Taxi apps have become an indispensable mode of transportation for tourists and commuters. Businesses of all sizes, from corporations to startups, are implementing taxi-based solutions to improve fleet management and provide convenience to customers and employees.
Statista’s most recent report provides insight into the demand for taxi apps. According to it, the ride-hailing market will reach $125,521 million by 2025, with a CAGR of more than 16.5 percent from 2018 to 2025.
Adopting a taxi application expands a taxi company’s service bandwidth and ensures users receive prompt transportation. Businesses can use a taxi app to manage vehicles, schedule jobs, monitor driver performance, optimize route/fuel consumption, and analyze other KPIs.
While taxi app development is a lucrative business opportunity, it is also difficult. To be successful in taxi app development, companies should keep track of the project scope, app functionalities, monetization model, design considerations, tech stack, and a variety of other factors.
Things to Consider Before you Build a Taxi App
Project Scope and Goals, Target Audience
It is critical to comprehend business objectives and analyze the project scope before developing a solution. Competitor research can assist businesses in finalizing app features and selecting a revenue model.
Furthermore, understanding the target audience is critical to developing the best solution. If the target audience is a corporate organization, then create a corporate taxi solution that allows for collaboration with multiple cab companies.
Choosing the Right App Development Company
Hiring the right taxi app developers is critical to the success of your project. Businesses can hire a taxi booking app development company by reviewing previous projects or testimonials and interviewing developers. Firms can learn about developers’ knowledge and approach to the project by interviewing them.
When looking for a taxi app developer, consider partners in the United States or Asia-Pacific, where technology partners are concentrated. Because there is more competition, businesses can easily choose their project’s most cost-effective yet experienced partner.
Selecting the Right Technology Stack
Choosing the right technology stack is critical for app performance. Businesses must ensure that their development partner uses the best tech stack for the project when developing a taxi application. Some technological considerations are as follows:
- Nexmo, Twilio SMS, Voice, and Phone Verification
- Databases (MongoDB and PostgreSQL)
- Twilio Push.io Push Notifications
- Cloud computing- AWS, Azure, and Google
- Payment methods: Stripe, Braintree, and PayPal
- Big Data Analytics, Apache, IBM, Hadoop
- Operating systems: Android, iOS, and Web
App Monetization Model
App owners can use the following monetization methods to turn their taxi app into a profitable business:
- Service Fees: Passengers may be charged a one-time booking fee. Security and other critical services may incur an additional fee.
- Cancellation Fees: App owners may consider charging cancellation fees in the event of a customer’s delayed cancellation.
- Third-party promotions: Cab companies can work with brands to get good sponsorship/payment. They can also extend earned benefits to users through coupons and gifts, which will aid them in developing market differentiators.
- Advertising: Taxi companies can also allow in-app advertising and charge a cost-per-click/inquiry basis.
Incorporating Taxi Booking Application Features
A taxi sharing application consists of three major components: a driver app, an admin panel, and a passenger app. Your functionality should be based solely on your app model, business goals, and target audience.
Consider the following important features:
1. Passenger App Functions
The user interface of the passenger-based application should be friendly and simple to use. Some of the features that you should include in the Passenger app include user registration, profile management, fare calculation, driver tracking, travel history, payment, notifications, driver rating, reviews, and online customer support.
2. Driver App Functions
Based on availability, the driver app allows for in-booking acceptance or cancellation. A driver-centric application’s basic features include registration, profile management, GPS, push notification, route optimization, fuel optimization, and online support via phone or message.
3. Admin Panel Options
The admin panel enables stakeholders to manage fleets, schedule jobs, process payments, issue refunds, offer custom discounts, etc. Individuals can use the AI-powered analytics dashboard to view detailed insights, generate reports, forecast sales, and market more effectively.
How Much Does It Cost to Create a Taxi Booking App?
The cost of developing a taxi app engagement is determined by several factors, including development expertise, the location of taxi app developers, and the number and complexity of features included in the application.
Hire a professional taxi app development company and well-talented developers to ensure a higher ROI. You can hire an expert team on flexible engagement models to reduce development time and ensure on-time delivery.
Developers are typically hired on an hourly basis, while development firms are paid on a milestone basis. The following is an average price breakdown for taxi app development services:
1. Development Price:
App development costs $20-$80 per hour in India, $50-$250 per hour in the United States, and $30-$150 in Europe. Furthermore, the overall development cost can range between $5,000 and $12,000 per hour.
2. Design Fee:
The app design cost is determined by the app’s wireframing, prototype, branding, navigation, and interactive features. On average, it can range from $1200 to $3200 and may increase depending on design complexity.
3. The cost of testing:
The hourly rate for QA analysts ranges between $50 and $200. According to our estimates, the overall cost of product testing would range between $1500 and $3500 for MVP testing, with an additional $1000 for bug fixing.
Bottomline
Taxi app development is a profitable investment that allows cab companies to provide on-demand pick-up/drop-off services. To maximize ROI, businesses should conduct market research and competitor analysis, understand project scope, incorporate advanced features, and develop/modernize the application accordingly. Firms can create the next Uber/Lyft with a unique value proposition, a forward-thinking vision, and the assistance of a reputable taxi booking app development company.
