How Much Does It Cost to Build a Taxi Booking App In 2024?

Quick Summary

In today’s competitive market, owning a taxi startup or an established taxi business requires embracing the digital era. By developing an online taxi booking app, you can expand your business presence and cater to the growing demands of customers.

Gone are the days of traditional taxi services. The success of industry giants like. Uber, Ola, and Lyft has paved the way for taxi booking applications to dominate the market. As a business owner, one of your primary concerns may be the cost of developing a taxi booking app.

To address this concern, let’s dive into the details of taxi app development, including the types of taxi applications, essential features, and the development process. Along the way, we’ll discuss the cost breakdown as well.

Types of Taxi Applications

One of the most fundamental things to establish when building a taxi booking app is the business model you wish to follow. The business model determines the app development process and directly impacts the cost of development.

Mainly, there are two types of taxi applications – dedicated taxi booking app and taxi aggregator app.

Dedicated taxi booking app

This model is suitable for businesses that already have an established taxi business. They would have a fleet of taxis and drivers. A taxi booking app enables them to take their business online, making it easy for their customers to access the taxi service.

Moreover, it opens the opportunity to reach a broader customer base.

Here, the dealings happen directly between customers and taxi service without any middleman. The customers input their pickup location, preferred car and other details. The taxi service dispatches a driver who drops them off at desired locations at predetermined fares.

Taxi aggregator app

This is the model popularised by taxi booking apps like Uber and Ola. Here, the app serves as a platform where taxi businesses or individual taxi owners can register their vehicles and offer services for passengers.

Taxi aggregators partner with taxi drivers to provide rides. Most times, the aggregators take a convenience fee for their service.

There are two main approaches to implementing a taxi aggregator app: the simple model and the on-demand model.

Simple taxi booking app: This type of app does not require a server and consists of a single app where taxi drivers can list their services. Users can directly call and order taxis from the app without any intermediaries.

On-demand taxi booking app: This model requires a server and involves two separate apps—one for passengers and one for drivers. The on-demand app offers advanced features and provides taxis in real-time based on user requests. Implementing this model typically requires a higher investment compared to the simple model.

The online taxi industry is experiencing significant growth, and various business models are being adopted to scale up taxi businesses. It is projected that the global ride-hailing service market will reach an annual turnover of $126,521 million by 2025. This indicates that now is an opportune time to invest in the development of an online taxi solution to capitalize on this expanding market.

Features of Taxi App that Influences Cost of Development

The cost of developing a taxi booking app is influenced by the features that need to be implemented. Here you can see how taxi booking app development cost is directly related to the features of the app. Here are the essential features for each part of the solution: the passenger app, the driver app, and the admin panel.

Time Taken to Develop a Taxi App

When developing a taxi booking app, app development companies typically follow a five-step process, including UX UI design, native development, backend development, web development, and testing and quality assurance. Are you wondering what is the development cost of a taxi booking app then you need to remember that it depends upon these factors given below. The time taken for each step contributes to the overall development timeline and ultimately affects the cost of the project. Here’s a breakdown of the approximate time required for each phase:

UX UI design

This stage involves designing the user experience and user interface of the app, ensuring it is intuitive and visually appealing. UX UI design generally takes around 200 hours. Investing in a well-designed interface is crucial to create an app that users will find enjoyable and easy to navigate.

Front-end app development

In this phase, the features designed during the UX UI design stage are implemented to create a working solution. Front-end development involves coding the user registration, notification, payment integration, vehicle tracking, fare calculation, and booking history features. On average, front-end development takes approximately 450 hours.

Backend development

The backend development focuses on the behind-the-scenes functionality of the app. While users don’t directly interact with the backend, it plays a critical role in handling tasks such as database management, data resource connections, and payment processing. Backend development typically requires around 200 hours.

Web development

The admin panel, a web app that facilitates the smooth functioning of the taxi booking application, is developed in this phase. The admin panel allows administrators to manage and monitor driver and passenger activities. Web development for the admin panel generally takes about 200 hours.

Testing and QA

Before launching the app to the market, thorough testing and quality assurance are essential to ensure a bug-free and high-performing application. A dedicated team of testers works closely with developers and designers to identify and resolve any issues. Testing and QA typically require approximately 200 hours.

It’s important to note that these time estimates are approximate and can vary depending on factors such as the complexity of the app, the development team’s expertise, and any customizations or additional features required.

By understanding the time required for each development phase, you can have a better idea of the overall timeline and plan accordingly for the launch of your taxi booking app.

How Much Does it Cost to Build a Taxi App

Determining the cost of building a taxi booking app involves considering various factors, including the business model, required features, and geographical location. By examining these factors, you can gain a better understanding of how the cost may vary.

Geographical location is an important aspect to consider. Development costs can differ depending on the region you choose. 

Let’s take a look at the hourly development rates in three different regions:

United States: In the US, the cost of development typically ranges between $150 and $250 per hour.

Eastern European countries: Developers in Eastern European countries generally charge between $40 and $150 per hour.

India: The developer rate in India is usually between $10 and $80 per hour.

Keep in mind that these rates are approximate and can vary based on various factors such as the complexity of the project, the experience of the development team, and the specific requirements of your app.

In general, the cost of developing a taxi booking app is estimated to be around $40,000 to $50,000. However, it’s important to note that this cost is subject to change depending on the geographical location and other related aspects.

To provide a breakdown of the development cost, here’s an approximate allocation for each phase:

UI/UX design: The cost for UI/UX design typically ranges from $4,000 to $5,000.

Front-end development: Developing the front-end of the app, including features like user registration, notifications, payment integration, vehicle tracking, fare calculation, and booking history, can cost between $13,000 and $15,000.

Back-end development: Building a robust back-end system, which handles database management, data resource connection, and payment processing, generally amounts to approximately $9,000 to $10,000.

Web development: The development of an admin panel, responsible for managing and monitoring the overall operations of the taxi booking app, can range from $8,000 to $10,000.

Testing and QA: To ensure a bug-free and high-quality app, testing and quality assurance efforts typically require an investment of around $8,000 to $10,000.

It’s important to remember that these cost estimates may vary depending on the specific requirements and complexity of your taxi booking app.

In addition to the development cost, it’s advisable to allocate a budget for marketing and promotion activities to help reach a wider audience and drive user adoption of your app.

Building a taxi booking app is an investment that can expand your business presence and cater to the growing demands of customers in the digital era. By considering the various factors and allocating resources effectively, you can embark on a successful journey in the online taxi industry.

Conclusion

In today’s competitive market, developing a taxi booking app is crucial for the success of taxi businesses. Whether you opt for a dedicated taxi booking app or a taxi aggregator app, it’s essential to consider the features required for the passenger app, driver app, and admin panel. The development process involves UX UI design, front-end and back-end development, web development, and testing. 

The cost of building a taxi app ranges from $40,000 to $50,000, depending on features and geographical location chosen. Investing in app promotion and marketing is also essential for reaching a wider audience and ensuring the success of the app.

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