Ride and Rental app solutions are the need of the hour and the cab market is highly competitive. And these days, a mobile application is a must if you want to succeed in this niche.  After the success of Uber, many businesses have invested in ride-hailing app development, and they have generated profitable revenue.  

 

Are you looking to enter the cab booking industry? Here's how you should go about it:

 Find your Niche

It is very important to find your own niche. Something with low competition, like electric cars or cab service with alternative vehicles such as motorcycles, autos.

 Conduct Technical Audit & Research

 You can get to know about all the taxi mobile app development requirements by conducting technical audits and research. Not only that, but you can find where loopholes are and create a product that is even better than the existing ones. 

Taxi Booking App Documentation

Taxi booking app documentation will have detailed technical specification of product functionality, tech stack to be used, and the app architecture.

Develop your Uber-like app

Now you have to develop the app, and to do so, divide each project part into smaller tasks. Implement each task based on the priority. Unit testing will help you to find logical errors. 

 Deploy Your App

Deploy your taxi booking app to the live environment to see that it runs properly on all devices.

 Unique Value Proposition

Your app should offer a unique value proposition. It should be lucrative for both drivers and riders. It can be done so when you offer a unique value proposition for both sides.

The value proposition for the customer- You should encourage passengers to use your app by providing them something your competitors don’t offer

 

That might be:

•   The option to track how many minutes the driver will take to arrive. 
•   Discounts on certain occasions
•   A fixed price for destinations such as Railway stations or Airports.
•   The in-app payment gateway for cashless transactions
•   Estimated duration and cost of the ride

The value proposition for the driver- You need to attract drivers as well. To do so, you can offer them the following: 

•  Insurance coverage       
• Opportunity to earn more in peak hours
• no investments to join the business
• Flexible working hours
• Easy procedure of mobile payment

You, along with your team, can do the brainstorming and come up with more points to attract drivers and customers.

Revenue Model of the Uber

Uber has two channels to earn money:

1. Uber charges a commission from drivers 
2. Uber leads marketing campaigns with other businesses. 
   

Let's get to know about them in detail:

Fees and Commissions

Commission from drivers and passengers. When the driver receives an online booking via the app, Uber charges a commission for each booking. The commission rate is anywhere between 20-25% of the total ride cost. 

Customers have to pay for a flat booking rate. This model adds other features such as security, money transaction fee, etc. 

Cancellation fees:  In case the passenger or driver cancels the ride, they have to pay a cancellation fee.  

 Advertising

Advertising and promotional partnerships with brands like Spotify, Pepsi, etc. help Uber earn more money. 

Uber uses a set of 3 different products:

Cost Estimation to Build an App Like Uber

The process of developing an Uber-like app starts with building a minimum viable product. MVP has all the major features for driver, passenger, and the admin dashboard but with limited functionality. The first release of Uber didn't have any gamification features. It connected passengers and drivers and allowed them to make payment via the app. After the first release, you can add more features by analyzing the response.

The cost of a cab app development depends on a variety of things and features that you want to include.

There are essential parameters for the time required for work, and they can be taken into account. Each feature takes a different amount of time, and the cost depends on the time factor as well.

Final Words

If you are thinking of developing taxi booking applications, you have to bear in mind the above points and you can develop an awesome app with the features you want.