How to Build a Taxi Booking App

Zubair Pateljiwala
10 min readJan 19, 2023

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How to Build a Taxi Booking App

What Is a Taxi Booking App?

A taxi booking app is a software application that allows users to request and book taxi rides from their mobile devices. These apps typically allow users to enter their pickup and drop-off locations, choose the type of vehicle they want, and pay for the ride through the app. The app then sends the booking request to nearby drivers, who can accept or decline the request. If a driver accepts the request, the app will provide the user with information about the driver, such as their name, vehicle details, and expected arrival time.

Some taxi booking apps also include additional features such as the ability to track the location of the taxi in real-time, rate and review drivers, and save frequently used pickup and drop-off locations.

Taxi booking apps are becoming increasingly popular as they provide a convenient and seamless experience for both riders and drivers. They also allow taxi companies to efficiently dispatch rides and manage their fleets.

How Does a Taxi Booking App Work?

A taxi booking app works by connecting riders with drivers through a platform provided by the app. Here’s how it works:

  1. A rider downloads the taxi booking app and creates an account.
  2. The rider inputs their pickup and drop-off locations and selects the type of vehicle they want.
  3. The app sends the booking request to nearby drivers who are available to accept a ride.
  4. The first driver to accept the request is connected with the rider and receives information about the pickup and drop-off locations.
  5. The driver arrives at the pickup location and begins the ride.
  6. The app tracks the location of the taxi in real-time and provides the rider with updates on the estimated time of arrival (ETA) at the drop-off location.
  7. The rider can rate and review the driver after the ride is completed.
  8. The app processes the payment for the ride, either through a stored payment method or by prompting the rider to enter their payment details.

Overall, a taxi booking app provides a convenient and efficient way for riders to book and pay for rides, and for drivers to find and accept ride requests.

Who Needs to Create a Taxi Booking App?

There are a few different types of organizations or individuals who may need to create a taxi booking app:

  • Taxi companies: Taxi companies can create their own taxi booking app to allow customers to request and book rides directly through the app. This can help taxi companies streamline their dispatch and fleet management processes and provide a more convenient experience for riders.
  • Independent drivers: Independent drivers who own their own taxi or ride-sharing vehicle may want to create a taxi booking app to reach more potential customers and manage their bookings more efficiently.
  • Entrepreneurs: Entrepreneurs who are looking to start a business in the ride-hailing industry may consider creating a taxi booking app as a way to enter the market.

Overall, anyone who is looking to provide a taxi or ride-sharing service may benefit from creating a taxi booking app. It can help them reach more potential customers and streamline their operations.

How to Build a Taxi Booking App: Key Features of a for the Passenger

Here are some key features that you should consider including in a taxi booking app for passengers:

  1. User account and profile: Allow users to create an account and a profile that includes their personal information and payment details. This will allow them to easily book rides and pay for them through the app.
  2. Booking and ride tracking: The core functionality of a taxi booking app is the ability to request and track rides. Allow users to enter their pickup and drop-off locations, choose the type of vehicle they want, and track the location of their taxi in real-time.
  3. Payment processing: Provide users with the ability to pay for rides through the app using a stored payment method or by entering their payment details.
  4. Driver ratings and reviews: Allow users to rate and review drivers after their ride is completed. This can help other users make informed decisions about which drivers to book and can also help improve the overall quality of the service.
  5. Push notifications: Use push notifications to provide users with updates about their rides, such as when their taxi has arrived or if there are any delays.
  6. Fare estimation: Provide users with an estimate of their ride fare before they book, so they know how much to expect to pay.

Some Other Features:

  • Driver queue algorithm
  • Zone/surge pricing
  • Smartwatch access
  • Phone number masking
  • Taxi booking for a friend
  • Sharing a ride with other users
  • Bill splitting
  • Emergency contact
  • Multiple destinations/bookings
  • Loyalty programs
  • Multi-lingual support
  • GPS Tracking
  • Messaging
  • Push Notifications
  • Ratings and Reviews
  • Booking History
  • Social login/sign up

Overall, these features can help create a seamless and convenient experience for users of your taxi booking app.

How to Build a Taxi Booking App: Key Features for the Driver

Here are some key features that you should consider including in a taxi booking app for drivers:

  1. Driver profile and account: Allow drivers to create a profile and an account that includes their personal information, vehicle details, and driving history. This will allow them to easily accept and manage ride requests through the app.
  2. Ride acceptance and tracking: Allow drivers to see and accept incoming ride requests, and provide them with information about the pickup and drop-off locations. Also allow them to track the location of the ride in real-time.
  3. Earnings and payment processing: Provide drivers with information about their earnings and allow them to track their income through the app. Also provide a way for drivers to receive payment for their rides, either through a stored payment method or by entering their payment details.
  4. Push notifications: Use push notifications to alert drivers about new ride requests and to provide them with updates about their current rides.
  5. Availability status: Allow drivers to set their availability status so that they only receive ride requests when they are available to accept them.
  6. Communication with riders: Provide drivers with a way to communicate with riders, such as through in-app messaging or by calling them directly.

Some Other Features:

  • Real-time requests
  • Order accept/reject
  • Start/end ride
  • Booking cancelation
  • Rate customer
  • Stats & Earnings

Overall, these features can help create a smooth and efficient experience for drivers using your taxi booking app.

How to Build a Taxi Booking App: Key Features for the Admin

Here are some key features that you should consider including in a taxi booking app for the admin or business owner:

  1. Driver and rider management: Provide tools for managing and tracking the performance of drivers and riders, such as the ability to view ratings and reviews, track earnings, and view ride history.
  2. Fleet management: Allow the admin to manage and track the fleet of vehicles, including the ability to view vehicle details, track maintenance schedules, and assign vehicles to drivers.
  3. Booking and dispatch management: Provide tools for managing and tracking ride requests, including the ability to view the status of requests, dispatch rides to drivers, and track the location of vehicles in real-time.
  4. Payment processing: Provide tools for managing and tracking payments, including the ability to view payment history, process refunds, and generate reports.
  5. Customer support: Provide tools for managing customer support, such as an in-app messaging system or a way to view and respond to customer inquiries.
  6. Analytics and reporting: Provide tools for tracking key performance indicators (KPIs) and generating reports, such as the number of rides completed, driver earnings, and customer satisfaction.

Other Features:

  • Dashboard
  • Reports & Analytics
  • Map Views

Overall, these features can help the admin or business owner efficiently manage and track the performance of their taxi booking app.

How to Make Money With a Taxi Booking App?

When you agree to develop taxi app, there are always two main questions that pop up in your head:

  1. How much does it cost to build a taxi app?
  2. How can you profit from it?

We will answer the first question further in this guide, after telling you how to build a taxi app.

As for the second question, here are the key ways to make money with your taxi booking app:

Freemium:
“Freemium” is a business model that combines free and paid elements. It is commonly used in the software and app industries, where a product or service is offered for free to users, but additional features or services are available for a fee.

in-App:
Additional monetization prospect is offered by in-app ads. This idea implies featuring partners’ advertisements inside your application in exchange for a commission for ad placement, number of views/clicks, etc.

App Subscriptions:
App subscriptions are a business model in which users pay a recurring fee to access a product or service. In the context of mobile apps, this typically means that users pay a regular fee to use an app or to access certain features or content within the app.

Online Commission:
One of the major revenue sources in taxi apps is online commission. App owners can set a fixed sum or percentage commission or transaction convenience fee and apply it to every booking to keep their business running.

Cancellation Charges:
This revenue-generation method has several benefits. First of all, you can charge a cancellation fee from both customers and drivers, which will provide you with more monetization openings. At the same time, knowing that there are cancellation charges will make users (on both sides) think twice before canceling the booking. As a result, the cancellation rate will drop and the reliability of your app will increase.

Pre-Booking Fees:
Pre-booking fees are charges that are applied to a booking before it is confirmed. These fees may be used to cover the cost of processing the booking or to provide additional services or amenities to the customer.

How to Build a Taxi App in 11 Steps?

Here are 11 steps you can follow to build a taxi app:

  1. Define the scope of your app: Determine the main features and functionalities you want to include in your app. This will help you plan the development process and stay focused on your goals.
  2. Develop MVP for a Taxi App: Developing an MVP (minimum viable product) is a good starting point. This stage requires developing a very basic version of your future app with minimum functionality to see what it will look like in general terms.
  3. Choose a programming language and framework: Select the programming language and framework that you will use to build your app. Some popular options for building web apps include PHP (with a framework like Laravel), Python (with a framework like Django), and JavaScript (with a framework like React).
  4. Design the user interface: Create a design for the user interface of your app, including the layout, colors, and overall look and feel. You can use a tool like Adobe XD or Sketch to create wireframes and mockups of your app.
  5. Set up a development environment: Set up a development environment on your local computer or a remote server. This will include installing the necessary software and libraries to begin coding your app.
  6. Implement the core functionality: Use your chosen programming language and framework to build the core functionality of your app. This may include creating a database to store information about users, taxis, and bookings, as well as implementing features like booking a taxi, tracking the location of taxis, and processing payments.
  7. Test and debug: Thoroughly test your app to ensure that it is functioning as expected and fix any bugs that you discover.
  8. Deploy the app: Once your app is ready for release, deploy it to a hosting platform, such as a cloud provider or a dedicated server.
  9. Set up a payment gateway: Set up a payment gateway to allow users to pay for rides through your app. This may involve creating an account with a payment processing company and integrating their API into your app.
  10. Launch and promote your app: Once your app is live, promote it to potential users through marketing and advertising efforts. This may include creating a website, running social media campaigns, or promoting the app through app stores.
  11. Maintain and update your app: Regularly update and maintain your app to fix any issues that arise and to add new features and functionality. This will help keep your app running smoothly and ensure that it remains relevant to your users.

Overall, building a taxi app can be a complex and time-consuming process, but with careful planning and implementation, you can create a successful and useful app.

How Much Does It Cost to Build a Taxi App?

So, you already know how to create a taxi app, what features to include in it, what challenges you can encounter, and how to solve them.

Now, how much does it cost to build a taxi app?

On average, a solution like this takes between 4 to 6 months to implement and requires a team of professionals, including:

· Project manager

· IT architect

· Designer

· Front-end developer

· Back-end developer

· Quality assurance specialist

The team will need around 1300–1500 hours to create taxi app for you. With the average app development price between $30-$45 per hour, the total average cost of such an app will be around $40,000 to $50,000.

Conclusion

In conclusion, building a taxi booking app requires careful planning and a solid understanding of the features and functionalities that users will need. Some key steps to follow include defining the scope of the app, choosing a programming language and framework, designing the user interface, implementing the core functionality, testing and debugging the app, deploying the app, setting up a payment gateway, launching and promoting the app, and maintaining and updating the app.

The cost of building a taxi booking app can vary widely depending on the complexity of the app and the development team or agency you choose to work with. However, with careful planning and execution, it is possible to create a successful and useful taxi booking app.

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Zubair Pateljiwala

I love to help entrepreneurs and startups with their marketing strategy and make their business a success.