Taxi App Development Guide: Features, Trends & Costs

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Mobility-as-a-Service (MaaS) enables users to plan, book, and pay for multiple types of mobility services through a joint digital channel. The concept outlines a change away from personal-owned modes of transport and towards providing mobility as a service. Today, when did taxi app development begin to go beyond conventional taxi companies? The public has begun to move away from personal transport options to mobility solutions as an option (MaaS ).

It is why online taxi booking software has become in great demand these days. Statista anticipates that there will be a 2.5 percent growth in taxi app usage and a 60% growth in the revenue of ride-hailing services in 2021. This article will demonstrate how the proper development of taxi apps is carried out and give you an idea of the cost of creating a taxi app.

1. Taxi App Development Best Practices

With the intense competition in the ride-hailing market, it's natural to admire the influential leaders in the industry while thinking about how to build an app that can use for taxis. Because Uber, Lyft, and Grab are among the best in the taxi market, it is worth looking into them.

1.1. Uber

UberCab founded in 2009 by Garrett Camp established in 2009 is the earliest version of the ride-hailing service. Uber is now in 630 cities and growing. The acquisition of related services is just one of the ways that this expansion is happening. Uber paid $3.1 billion to acquire Careem, a Middle Eastern taxi booking app, in 2019.

There are numerous categories within Uber to satisfy the demands of various customers and budgets. Uber Pool, Uber X, Uber Go, Uber Black, and many more are only a few possibilities. Uber is also seeking other markets that it can join. Uber recently began exploring parcels and food distribution, such as "Uber Fresh" and "Uber Eats."

Uber has grown and the expenses related to its growth take work to calculate. As per The NextWeb, Based on the initial funding rounds for Uber, the cost of developing an Uber app, which comprises the taxi driver app and the rider app, could range from $1M to $1.5M.

The development of the Uber taxi app was an enormous amount of money. The initial investments were several million dollars from investors as diverse as nine. Please look at the following: Uber Technologies has raised more than $22 billion in capital to develop its taxi booking application in the past nine years.

1.2. Lyft

The Lyft app was introduced in 2012, a year following Uber. It was initially known as Zimride which was a ridesharing service for long distances. Service that connects passengers and drivers through Facebook.

With its presence in more than 200 cities across the United States, the Lyft taxi booking service has been considered an exact Uber rival. Its distinctive feature is its ranking system which ensures only the top drivers are hired. It is also worth noting that the Lyft taxi app comes with 1 million dollars in liability insurance. Other than that, Lyft is thought to be cheaper than Uber, so you will have to pay around $12 instead of $15 for Uber.

1.3. Curb

Curb is a taxi booking service located in the United States, with a pool of more than fifty thousand taxis and hired vehicles spread over more than 65 US cities. When booking a ride, the passengers can choose from three choices: "ride now," "ride later," and "pair and pay."

The main distinction between both the Uber app and Curb's app Curb application is the fact that the Curb app doesn't have the soaring surge pricing that Uber is criticized for. Surge pricing is adjusting prices according to the demands at a certain time. This means that the cost of a Curb ride is reduced, while the taxi app offers the most eco-friendly service. Along with the cost of the trip, customers receive the $1.95 commission.

1.4. Grab

Grab is a well-known taxi booking application in Southeast Asia, with Singapore, Singapore, Philippines, Malaysia, Indonesia, Thailand, and Vietnam. This taxi app gives you many options for travel along with payment alternatives (a cash, card, or credit card,). GrabTaxi, GrabShare, GrabHitch, GrabBike, or GrabFamily are the options that passengers can avail of. In addition, Grab also provides numerous options for food and product deliveries that are extremely popular with retailers and restaurants. Sellers.

1.5. Gett

The taxi-booking service is offered in more than 100 cities across Europe, the United States, and Europe. The ability to reserve your trip up to two weeks ahead and the availability of 24-hour customer service are just one of the Gett app's strengths. The Gett app does not offer surge pricing; each trip is only 10% of the commission. This is because the Volkswagen Group is said to have invested $300 million in the launch of the service in Europe.


The majority of taxi app services that are listed above operate in the same way. It is how they work:

1. The person who is requesting an Uber ride by providing essential details for the trip (e.g. drop-off and pick-up locations)

2. The cost of the trip is calculated in advance with data from the backend of the system.

3. The customer reviews the trip details and then accepts the fare.

4. A driver in the vicinity is paired up with the passenger.

5. The driver is informed about the travel.

6. The driver reviews the specifics of the trip before deciding whether to agree or deny the trip.

7. The passenger is welcomed by the driver, who then takes the passenger to their destination.

8. The cost of the service is paid by payment card or cash.

9. The device will prompt passengers and drivers to rate one another when the trip is completed.

2. Features & Monetization for Taxi App Development

In the beginning, for the growth of taxi apps, developing an app that is native to the device is the preferred method. It allows you to create a customized application for each operating system, providing better performance, speed, and security and access to built-in smartphone features like maps and geolocation. Traditional taxi apps have had three distinct yet interconnected elements: a driver app, a passenger application, and an admin panel to manage business operations.

2.1. Basic and Advanced Features for the Success of a Taxi App

We have created a comprehensive listing of basic and advanced features you must consider when planning the development of your taxi app.

Passenger App Features



Taxi booking

Fare calculation

Driver tracking


Push notifications


Driver rating and review

Travel history

Customer support (SOS button)

Passenger App Features (Advanced)

Pickup location

Ride cancellation

Split payment

Interactive map

Future ride

Book for someone else

Favorite locations

Gamification, discounts, referral rewards

Voice recognition

Waiting list

Hidden passenger phone number

Driver App Features


Driver profile and status

Trip alerts and information

Receive and track earnings

Navigation and route optimization

Driver delivery reports

Push notifications


Passenger rating and review

Booking cancelation

Driver destinations

Driver App Features (Advanced)

Quest earnings

Waiting time

Heat maps

Forward dispatch

- Admin Panel Functionality

Secure Login

Locations and fare management

Driver and passenger management

Booking management

Vehicle management

Review driver's orders and payoffs

Check ratings and reviews

Notification management

System content management and FAQ

Driver and user support

Integration with Google Analytics

- Admin Panel Functionality (Advanced)

Manage dispatchers

Dispatcher panel

Manage refunds

Promotion and discount management

SMS alert settings for specific trips

Future ride settings

Country and currency settings

Heat map

Surge pricing

Flat pricing

2.2. Monetization of Taxi App

You'd like to earn money from your app while working on it. There are a variety of ways to make money from mobile apps. However, they vary based on the kind of app and its capabilities. Let's examine the possibilities of monetization for ride-hailing apps.

Commission from the trip

The profits from these profits from the. It's a logical choice. It's about the taxi industry, not just the app's revenue generation. This means that business owners get a certain portion of the revenue earned by the driver.

The passengers pay higher than if they did not pay the commission. However, the drivers' compensation could be set up differently. Drivers may receive the full amount for the ride, and then pay back some of the cash to the business or be paid their net income at once.

In a hypothetical scenario, let's say there's a feature for balance on drivers within an application. In the first scenario, when a driver pays $10 for a trip, the entire amount is transferred to his bank account, and after the time specified and a set amount, and leaves $9 on the balance. If only $9 is in balance in this scenario, a second option is accessible.

Driver's charges to use the application

The amount of money paid can be a certain percentage or a fixed amount, based on the type of application. Based on the company's policies, drivers typically pay the driver once per week or once per month.

Cancellation fees

The customer usually produces the revenue. However, some apps make this option available to the chauffeur. If a rider or driver is unwilling to accept or provide a taxi, it must be removed from their accounts.


It's among the most sought-after ways to earn money from technology. For mobile apps, it's easier to integrate. An app owner can place ads within an app and then charges an expense-per-click, or cost-per-impression, commission. But, it is important to take care when using this method. Be aware of where ads in the app are displayed, how many are there, and how relevant their relevance is to the app's content.

Subscription for other services

You can make money from premium deals. Suppose you can think of them. Create a revenue stream when you can do things that your competitors cannot. 

Of course, not all distinct features are required to be paid for, and therefore those who opt for the standard subscription instead of the premium one would see the taxi app the same. It is also possible to consider making use of a freemium model. It lets users test out additional features before deciding to buy these features.

If you are looking for the most desirable features you can offer to your taxi-hailing application, make use of your imagination and think about what your customers might like and willingly be willing to pay for it. Due to the constant flurry, the app is attracting, and they could discover options that will save them time, for instance, a subscription for certain frequent trips they make. There could be private phone numbers, fast taxi delivery, and other services.

3. Taxi App Development Process

Before we dive into the costs of the growth in taxi apps, is to know the process by which apps are developed. The process is broken down into several global phases and is according to:

- Discovery & Market Research phase

- The development includes testing and deployment procedures

- Maintenance and Support

- Marketing and Promotion (Digital Marketing & SEO Services)

3.1. Discovery Phase

Although it might not appear to be, the discovery process is as crucial as the others. Many people think it's not worthy of investment however it can save numerous lives.

In the discovery process, customers and service providers work together to develop an agreement on a possible app and specific guidelines. Business analysts, project managers, product owners, and designers are active at this point.

In the discovery phase, The designers aim to envision what the other team members say verbally and, in the production phase, design the entire taxi booking app. They design maps, graphs, wireframes, mockups, and wireframes according to the needs.

3.2. Development Phase

The software runs through the same steps no matter its SDLC model, but certain methods are more flexible than others. Think about the term "agile." It has been proven to be an efficient and trustworthy method. Its primary focus is on the relationship with customers. Main focus. Agile permits variations from the initial design to satisfy the customer's requirements. In contrast to the Waterfall design, Agile allows specialists to modify the application's layout while in mid-production.

In the development, the taxi booking app development company will send an initial version of its app to different platforms to check out how it functions. As a user, you'll test the app through and inform the team working on it to let them know if something is not pleasing to you. If so, they'll post the final version to the AppStore, and maintenance, support, and updates will commence.

3.3. Support, Maintenance, and Updates

This stage requires minimum involvement. In the repair, assistance, and upgrade phases, the service provider's team is responsible for everything. It starts shortly after the product's launch and continues for several years. Our team of experts will upgrade taxi apps regularly, fixing any issues that occur and improving the.

4. Taxi App Development Cost & Timeline

The production team is the initial and most important factor in shaping the price. The details of your project will decide the professionals who form the team. Developer salaries aren't the only element that plays to determine the end cost however, they're an important factor. Here is a listing of the essential team members:

- Business analyst

- Project manager

- UX/UI designers

- Frontend and Backend developers

- Specialists in QA

In the stage before the development, the timeline for the project is established. After the specialists have completed all the necessary information then they'll announce the expected time. It's dependent on the features of the app. We can only make educated guesses about the period since we don't know anything.

The driver's application requires three months to develop, two months for the passenger app, and one month for an app for the dispatcher panel. You can calculate the money used for salary based on these numbers. Find out more about WhiteLabelFox Pricing Costs!

Here at WhiteLabelFox, we'll present the most recent estimates to people who aren't looking to evaluate. Based on the choice of either a hybrid or native method, the cost will differ. Now that we've discussed the advantages and negatives let's look at the numbers in their raw form.


In the case that native developers are involved:

- An MVP with basic functionality will cost approximately $40k for each platform.

- A more complex app that has sophisticated functions -- $100k-$150k depending on the platform


In the case in the case of hybridization:

- An MVP that has a basic function of $45k - $45k

- Taxi app with advanced features (about $125k-$175k

5. Conclusion

Remember to think about the potential of taxi booking services. As mentioned, it is becoming a popular choice for less expensive and more convenient mobility and transportation options. Shortly, we will see advancements in autonomous cars, and they will be able to eliminate the need for drivers and reduce costs for running and removing parking problems. Tesla Inc. and General Motors are developing self-driving vehicles in partnership with Lyft.

To sum up, developing taxi apps requires extensive time and money. It is essential to locate competent and reliable taxi app creators. A s supportive and technologically advanced software development team d should be your first choice.

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