How Much Does It Cost to Build an UBER-Like Taxi App in 2021?

cost of an App

In the past ten years, there have been numerous apps for car booking which have dented the old taxi systems of different regions. Since the release of the first car booking app, it has generated revenue of billion rupees for companies. The online car booking app provides protection, reliable fares, and a trademark that no one heard before releasing these apps. Must be thinking about the cost of an app?

Uber is one of the most widely used apps in the different regions of the world. This app helps those who do not have their vehicles and do not carry their cars due to traffic issues. However, it takes a good cost to build an app like Uber. To Know the cost of an app like Uber, you must carry out a good plan with your mobile application development companies.

A World View About Online Car App

The past years have been so phenomenal for online cab apps. They have taken over the markets on high margins. The big companies that had their stocks in other markets show their interest after seeing people interested in traveling car apps rather than choosing old taxi traditions or bus services that travel inside the city. The cost of an app is the only thing most companies think about.

Through the help of Statista, we find out the revenues Uber is generating in 2019 and 2020.

  • In 2019 Uber earned more than $302 billion
  • In 2020 Uber generated $192 billion.

Despite covid-19, it manages to earn billions of dollars. Only a few businesses successfully earned in the hardest times of Covid-19, and this was one of those businesses that survived and did that well in the markets. In addition, the recent research of Statista shows Uber revenues will jump higher in upcoming years, and it can go up from $366 to $370 billion.

  • It has been estimated that the market of India will earn them around $55 billion
  • The market of the USA can take them up to earning $41 billion.

Uber manages to get more than 70 million customers worldwide in a few years but faces competition from other online cab services. In some countries, they took a higher ground than Uber. However, in most countries, Uber manages to beat in customers.

As people are starting to shift in metropolitan cities, there are chances of environmental pollution. So, for that, companies are giving an option to their customers of rental cars and bikes. Also, the scooters which going to help the customers to reach their destination more flexibly. These tactics can be vital to less down environmental pollution and fewer vehicles on the road.

Just look at the features of online cab services that provide attentively, exact, and well-planned devices.

The Model Characteristics of Online Cab Services:

Helping cab services perform so brilliantly like Uber in the competition with other online cab services. As the features get updated. The cost of an app increases.

  • 1st: The user-friendliness features
  • 2nd: Easy access to every feature
  • 3rd: No complexities in running the app
  • 4th: Zero bugs and errors while booking a cab

It is a digital stage that gives its users a chance to book a more convenient ride for them through fares and choice, like Uber giving an option of booking a car from the most suitable to the excellent service option. They have divided four categories for their users.

  • UberX – the most cost-efficient
  • UberBLACK – more comfortable cabs
  • UberSUV – When users want to have a luxury car
  • UberLUX – the prime service is the most luxurious one

Reservation of Rides:

The most important point to keep in mind when calculating a cost of an app and developing an app is how many steps it will take the user to book a cab. Sometimes customers are in a hurry when booking the ride, so users always want to book a ride in the least steps. Therefore, a functionality required in a good service cab is that it should automatically track down a user’s location and get to his place as fast as possible.

Cost estimation of customer trips:

It has become a tradition among customers to ask the fares before booking a ride for them. There are two aspects which are necessary for cab services to look at. First, it will help them to win the trust of their customers.

1st: A good transparency approach in charging the customers, like the amount it will take them to reach their destination. The amount in peak hours of traffic and the amount without the traffic. It will push the customer to find out sometimes why it is charging more than usual days. A total trip fare will find out with the perfect back-end algorithm.

2nd: The second one is to trust customers in how much expense it will take them to reach their destinations. One estimated amount for the enlightenment of the customers. How much time a rider will take to get their default locations. Which types of cabs are available in their areas, and how much the individual cab type will cost?

These are the features that will help you to win your customer’s trust in a short time.

Confirmation of the cab:

The riders are unaware of the booking details until they accept the customer request. One option is available for drivers to cancel the ride. When the driver cancels the ride, a user’s recommendation will be switched to another cab available in the same area. It is a feature of sorting out an issue for customers not to face too many cancellations. It is an important feature that every cab service should develop at the time of creating their app.

Methods of paying for the ride:

As people live in the digital world, they have become habitual of performing their tasks with the help of technology. Most people love to pay through cards and other methods of paying digitally rather than taking money everywhere. The cab service app should allow customers to pay through QR codes, bank cards, mobile wallets, net banking. The more flexible you make a payment method for your clients, the more they will love to choose your service.


It is necessary to get feedback from your customer regarding their experience of traveling in your service. In that way, the company will be aware of the behaviors of drivers with their customers. In addition, it will make the system more efficient. This way, you can track down those who perform well and deserve more rides and commissions. Those who are average and need guidance to improve their performance and those who are not up to the mark so the company can warn them for their irresponsible behavior.

The Steps to Take at The Time of Developing Cab App:

When developing an online car app, there are few things that you need to keep in your mind, so you do not feel the difficulties at the time of building an app. First, make a plan of how much cost it will take to build an app. Next, carry out the schedule for each stage and then hire an expert team to develop a mobile app for cab service.

The first step to getting into the market is to do a survey or research about it. To be well aware of the regions where you want to launch your cab service.

  • The knowledge about the populated areas.
  • Business hubs and commercial areas.
  • Also, areas where you offer rental services for young populations.

The research of geographical regions can help you dig out all this information which will be helpful for you to run your services where it requires the most.

A business model should be carried out before making a plan for your revenues and how much time the service will take to return your investments. The mostly cab services which are running nowadays do follow this plan.

  • Riders
  • Passenger
  • Marketing

Each stakeholder will be charged according to the company policies. The company divides three of them according to their plan. Like Uber charged 30% to its rider. Passengers have to pay for the ride and the cancellation of the ride—marketing of their app through different social platforms.

The development of cab service should be done from the scrape. It should not follow a prototype or template of any app. This will make sure your app works fine on different operating systems. There are numerous operating systems, so to cope with that issue, a developer should have developed an app that works without any bugs or errors on every OS.

The characteristics which should be developed in a taxi service app.

  • Registration of a user on a service app through phone numbers or social accounts.
  • The main feature is booking a ride, tracking down the default locations of passengers, and confirming and canceling the ride.
  • The traveler should have numerous options for paying a fare.
  • If the customer uses a digital method to pay the bill. It should save the data so the next time when customers use your services, it gets easy for them to pay the fares.
  • Once the passenger reaches its destination, the calculator embedded in the back-end acknowledges the driver and passenger with the fares.
  • Track down the rider to figure out how much time it will take to reach the customer’s destination.
  • The customers always want to know about ride confirmation, cancellation, driver arrival, and payment confirmation.
  • If a passenger is kept selecting the same destination multiple times. For the ease of customers, it should save the traveling history, so it takes them less time to book a ride.
  • To keep upgrading the services, feedback is an important point to look at. The company easily finds out which driver is performing and behaving well with their customers.
  • An option for a passenger to modify their information whenever they want.

Functionalities in Driver App

The driver’s app view is a different one than customers. Therefore, when building an app, a developer should include these functionalities for the ease of a driver.

  • Registration of the driver is the same as the registration of passengers. To map the user data.
  • Status of his working hours.
  • Confirming or cancellation of ride.
  • History of their rides where they have previously been to track down the location with ease.
  • Keep their update for the new rides, with feedback, targets, and other important notifications.
  • A perfect design of their previous rides, how much they have earned, the working hours.

One more separate section for an admin helps him track down all the activities of the company. Like promotions, marketing campaigns. It will take around 800-1000 hours to work on this module.

When you are done with all these stages. It is time for your app to go live. A developer must develop an app for the Google play store, Apple store, and other popular platforms. Social sites can help you to reach a larger population. Also, You can do your marketing through online/offline advertising.

To keep your application up to date and free of errors. In addition, you need the latest tools to protect your site from different viruses. For that work, you need the constant help of technical and maintaining staff.

Expenses It Takes To Build A Cab App

After we have explicit knowledge of developing a cab app, let’s see how much it costs to make an app. It is unclear to guess the exact prices because it keeps varying from time to time and technology to technology, feature to feature. Likewise, the total time duration of a project cannot be found out because it keeps varying with the complexities of an app.
If you want to draw inspiration, you can do it by following the steps of Uber and how they did it.

Closing up

Now the world is changing with the help of technology and businesses are getting more revenues than ever. We have seen how much online taxi services have generated revenues for their companies in tough times of covid-19. It’s high time to take a cab app and get valuable customers for your company in the big cities where large populations choose an online cab service rather than opting for old transport trends. The cost of an app gets from technology to technology and complexity to complexity. Now you know how to develop an app for an online taxi service and how much it can earn you and your company. Go for the new trends of life with the simple, impactful app with simple features.

Mobile application development company Cubix helps its customers plan how much it will take to build an app.

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