Are you looking to invest in a taxi booking app but unsure about the cost of the app? Investing in the taxi business is an excellent choice. The taxi market will reach $234,621 million by the end of 2025. Also, some successful companies like Lyft, Uber, OLA & InDrive are ruling the taxi market. But, now the question is how much it costs to develop a taxi booking app. This article seeks to address all of your issues related to taxi mobile app development. It will explain the costs of using a taxi booking app. Before we cover the expenses, we’ll cover the types of taxi apps. We’ll also cover their features and how they’re developed. Let’s explore the world of taxi booking apps and understand their development process and costs. Keep reading!

Taxi App Development Market: A Brief Overview

Below, we mention some points. They can help you in understanding the market data for the creation of taxi apps: The global taxi app market is expected to hit $283 billion by 2028, growing steadily at 4.2% each year. Over 300 million people use taxi apps worldwide. DiDi and Uber have around 150 million users each. The Asia-Pacific region dominates the global taxi market, holding 73.14% of it. App-based taxi services are set to grow significantly in the coming years. App-based taxi services are 72-75% of the market. They will keep this share as smartphone use keeps rising. By 2026, the market is projected to reach $327.54 billion, with an annual growth rate of 8.95% from 2021 to 2026.

What Are the Types of Taxi Apps?

Choosing the best business strategy is essential when creating an app for booking taxis. It affects both the development process and the overall cost of creating the app. There are mainly two popular types of taxi apps to consider

Dedicated Taxi Booking App

This is the ideal choice for businesses that have their own network of cabs and drivers. Customers can easily get taxi services. The taxi booking app lets owners run their operations online and in person. This approach goes a long way toward reaching a large audience. Under this idea, there won’t be any middlemen between the taxi service and its clients. All interactions would be direct. Customers will provide information. They will give the type of car, pick-up location, and other details. After that, the taxi service dispatches a driver to transport them to the specified location at the prearranged rates.

Aggregator Taxi App

It is a website. Automobile owners and taxi services can list their vehicles and offer rides. To be more specific, drivers and taxi-hailing applications collaborate to provide rides. In order to compensate for the services they offer, the aggregators typically charge a convenience fee. Further, the on-demand taxi booking app or the simple taxi booking app are the two approaches to putting this strategy into practice.

A Simple App

Customers only need to submit one application and a list of several taxi drivers and their businesses is needed. Users can schedule and make a cab call right from the app when necessary.

On-Demand App

One app is needed for drivers, while another is for passengers. In addition to having several cutting-edge features, it offers on-demand taxi services. However, in contrast to the other types, this one needs a larger investment. Uber, Ola, and Lyft are a few well-known apps for on-demand cab reservations.

What Are the Key Factors that Affect the Cost of Developing a Taxi App?

A fixed cost is never associated with developing a mobile application. Many factors influence the development cost of an app similar to Uber. Let’s explore below:

Right Choice of Platform

Choosing the right platform is a crucial decision for your taxi app. The two main options are Android and iOS.

Android App Development

Android’s large user base makes it a popular solution. However, because of the wide range of devices and versions, testing and optimization take a lot of time, which raises the cost and lengthens the development period. The price range for developing an Android taxi app can range between US $20,000 and $50,000.

iOS App Development

Although iOS is usually more costly, it provides an identical user experience across devices. Developing a taxi app for iOS will cost you anything from US $25,000 to $60,000. Apart from that, you can minimize the cost of mobile app development by choosing cross-platform app development. Cross-platform app development is cost-effective because you can write code once and use it on multiple platforms. Popular frameworks like React Native and Flutter make this possible. The estimated cost for a cross-platform app ranges from $20,000 to $55,000, depending on the framework and the app’s complexity.

Features & Functionalities of App

The most important component of the development process is the features and functionality you want to include in your taxi app. The key factor influencing costs is the range of features; the more complex the features, the higher the price. Taxi booking apps typically have basic features like ride booking, GPS tracking, fare estimation, and payment integration. You can also add advanced features like driver ratings, multiple vehicle options, promo codes, split payments, and more. The cost for a taxi app with basic features is typically between $20,000 and $50,000. Adding advanced features can raise the cost to $50,000 to $80,000 or more, depending on the app’s complexity and size.

App Complexity

The complexity of a taxi app varies based on the features you include, such as third-party integrations, APIs, designs, and more. This complexity is further divided into three parts. Let’s have a look below

Basic Complexity Apps

These apps offer basic functions and have a simple UI design. They usually have a single user type—rider or driver—and simple interactions. The cost for a basic, low-complexity taxi app ranges from $20,000 to $40,000.

Moderate Complexity Apps

The app with moderate complexity offers more interesting and dynamic features, such as real-time location tracking, payment gateways, and other features. It features several user categories with a minimal degree of interaction (driver, passenger). The price ranges from US $40,000 to $80,000.

High-Complexity Apps

A complex app has advanced features and intricate algorithms. It uses cutting-edge technology and offers a seamless user experience. Such apps typically cost between $80,000 and $100,000 or more.  

Third-Party Integration

Any app must go through both technical and strategic phases to be built. But when it comes to a taxi booking solution, you’ll also need to complete certain third-party integrations. For example, strong payment gateways offer more ways to make payments. Adding third-party integrations can help a lot. They include metadata, Google Maps, and push notifications. They can significantly enhance the user experience of a taxi booking app. Adding features like social media, SMS, and chatbots can improve the app. So can adding marketing tools. The technology stack required to build a taxi booking application includes:

• Programming Languages: JavaScript, React Native, or Flutter for cross-platform development.
• Frameworks: React Native or Flutter
• Backend: Java, Python, Go, Swift
• Frontend: React, Angular,Django,Vue
• SMS & Phone verification: Nexmo, Twilio
• Alerts: Twilio
• Analytics: Big Data, Apache, IBM, Hadoop
• Cloud: AWS, Azure, Google
• Payments: Braintree, PayPal, Stripe
• Database: MongoDB, PostgreSQL
• Server-Side Programming: Node.js, Python, Ruby on Rails, or Java

 

UI/UX Design

Another important factor affecting development expenses is the UI/UX design of your taxi app development cost estimation. It needs investment. But, a simple and pretty design can make users more engaged and happy. Minimal graphics save time and money using a straightforward UI/UX design with a straightforward layout. However, advanced animations for a design with an interactive transition need industry pros. They also need a time commitment.

Backend Development

The backend of your taxi app handles data processing, business logic, and server operations. This affects development costs. A basic backend covers simple functions. These include user logins, data storage, and handling ride requests. Developing a basic backend typically costs between $15,000 and $30,000. If your app needs a complex backend, the cost can rise to $50,000. Moreover, if you are looking for a complex backend with advanced features, it may boost the cost up to US $50,000. Hire mobile app developers to optimize development costs and ensure your taxi app’s backend is robust, secure, and meets user expectations.

Testing & QA

Testing is important to development since it finds and fixes possible problems. The cost for manual testing typically ranges from $5,000 to $25,000, with human testers addressing and fixing any bugs. Although it offers specific testing, it can be laborious and raise the development price. The cost range for automated testing is US $15,000 to $35,000, which is pricey yet saves money over time. To use both types, most business owners choose comprehensive testing. It combines automated and manual testing. The price range is between $20,000 and $40,000 in the US.

Maintenance and Updates

You must do regular maintenance and updates. They are crucial to keep your app current and performing well after launch. This involves fixing bugs. It also involves improving security and adding new features. These changes enhance the user experience. Maintenance helps ensure your app runs smoothly and securely.

Geographical Location

The location of the development team is one key element that affects the cost of development. Employee prices vary across regions.

How Much Time Does Taxi App Development Take?

Whenever we are working on the development of the taxi mobile app, the timeline depends on the number of features and functionalities of the app. While some phases of the project may finish in a few hours, others take a few weeks. Complex projects take longer for developers to finish while white-labeling an app is quicker. Here’s an estimation look at how long each phase of the development process typically takes.

UI/UX Designing: 150 – 200 Hours

Design is crucial for a smooth user experience. It determines how easy it is for users to navigate the app and how well it looks and works. The designer is in charge of making sure everything is user-friendly and visually appealing. The time is a small part of the project. But, a skilled designer may use it to make a user interface that’s easy to use in 200 hours. Keep in mind that people will only stay in contact with solutions that facilitate their experience.

Front-End App Development: 200 – 450 Hours

During the UX UI design phase, the user experience is the primary consideration for every application feature. The next step, front-end development, involves implementing this functionality. The term “front-end” simply means creating the application’s user interface or what each user sees on their screen. This phase alone adds many features to an Android taxi app. They include payment integration, user registration, push notifications, fare computation, car tracking, and booking history. It takes a team of developers at least 200 to 350 hours to implement all the features and functionalities.

Backend Development: 200 Hours

Backend development manages all the processes that occur behind the scenes. It’s essential to make sure all the app’s features and functions work properly. Although users don’t see it like the front-end, it’s just as important for the app’s success. In fact, the backend gives the admin full control over the application. Any changes or updates to the app can only be made through the backend team.

Web Development: 150 – 200 Hours

The web application known as the admin panel is in charge of ensuring that the taxi booking application runs smoothly overall. Administrators utilize this portal to manage, administer, and keep an eye on the passenger and driver apps.

Testing & QA: 150 – 200 Hours

But it doesn’t stop there. Testing and QA are the final steps in app development. We must test the app for bugs and performance problems before launching. This is to ensure it works well and is successful. A team of testers is committed to mobile app development. They collaborate with app developers and designers to identify issues. They prepare the app for its final release to the market.

How Much Will It Cost To Build Your Taxi App?

As we discussed above, the cost of the taxi mobile app depends on various factors. Now, let’s look at the average estimation of the cost with basic to advanced features of taxi app development. An API will cost around $30K, and a taxi service app for one platform will be about $25K. These are just rough estimates. The final cost will depend on the project’s size, details, and features you choose. Set aside a budget for marketing campaigns. Do this in addition to these for app promotion. Your company’s ultimate goal is to reach as many people as possible, and in order to do so, you must run promotions. List of the best Essential Components for Accurate Taxi App Development Cost Estimation As they say, features are the building blocks of every application. They may give you an edge over competitors in this tough marketplace. This section will cover some of the most crucial elements you should never neglect when creating an Android taxi app. Every Android taxi app has many panels. They have various features made for the many involved stakeholders. The three panels are the passenger, admin, and driver panels.

Features of Driver Panel

• Login and Registration Portal: This portal lets users create profiles. They can add details like their name, address, and contact info.
• Vehicle Information: Includes details like vehicle type, registration, location, driving license, and driving experience.
• Push Notifications: Alerts users about new ride requests, messages from passengers, and other relevant activities.
• GPS Tracking: Helps drivers locate passengers and choose the best route to their location.
• Calling and Messaging: Enables communication with passengers without sharing personal contact details.
• Trip History: Provides a record of all completed trips over time.
• Ride Acceptance/Rejection: Allows drivers to accept or reject ride requests based on provided information.
• Passenger Ratings & Reviews: Let passengers rate and review their experience.

Features of Passenger Panel

• Sign-Up Option: Allows passengers to register with personal details.
• Notifications: Provides timely updates and information.
• Taxi Selection Portal: This lets users choose from different taxi types, calculate fares, and view taxi options.
• Ride Booking: Offers options for instant or scheduled ride bookings.
• Vehicle Tracking: Displays the real-time location of the taxi.
• In-App Calling & Messaging: Facilitates communication with the driver.
• Travel History: Keeps a record of past trips for reference or dispute resolution.
• Fare Calculation: Estimates ride costs to help passengers choose within their budget.
• Driver Ratings: Allows passengers to review and rate driver performance.

Features for Admin Panel

• Driver Management: Includes verifying drivers, blocking fleets, deactivating profiles, and approving requests.
• Passenger Management: Enhances user experience by ensuring safety and improving ride-hailing services.
• Complaint Management: Streamlines the process for receiving and addressing issues from stakeholders.
• Ride Details Access: Provides comprehensive information for each ride, including details from both the passenger’s and driver’s perspectives.
• Push Notifications: Sends updates and alerts to all app users.
• Live Map Tracking: Allows real-time tracking of the driver and passenger during the trip.
• Financial Information Access: Provides details on all transactions and financial activities within the app.

Tips & Tricks From Industry Experts To Build A Competitive Taxi App

Building a successful and beneficial taxi ordering app requires careful planning and execution. The market is filled with ride-hailing applications. Thus, there are a few things you should consider when creating an Android taxi app. We’ve offered some advice below to assist you in making sure you’ve made the best decision while developing a taxi app.

Build an MVP for Swift launch

An MVP is a sample of your product that gives important stakeholders a sense of what the finished product will look like. It includes navigation, features, functionalities, and general design, among many other things. Thus, it becomes simple for you to provide the required recommendations. However, making recommendations at the right moment. This ensures that you can launch the app directly after development. You won’t have to worry about comments from your end. Furthermore, incorporating the adjustments into the project at this point will not significantly affect the cost or the timetable.

Keep the Things Simple

One of the most crucial elements in attracting consumers to mobile apps is still their simplicity. Carefully consider making an easy-to-use and easy-to-understand user interface. Uber’s current success is due, in part, to its simple service design. This design played a key role in Uber’s rapid global expansion. This blog post is especially useful if you’re interested in learning how to create an app similar to Uber.

Explain Your USP (Unique Selling Proposition)

Your Unique Selling Proposition (USP) should be unique for your brand proposition to stand out in the market. Brand propositions need to be memorable and appealing. The USP, or unique selling proposition, must explain why customers will choose your service. It must also explain why your software is distinct from the competition. It might be through incentives, pricing, or service. Your USP should fit the target market and meet their unique needs.

Choose your Niche

Many people don’t realize that the taxi industry has many different niches. There are lots of opportunities to find a specific segment where your business can thrive. Choosing the right model can help you connect better with a particular community. The services that can be put in place are women-only taxis driven by women, on-demand bike taxis for urban travel, and green electric taxis. You can set yourself apart from the competition. Also, you can do this by customizing your software for a certain market. This can help you build a devoted user base.

Monetization Strategy Matters

You will learn about several ways to make money from your business. Choosing a model for your audience is essential. Even though all will make you money. To keep consumers using your app, avoid a monetization strategy that hurts the user experience.

Adopt Cross-Platform Development

Make your app available on both iOS and Android to reach more users. Cross-platform development gives a consistent experience on any device and saves you time and money. HTML5, JavaScript, and CSS are technologies. They help make apps and websites interactive and engaging.

Prioritize Essential Features

When creating your app, decide which features are most crucial and focus on implementing them. Don’t add unnecessary features. They will raise costs and hurt usability. Identify the key features of your specific target market through market research and user testing. Then, incorporate them appropriately into the development roadmap.

Why tecHangouts Is the Top Choice for Building a Successful Taxi App?

tecHangouts is a leading on-demand mobile app development company. They work with your teams to create better apps. These apps are made to meet your company’s goals and needs.   We offer good UI/UX design. We also do smooth front-end and back-end programming. We do thorough quality assurance testing, deployment, and ongoing maintenance. These are part of our on-demand app development services. Our team of pros offers great customer care. They have lots of knowledge in app development. They guarantee a custom strategy for both new and established companies. Contact us today to start your journey towards creating innovative taxi booking apps. We offer a FREE DEMO to help you visualize your ideal app and address any questions. Don’t wait—book your free consultation now and take the first step towards your dream taxi app!

Final Thoughts

In conclusion, businesses have a great chance. They can capitalize on the rising demand for on-demand transportation services in 2024 by making a taxi app. When making a taxi app, you must consider many things. These include market research. It’s about finding the target audience. Then, pick features and estimate costs and schedules. By following these steps and using the right tools, we help you turn your vision for a taxi app into reality. You will also tap into the growing market for on-demand rides. If you’re ready to join the ride-hailing revolution and want to learn how to create a taxi app in 2024, now is the time to start. Partner with us to revolutionize the taxi industry together. Contact us today to see how we can make your vision a reality and boost your business to new levels of success.