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The market of taxi booking apps has been on the rise for a few
years.
In 2022, the revenue in the taxi and ride-hailing segment is projected to reach $314 billion. The revenue is expected
to show an annual growth rate of 5.30% in the following four years and reach
$386 billion by 2026.
Uber, one of the most popular taxi riding apps, made $14.46
billion in revenue in 2021, which made it the biggest taxi app in the world.
Lyft follows suit with $3.2 billion.
We have prepared the following
steps of the Taxi app
development:
First of all, decide what type of app you are going to develop.
You can create a dedicated taxi booking app – an app for an already existing
taxi business or an aggregator taxi booking app like Uber or Lyft.
After you’ve identified your niche, take a look
at the market and evaluate the situation. Market analysis will help you
identify your USP (Unique Value Proposition) before you invest in taxi
mobile app development.
Market analysis will help you identify your USP (Unique Value
Proposition) before you invest in taxi mobile app development.
Look through your future competitors, analyze their strong and
weak points. Try to identify features that they lack, areas that they don’t
cover and identify how you can make your app better.
The analysis should encompass
market research and communication with the target audience. You can make polls
to ask the audience about their pains, what existing solutions on the market
lack, and what features they’d like to have in a taxi application.
This information will help to form an app idea and create a USP
that will meet user demands.
Business Model Canvas is one of the ways to organize all the
information gathered during market research. Business model canvas usually
consists of nine blocks:
·
Key partners
·
Key activities
·
Value proposition (for drivers,
for passengers)
·
Channels
·
Customer segments (drivers,
passengers)
·
Customer relationships
·
Cost structure
·
Revenues
App design is the first thing users see when they open your app.
In fact, they see it even before opening an app by looking at the app icon.
Mobile app design usually covers two parts
of the app: User
experience (UX),User
interface (UI).
During car
booking app development, you should create an app that not only looks great but
also meets the best design practices. Google has Material
Design Guidelines and
Apple has Human Interface Guidelines that provide designers with guidelines on how to create
user-friendly mobile applications.
The next step of taxi app development is deciding on the
set of features that an app will offer. The feature set will be divided into
three interconnected parts:
·
Features for drivers
·
Features for passengers
·
Features for admins
Now that you know what features you want to implement
during cab booking app development, it’s time to decide on the technology
stack for your application.
There are different monetization strategies that you can implement
and we reviewed some of the most important ones below.
·
Commission
This monetization model implies carding drivers with a service fee
for every ride they perform. The commission may vary from 20 to 25 percent.
·
Cancellation fee
You can also charge users a cancellation fee every time they can
cancel a ride.
·
Advertising
You can run ads in your taxi application, charging for every view
or cost per click.
·
Third-party promotions
A great example of third-party promotions is used in Uber when the
company partners with famous brands and promotes their services or products.
Users can receive some bonuses or gifts from brands that work with your
application.
Before you start taxi app development, you need to find a
company that will perform all technical tasks. There are numerous taxi app development companies that you can choose from. Clutch, The Manifest, GoodFirms,
and other review platforms are great starting points in your research.
Choosing between companies, keep in mind
the difference in taxi app development cost based on the region of
outsourcing.
For example, hourly rates for taxi
app development services in the USA are around $150-200. The same services
cost a lot less in Europe – around $50 per hour. At the same time, choosing
Europe you don’t need to sacrifice quality for cost-efficiency.
After the app is ready, you’ll need to submit it to app
marketplaces and launch to the market. A taxi booking app development
company usually takes on such tasks so you don’t need to worry about it.
So, you won’t need to worry about the technical side of the app launch.
Let’s move on to the most important question – cost.
Taxi app development cost ranges between $100,00 to $170,000 for
one platform (iOS or Android). The more platforms and features
you can, the higher the development cost.
As mentioned before, development cost highly depends on the
outsourcing location. By choosing countries outside the USA, especially in
Europe, you can create two app versions – for iOS and Android – while in the
USA the same sum will allow you to build only one version of a taxi
application.
Read
more about Taxi
App Development.
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