Startup cost guide for entrepreneurs to launch a taxi app

The online taxi services have gradually replaced the yellow cabs on the streets. The invention of Uber has opened the floodgates for millions of on-demand apps in the market. Entrepreneurs are reaping yields by investing in the taxi services market. If you are one among those elite business owners who are eyeing to develop a taxi app, this blog is for you.

Budget is a matter of concern for any entrepreneur. Nowadays, you can have an on-demand app for almost any budget you propose. However, to enhance your sustainability, you need to develop a best-in-class taxi app. Are you eager to know the development cost of a taxi app? Come on, let’s dive straight in.

Your business model influences your budget

Now, there are a couple of popular business models you can consider for your app. They include,

  • Aggregator model: Most of the popular apps in the market adopt this model. In this model, you connect cab drivers to people in need. These drivers pay you a part of users’ payment as the commission fee. Uber and Ola are the best examples of this type.
  • Ownership model: This type of model can suit you if you are an owner, operating multiple fleets in a particular region. You develop the app according to your needs and let your customers book your cabs through the app.

Choosing your best-suited business model and identifying your requirements beforehand can save you a considerable budget.

The features add a considerable cost

You can attract users towards your platform by providing unique features. Let’s discuss some of the vital and stand-apart features worth considering in your app.

Basic features of an on-demand taxi app: 

  • User registration: Users register with the app either through their Email IDs or social media handles.
  • Fare calculator: Users get to know the total fare of the ride after entering the pickup and drop destinations.
  • Real-time tracking: Users can track their cabs instantly with the aid of this in-app navigation feature.
  • Push notifications: Besides tracking, users get instant updates on drivers’ arrivals, offers, and discounts, etc.
  • Multiple payment gateways: Users can pay for their rides through a multitude of payment options, including credit/debit cards, digital wallets, etc.
  • Availability toggle: Drivers can switch between their availability with the aid of this toggle feature.
  • Accept/reject requests: Drivers can either accept or reject requests based on their convenience.
  • God’s eye view: The admin can monitor the entire activity of the app from a single place with the aid of this feature.
  • Heat Map: The admins can visualize the regions experiencing high demand and can apply surge pricing accordingly.

Advanced features of the taxi app: 

  • In-app chat/call facility: You can establish a streamlined communication flow between users and drivers. Users can contact drivers for any specific instruction, queries, etc.
  • Multi-lingual support: To establish contact with a wider audience, you need to provide a multi-lingual support system. This way, your users can access the app in the language of their choice.
  • In-app wallet: Users, opting for digital modes, will find it challenging to enter their account details every time during payments. As a result, an in-app wallet where users can add/remove money can come in handy.
  • Geofencing: This admin panel feature lets the admin set boundaries of operation of the app. Any taxi crossing this boundary will trigger a response to the admin. This significantly adds to the safety of the passengers.

You can choose your revenue model

One of the significant advantages of these online platforms is that you choose the revenue model and integrate it into the app. The ways of generating revenue include,

  • Commission fee: The drivers pay you a part of users’ payment as paid commissions. This is because you provide them an opportunity to offer services to users through your platform.
  • Subscription charges: You can provide the premium version of the app to users who pay a certain amount as a subscription fee. They enjoy enticing benefits like scheduling for later, favorite drivers, etc.
  • Surge pricing: In areas of higher demand, you can levy an extra amount to users in the name of surge fee. The higher the demand in a particular domain, the greater is the fee collected.
  • Advertising: You can display ads in your online platform by collaborating with third-party agencies. This adds to your revenue, as well.

It solely depends on the business owner to choose the ways of yielding income from his/her platform.

How can Appdupe help you develop a best-in-class Uber clone app? 

At Appdupe, we value every client and hear their specifications regarding the app. We deploy the best minds in the field to compute a plan and budget that suits you. However, we cannot quote a fixed price for the Uber clone app, as it depends on several factors, including

  • The platforms you wish to launch the app (Android, iOS, etc.)
  • The features and functionalities of the app
  • The complexity of the app design
  • The third-party integrations you consider for your app
  • The region of app development

Appdupe’s 360-degree, best-in-class app solutions have made entrepreneurs scale new heights in their respective fields. Our seasoned team of experts is well-versed with the latest market trends and can produce you a highly reliable product.

Summing up, 

Considering all the features and functionalities mentioned above, it takes a minimum of 2000-2500 hours to develop a user-friendly taxi app. By knowing the development costs in your region, you can get a rough estimate of your budget. Launch your custom-built Uber clone app and establish your business entity among the masses.


What do you think?

Written by Jennifer

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