Ride-hailing applications like Uber and Lyft are here to stay, practically replacing traditional taxi services.

Smartphone applications are a must for both established taxi businesses and new businesses that wish to offer cab booking services.

Unfortunately, the development of an app alone will not be sufficient to win the competition.

You need to understand that there is a lot of rivalry in the taxi sector. Giving your customers a plausible reason to stay is the only way you’ll stay ahead in the game. You need a solid and well-known brand with a compelling value proposition for your taxi booking services.

A trustworthy technology partner is an additional factor contributing to the success of a taxi app solution. A software development company must know about taxi app development and its associated technologies.

There are a few ways to compete with Uber as a taxi app, including income methods and features. One important thing to keep in mind is that your app should be able to stand out from the competition.

In addition to it, we’ll give a detailed analysis on what it cost us and the challenges we faced while building a ride hailing app.

Let’s first look at the taxi booking application development process.

What is a taxi booking app?

There are many new methods for reserving a taxi. Many on-demand taxi apps have been advertised in app stores to encourage people to book taxis.

Users require a mobile device to use the taxi booking app development. These applications must be downloaded and installed on the mobile device.

Many circumstances might influence the app’s options. After installing the software, users must sign up and store addresses. Then they can book a taxi with a single click. If you’re the last person to reserve a cab, you’ll be given the estimated wait time.

Many circumstances might influence the app’s options. After installing the software, users must sign up and store addresses. Then they can book a taxi with a single click. If you’re the last person to reserve a cab, you’ll be given the estimated wait time.

SUGGESTED READ: On Demand App Trends & Statistics to Know in 2022

How does a taxi app like Uber work?

If you want to know how your target audience will receive your on-demand app, you need to know a lot more than its statistical performance.

Before you begin the taxi app development process, you must be sure of the app’s workflow and how it will affect customers’ perceptions of your company.

In a taxi app, the user inputs their pickup and drop location, and the app connects them with a driver. The driver then picks them up and drops them off at their destination.

In a taxi app, the user inputs their pickup and drop location, and the app connects them with a driver. The driver then picks them up and drops them off at their destination.


If you are ready to boost your business through your own mobile app, then this is for you. This Playbook will guide you through each stage of the app development process, from top to bottom.

Learn how the taxi business operates and makes money

Before moving further, the entrepreneur in you has to consider the taxi app’s business strategy.

The business and revenue model defines a company’s unique value proposition and revenue model.

Startups use it to attract investors and convince them to invest in them.

Essential Features of a Taxi Booking App

The best online taxi booking software should offer a wide range of features to make transportation as smooth as possible for both passengers and drivers.

The taxi booking app features mentioned below must be incorporated into the app development.

Payment options

Making payment easier for users will give you a headstart. Offer a wide range of payment options like mobile wallets, mobile banking, credit cads and cash. The more alternatives your customers have, the more they will prefer your brand.


Customers and drivers may use the geolocation function to determine the location of the request made. Riders can then select pick-up and drop-off locations.

On the other hand, drivers are notified by geolocation of pickup requests that they can accept or deny at their convenience. Drivers and riders can use this feature to connect with either party close to them.


The app should allow both the rider and the driver to sign up easily. You can let them register or log in via email, social media profiles or OTP. Enabling this feature will drastically increase the number of your users and remove the friction while signing up.


Allow users to book a cab by swiping a button or slider. With this feature, users should be able to reserve appointments with a single swipe. This adds to a friction-free app experience.

Also, enable the driver to respond to a trip request with a single touch by providing them with a similar feature.

Route Tracking

This feature allows the user to check the path they’re on during the cab ride. Users can monitor the whereabouts of their taxis at all times, offering them a peace of mind that comes with knowing they are travelling securely.

Using a map, you may use route tracking to get to your destination. Drivers will like this as well. Cancel or notify the app admins if they see that their cab is on an alternate route.

Ride Scheduling

This feature allows customers to pre-book taxis. As soon as you have chosen a time and place, a driver will be allocated to that location. Once a ride has been planned, a confirmation email will be sent to the user.The calendar plugin and the timetable are required for this feature.

Push Notifications

Push notifications are available in the CRM. Users, potential customers, and drivers can be reached through messages and notifications.

Plus, they allow the control panel administrator to send messages to customers on special discounts, schemes, or customer retention. As a result, customers are more likely to stay loyal to your brand.

Saved Destinations

This feature allows users to store locations they often visit. If they frequently travel, it might be anywhere from their workplace to their home address.

A person’s recent or frequent search history may likewise be used to verify this information.


Everyone takes dependability into account when booking a cab. When you book a taxi using a taxi booking solution, you can see the driver’s name, phone number, and taxi number. This helps to ensure that the correct driver arrives when the taxi arrives.

With the assistance of the above security measures, you will be shielded from various dangers when travelling with a stranger.


Both passengers and drivers can benefit from this feature. Passengers can use this part to express their satisfaction with their taxi ride and the driver who delivered it.

Depending on the driver’s behaviour, customers can also be graded.

You can give comments verbally or in writing, and the rating can take any form.

Step-by-step tutorial on creating a taxi booking app

Step 1: Offer a unique value proposition

Your taxi booking app needs a strong value proposition to establish a distinct brand and stand out from the competition.

A value proposition serves another purpose by enhancing the desirability of an Uber-like taxi app from the perspective of both riders and drivers. You should look at what your rivals offer to discover your value proposition.

If you want to keep your brand’s reputation intact, avoid mimicking the exact features of other taxi applications.

Instead, think about what makes your taxi app stand out from the crowd and put your thoughts into words. That’s how you develop a new value proposition.

Step 2: Find your niche

Narrowing down to a niche space will help you grow as a brand faster than you think.

For example, you can think of building all-electric taxi booking app instead of a regular one. Since more people are moving towards a green life, they will prefer your app for cab rides.

For example, in New Zealand, one of the most popular ways to hire a taxi is through Green Cabs Taxis. The company is so popular among environmentalists because they employ electric vehicles and include tree-planting donations in its fares.

Step 3: Expand to other countries

When developing a taxi service app, don’t confine yourself to the limits of your nation.


It’s a good thing there are nations where Uber doesn’t exist or is restricted somehow. A few examples are Canada, Denmark, Hungary, Thailand, etc. You can launch your app in these countries to earn traction faster.

Step 4: Monetise your taxi booking app

You may use the following strategies to transform your taxi booking software into a profitable business:

      • Passenger fees are the major source of your revenue. A service commission fee of 20 to 25% of the entire fare might be charged to passengers.
      • Fees for services: In addition to the booking cost, you can charge passengers extra service fees such as security and service fees and payment processing fees.
      • Fees for changing plans: If a passenger cancels a ride once it’s confirmed, you can charge them a part of the payment as cancellation fee or penatly
      • Promotions by third parties: Brands pay Uber to promote their products, but consumers receive incentives, gifts, and other perks due to these campaigns. By collaborating with well-known companies to market their products, Uber earns money (Hilton, Pepsi, and Spotify).
      • Advertising: You may charge a cost-per-click or a cost-per-impression fee for advertising in your taxi booking solution.

Cost of developing a taxi booking app

When developing a taxi booking platform, you need a powerful app that works well on all platforms and devices.

To avoid incurring losses and having your application rejected, you must be exceedingly cautious while setting your budget for the application. Several elements contribute to an app’s development costs.

      • The exact cost of the taxi booking app development cannot be figured out. Various app sizes, functionality, and other variables come into play while deciding the cost.
      • The location of the development team determines a taxi app developer’s hourly rate.
      • The more features you want in your app, the more money you’ll have to spend developing it.

What is the Average App Development Cost: Learn how much do you have to pay for developing a high-performing app in 2022 in this expert guide.


Taxi booking apps are soaring in numbers every day. Your potential customers have many options to choose from. Your taxi booking app can make an impact if you offer an enhanced service, which is different from your competitors.

Building a profitable taxi booking app will be a lot easier if you have a reliable tech partner like NeoITO by your side who can help you with everything from choosing the right framework to devising app launch strategies.

Want to get started with your taxi booking app development? Talk to our experts today.

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