Are you thinking of starting a taxi booking app? 

Taxi booking apps are quickly becoming one of the most popular ways for people to get around town. With their convenience, low cost, and array of features, it’s easy to see why. These apps are now an essential part of many cities’ transportation networks. 

In this blog post, we will discuss the cost of developing a taxi booking app and the features that you should include to make your app successful. But what is the business model of a taxi booking app? How much does it cost to develop and maintain such an app? And what features are included in a typical taxi booking app? 

How can taxi app development benefit your business?

Here are some ways taxi app development can benefit your business:

1. Allows the user to select their preferred mode of transport: A taxi booking app provides the users with the flexibility to choose from different types of vehicles available like sedan, SUV, hatchback etc. This makes them feel empowered as they get to choose their preferred mode of transport. Moreover, they get an estimated cost in advance before booking the ride which allows them to make an informed decision.

2. Increased Customer Satisfaction – Customers are able to book their rides quickly and easily using the app. This eliminates the need for long phone calls or waiting in line. With the help of integrated GPS tracking, customers can also view their driver’s progress as they approach their destination. Furthermore, in-app ratings help to ensure that customers can be sure they are getting quality service.

 3. Customers have options to customize their ride experience: With a taxi booking app, customers can customize their ride by choosing their preferred vehicle type, pay using various payment methods, track the car’s arrival in real-time and view the estimated fare before they book. This flexibility gives customers the power to have an optimized ride experience according to their preferences.

 4. Opportunity to create new revenue channels: A taxi booking app can open up additional revenue opportunities for businesses by creating new ways to monetize their services. For example, businesses can introduce loyalty programs, discounts, and other incentives to encourage customers to use their services more often. Additionally, businesses can leverage the data collected from the app to better understand customer preferences and tailor their services accordingly.

5. Ability to schedule rides in advance: A taxi booking app lets you schedule rides in advance and receive reminders when it’s time for the trip. For instance, if you book your airport pick up three days ahead of time using this app, you will be reminded about your ride on the day of your departure. 

6. No need for phone number or credit card details: With a taxi booking app, there is no need for sharing personal information such as one’s phone number or credit card details during signup. All that’s needed is a name, email ID, and a password-mobile number. The payments can be made either by cash at the end of each trip or through online payment methods such as Paytm and Ola Money. Payment gateways like these allow users to pay without any hassle even when they don’t have physical money on hand.

What is The Revenue Model of Taxi Booking App?

For any taxi booking app to be successful, it needs a sound and efficient revenue model. Here are some revenue model of taxi booking apps:

Trip Commissions: Uber collects at least one-quarter of each fare from trips set up through its app, earning twice as much from competitors Lyft and OLA, who charge 20% each. Different rates are set for every city depending on where demand is high at the time; Uber also offers a variety of vehicles to choose from and various levels of service.

Surge Pricing: Uber recalculates fares depending on other factors. Doing this aids in attracting more riders while making them pay enough money so they can become profitable during peak hours and major events. Uber wins because it doesn’t confuse people with its variable interests.

Premium Rides: Uber started off as a simple taxi booking service. After becoming successful and booming, Uber began to contribute towards all aspects of society – riders who needed to travel cheaply, drivers who didn’t care about money, even people looking for more luxurious rides; Uber offered options accordingly.

Cancellation fee: As per Uber’s policy, if a rider cancels the ride after booking it, they will incur a cancellation fee.

Leasing to drivers: Uber has some good options for people who are looking to become drivers but can’t afford their own car. It also has a selection of rental cars on offer at rates lower than most other rental car agencies.

Subscription-based Services: Some taxi booking apps also offer subscription-based services for regular customers. This includes discounts on regular trips, access to priority bookings, or access to special features such as ride-sharing or round-the-clock customer service. These subscription-based services offer a steady revenue stream for the app. Additionally, taxi booking apps can also include ads in their app or offer special offers from partner companies.

In-app Advertising: Ads are placed in the app to earn money. This could be done in two ways, either through ads on the booking page or through banner ads on the map view. In-app Purchases: Another popular way to monetize an app is by offering users in-app purchases. For example, users can purchase a premium package that includes more features or discounts on trips. 

What features does a taxi booking app include?

Here are some top features that must be included in a taxi booking app:

1. User Login and Signup: Before any other features can be utilized by the user, they will need to sign up or login with their email address and password.

2. Create Profile: Creating a profile will allow users to save information about their preferences so when they book another taxi, they don’t have to fill out all the information again. 

3. Request a Taxi: After creating an account, the user will need to request a taxi after deciding on what kind of vehicle they want to ride in (e.g., car, SUV). After filling out some basic details about where they want to go and how long their trip should take, they’ll be presented with an estimate of how much their fare will cost them.

4. Real-time Tracking: This feature will allow the user to see where their taxi is in real-time on a map. This will help them to better plan for the arrival time of their ride. 

5. Ride History: This feature allows users to view the history of all their rides. They can view which rides they took and when they took them. This feature can also be used to help plan future rides or compare pricing.

6. Payment Method:  There are several different methods of payment available to users: debit card, credit card, cashless via mobile wallet like Google Pay, Apple Pay, Samsung Pay, etc., prepaid card (like transit cards), and coupon codes. Users can easily pay for their ride with whichever method they prefer.

7. Communication: The taxi booking app should allow passengers to communicate directly with drivers using text messages as well as phone calls 

8. Driver Profiles: Drivers should have profiles where passengers could leave feedback about their experience, if necessary 

9. Notification Alerts: Drivers should send notification alerts to passengers before arriving at the pickup location 

10. Rating System: Passengers should be able to rate drivers who provide them service through this app

In addition, a taxi booking app should also include some additional features to make the user experience even better. Some examples include an auto-complete feature for destination addresses to make entering the destination faster and easier, automatic fare calculation to ensure the passenger is not overcharged for the ride, integration with online payment gateways for secure payments, support for loyalty programs or discounts, and push notifications for ride status updates. 

All these features can help create an enjoyable experience for both the driver and the passenger. If the taxi booking app includes all of these features, then there’s a good chance that they’ll get more reviews than competing apps. 

Factors affecting the cost of app development

Here are some top factors that affect cost of app development:

1. Complexity of the app: The complexity of the app also affects the cost. For example, an app that uses live geolocation tracking or includes multiple payment options will require more coding work than an app with simple features.

2. Location of the app development company: A mobile app developer in India may charge less than one in Canada.

3. Time frame: Depending on how quickly you need your app developed, the price may be higher or lower. Generally, the shorter the time frame for developing your app is, the higher the price will be.

4. Platform: The cost of creating a taxi booking app depends on the platform you choose to build it on. 

How much does it cost to develop a taxi booking app?

When it comes to development costs, there are typically two main areas to consider: front-end and back-end development. Front-end development involves creating the visual components of the app such as the UI/UX design, user interface, and features. Back-end development involves creating the logic behind the app such as coding, database integration, and hosting.

Developing a taxi booking app is a complex and costly process, but one that can be incredibly rewarding for your business. Depending on what features you want to include and the number of platforms you are developing for, the cost of a taxi booking app can range from $10,000 to $80,000.

When considering development costs, it is also important to factor in the cost of maintenance and support. This includes costs such as bug fixes and updates to ensure that your app is running smoothly and securely at all times.

Overall, the cost of developing a taxi booking app can vary significantly based on the complexity of the project, the number of platforms involved, and the maintenance and support required. If you’re looking to get an accurate estimate for your project, it’s best to consult with a professional software developer or mobile app development company.

Final Thoughts

The business model of a taxi booking app can be extremely profitable and cost-effective. It allows businesses to take advantage of the ubiquity of mobile devices and the convenience of on-demand services. In addition, it offers drivers the opportunity to earn extra money while providing customers with access to a reliable and safe transportation option.

However, the cost of developing a taxi booking app can be quite high due to the number of features that need to be included. The features should include payment gateways, GPS tracking, customer notifications, driver ratings, and more. Additionally, the business model should include a marketing strategy in order to attract customers, as well as a pricing model that is competitive with other taxi companies in the area.
Finally, it is important to consider how the app will generate revenue. This could include charging a fee for rides, charging a commission from drivers, or offering discounts and promotional codes. Ultimately, the success of a taxi booking app depends on how it is marketed and how it integrates with other platforms with mobile app development services. With a solid business model and the right features, your taxi booking app can become an essential part of your business.