Mobile apps are essential for existing taxi business owners and startups looking to offer taxi booking services.
An app is not enough to compete with the rest.
Youll be in fierce competition once you get into the taxi business. Uber and Lyft taxi booking apps have millions of users and generate billions yearly.
There is a way. It would help if you gave customers a reason to use your taxi booking app instead of other competitors to be successful.
Your taxi booking app must have a well-respected brand and a compelling value proposition.
A reliable tech partner is another key to success in a taxi app solution - an app development company with extensive knowledge about taxi app development and related technologies.
Discuss strategies to compete against Uber, revenue models, and core features you can add to your project.
Well also share our experiences with ridesharing app development and the cost of Uber app development.
Lets first take a look at the development of the taxi app.
This Guide will Show you How to Create an App for Booking Cabs.
Step 1. Present a distinct value proposition.
The taxi app you use for your mobile phone should provide unique value to the driver and the passenger.
Step 2. Find your Niche
Identifying a niche market in the taxi booking apps market with low competition is essential.
Step 3. Chose the revenue model
It is up to you to decide whether to run paid promotions or charge commissions.
Step 4. Shape your vision
Gather all requirements and present them to the taxi app development team.
Step 5. Create technical documentation for a taxi booking app
The team will create a technical specification for the app, write user stories, suggest architecture, and apply tech stack.
Step 6. Create the MVP for your Uber-like app.
Developers of taxi apps create user stories based on their priority and then conduct unit testing to identify and fix any errors.
Lets now examine each step more closely.
How to Create a Winning App for Taxi Booking
We already mentioned that the ridesharing market is crowded with strong competitors.
Uber and Lyft are the two most prominent companies in this industry. Uber held 70% of the market in June 2020, while Lyft had only 30%.
We believe that your mobile app for taxi services will be a success even in a highly competitive market.
Lets find out how.
Provide a special value proposition.
A unique value proposition is essential to build a strong brand that will differentiate your taxi booking app and other competitors.
A value proposition also makes your Uber-like taxi app appealing to riders and drivers. Lets examine what your competitors offer to help us find our value proposition.
Uber
Uber is the most significant player in the taxi app marketplace. Uber is available in 67 countries and 78 cities.
It has 55 million monthly active users.
Uber offers two value propositions
- Fast, Hassle-Free, and Easy Riding
- Affordable Pricing
The first value proposition focuses on the ease of using Ubers app. However, the second statement states that Uber has a reasonable pricing policy to make taxi services accessible to everyone.
Uber is the first company to charge a ride based on distance instead of a flat rate.
Lyft
Lyft is second in taxi booking apps. Lyft operates only in the United States (65 cities and 30 states), unlike Ubers worldwide presence.
Lyft has two distinct value propositions.
- Take a ride in minutes
- Get a wheel
The first value proposition is for passengers looking for taxis in a hurry. The second is for drivers who want Lyft to pay them to drive passengers.
Notice how both apps for taxi services use urgency to get you where you need to be.
HYPR, a London-based startup, is a taxi booking app that has built its value proposition around luxury and status.
HYPRs value proposition sounds something like this:
- Luxury Ride-Hailing Club
HYPR gives users a sense that they are part of a select group of successful and wealthy people.
HYPR exceeds users expectations.
The company operates on a subscription basis and has a fleet including Lamborghini and Gelentwagen.
Fill out the application form to be granted HYPR passenger app accessibility. Then wait for the waitlist.
You can also request an invitation code from an existing HYPR client.
You cant copy other taxi app apps to build your brand. Find something that makes your taxi app unique and put it into words.
You have just created an exceptional value proposition.
Another way to ensure success in the taxi business is to be in a niche with little competition.
Find your niche
It seems that there is one niche in the taxi business. However, this is incorrect.
You might be able to use an electric taxi for your taxi booking app. Why?
Read More:-
Major 8 Advantages of Using a White Label Taxi App for Your Taxi Business
People are now more concerned about environmental issues than ever. As a result, individuals consciously choose to travel in environmentally beneficial ways.
They use electric cars and include tree-planting donations in every fare. This company can claim that they are guilt-free.
Bike-sharing development is another niche.
Because it is rare to offer a bike taxi on-demand, there is little competition.
Lets look at some successful taxi apps that offer bike-hailing services:
- GrabBike is an on-demand bicycle service provider that operates in Thailand. It has received 5,997,330 Google Play reviews. GrabBike users have the ability to send documents and packages to bike drivers, in addition to ordering bikes.
- The Rapido bike taxi service can be found in 40 Indian cities. Rapido has more than 2 million users and 10+ million rides.
- LimeBike, a London-based motorbike service provider, promises its clients the fastest route from London to the airport and the safest way to travel around the city.
Bicycle taxis can also be arranged on demand in Brazil, China, and Pakistan. Only a few people have access to an app that allows them to summon a bicycle.
If youre from one of the mentioned countries, you might be able to launch the first bike-taxi app and make it a success.
Expand to other countries
You shouldnt limit your ideas to the borders of your country when you think about creating a cab service app.
Why?
Uber is not available in all countries. Denmark, Hungary, Thailand, and Canada, to name a few.
These countries offer great market opportunities for taxi-hailing companies.
This map shows countries you should consider when launching your taxi service app.
Lets now see how your app to hail a taxi can make you money.
How to Make Taxi-Hailing Apps Monetizable
These are the methods you can use to make a taxi booking app a profitable business.
- Commission from passengers. Passengers can be charged a commission fee of between 20 and 25% of the total cost of their ride.
- Service charges. Passengers can be charged a flat rate for booking and additional fees for service and payment processing.
- Cancellation fees. This payment can be used as a penalty if the passenger cancels.
- Third-party promotions. Uber is one example. It makes money through promotional collaborations with well-known brands like Spotify, Hilton, Pepsi, and Spotify. Uber paid promotion fees. Brands interact with users of the app and they receive rewards, gifts, or treats through branded marketing campaigns.
- Advertising. You can charge cost-per-click or cost-per-impression commissions for advertising in your booking taxi app.
Once you have a unique business model and value proposition, contact the development team to ask them to create a taxi application.
Benefits & Ideas of Taxi Booking App Development
Why do you need to invest in taxi app development today?
Apart from the fact they offer drivers many advantages, such as a rise in taxi bookings via mobile apps (which has surpassed 16.5% annually).
All it takes is the creation of new workplaces and the optimization of travelers movement.
Both can also control service quality through a well-thought-out rating and avoidance of incidents.
For drivers:
- They are provided with up-to-date maps and the best routes
- They dont have to wait for orders and can receive them right from the app. This optimizes their work time.
- They receive their payments daily online via quick payment systems that are fast and easy to use.
For passengers:
- They can book a taxi online in just a few clicks
- They get detailed information about the ride, such as the exact time, driver rating, and actual car movements
- They will be able to pay conveniently via a digital wallet, cashless.
- They save time and energy by booking taxi services.
The majority of the taxi mentioned above work in a similar manner. This is how it works:
- By entering the details of the trip, the passenger can request a ride. Pick-up and Drop-off Locations
- Based on a number of attributes taken from the back end of the system, the trip fare is calculated upfront.
- The passenger confirms trip details and agrees to pay the rider
- A driver is nearby and the passenger is matched up with him.
- A driver is notified about the ride
- The driver reviews the details of the trip and either accepts or rejects them
- The driver will meet the passenger at the destination point and take them there.
- The service can be paid for by either cash or a credit card.
- After the trip is complete, the system prompts passengers and drivers to rate one another
The Core Functionality that Powers Mobile Taxi Apps
Three essential elements will make up an app like Uber. These are the driver and passenger apps, as well as a dispatch panel that allows you to manage both users, payments, and rides.
Here is a rough estimate of the hours required for taxi-hailing platform development and basic functionality.
Passenger app features
Sign up and log in (Android starting at 56 hours, iOS starting at 56 hours).
Passengers can log in to the app using a phone number and a verification code that was sent via SMS.
This section includes personal user information, such as name and registration date.
Passenger profile (Android 32 hours, iOS 32 hours)
Passenger can edit their personal information, change passwords, and modify credentials.
Payment methods Android from 32 Hours, iOS from 32 Hours
The list includes a selection of payment options (cash and credit card) so that the passenger can choose their preferred method.
Define user position (Android, iOS, 16 hours).
Google Map API integration allows the app to determine the location of the passenger.
Request a Taxi (Android starting at 52 hours, iOS starting at 52 hours)
This allows the passenger to make a request for a taxi and choose the destination.
The estimated time and cost of the ride can be viewed by passengers. Passengers can also modify the route by adding points to the destination.
Matching (Android, iOS, 16 hours).
Allows you to match drivers and passengers nearby with the app.
Browse drivers (Android starting at 40 hours, iOS starting at 40 hours)
Displays a list with details about drivers and reviews.
Trip in the Making (Android starting at 62 hours, iOS starting at 62 hours)
It includes a countdown to when the driver will arrive. You can also modify ride parameters, track the drivers location, cancel the ride, and cancel it.
Online payment Android from 62 Hours, iOS from 62 Hours
Passengers can pay with their credit cards via an integrated third-party payment gateway.
Notification Android within 48 Hours, iOS within 48 Hours
Push notifications are sent to the passenger to notify them that the driver has accepted the request and is near; the app has debited money from their credit card and the driver has canceled the request.
Driver app features
Sign up and log in (Android starting at 56 hours, iOS starting at 56 hours).
Drivers can log in to the app using their phone numbers. They will receive an SMS with a verification code.
Drivers should also verify their bank account details and car registration information.
Driver profile Android from 48 Hours, iOS from 48 Hours
Keeps drivers personal information (name, phone number, car details, etc.) It allows drivers to access and modify their personal information.
Geolocation Android from 8 Hours, iOS from 8 Hours
It allows the driver to navigate to the location of the passenger using built-in street navigation (Google Map API).
Rides (Android starting at 42 hours, iOS starting at 42 hours)
Displays search parameters, as well as a list of the detailed information requested.
Trip Request Confirmation (Android 32 hours, iOS 32 hours)
Allows you to confirm the trip, wait for passenger confirmation and cancel the request.
Trip (Android starting at 36 hours, iOS starting at 36 hours)
This includes information about the passengers approval of the ride, notifying passengers that the driver arrived and the time the ride began and ended.
Dispatch panel features
Log in to create a profile (for 6 hours)
This allows admins to sign up, create a profile, and modify the password.
Admins Roles (24 Hours)
This allows administrators to grant different access rights to the platform.
Drivers (24 Hours)
You can add, edit, or delete a drivers list, along with their information.
Passengers (24 Hours)
You can add, edit, or delete a passenger list, along with their information.
Cars (24 Hours)
Let administrators edit the car list and their details.
Rates (24 Hours)
You can view and edit the driver rating.
Rides (24 Hours)
Administrators, lets see the ride list and ride details.
Payments (32 Hours)
This tab displays the transaction information, including the users bank account and total rides.
The Best Taxi App Developers Must Consider
Below is a list of ideas to help you develop a taxi booking app. It is possible to focus on the type of vehicle such as bikes, limos or electric cars, planes, trucks, bus booking app development, and so forth.
Your app could offer a service to corporate clients. Tracking and logistics can be based on location or the taxi-hailing model you choose.
- Taxi booking - dedicated taxi driving solutions with your private carpooling app development drivers, auto invoicing, route optimization, and driver tracking.
- Car rentals - refers to automated and user-friendly services that allow the renting of vehicles and cabs part-time. You can set rates and durations online and make a booking in one click.
- VIP Corporate Taxi - Dedicated to providing taxi-ride services to top executives and corporate clients. Additional services are available for clients who have a changing schedule or demand.
- Air taxi is a way to provide a service for pilots and passengers, as well as management of air-borne rides.
The Main Pitfalls of Taxi App Development
The following problems were encountered during the app development:
Transportation of London compliance
Transport of London has a strict policy regarding lost and found property.
To make our taxi app compliant with TFL we tailored its technical documentation according to the Transport for London Technical Solution Demonstration Guide and Technical Documentation Guidance for PHO applicants.
Price aggregation method
We had to create a pricing algorithm that calculated the price of a ride based on driver location, wait time for passengers, distance, and other factors.
Hidden phone numbers
The apps users include successful, well-known people who respect their privacy. We had to replace the real phone numbers with random numbers from London.
The Best Taxi Solution to Rule the Market
Startup-friendly is not the case in the taxi booking industry. However, there are many options available if you have a unique proposition, a project vision that is bulletproof, and an app development company that can deliver.
You can either use our feature listing to create a taxi app in your area or ask our business analyst for features that are tailored to your business and value proposition.
Be aware of the potential pitfalls in mobile app development.
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Your taxi app solution must be compliant with local regulations, even though it is privately owned.
Consider the recommendations of your local transportation agency and their guidance regarding user data, security, privacy, and security if youre planning to create an app that offers public taxi services.
We can help you with carpooling app development. We will work with you to make your business idea a reality.