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App Development

Everything You Need to Know about On-Demand Taxi App Development

written by Nitin Garg | Mar 21, 2022
On-Demand Online taxi App development

With the increasing modernization, the user base of technology-based users has been increasing at a record speed. According to a report by Global Digital, there were more than 4.66 active internet users in 2021 globally. Thus, it’s the right time to get into the tech business. That said, now the question arises – but which business?

And here we have the precise answer – taxi business.

With everyone having a smartphone & internet access, nobody minds booking a ride to commute that takes just 2-3 taps & a few seconds. Right? And that’s the reason behind the online taxi industry’s boom.

This might interest you as per the Global Transport Market report, the global online taxi services market will probably reach $41.22 billion in 2025.

There is clearly a promising scope of a victorious run in the taxi app business. And we will tell you everything about how you can start your own successful taxi app development company.

  1. Process
  2. The Development Cost
  3. Key Points to Look After
  4. Must-Have Features
  5. Duration of the Development Process

Taxi App Development Process

Today, we know well-established giants like Uber & Lyft. Undoubtedly, these companies have pioneered the online taxi business and changed the face of the transportation system. Isn’t it?

As per Forbes, Uber has generated around $20 billion of revenue, completing about 2 billion rides so far. No doubt, why it is the world’s largest taxi app company covering the 71% market share.

So, what did they do that has made them so successful?

Check these points to know:

  1. They have built an easy-to-use app.
  2. They assure safety, comfort, & security to their users.
  3. They keep their fairs reasonable.
  4. They provide multiple vehicle options.
  5. They serve fast & instant services.
  6. They market themselves really well.

Let’s have an elaborative look at the points above.

Developing an Easy-to-Use App

This factor is obviously the most important and the first demand for building a workable taxi business. The platform must be simple, bug-free, fast, and easy to understand. Even if it’s a first-time user, she must be able to book a ride with ease – it has to be that simple.

Meanwhile, the app should be clean & clear, glitch-free, and sorted & simplified to be successful. For the pro work, you can hire taxi app developer.

Assuring Safety & Comfort

Why do people trust your app?

We know that it’s not easy to build trust, and once it’s built – it’s not easy to keep it. It took years for companies like Uber to make their brands & brand value. They have done it by gaining customer reviews & feedback and by working on customer experiences.

Before entering the vehicle, the commuter, especially if it’s a woman, doesn’t have comfort in mind – it’s, in the first place, is safety.

A commuter doesn’t know the driver, and she doesn’t want to travel with a stranger. She only knows the brand – if there is no trust, no travel will happen. Therefore, it’s your job to ensure safety, and once it’s done, build trust by assuring it. And then focus on the comfort part.

How to assure travel safety when doing an online taxi business?

  • When you collaborate with a driver/rider, make sure to conduct thorough documentation & cross-verification.
  • Make sure to ensure the vehicle is in perfect condition.
  • To be sure if the automobile is neat & clean.
  • Check if the seats remain tidy.
  • Ensure driver’s health status & habits. There should be no drinking & smoking habits in your driver.
  • Conduct training & observation once the driver is hired to ride for your app.

You must understand that if you want a commuter to use your app again – you have to make sure she has landed happily & safely on her last ride using your app.

Setting Fair Fares

In this highly competitive and heavy-prices market, it’s a very challenging task to set reasonable prices – but at the same time, it’s the most important. In this market, you can now only be successful if your fares & services are better & cheaper than the well-known brands like Uber.

It’s a simple thing: trusted brands offer fair prices, and their services are top-notch – then why would users choose a new brand with unreasonable fares? Therefore, to be eligible to join the online taxi business race – you must provide lower fairs & better services.

Providing Multiple Vehicle & Riding Options

You must have seen the biggies: they offer various options ranging from low to high costs – and the user has the freedom to choose according to her preferences. These days bike rides and cab sharing services are more popular as they are less expensive.

You can also think about including multiple options in your app like different car options – sedan, hatchback, & luxury; two-wheelers & three-wheelers; & cab sharing services. The more options, the better – as it opens up the opportunity for the user to select you as per her wishes & budget. It significantly increases your chances.

For Example – Uber in the USA offers these Uber vehicles: UberX, Taxi, Black, SUV, and UberXL.

Focus on Providing Fast & Instant Online Cab Services

Have you ever noticed the wait time in the Uber app saying more than 4 minutes?

No, right? That’s right, and it’s because the average wait time is 3 minutes 8 seconds for an Uber ride in the USA. They are able to do this due to their vast network of Uber vehicles and drivers.

Meanwhile, once your taxi app is ready, that’s exactly what you will need to do – to increase the network of your drivers/riders. The app also needs to be lag & glitch-free – smooth & easy-to-use.

How to Promote a Taxi App?

The Taxi app marketing needs to be solid to get into the picture. Once the app is ready, marketing plays a vital role. The post-production work is as essential as pre-production. You should not be surprised to know Uber still spends millions of dollars on advertising, despite the fact it doesn’t need it that much now. Just wonder how much it used to pay for advertising initially.

Below are some best ways to promote your Taxi app:

  • Online Promotion (Social Media, Web, YouTube, etc.)
  • Influencer Marketing
  • Email Marketing
  • Video Marketing
  • App Store Optimization (ASO)
  • Offline Marketing
  • Local Media Publicity
  • Blogging
  • Use QR Codes

Taxi App Development Cost

How much Taxi App Development cost?

The expenditures of on-demand taxi app development depend on several factors:

Where have you ordered the taxi booking app to be made?

Where in the world the app is being made – makes drastic differences in its costs. Taxi app developers across the globe have rates that differ from one another. For instance, developers in America & UK are the most expensive – UK ones may charge around $90 an hour while the one in the US may charge $70-190 for the same.

The continents’ hourly charges are below:

  • Asia – $12-30
  • Eastern Europe – $20-60
  • Latin America – $25-35
  • Africa – $18-40

Now, these are the developers’ charges around the world. The on-demand taxi app development goes through a number of technical stages & phases. Each phase follows a unique cost estimation, the table below help you understand that:

Development ProcessiOS Platforms ($)Android Platforms ($)
Native Development1300014000
UX/UI Design50005500
Backend Development50005500
Web Development (an admin panel)45004600
Testing and Quality Assurance80009200
Project Management (10-15% of the total budget32003600
Final Costs3370042400

Another crucial aspect of taxi app development is that it needs 3 party or user-specific apps to be developed:

  1. Taxi App for Passengers
  2. Taxi App for Drivers
  3. Admin Panel

Following are the features each app will & must-have:

Passenger’s AppDriver’s AppAdmin’s App
User Sign-up & LoginUser Sign-up & LoginTrip Details
Edit ProfileEdit ProfileA Live Map
On-Demand & Scheduled Cab BookingBooking ConfirmationReports Tracking & Analytics
NotificationsReal-Time GPS-Based TrackingRevenue Management
Flexible Payment OptionsBooking History TrackingDriver Management
Real-Time GPS-Based Vehicle Tracking SystemEarnings Tracker  Passenger Management
Car-Type Choosing OptionNotificationsMulti-Language Support
Automatic Fare CalculationFeedbackComplain Management
Booking History TrackingNotifications

Depending upon all the above parameters and the marketing & launching expenses in the post-production phase – an online taxi booking app may cost from $50000 to up to $100000.

How to Hire a Taxi App Developer?

When it comes to hiring an on-demand taxi app developer or company to start a taxi start-up – one must check their profile & portfolio. Looking at the previous projects is always a good idea as it gives you an outlook on the developer’s vision. After all the research is done, you can take the final call and give the project to the desired app developing agency or individual.

There are four ways to get your app work done:

  • Hire an In-House Team
  • Hire a Freelancer
  • Hire an Outsourcing Team
  • Hire a Company or Agency

Key Points to Remember while Developing an Online Taxi Booking App

Starting a business venture like an on-demand taxi app service is no easy task. It takes a lot of developers’ time & hard work. And that is the reason one should take all the necessary precautions while developing a taxi app.

 Following are some tips that will help you complete your project with ease:

  • Go step by step – don’t forget setting up an online taxi app is a long-term process.
  • Analyze the process of development closely.
  • Make sure the app design is clean, attractive, & crisp.
  • Stay up-to-date with the market demands & terms.
  • Be in touch with the development team at all times.

Features an Online Taxi Booking App Must-Have

Features an Online Taxi booking application
  • Auto Dispatch Software

This software is for the driver’s rides management within the app – all in one place, easy & sorted.

  • Driver/User Authorization

With the help of this app feature, drivers can accept a booking on their own without any human interference.

  • Driver Queue Algorithm

Great help for the app’s owner as it displays the active drivers & their respective cabs’ info.

  • Surge Pricing

The money-making feature indeed. When there is a hike in demand – the app owners can increase the rates with surge pricing.

  • Zone Pricing

Rates can be set according to the neighborhoods. Area-specific pricing can be done with this advanced feature.  

  • Heat Map View

Heat map view assists you in knowing when most cabs are required where. Therefore, you can distribute the number of cabs accordingly.

  • Phone Number Masking

Advanced safety feature for the user’s benefit – they can hide their numbers from the cab driver if they wish to not reveal them.

  • Real-Time Analytics

It gives you all the real-time data regarding the business.

  • Multi-Lingual Support

It makes your app multilingual.

  • Automate Driver Payment

It enables a wallet system for your app. Users then can refill that wallet for direct & instant payments.

  • Multiple Payment Options

This feature enables multi-payment support by allowing your app to accept payment through various modes.

Taxi App Development Duration

How Long Does it Take to Develop an On-Demand Taxi App?

Depending upon your preferences and choices, it can take anywhere from 240 hours to 1000 hours for an on-demand taxi app to be developed. That includes all the development phases – driver app, rider app, admin panel development, & back-end development.


On-demand transportation services can be a great startup option these days. And literally, this is the perfect time to start an online taxi booking app service. If you wish to hire a taxi booking app development company – you can contact BR Softech. They also provide free guidance and estimates for the same.

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Nitin Garg

I am Nitin Garg Founder of BR Softech PVT LTD - an Award-winning mobile game development company. We are armed with 180+ geeks & 2753 clients worldwide, I have driven by the spirit of entrepreneurship and dream to build a billion-dollar-company.

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