How to Build a Taxi Booking App? A Complete Guide (Updated)

Introduction

Many people who live in large cosmopolitan cities with congested traffic and little parking space choose to use taxi booking apps rather than their cars. Because of the high demand for personal car trips, developers are exploring how to make a taxi booking app and successfully launch it in local markets or even internationally. Also, a report by Statista suggests that the global taxi booking app development market is projected to reach a whopping $185.1 billion by 2026!

It can be inferred that creating a clone app similar to Uber or Lyft would be a smart decision for transportation companies and startups. With the taxi booking app market becoming increasingly competitive, many companies are opting for their own taxi app development to capitalize on the growing demand for this popular transportation service, which has been fueled in part by Uber and Lyft’s overwhelming success.

Even if you’re just starting on the path to success, companies that have achieved worldwide recognition can still serve as role models. For instance, if you’re looking to develop a taxi booking app, you can analyze the technology and business processes employed by successful companies like Uber or Lyft.

To build apps like Uber and Lyft, it’s not enough to have a basic understanding of app development principles and techniques. Therefore, prior to hiring mobile app developers for your online cab booking app and embarking on the deployment phase, conducting a comprehensive market analysis report on the online taxi booking industry is crucial.

Here are some statistics on Uber and Lyft (source: Zippia):

• In the U.S. online taxi market, Uber holds a 71% share of sales, while Lyft accounts for only 29%.

• Lyft has around 20.3 million while Uber has a whopping 131 million monthly active users.

• In January 2022, Uber’s sales increased by 84% and Lyft’s sales increased by 62% in comparison to the same period in the previous year.

• On average, Uber’s sales per customer are 9% higher than those of Lyft.

Also Read – Things to consider while choosing Mobile App Development Framework

Top Features to Build the Best Online Taxi Booking app

User registration and authentication

Allow users to create an account and sign in using their social media profiles or email.

Ride request and booking

Provide a user-friendly interface that enables riders to request a ride and select their pickup and drop-off locations.

Driver matching and tracking

Implement an algorithm that matches the rider with the closest available driver and allows them to track the driver’s location.

Payment and fare calculation

Offer multiple payment options, including credit cards, debit cards, and mobile wallets, and calculate fares based on factors such as distance, time, and surge pricing.

Ratings and reviews

Enable users to rate their drivers and leave feedback after each ride.

Navigation and route optimization

Integrate a map and GPS functionality to help drivers find the best route to the rider’s destination.

Driver earnings and management

Provide drivers with a dashboard that shows their earnings, ride history, and other essential information.

Customer support and dispute resolution

Set up a support system to handle any issues or complaints raised by users or drivers.

Multi-language and multi-currency support

Cater to a diverse range of users by offering multiple languages and currencies.

In-app promotions and discounts

Encourage user engagement and loyalty by offering special promotions and discounts within the app.

How Does a Taxi-booking App Work?

To make your own apps similar to Uber, you’ll first need two separate apps; for the riders and for the drivers to process the request and monitor the rides. The users use an app to book a taxi, while the driver uses another to accept or reject the trip. Apart from these two applications, there is an admin app that controls and manages both these apps.

Application for users

The users first need to create an account by providing a valid email address and phone number, establishing a password, and agreeing to the terms and conditions. Upon completing the registration form, users will receive an SMS to confirm their phone number. Once the verification is complete, they can log in to their account and access the application’s dashboard or homepage, where they can specify their pickup and drop-off locations.

Before embarking on the development of a taxi booking app like Lyft or Uber, it is essential to gain a comprehensive understanding of the user’s perspective and expectations. The five basic steps to demonstrate an app’s overall performance are as follows:

• When a rider requests a trip with a specific destination, they will be shown the upfront fare, which is determined based on the type of vehicle selected from Uber or Lyft various categories.

• After verification of the trip, the customer cross-checks both the pickup location and details.

• The process of finding an available driver nearby involves the driver’s acceptance or rejection of an order.

• Upon completion of the ride, the payment is automatically processed through the app.

Application for drivers

Similar to the program used by passengers, drivers use a distinct application to accept and handle trip requests. To proceed, the driver must create and register an account, entering their accurate phone number and personal information upon opening the app. Subsequently, the driver is prompted to upload all necessary documents for verification purposes.

After the driver’s referral is reviewed by the manager and the screening process is thoroughly investigated, the driver’s account approval is finalized. Once the admin approves the account, the driver is then able to access the application, log in, and start accepting trip requests from customers.

Once the passenger gets into the taxi, the driver will commence the journey and provide a map to guide them to their destination. Upon reaching the end of the journey, the driver will pause the trip, confirm the fare, rate the passenger based on their software experience, and wrap up the travel process in a short time.

Also Read – Guide to starting Mobile App Development

What features should you include in your Ride Sharing app?

Geolocation, Direction, and Routing

Our primary and essential objective for a cab booking app is to incorporate seamless routing and ride-matching methods. Many transportation industry innovators are puzzled by the fact that taxi booking apps heavily rely on GPS systems, which mask the intricate design and system used to compute precise distance and direction. Therefore, a routing server is crucial to ensure a smooth routing process, rather than solely relying on GPS services.

Multiple Payment Gateways

When developing your own online taxi booking, it’s crucial to have a dependable and effortless payment gateway, which is the second most important factor to consider. The multiple payment gateways feature in a taxi booking app allows users to select from multiple payment methods, such as credit/debit cards, digital wallets, and bank transfers when paying for their ride. This feature provides users with more flexibility and can improve their overall experience, while also reducing the risk of payment failures and increasing the reliability of the payment system.

Registration and Profile

When developing an online taxi-booking app, customer authentication and profiles are the two most crucial aspects for tracking the user base. To make the registration process quick and easy, allow customers to sign up using their social media accounts or email. Additionally, requesting their telephone number may also be necessary.

To simplify driver profiles, you can ask for only essential information like a photo, name, and vehicle license number. Additionally, to enhance the user experience and make the app more client-oriented, you can include a rating and evaluation framework.

Push Notifications

To keep customers updated on new deals, sales, and budget travel packages, two separate apps are required for push notifications.

Scheduling ahead of time

To enable users to book cabs in advance for weekend trips, outstation travel, or full-day rentals, your mobile app development company can easily add this option to your app.

UI/UX Design

The development budget of a cab booking app is largely allocated toward creating a user-friendly and secure UI/UX. Among taxi booking apps, Uber has established dominance due to its appealing and simple UI/UX design. To achieve similar success, it is advisable to hire mobile app developers or a mobile app development company to ensure a simple and clear GUI design for the app.

Ride Cancellation Option

Having a quick and hassle-free trip conclusion is a must-have feature for a comfortable ride experience. It is essential that users can end a trip in under two minutes without incurring any penalties or fees. This functionality is intended to discourage customers from canceling or delaying a planned trip, thereby saving time and money.

Wrapping up

Undoubtedly, the present time is an opportune moment to materialize your app idea. With the mobile market growing at an unprecedented rate, it has significantly transformed people’s lives. In the upcoming years, more players are expected to enter the market, thereby motivating you to work on your app ideas and launch them.

Keep in mind that the success of your app depends on the type of taxi booking app development company you choose. In today’s market, success belongs to those who are fast and sharp, not those who are slow and steady.

So, if you are ready to develop your own taxi booking app and compete with the market giants like Uber and Lyft, then we at Bytes Technolab Inc are happy to help! We have designed our engagement models to be adaptable and cater to the varying requirements of your business and budget. You can choose from a pool of developers with diverse technical skills and quickly assemble an exceptional team for your project.

For more information, you can contact us today!

Editor’s note: This blog was originally published on May 5, 2021 and has been completely revamped and updated for accuracy and comprehensiveness.