Blog Summary:
This blog is an in-depth guide to help taxi business owners understand how the Uber app works. It entails the features required to build a taxi app, the essential steps, revenue models to integrate, and the technical stack specifications. It also explains the app development cost and hours required to achieve the success of Uber’s business model.
Table of Content
Standing in the street, trying to catch a cab, is the story of the past. Taxi booking apps like Uber, Lyft, and Ola have changed how people commute. By simply opening the taxi app and selecting a destination, a driver will be at their service.
Uber’s business model is successful because it solves a common problem using the most intelligent tech stack and software architecture. With the global taxi market projected to reach USD 462 billion by 2030, the ride-hailing industry is severely competitive.
Offering convenient options for booking, payment, security, and real-time GPS tracking, the need for on-demand apps is more popular than ever. In this scenario, building an app like Uber, Lyft, or Ola might become challenging for business owners.
The following sections will serve as a starting point to commence your app development journey and help you understand how to build an app like Uber.
Uber’s business model is called “Unicorn” because its success in the last seven years of its inception gave it a valuation of USD 68 billion, which is difficult to replicate. Hence, building an app like Uber requires understanding how it works on an on-demand technology that connects drivers and riders:
Bring the power of global leaders like Uber, Lyft, and Ola by mastering its technical foundations.
Get Started With Your Taxi App
Development is the most significant part of building a taxi booking app like Uber; it lets you decide the features that are most relevant to your target audience.
We recommend starting with an MVP development before launching a full-fledged product. Aligning the development with your business goals can be tricky; here are the steps to make it manageable:
Starting a taxi booking app development project requires thoroughly researching the target market. Finding the target market is similar to conducting background checks of an industry’s potential to plan the direction of your app.
It starts by picking a country, a city, or any location experiencing a transportation problem. Since each economy has different demands, it’s important to understand how people generally commute.
This would help define your goals for analyzing market conditions.
For example, if a city has a thriving customer base for on-demand bike apps, there might be better options than opening a cab service. Similarly, if the traffic conditions in a city are normal, even during rush hours, a taxi-sharing business might have more potential.
The next step is to select a business model and identify your unique offering to customers. This requires building user personas and probable scenarios and preparing value propositions.
Based on the niche you offer, you have the following alternatives to choosing a business model;
Creating user stories is also an integral step that enables you to estimate time and app development costs by preparing a storyboard. Here are some questions to consider:
Before you start taxi app development, you should be aware that the methods and resources you choose will ultimately impact the cost, quality, timeline, and success.
While you can also choose no-code/low-code development and build an app with tools, you should be clear on when to choose it over traditional development.
For example, if your budget is higher and the app requires complex functions, we recommend choosing a development team. They can help you prepare app documentation that includes defining all the technical specifications.
Since new technologies like integrating AI and ML algorithms for real-time tracking have emerged, an efficient and user-friendly interface is essential. Low-code tools cannot offer the flexibility to modify elements.
In contrast, hiring a dedicated developers team can allow you to incorporate better security features, integrating payment gateways, tracking interfaces, and even fraud detection systems.
Partnering with an app development company enables you to understand the importance of developing an MVP before launching a full-fledged product.
While you can create a verified and approved list of the most basic features that you want to add, the business analysts and designers can help you build a tried and tested process to maximize your ROI right from the initial phases.
An MVP enables you to test the waters before going into production by deciding the core feature on which the app will rely. Here’s how you can determine the priority of a feature:
We recommend starting with a customer-facing app before developing a driver’s app and admin panel.
Once you have built an MVP and marketed your product enough to keep increasing your customer base, you can start adding advanced features to keep customers engaged. The development team can move forward from here and introduce a cycle of operations that is divided into smaller tasks.
The back-end and front-end of an app require the most responsiveness to handle all user requests smoothly. Hence, a development team can help you build a powerful database storage, server-side architecture, and an interface to implement more advanced features.
Lastly, it’s important to test the app in live environments and different devices to check how each feature is performing.
We can be your think tank and build the next revolutionary app that offers something others don’t.
Consult With An Expert
If you’re planning to build your taxi-hailing app like Uber, you need to develop two apps. One is the driver app for partnering with the drivers and a passenger app for the users to book a ride. However, you would also need an admin panel to manage and monitor the platform’s operations.
Let’s understand the features of all three platforms of an online taxi booking business:
Uber’s revenue model is based on the revenues it earns from trips. Since it doesn’t own a fleet of vehicles, it acts as a mediator between passengers and drivers.
Additional revenue sources involve specialized ride options and in-app advertising. The model works best when there’s a limited supply, and many users can afford to pay extra to use the services.
This revenue model helped Uber generate USD 37.2 billion in revenue in San Francisco in 2023. There are 130 million global monthly Uber users, and Uber conducts around 15 million daily trips.
It earns profit by charging drivers 25% of all fares for using software, commissions on credit cards, and sending invoices. However, the average revenue Uber earns from each ride is unexpectedly quite low, amounting to USD 0.19 only.
Here’s how you can earn revenue from the Uber business model in your next Uber-like app and earn profit from rides, with the following criteria to calculate:
In this model, the driver is entitled to the rest of 75% with the two most striking features that you can integrate to increase your revenue growth:
Launch your user-friendly ride-sharing app with intuitive features of real-time tracking.
Build a Cost-effective Taxi App
Uber’s catchphrase, “get a ride at the tap of a button,” reflects that the technology used in building its features is more than just appealing to users. The complex architecture, processes, and routing networks start working from the moment users open the app to book a ride until they get dropped off.
Its smooth functioning is primarily based on the following most important features:
Google Maps integration works best to track vehicle movement in real-time, allowing drivers to follow GPS directions. Maps SDK and Geolocation API are a must for an app like Uber for Android to fetch price location data.
Similarly, iOS apps like Uber, CoreLocation, and MapKit frameworks are the recommended tech stack for selecting routes and directions.
Uber uses a Service-oriented Architecture (SOA) to make routing and service discovery crucial. It uses a combination of HAProxy and Hyperbahn to send JSON and HTTP requests to other services. The front end uses an NGINX web server to establish proxying with back-end servers.
Uber’s mapping services run on a Java-based framework for collecting address information, implementing algorithms, displaying, and routing. The framework powering the front end is Gurafu, which works with road map data to improve accuracy and provide sophisticated routing options. This is important for the correct analysis of the ETAs.
The latency of ETA requests is an order every 5 milliseconds. To allocate memory, parallelize computations, and keep making requests, another framework called DropWizard is used to add a layer of business logic over the raw ETAs. Map services include three engines for the backend – autocomplete, predictions, and geocoding for search boxes.
Interactions between services and mobile devices for internal uses, such as debugging, are important to run dynamic pricing operations. Uber uses Kafka clusters and archives data in Hadoop.
Uber uses the ELK stack, a combination of Elasticsearch, Logstash, and Kibana, for real-time data ingestion and indexing. To run microservices with consistent configurations, it uses Docker containers on Mesos along with Aurora.
Building an app like Uber may require a hybrid cloud infrastructure with a mix of data centers active at multiple locations. In a business model like Uber, cities are assigned to the geographically closest data centers, with their backup stored in a different location on another data center.
Initially, Uber used Postgres for storage, but Schemaless and Cassandra have now replaced it to improve speed and performance. Additionally, the engineers use the Hadoop warehouse for distributed storage. Lastly, Redis and Twemproxy are used for caching and queueing without compromising the hit rate.
Uber developed M3 in Go to collect and store metrics and search for trends. It displays information using modified graphs and dashboards in Grafana. Uber also developed its in-house tool, Argos, for detecting anomalies, examining incoming metrics, and comparing them to predictive models.
The cost of developing an app like Uber considers many aspects:
You should also keep in mind that a taxi booking app has a driver app and a passenger app. Here’s a tentative breakdown of the development hours and costs for both types of app features:
A typical app for one platform can cost USD 30,000 to USD 60,000, while a feature-rich app could cost between USD 80,000 and USD 1,20,000.
An app with passenger features for a single platform can take 800 to 1800 hours and will cost around USD 90,000 to USD 1,80,000.
A driver app with all basic and advanced features for iOS or Android can consume 200 to 500 hours and is estimated to cost USD 20,000 to USD 50,000.
The cost of the admin panel will be separately estimated, and it can range from USD 7,000 to USD 12,000.
Features | iOS Hours Passenger App | Android Hours Pass App | Approx cost Pass App |
---|---|---|---|
Passeger App | 800 – 1800 | 500-1000 | USD 85,000 |
Registration | 40 | 30 | USD 3,000 |
Payments | 30 | 20 | USD 5,000 |
Location & Routing | 35 | 35 | USD 6,000 |
Fare estimation | 20 | 40 | USD 5,000 |
Driver tracking | 25 | 45 | USD 7,000 |
Booking history | 35 | 30 | USD 10,000 |
Ratings | 40 | 50 | USD 8,000 |
Push notifications | 50 | 45 | USD 20,000 |
UI/UX | 100 | 60 | USD 10,000 |
Device sync | 80 | 30 | USD 10,000 |
Features | iOS Hours Driver App | Android Hours Driver App | Approx cost Driver App |
---|---|---|---|
Driver App | 200 – 500 | 300-500 | USD 35,000 |
Sign up | 20 | 25 | USD 3,000 |
Booking Rides | 10 | 15 | USD 2,000 |
Rides Status | 25 | 20 | USD 4,000 |
Booking History | 18 | 25 | USD 2,000 |
Driver Destination | 50 | 35 | USD 2,000 |
Driver Report | 20 | 30 | USD 3,000 |
Ride Cancellation | 15 | 40 | USD 1,500 |
Route Building | 10 | 35 | USD 2,000 |
Split Fares | 30 | 50 | USD 6,000 |
UI/UX | 90 | 30 | USD 5,000 |
Building an authentic and original software product is the only way to attract potential customers, retain repeat customers, and evolve your brand image.
While the initial steps to start a product start with estimating the budget, business needs, and target market, it’s the app development team that can understand them and your project.
Choose Moon Technolabs as your preferred taxi booking app development partner. You get a dedicated team of expert programmers, coders, testers, and analysts who can boost your capacity to validate your product discovery.
We develop a detailed Software Requirement Specification (SRS) document that helps you transform your vision into an idea. Contact us to develop an MVP that prioritizes basic features and implements a design interface that appeals to users.
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