How Much Does it Cost to Build a Taxi App?

Published On: October 25, 2023
Last Updated: February 9, 2024
How Much Does it Cost to Build a Taxi App?

The world of transportation has transformed the way we move from one location to another. With just a few taps on smartphones, you get a seamless ride experience, thanks to taxi apps.

With the success of popular apps like Uber and Lyft, the demand for taxi-booking apps is rising.

According to research, over 300 million people use taxi apps in the world. The market size estimation of taxi apps, considering the revenue for drivers and app operator’s commission in 2022, was about $201 billion.

Taxi app market size

(Source: BusinessofApps)

If you are looking to establish a taxi business presence online or want to grow it, developing a taxi app is an admirable option.

But one question that bothers every business owner is ‘How much does it cost to build a taxi app?’ We are here to reveal it all.

In this guide, we will explore multiple factors influencing cost, type of taxi application, must-have components in your taxi app, and more.

Before delving into the topic, find important blogs that may help you get into the taxi business.

Now, Get back to the topic of estimating the cost of a taxi app. Let’s get started.

Types of Taxi Apps

Before creating a taxi booking app, you need to understand the different types of taxi apps. There are mainly two types of taxi applications:

  • Dedicated Taxi Booking App
  • Aggregator Taxi App

Each type is different and caters to various needs and preferences. However, the type you choose directly impacts the cost of development. Let’s take a quick look.

1. What is a dedicated taxi booking app?
A dedicated taxi booking app is suitable for businesses that already have established businesses with their own fleet of taxis and drivers. By developing a taxi booking app allows them to take their business online and make it easy for users to access their service.

It provides the opportunity to expand the customer base as the dealing will be directly between the customer and the taxi service provider. Customers request a ride and input their pickup location, preferred car, and other details. The taxi service dispatches a driver who drops them off at a selected location with predetermined fares. The customer, having full control over the ride, can pay through the app.

2. What is an aggregator taxi app?
This type of app serves as a platform where taxi businesses or taxi owners can register their vehicles and provide services for passengers.

However, it is further classified into two types:

  • A simple app: It requires a single application for the customers and a list of different cab drivers with their business. Users who need it can call and book a taxi directly from the app.
  • On-Demand App: It requires two apps, one for passengers and another for drivers. It provides taxi services on-demand and has several advanced features. However, this model requires higher investment compared to the other models. Popular examples of on-demand taxi booking apps are Uber, Ola, and Lyft.

The choice between these types depends on your business model. Dedicated apps provide a standard experience, while aggregator apps provide versatility and variety in service. The path you choose can significantly affect the cost and the market you target.

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After understanding the different types of taxi apps, it’s time to understand the components that shape the cost of developing a taxi app.

Must-Have Components Of an On-Demand Taxi Booking App That Determine Cost

These crucial components are like a power engine, defining the functionality, user experience, and, ultimately, the overall cost of your app.

Let’s break them down costs by on-demand taxi app components

1. App for Passengers
When you decide to create a taxi app, the passenger app is the heart of it. It is the front-facing interface for users, including features like ride booking, fare estimation, real-time tracking, and in-app payments. The more features you want to add, the higher the development cost.

The average cost of a taxi app for users is around US $20,000 to $40,000.

2. App for Drivers
The app is developed for drivers to manage and fulfill ride requests efficiently. It allows them to accept or reject rides, navigate to pick-up points, communicate with passengers, and more. Some of the advanced features like driver incentives and revenue tracking can be added, which increase the development cost.

On average, the estimated cost of a taxi app for drivers is around US $15,000 to $40,000.

3. Admin Panel
The admin panel is the integral and the most used part of the taxi app by you. It helps you manage and monitor the entire system. When you develop an admin panel, you get control to monitor user activity, manage payments, handle issues, set pricing, and more.

The estimated cost to develop an admin panel for a taxi app is around US $25,000 to $60,000. If you integrate third-party services, the cost might increase.

App Estimated Cost Range
Passenger $20,000 to $40,000
Driver $15,000 to $40,000
Admin $25,000 to $60,000

These are the approximate cost ranges provided to you. It can vary based on the app’s complexity, the location of the development team, the requirement of features, and more. If you want to get an accurate cost tailored to your project needs, Contact Us. We will understand your requirements and provide you with a FREE quote.

Factors Influencing Taxi App Development Costs

When you are looking to develop a mobile app, it never comes with a predefined cost. The cost to develop an app like Uber is determined by several factors. Let’s review each one.

1. Selection of Platform

One of the fundamental decisions you need to make is to choose the right platform for your taxi app. There are two main platforms to consider for app development: Android and iOS.

Android is a popular choice due to its extensive user base. But, due to its variety of devices and different versions, the time for testing and optimizing is high, which increases the cost and development time. If you are looking to develop a taxi app for the Android platform, the cost range would be around US $20,000 to $50,000.

However, iOS offers a consistent user experience across devices but tends to be more expensive. The cost of developing a taxi app for iOS is around US $25,000 to $60,000.

Additionally, you might think, why not just develop it for both platforms at minimal cost?

Cross-platform app development is a cost-effective option as it allows you to write code once and deploy it across multiple platforms. Popular cross-platform frameworks include React Native and Flutter.

The estimated cost for a cross-platform app is around US $20,000 to $55,000, depending on the framework you choose and the app’s complexity.

Also Read: Best Cross-Platform Frameworks To Use For App Development

2. App Features and Functionalities

The Features and functionalities you want to incorporate into your taxi app are fundamental to the development process. The variety of features is the cost-driving factor, and the more advanced you include, the more you have to pay.

Basic features of taxi booking apps include ride booking, GPS tracking, fare estimation, and payment integration.

However, you can include advanced features like driver ratings, multiple vehicle options, promo codes, split payments, and more.

The estimated cost for a taxi app with basic features is around US $20,000 to $50,000. If you want to include advanced features, the cost is around US $50,000 to $80,000 or more, depending on the complexity and scale of your app.

However, prioritize features that provide a user-friendly experience while controlling the development cost.

Also Read: Key Uber App Features for Building Your Ridesharing App

Want the Cost of Specific Features for Your Taxi App?

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3. App Complexity

The level of complexity of a taxi app is determined by the app’s architecture, features, third-party integrations, and overall design. The more complex the app, the more time it requires, which impacts the cost.

Basic Complexity Apps: These apps have simple design and offer basic functionalities. It is usually an app with a single user type (rider or driver) with basic interactions. The cost of a simple taxi app with low complexity ranges from US $20,000 to $40,000.

Moderate Complexity Apps: The moderate complexity app has more engaging and dynamic features like real-time location tracking, payment gateways, and more. It has multiple user types (passenger, driver) with a basic level of interaction. The cost ranges between US $40,000 to $80,000.

High Complexity Apps: A highly complex app has advanced features with the integration of complex algorithms, the latest technology, and a seamless user experience. The cost of highly complex apps is around US $80,000 to $100,000 or more.

Complexity of Taxi App Estimated Cost Range
Basic $20,000 to $40,000
Moderate $40,000 to $80,000
High $80,000 to $100,000 or more

However, it’s important to carefully evaluate the complexity required for your taxi based on your goals, target audience, and market expectations.

4. Integration with Third-Party Services

When you are making a taxi app, integrating third-party services significantly enhances its functionality and user experience. Let’s see how it influences costs:

1. Payment Gateways: It is a crucial aspect required for seamless transactions and is widely used. Different payment gateways might have different costs. For example, Stripe payment processing fees per transaction is 2.9% + US $0.30. The cost varies depending on the type and number of payment gateways you integrate.

2. Mapping and Location Services: Incorporating mapping services like Google Maps or Mapbox is essential for real-time tracking and managing rides. The cost of using Google Maps is to pay for APIs and SDKs you choose. The price is based on usage per month with a price range of US $2 to $30 for every 1000 requests.

3. SMS and Communication Services: These integration services are useful for ride updates, notifications, verifications, or more. The cost to integrate this service depends on the messages per month and the service provider. For example, the cost of Twilio for outbound and inbound messages is US $0.0079 for the first 150,000 messages.

Moreover, keep in mind to choose the right third-party services that enhance your app’s functionality and provide optimum user experience.

5. Select Development Team

Taxi app development needs technical expertise and a proper development team to make it successful in the market. So, choose the development team wisely, as it can significantly impact the overall cost of your taxi app project. The options include:

In-house Development Team: Hiring an in-house development team provides better control over projects. But it includes maintaining a team of developers, designers, and other experts in your organization. You also need to consider the cost of their salaries, office space, and other expenses.

The cost of hiring an in-house team is around US $100,000 to $300,000 or more per year.

Freelance Developers: Hiring freelance developers is the best cost-effective alternative if you have a project for a short term. They work remotely and on a particular project basis, which reduces cost compared to in-house teams. A freelance developer is not an advisable option for such a big taxi app project.

Depending on their expertise and location, the average rate of freelance developers is around US $20 to $100 per hour.

Outsource App Development Company: Hiring a team from another location is beneficial in several ways. If you outsource from a location with low labor costs, the cost will be reduced; you get enough time to focus on your business operation and more.

The average cost to hire a taxi app development company ranges from US $20,000 to $80,000 or more. The cost might vary as it depends on the location and expertise of the development team.

Development Team Estimated Cost Range
In-house Team $100,000 to $300,000 or more per year
Freelance Developers $20 to $100 per hour
App Development Company $20,000 to $80,000 or more (one-time)

Moreover, the choice of development team should align with your budget and project timeline. Also, if you are looking for developers experts in a specific language & technology, hire dedicated developers from us. We have a team of professionals with expertise in various languages and quality experience developing mobile apps.

Evaluate your project requirements and budget carefully to determine the most suitable option for your Uber-like app development.

6. Geographical Location

One of the significant factors that affect the development cost is the geographical location of the development team. Different regions have different labor costs.

For example, developing a taxi app in the USA can cost you more than developing in a region with lower labor costs, like Eastern Europe.

Location Avg. Development Cost Per Hour
USA, Western Europe $100 to $300
Eastern Europe, Latin America $30 to $100
South Asia, Southeast Asia $15 to $50

Opt for a region that offers a balance between cost-effectiveness and quality of work. Asia is known for its cost-effective development services. If required, you need to manage the communication and time zone differences for effective collaboration.

Want an Accurate Cost of Your Taxi App?

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7. UI/UX Design

The UI/UX design of your taxi app is an integral component that influences development costs. An appealing and intuitive design can enhance user engagement and satisfaction but also requires dedicated investment.

If you opt for a simple UI/UX design that involves a basic layout, minimal graphics result in consuming less time and low cost. While for a design that includes interactive transition, advanced animations demand experts in design and require dedicated time.

The average cost of custom design is around US $5,000 to $20,000 or more. It depends on the creativity and customization you want in design. Ensure to keep design choices aligned with your brand identity and the overall user experience.

8. Backend Development

Backend development of your taxi app is where all the data processing, business logic, and server operations happen, impacting development costs.

An app with a simple backend includes essential features like user authentication, data storage, and ride request handling to function smoothly. The average cost to develop a basic backend is around US $15,000 to $30,000.

If your app requires a complex backend, the cost significantly increases up to US $50,000. The complexity should align with the features and scalability of your app.

Hire backend developers, as they can help you optimize development costs while ensuring your backend of the taxi app is robust, secure, and meeting user expectations.

9. Testing & QA

Testing is essential in development as it identifies and modifies potential issues.

If you opt for manual testing, the cost range is around US $5,000 to $25,000. It involves human testers to identify issues. While it provides accurate testing, it can be time-consuming and may increase development costs.

If you want automated testing, which is expensive but reduces cost in the long run, the cost range is US $15,000 to $35,000.

However, most business owners opt for comprehensive testing, which involves both manual and automated to leverage the benefits of both. The cost range is around US $20,000 to $40,000.

A proper investment in testing helps you deliver a high-quality taxi app. It is essential as it significantly reduces the risk of post-launch issues and enhances user experience

Tips to Reduce Taxi App Development Cost

Does your taxi app development cost exceed your budget? Don’t worry! Here, we have listed some effective tips to optimize your taxi app development cost.

  • Begin with well-defined project requirements.
  • Make essential features a priority to include in the app.
  • Opt for cross-platform for cost-effective development.
  • Collaborate with a reputable taxi app development company.
  • Use agile methodologies for development.
  • Keep the app simple.

Conclusion

Boarding on the journey to develop a taxi app is an exciting venture, but it always comes with financial considerations. In this blog, we have mentioned crucial strategies that help you optimize costs without compromising the quality of your taxi app.

If you are looking for expert guidance or want a free quotation for your project, contact us.

We are recognized as a leading taxi app development company with a team of experts who help you turn your vision into a budget-friendly reality. Our team also helps you with strategic planning so you can make informed decisions while keeping your budget intact.

FAQ’s

If you are looking to develop an Uber clone app, the average cost is around $20,000 to $60,000 or more. However, the cost varies as it depends on complexity, platform choice, design, features & functionality, and location of the development team.

You need to follow a few steps to make a taxi app like Uber:

  • Research the competitors.
  • Define features you want to add to your app
  • Choose the relevant technology stack.
  • Design UI/UX.
  • Hire a taxi app development company.
  • Test & launch the app thoroughly.

Yes. A well-developed taxi app can be profitable. Revenue of taxi apps comes from commissions on rides, surge pricing, advertising, and partnerships. However, success depends on how different your taxi app is from competitors and effective marketing strategies.

The average time required to create a taxi app is around 4 to 8 months. However, if your app has advanced features and integrations of third-party, the timeline increases. Contact us to get an accurate estimate for your project.

Ravi Makhija
Ravi Makhija

Ravi Makhija is an entrepreneur, an IT professional, tech geek, founder & CEO at Guru TechnoLabs - Globally Trusted Web & Mobile App Development Company. He loves writing about new technologies and the latest trends in the IT field.