutions.

Providing them with an application would be the first step in progress. Like your customers, drivers also need an application for some tasks like accepting/rejecting bookings, locating a location, taking payment, etc. You can hire a taxi app developer to develop an application for your drivers’ team. 

According to a survey conducted about taxi app usage across India in September 2019, surge pricing was the biggest issue for a majority of the respondents, at 39%. App-based taxi services have become an integral part of daily commutes for Indian citizens. (source)

Here are some emerging and unique features of the taxi booking app to define the driver’s experience. Without any delay, let’s get started. 

  1. Simplify the Signup

Signing up for a mobile taxi app is simple for drivers. They can easily fill in their details like name, age, address, phone number, email id and payment-related information after uploading some documents. Through these documents, the admin approves and disapproves of the driver.

  1. Automated Tracking

Drivers need a robust mapping service. They can get a real-time location of their passengers for quick pickups and drops. Services like inbuilt Google Maps solve the problem of searching for a live location for passengers. It allows chauffeurs to reach the location on time. 

  1. Don’t Let The Customer Wait

Waiting is not an easy task; it requires lots of patience. Drivers get notified by in-app notification alerts about new bookings. The application provides the customers’ real-time location, which helps drivers reach the pickup point on time. So the customers don’t get late. 

  1. Transparent Payment Feature

In a taxi booking app, there are a lot of secure payment gateway options available. And it provides a vast field of customers. Suppose you booked a trip and called the driver to ask if he accepts the online money, but he denies it. You can try to find someone who accepts cash through multiple payment modes.

  1. Overview of Past Bookings

There is an option available in the application; through that option, the driver can check all his past bookings and the frequency of the bookings from a particular place. Apart from this, drivers can check their payment for the last rides. 

  1. Contact Passenger

There is often a requirement of contact between driver and Passenger to confirm the pickup location by calling or chats. In this type of case, the feature is very handy. Taxi app development companies provide this feature by asking customers’ numbers to ensure the privacy policy of them. 

  1. No Bargaining

There is no scope for bargaining as these applications work on a fixed price model. Because sometimes, drivers are helpless, and after negotiation, they do not get their profit. Also, the Ride’s final bill depends upon the distance covered, time taken on the trip and waiting time. 

  1. Track Earnings

Taxi booking applications feature an earnings tab, which gives drivers full information about their entire earnings for the day. Daily earnings are shown through a graph in the tab. In which drivers can check their estimated weekly or monthly collection with the help of a graph.  

>>>Read More: Key Features and Development Cost of a Taxi Aggregator app like UBER<<<

  1. Trip Options

Without chauffeur’s satisfaction, no taxi business can grow. In every taxi booking application, there are various trip options available. If a driver wants to start or end a trip or wants a trip like rental, outstation or the basic one. From this tab, they can change the trip type as per their requirements. 

  1. Ride request and Accept/Reject Ride

When the driver goes online, he starts to get ride requests. Taxi app developers provide an option in the app, allowing the driver to either take a ride or reject it. If they need to take a break or need to attend something else, they can put it offline and not receive any rides.

Taxi Business App Module

Features of Passenger App

  • Login Or Register
  • Booking Interface
  • GPS Tracking
  • Cab Type
  • Pick Up Location
  • Estimated Ride Fare:
  • Live Tracking System
  • Payment
  • In-app Messenger
  • Rating and Review

 Features of the Driver App

  1. Login or Register
  2. Driver Profile
  3. Ride Alert
  4. GPS
  5. Dashboard
  6. Push Notification
  7. Ride Fare
  8. Booking History

Features of Admin App

  1. Locations & Fares Management
  2. Driver & User Management
  3. Booking Management
  4. Vehicle Management
  5. Review of Driver’s Orders & Payoffs
  6. Check Ratings & Reviews
  7. Notifications Management

Top Ways to Raise Capital for your Taxi Startup Business

How to get funding for your business is one of the eminent, and most asked questions from entrepreneurs. Yes, funding works as a bloodline for your business and to get the money, you need to be unique.

How Much Does it Cost to Start a Taxi Business?

Taxi businesses can be counted on those businesses that are growing in leaps and bounds, but not all are that lucky or aware of the nitty-gritty of the business. There are a few points that need to be well aware of before starting a business and about how much it costs to start a taxi business.

  1. Registration– Getting your business registered in India is a vital way to play it safe from all kinds of fraud and miscellaneous activities in the future course of action. Getting a licence can vary your costs as per the need, behaviour of your business, and the business’s location.
  2. App development- The overall development costs of the taxi booking app are directly proportional to the app’s features with core values.
  3. Licensing -To get proper licensing, a user needs a license to be registered under LLP or any other desired public or private entity. The cost of getting a license is generally value for money.
  4. Integrated with offline vendors – Before starting any business user, collaborate with other offline taxi vendors to use their vehicle under your business. Users need to pay a certain amount of money to collaborate with local taxi vendors. 
  5. Hire Drivers – Hiring a driver for the full time required a large amount to run the business more effectively. 

These initial costs can determine your taxi business’s fate; the overall costs are revolving around multiple factors above mentioned. While estimating how much it costs to start a taxi business, it can be around 15 to 20 lakhs with the availability of cars that can easily fulfil customer requirements. Starting a taxi business remains a feasible option that holds great potential in this leading market. Proper cost, effective strategies and other adaptive plans lead to imperative opportunities for successful taxi business growth. 

List of Funding Options to Raise Capital for the Taxi Business

Taxi business is the most profitable business of all time, be it online or offline. But if believed in reports, any business fails in the first year of operation in the few months itself, and the reason behind it is the lack of funds. Here in this blog, we will help you to know how strategically you can raise capital for your business and generate revenue to run and provide valuable services to our customers.


Bootstrapping is a great option for those who want to build their own business with their funding or savings. Bootstrapping can be said in that way using your own savings to start your own business and incurred all the expenses on your own.

Bootstrapping amounts can be taken by yourself, your family, friends or your closed ones to start your business at the initial point of your startup.


Crowdfunding is like taking a loan or contribution to your idea before starting or lately at the starting phase of your business. These kinds of businesses have become the prime source for young entrepreneurs to get their dreams done from one or more entities funding or investment at the same time. 

Crowdfunding is a competitive place to get funding. To get the job done, one must need to give detailed information and ideas about their taxi business with core functionality and the respective USP of their services. If all goes well with your ideas to prospective investors, you will get the funding to enhance your business. 

Angel Investments 

Angel investment is nothing but an angel who is willing to invest in your startups; these individuals have surplus funds and are willing to invest in emerging startups with a good business idea and mindset.

Google, Yahoo, and Alibaba are also part of angel investment to help these prominent companies run. Angel investors are willing to take risks for a better return in the future course of time. 

Incubators and Accelerators

Everyone needs a shelter that protects any individual or business during their weak days. Like shelter incubators and accelerators, it works as a core aspect for a business to grow nurture in upcoming days. Incubators are like parents to the child, who advise, help and provide assistance during their starting phase. While accelerators are like micro things that give you support in a small way but work in the same way but in a less portion.

Revenue Growth of Taxi Booking App 

Taxi Data


India’s Taxi Booking Business is in the hold of two dominant players in the market. Ola and Uber, both cabs, are trying their best to battle out for market share. In countries like India, the Taxi booking app usage is in merging mode; it is still in metro cities and big cities, people in small cities and towns are using local taxis and other non-mobile services. 

India’s Taxi Booking App Revenue

Serial No.  Year    India’s Taxi App Revenue
1 2015  $3.8 billion
2 2016 $5.3 billion
3 2017 $6.3 billion
4 2018 $6.9 billion
5 2019 $7.5 billion
6 2020 $3.7 billion

Corresponding to the US, India has been hard-pressed to find revenue from its massive user base. While most of the taxi industry remains off-the-books, Uber had to implement cash payments to gain market share against Ola Cabs. 

how to start taxi app business


While not as large as China, India is rapidly gaining traction as more populace comes online. Ola and Uber are becoming commonplace in major cities while still unavailable in large parts of the country.

Points To Consider While Knowing How to Start a Taxi Business In India 

Points To Consider While Starting a Taxi Business-In India

These days online taxi booking apps bring the best of the ongoing business as it is quite adaptive to generate great revenue that brings ease in people’s lives be it Passenger, businessman or a driver.

It has brought significant growth in every aspect; without taking much time, let’s find out the things that can be considered while starting a taxi business in India. 

>>>Read More: How Taxi App Development Services will be the Preferred Option for Business Owners?<<<

On the off chance that the latest feature is the idea that captivates you, putting resources into a taxi booking application is its impeccable features that keep us going. 

Application Development: Gone are the days when travellers stand by at the taxi stop regardless of whether it was in the burning sun or cold climate; based on the innovative taxi application, advancement is coming up with great features. 

Focus on Quality:  It is important to consider that while delivering quality services to its commuters while competing with leading brands with high prices. Keep focusing on your services rather than competing with other competitors. 

Make your roots stronger: Make your brand famous while focusing on your goodwill; try to provide a valuable service to your user instead make it paid publicity or fake publicity. Genuine customers will always make your roots stronger.

>>>Read More : Taxi Booking App Development Similar to Uber For Android, iOS and Web<<<

Take a legal Permit: Apply for a taxi permit from a registered office in India. A taxi permit is vital if anyone wants to make it more reliable and legitimate before entering the competitors market. 

 In the end,

The taxi aggregator industry is rapidly growing, so investing in taxi app growth is a wise move.

Traveling by taxi has become a lot more affordable since the introduction of taxi booking apps, compared to when these apps were not available. These are famous because of the low rates, instant bookings, and large variety of cabs.

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If you want to start a taxi business in India. Get BR Softech for a taxi app development company. BR Softech taxi booking app developers offer customised and responsive solutions while catering to your business needs. They offer the latest and advanced solutions that are a perfect blend of topnotch services with high end services. Hope you have got appropriate knowledge how to start a taxi business in india

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Harshita Khangarot

A skilled content writer and a lifelong learner with an ongoing curiosity to learn more, I specialize in technical, banking, hospitality, and poetry content writing; while taking every opportunity as a responsibility and believe in creativity that is beneficial for society.

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BR Softech Pvt. Ltd. excels in providing cost-effective IT Solutions. Established in August 2012 with over 10+ years of rich experience. An Apex rated IT serving company around the world. Our team of innovative and creative designers deals in web designing, and mobile game/software development intending to deliver outstanding digital outcomes.


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