Cost to Develop an On-demand Ride Sharing App like Lyft

Introduction

The emergence of technology has led to a rapid increase in the on-demand economy, particularly in the ride-sharing category.

According to Statista:

• The Ride-hailing & Taxi sector is expected to generate revenue of around US$330.80bn by 2023.

• It is anticipated that there will be a yearly growth rate of 3.46% in revenue, leading to an estimated market size of US$379.00bn by 2027.

• By 2027, the Ride-hailing & Taxi category is predicted to have a user base of approximately 1.45 billion users.

• In the Ride-hailing & Taxi segment, 55% of total revenue will be generated through online sales by 2027.

So, if you are willing to create a ride-sharing app like Lyft, you are moving in the right direction. However, developing such apps requires a significant budget, and proceeding without a precise cost estimation can result in additional expenses.

This blog will guide you on a journey where you can obtain an approximate cost to create a ride-sharing or carpooling application similar to Lyft, in order to assist you.

Why do you need a Ride-sharing app like Lyft?

When investing your time, money, and other resources, it’s advisable to choose a business that has the potential for long-term growth. The ride-sharing industry is an excellent example of such a business with numerous possibilities. It provides not only a high ROI (Return on Investment) but also additional benefits like a loyal customer base, strong brand visibility, and reduced need for supervision.

Even by examining some critical statistics, it’s apparent that the advantages of creating ride-sharing apps like Lyft are significant.

• The percentage of Americans who prefer to use a ride-sharing app has increased to 36%, nearly doubling the figure from 2015.

• Lyft generated $4.09 billion in revenue in 2022.

• Incredible sales of 117 billion USD were generated by the ridesharing industry.

• Lyft’s sales have increased by 62% year-over-year as of January 2022.

• Around 26% of users of ridesharing apps take advantage of the services on a monthly basis.

It’s evident that creating a ride-booking app like Lyft is a beneficial strategy, both in the present and for the future.

Features that your Ride-Sharing app should have

In order to build the best ride-sharing app, it’s crucial to provide a seamless user experience. The app should be easy to use for riders, drivers, and administrators alike, with no lag or errors. To achieve this, there are several essential features that your app must include. Let’s take a look at each of them in detail.

Features for Users

Features for Driver

Features for Admin

Reasons that Affect the Ride-sharing app development cost

The overall expense of building a ride-sharing app like Uber or Lyft is influenced by various factors. These factors range from customization to the location of the app development agency. Let us examine some of the factors that have the most significant impact on the cost.

Features

It is undeniable that features have a significant impact on the total cost of developing a ride-hailing app. Opting for basic features will result in a lower cost while incorporating advanced features like speed limit alerts, real-time ID checks, the latest heat maps, other AI-based features, or custom features will increase the cost.

Tech Stack

The role of technology is pivotal in determining the total cost of developing a ride-sharing app. Utilizing more advanced technology will increase the development cost. However, it is vital to incorporate the latest technology to stay competitive in the expanding market.

UI/UX

Developing a ride-sharing app that fails to satisfy users is futile. The UI and UX are vital in providing a distinctive user experience that encourages frequent app usage. The icons, customization, push notifications, and other similar factors make a difference in distinguishing your app from others. The more visually appealing and user-friendly the design, the greater the number of working hours, and hence, the higher the development cost.

Development Company and Location

The cost of developing a ride-share app is dependent on the expertise of the company and its location. Developing an app in an Asian country such as India would cost less than developing it in the US.

Type and App Platform

The decision to develop a native or hybrid app and to choose between Android and iOS will impact the total cost of ride-hailing app development.

The complexity of Android, which must be used on multiple devices, makes it more expensive compared to iOS. Likewise, native apps are generally more expensive than hybrid apps.

Cost to Build a Lyft Clone App

When it comes to the final cost of mobile app development, it’s important to understand that there’s no fixed price. It all depends on the factors discussed earlier. If you want to include advanced features or high-end UX/UI design, the cost will be higher.

To provide a general estimation, the cost of developing an app similar to Uber or Lyft is anticipated to range from $30,000 to $120,000, with an hourly rate of $25/hour. A breakdown of hours and costs is presented in the table for better comprehension.

Total Cost to Develop an On-demand Ride-sharing app

Why Choose Bytes Technolab for your Ride-share Application Development?

Bytes Technolab is a mobile app development company that has won awards and has a proven track record of success. Our services have been utilized by clients around the world who have provided positive feedback.

So, if you want to build a ride-sharing mobile app, Bytes Technolab is a perfect choice as we are the best mobile app development company offering app ideation, planning, operations, and management. Also, we develop apps with scalable architecture, immersive designs, and seamless engaging user experiences.

Hire us today or build your own dedicated mobile app development team that are experts in iOS app development, Android app development, Hybrid app development, and Cross-platform app development.