Complete Guide to Taxi App Development: Everything You Need to Know

The taxi business is becoming increasingly popular due to its convenience, cost-effectiveness, and profitability worldwide. Suppose you’re interested in starting the process of developing a taxi app but need a proper guide; fear not! This blog is tailored just for you. It covers all aspects of taxi app development. 

Let’s begin.

What is a taxi app?

A taxi booking app has three parts: an app for drivers, an app for riders, and an admin dashboard.

A taxi app is a digital platform that allows users to book taxis using their phones anytime and anywhere. It brings together three key participants: the Rider (passenger), the Driver, and the Admin (administrator).

This app benefits both riders and drivers. It offers riders an easy and convenient way to book taxis and travel comfortably to their destinations. It allows drivers to earn money for each ride they complete.

How does a taxi app work?

A taxi app operates using two apps: one for the rider and another for the driver. 

Here’s a simple explanation of how the taxi app works:

• The rider enters their pickup and drop-off locations in the app.
• The app connects the rider with a nearby driver.
• Passengers are picked up by the driver and taken to their destination.

A taxi booking app uses GPS so the driver can know the rider’s location. Similarly, the rider can track the driver’s location to calculate their arrival time. When a rider requests a ride, if the nearby driver accepts it, then the app updates each other’s locations on their apps.

Reason to build a taxi app

Building a taxi app is a wise decision due to the promising growth prospects in the industry. According to the Business of Apps, the taxi app market will reach $283 billion by 2028, with a steady growth rate of 4.2%. It indicates that the taxi app industry is on track to dominate the market, making it an ideal time to start your own taxi business.

Benefits of Taxi App Development:

Riders:

• Enjoy a comfortable ride with just a few clicks.
• Get an estimated fare before starting the ride.
• Book a taxi anytime you need it.
• Experience hassle-free payment methods.
• Save time by using efficient transportation.
• Use ridesharing to reduce the total fare.

Drivers:

• Easily find customers with little effort.
• Earn a regular income by completing rides.
• Get notifications for every action or event that takes place during the process.
• Have the flexibility to choose between online and offline availability.
• Find the shortest routes to reach destinations quickly.

Admin:

• Earn commission from both riders and drivers.
• Adjust pricing during festive times, peak hours, or rainy days.
• Generate passive income from the platform.
• Maintain control over the entire system.
• Expand service locations based on demand.

Popular taxi apps around the world

• Uber
• Lyft
• Get
• Ola
• Grab
• Bolt
• DiDi

A Step-by-step Guide on How to Develop a Taxi App

Taxi app development consists of these steps:

• Market research
• Competitor Analysis
• Validate an app idea
• Create app design
• Decide on features for your taxi app
• Choose the technology stack
• Choose an app monetization strategy
• Develop and launch your app

Step 1: Conduct Market Research

Getting to know what your potential customers want and what interests them is the first critical step when you decide to launch your taxi app. Conducting extensive market research will provide the necessary answers to help you make better decisions. You can then adopt a marketing strategy that resonates with your target audience.

Conducting market research will help you understand better who your customers are and what they prefer, what influences their decisions, and much more.

After analysis, you can choose the app type. Taxi apps come in different types, and you need to decide which type of taxi app you want to develop.

Key Features of Taxi App Development

Before you begin developing a taxi app, you should know the essential features it should have. Don’t worry; it’s a quick overview.

Rider Features:

Fare Estimation: 

After selecting the pickup and drop locations, the app shows the estimated ride cost, allowing riders to know the total fare beforehand.

Multiple Payment Methods: 

The app supports various payment options like credit cards, debit cards, cash, or digital wallets to offer convenient online transactions.

Multiple Stops: 

They can add multiple stops during the ride to enhance their travel experience.

Track the Driver: 

Riders can easily track the driver’s real-time location, ensuring stress-free trip preparation.

Call/Message Option: 

The call/Message option allows communication effortlessly with the driver using the call or message feature, avoiding confusion.

Schedule a Ride:

A Rider can schedule rides for future trips by specifying the pickup time and date.

SOS / Emergency Contact: 

In case of any uncomfortable situation during the ride, riders can quickly contact their loved ones for help.

Driver Features:

Driver Status: 

Drivers can choose to be either online or offline. When offline, nearby drivers can receive ride requests automatically.

Earnings Report: 

Drivers can access a helpful earnings report that shows all their earnings details since they started using the app. It allows them to track their earnings on a weekly or monthly basis.

Push Notification: 

An essential feature in taxi app development as drivers receive notifications for every activity on the platform. It includes ride/cancel requests from riders and messages from the admin.

Route Optimization: 

This feature helps drivers find the shortest route to reach the rider’s location and destination efficiently.

Trip Details: 

The app lets Drivers view information about their current, past, and upcoming rides.

Admin Features:

Booking Management: 

Admin can monitor the number of bookings made through the platform, including completed, canceled, and upcoming rides.

Heat Map: 

Using the admin panel, The admin stakeholder can view heat maps highlighting areas with high ride demand. It helps in increasing services and maximizing earnings.

Automatic and Manual Dispatching: 

Automatic dispatching ensures the efficient distribution of earnings to driver accounts.

Manual dispatching supports those who don’t use online transactions or smartphones, allowing the admin to send earnings manually.

Manage Sub Admin: 

Admin can delegate tasks to sub-admins, assigning them responsibilities like verifying driver documents, managing vehicle documents, and more.

Now, let’s delve into taxi app development!

How can you create a taxi app?

Creating a successful taxi app involves the following steps:

Step 1: Choose the App Type

Taxi apps come in different types, and you need to decide which type of taxi app you want to develop.

Types of Taxi Apps:

Ride-Hailing App:

• It is the most common type of taxi app.
• It receives ride requests from riders and sends them to nearby drivers.

Ridesharing App:

• This type allows riders to share a ride with others heading to the same destination or nearby areas.
• It is cost-effective for all participants.

Carpooling App:

• Multiple riders share a vehicle for regular travel, such as daily work or school commutes.

Premium Taxi App:

• This type offers high-end vehicles for special occasions or business travel.

Electric Taxi App:

• It exclusively features electric or eco-friendly vehicles.
• This type of taxi app might be slightly more expensive than others.

Step 2: Make a Competitor Analysis

After you determine and decide on your niche, you can study the existing taxi apps in the market. You can identify your unique value proposition from the insights you gain from analyzing your competitors and the market. 

Analyze where your competitors lack and work on adding those features to your product, which will eventually lead to more and more customers preferring you over others.

You may want to consider the following points:

• The number of competitors in your location.
• The unique features they offer.
• The advantages and disadvantages of their services.
• Identify the part they lack.
• Look for opportunities to stand out in the business.

Step 3: Validate an App Idea

Market analysis will give you an understanding of what your target audience wants, their pain points, and how to address them with suitable solutions. With the acquired information, you can come up with a unique selling point (USP). By doing so, you can differentiate your app from the other taxi apps.

Step 4: Create an App Design

App design is one of the critical factors that determine the success of your app. It can make or break a business. When an app is well-designed, it attracts users and keeps them engaged. The first thing users will notice is the design, and if it impresses them, it turns out to be advantageous. Otherwise, it may result in the user having a bad experience using the app.

UI deals with visual elements like colors, animations, 3D elements, fonts, and more. When a rider enters your app, the design is the first thing they see, so creating an excellent first impression through a well-thought-out UI is essential.

On the other hand, UX is the heart of taxi app development. It is involved right from the start of your application. It defines the app’s workflow, screen layouts, and all operations. Focusing on a seamless user experience is vital for the success of your taxi app.

Step 5: Decide on Features for Your Taxi App

Once you’ve analyzed the market and gathered all the necessary information, you can begin developing your taxi app. You now have a clear idea of the required features, the challenges to address, and the solutions needed for your app. With this knowledge in hand, you can start creating your taxi app.

Step 6: Choose the Technology Stack

Picking the right technology stack is a vital aspect of the development process. This factor has a crucial role in the performance of your taxi app. 

Opting for outdated technology can create a negative impression and affect your app’s functionality. Therefore, carefully select a technology stack that keeps your app up-to-date, ensures smooth operations, and delivers a hassle-free experience.

Step 7: Choose an App Monetization Strategy

Now that your taxi app is available for all users, you may wonder how to generate revenue from your app.

You can make money from your app in various ways:

COMMISSION: 

Both riders and drivers pay a service fee for every ride to the platform owner (you). The commission typically ranges from 20% to 25% of the total ride cost.

CANCELLATION FEES: 

If riders or drivers cancel rides excessively (the admin can set a limit), they must pay a cancellation fee to the admin.

IN-APP ADS: 

It is a popular method used in many apps. It means showing ads to users as they use the app. The platform owner (you) receives money from advertisers for displaying these ads.

Surge Pricing

You can increase the ride charges during peak hours and when the demand is high. By implementing surge pricing, you can make additional revenue.

Step 8: Promote Your App

The next step is to promote your taxi app and reach both riders and drivers to increase the number of users on your platform.

Ways to promote your taxi app:

Run Google Ads: 

Advertise your app through Google’s advertising platform.

Use Social Media Marketing: 

Utilize social media channels to market and reach potential users.

Press Release:

Submit a press release to inform the public about your app’s launch.

Influencer Marketing: 

Work together with influencers to advertise your app to their followers.

SEO (Search Engine Optimization): 

Optimize your app’s online presence to rank higher in search results.

Utilize Traditional Marketing: 

Consider traditional advertising methods like television, radio, and newspaper ads.

Offer Special Deals: 

Attract users with enticing offers, such as free first rides or discounts on specific distances.

Partnership with Others: 

Collaborate with other businesses or platforms to widen your app’s reach.

Step 9: Collect Feedback

Upon launching your app, make it a priority to gather feedback from both riders and drivers regularly. This valuable feedback will help you enhance and improve your service.

Step 10: Embrace Innovation

In the future, if there are new features or technologies you want to adopt, don’t hesitate. Be quick to embrace recent trends and ensure your services are constantly updated. Continuously implement new features in your taxi app.

That’s it! You’ve done it.

What is the estimated cost of developing a taxi app?

The cost of taxi app development cannot be fixed in advance as it depends on factors like your specific requirements, the platform you choose (Android or iOS), your location, the app’s complexity, and more.

However, as a general estimate, The essential cost of developing a taxi app can vary from $20,000 to $50,000.

I recommend hiring a taxi app development company to create your app, as it’s a budget-friendly option that can cater to your needs.

Which is the best taxi app development company?

Among the many taxi app development companies in your area, Abservetech stands out by offering something unique – their pre-built taxi app software called RebuStar.

Why do I recommend pre-built scripts? 

Abservetech has already developed the app, so you only need to customize their product to launch your taxi app quickly. Moreover, RebuStar comes with affordable pricing, helping you save money compared to other companies.

RebuStar is an Uber clone script that offers customers fully customizable and free source code. Over 250 entrepreneurs already love RebuStar.

They also provide additional benefits such as a Free Logo, Free App Submission to the App Store and Play Store, and a one-time payment option.

Their development team guarantees on-time delivery, and all their features are well-researched, ensuring they enhance your business. They also offer post-support, so if you face any issues with the app in the future, they are eager to help you.

Contact their support team via Email or WhatsApp; they will be delighted to assist you in starting your taxi business.

And that’s it!

Creating a taxi app is a challenging task, but now you’re aware of all the elements involved in it. The choice is yours – you can either develop your taxi app or use the RebuStar product.

Either way, it’s time to start building your taxi app! The world is eagerly waiting.

To Connect With Us:

Skype: Abservetech Support

WhatsApp: +91 9222 47 9222

Email ID: [email protected]