Do you run a newly founded or an established cab company and look forward to expanding the footprint of your company?
Your demands may all be met by using online cab booking software.
Conventional cab services have long since disappeared. The dominance of taxi booking applications on the market is a result of the success of companies like Uber, Curb, and Lyft.
Companies use a taxi booking app development business to offer an effective solution as they move their taxi services online. They frequently wonder how much it will cost to create a taxi booking app.
This post seeks to answer the query and give a price breakdown for creating a taxi app.
Global Ride-Hailing and Taxi Market
- In 2023, the ride-hailing and taxi market is expected to generate US$332.50 billion in revenue.
- By 2027, the market volume is predicted to reach USD 378.80 billion, with revenue estimated to expand at a 3.31% annual rate (CAGR 2023–2027).
- By 2027, there will be 1,452.8 million users in the ride-hailing and taxi industry.
- By 2027, user penetration is predicted to reach 18.3% from its current level of 17.4%.
- The average revenue per user (ARPU) is anticipated to be USD 248.20.
- By 2027, online sales will account for 55% of all ride-hailing and taxi market income.
- Regarding worldwide comparison, China will produce the largest revenue (USD 130.20 billion in 2023).
What Is an On-Demand Taxi Booking Smartphone App?
It is a mobile application that allows users to book a taxi or ride-hailing service from their smartphones, tablets, or other devices, without needing to hail a cab on the street physically. These apps allow users to request a ride, track the driver’s location, and pay for the ride, all from their mobile devices.
The app works by connecting the rider with a nearby driver through the app’s backend system, and the driver will be notified of the ride request and the rider’s location. The app may also provide estimated arrival times, fare estimates, and driver ratings and reviews.
Examples of popular taxi booking on-demand mobile apps include Uber, Lyft, Curb, DiDi, Grab, Ola Bolt (formerly Taxify), and Careem.
The Taxi Booking App’s Business Model
There are three main categories of taxi app business models:
1. Aggregator Model
This business model pairs cab aggregators with drivers to deliver rides on demand. The aggregator obtains a commission from the operators on each ride that occurs. Apart from this, the cab operator also pays a charge for using the benefits of the technological platform. Uber, Gett, and Ola follow a similar strategy to well-known taxi-hailing companies.
2. Ownership Model
Taxi fleet owners that employ this strategy benefit the most. By entering the pick-up and drop-off locations, users of taxi booking apps may reserve a cab and then sit back and relax as the driver takes them to their destination. Unlike Uber, this strategy does not use any intermediaries. Only the drivers and other operating expenses, including gasoline, cab maintenance fees, and technological platforms, are the responsibility of the taxi operator.
3. Revenue Generation Model
In addition to the two models mentioned above, app development businesses should also think about the following other revenue sources:
- Peak demand results in surge pricing
- Various pricing for a variety of automobile models
- Additional service fee for drivers and luxury vehicles
- Extra baggage fees for the journey
- Charging a specific amount per mile
- Assessing fees for the driver’s waiting time
The Advantages of a Taxi Booking App
1. For Drivers
- They don’t need to drive around the city seeking riders and waste petrol. They might wait till a booking comes in and then depart from where they were stopped.
- Most payments are made through online banking or mobile wallets, eliminating the need for drivers to carry a lot of cash or change.
- The drivers have the authority to evaluate and remark on each passenger. Thus, if an unruly passenger is in their car, they may place him appropriately and spare the other drivers the agony.
- These GPS-enabled apps make it simple for drivers to find their passengers rather than having them skulk about begging for help.
- Because the driver will only relocate his car and show up at the exact location after a booking is made, there are fewer possibilities to squander time.
2. For Users
- The app notifies the passengers of the exact position of the cab and how long it would take for it to arrive. As a result, they may use that time for something else, thanks to this.
- As the passengers may schedule their journeys online, no one needs to leave their house.
- This form of payment is particularly convenient because it eliminates the need for travelers to carry cash. Users may link their digital wallets with the app to pay online using debit or credit cards.
- With the aid of the app, there is greater openness because taxi drivers can also be reviewed and rated by passengers.
- They don’t need to wait outside on the streets to hail cabs for a ride. They save a ton of time and effort by doing this.
Essential Guidelines for Building a Taxi Booking App
Define the app’s scope and features: Determine the key features and functionality of your app, such as ride booking, driver tracking, payment processing, and user profiles.
Choose a platform and technology stack: Decide which platform(s) you want to build your app for, such as iOS, Android, or both. Select a technology stack that suits your needs, including programming languages, frameworks, and third-party tools.
Develop the backend infrastructure: Build a backend system that can handle user data, ride requests, driver tracking, payments, and other vital functions. Use a reliable and scalable infrastructure that can handle high volumes of requests.
Design the user interface and experience: Create an intuitive, easy user interface with clear navigation and visual design. Use user experience (UX) best practices to ensure the app is engaging and efficient.
Develop the mobile app: Build the app using the chosen technology stack and platform, integrating the backend infrastructure and user interface.
Test and refine the app: Test it thoroughly to ensure it works as intended, fixing any bugs or errors. Get user feedback and make any necessary refinements to improve the app’s functionality and user experience.
Launch and market the app, publish it to the app stores, and sell it to your target audience through various channels, such as social media, online advertising, and PR.
The Most Crucial Factors to Include in a Taxi Booking App
User Registration and Login: The app should allow users to create an account, save their personal information and preferences, and log in securely using their email or social media accounts.
GPS Tracking: The app should have GPS capabilities to detect the user’s location and find nearby taxis for pick-up.
Booking and Scheduling: The app should allow users to book a ride immediately or schedule a pick-up time in advance.
Fare Estimator: The app should display an estimated fare for the trip based on the pick-up and drop-off locations.
Payment Gateway: The app should integrate with a secure payment gateway to enable cashless transactions and provide users with multiple payment options.
Driver Rating and Reviews: The app should allow users to rate and review the driver and the overall experience.
Notifications: The app should send messages to users regarding ride confirmations, driver details, estimated time of arrival, and other essential updates.
Support and Help: The app should have a dedicated support team and a Help section to address users’ queries and concerns.
Multi-language Support: The app should support multiple languages to cater to a diverse user base.
In-app Chat: The app should have an in-app chat feature to enable users to communicate with the driver in case of any issues or special requests.
What Does It Cost to Build a Taxi Booking App?
If you choose a top app development business, the cost of a basic functionality on-demand taxi app development will be approximately $25,000-$40,000, while a feature-rich app will cost between $100,000 and $150,000.
However, the following variables affect how much it will cost to build a taxi app:
An app designed for iOS will have a different quantity than the one for Android. Also, your app may cost more than the ones previously listed if you want to design it for many platforms.
The core of every app that captures users’ attention and keeps them riveted is the user interface and user experience. Hence, pick the top UI/UX development business after reviewing their portfolio instead of sacrificing design to save money.
The location of the mobile app development company you’ve engaged in will affect the price of developing a taxi booking app. Even if the hourly prices charged by the organizations vary, the Indian market for app development is still considerably less expensive than the American market.
- Integrating with other parties
If you choose any third-party integrations, the cost will increase in addition to creating features and functions in the customer app, driver app, and dispatch panel because their development is time-consuming and requires more work.
If you’re looking for a reliable and experienced mobile app development partner to help you create a top-notch taxi booking app, Vrinsoft is your go-to solution. With in-depth expertise in developing innovative and user-friendly apps, we can help you turn your taxi app idea into a reality. From feature-rich functionality to seamless user experience, Vrinsoft has got you covered. So why wait? Contact us today and take the first step towards building a successful taxi booking app to revolutionize people’s commutes.