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How to Build an On-Demand Taxi App Like Uber?

How to Build an On-Demand Taxi App Like Uber?
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    February 21, 2025 Last Updated: February 21, 2025

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In 2017, the global ride-hailing market was valued at $105.7 billion. And by the end of 2025, the ride-hailing industry is expected to generate $175.73 billion in revenue. Urbanization and consumer preferences have been essential in this transformation at the global level.

If we look at future growth, the market is projected to grow with a CAGR of 4.90% between 2025 and 2029, making the industry generate $212.75 billion by 2029. Talking about the users, it will reach 2.31 billion globally by 2029.

Ride hailing market size

Due to a lack of parking spaces in increasingly congested urban areas, more people are turning to taxis. This growing demand for ride-hailing services is making entrepreneurs invest in an on-demand taxi booking app solution.

If you’re one of the entrepreneurs looking for uber like app development, you’re at the right place. This comprehensive guide will teach you how to create an Uber-like on-demand taxi app development and the essential features that need to be included.

Before that, let's review some essential facts and figures about Uber to understand the company's success story.

Some Must-Known Facts About Uber

  • As of 2025, Uber is the largest taxi app in the world with over 150 million monthly active users.
  • Uber operates in more than 70 countries, and the company carried out 9.4 billion trips in 2023.
  • In 2024, Uber generated a revenue of $43.97 billion, which was an increase of 17.96% compared to the 2023 financial year.
  • The United States is the biggest market for Uber, having more than 58 million users that have generated over $18.62 billion in 2023.

Let’s now understand the reasons that are pulling entrepreneurs from around the globe to invest in an on-demand taxi booking app solution.

3 Reasons Why to Build a Ride-Sharing App

Several reasons are influencing entrepreneurs around the globe to taxi booking app development. Let’s find out the biggest reasons:

reasons to build ride sharing app

1Highly Scalable Business Model

Uber completed 17.4 million daily trips in 2023, with commissions accounting for the majority of its revenue. Ride-hailing or taxi apps like Uber offer immense scalability to entrepreneurs and enable them to expand rapidly with minimal investment. This is the business that helps entrepreneurs reach new markets without the need for significant physical infrastructure. The technology is enough to make entrepreneurs reach a large customer base.

2Large Potential Market

Statista says that the ride-hailing industry's user penetration rate will reach 28.6% by 2029. As for the market demand and people's preferences, the demand for convenient and affordable transportation continues to rise. This provides a vast market for ride-hailing services at a global level. With the increasing urban population and shift away from traditional vehicle ownership: the ride-hailing market continues to grow.

3Scalability & Adaptation

Uber like app development excels in scalability by easily integrating new cities and regions into its platform. The digital nature of such ride-hailing platforms allows for quick adaptations to local market demands and enhances growth potential. People are adapting ride-hailing apps worldwide. As of 2025, Uber-like ride-hailing apps operate in over 10,000 cities around the globe.

Also Read: Benefits of developing an on demand app for your taxi business

So these were the three big reasons to build a taxi app like Uber. Let’s now understand Uber’s business model to have a clear understanding of how the application makes money.

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How Uber Works?

The business model of Uber is very simple to understand for both passengers and drivers. Let’s understand the business model with a visual representation:

Uber business model

Request: It allows riders to book a ride from a specific location, and the request is sent to drivers in nearby locations.

Matching: This process allows drivers to accept and reject the ride request in a nearby location. The ride is quickly transferred to another driver if one driver rejects the request.

Ride: Once a driver accepts the request a booking confirmation notification is sent to the rider that shows the arrival time of the driver. This also allows the rider to track the driver in real-time.

Payment: Riders can see the amount before getting the booking confirmation and can select any payment option to pay to the driver.

Rating: This allows riders or passengers to rate the driver and give feedback on the ride they had.

How does it work for Passengers?

A passenger can use a taxi app like Uber in 7 simple steps:

  • Open the Uber app and enter your destination
  • Choose a ride option based on price, size, and estimated dropoff time
  • Confirm the pickup location
  • Wait for your driver to arrive
  • Verify the driver's name, car, and license plate
  • Pay your fare with cash, credit card, or Uber Cash
  •  Rate your trip and give your driver a tip

How does it work for Drivers?

A passenger can use a taxi booking app software like Uber in 5 simple steps:

  • Receive a request through the Uber app
  • Confirm the request and pick up the rider
  • Provide turn-by-turn directions to the rider
  • Drop off the rider at their destination
  • Rate the rider and receive a rating and tip from the rider

Revenue Model of Uber

A revenue model helps you understand how a taxi booking app development like Uber makes money. Uber like app development contains three people: admin, driver, and passengers. It's a multi-sided digital platform that connects riders with drivers and earns money from commission, partnership, and advertising.

Let’s analyze these 3 revenue models one by one:

Uber revenue model

  • Commission

Uber makes money from commissions on each complete ride from the drivers. The platform is regularly paid by this commission-per-ride model, which is an essential factor in producing large profits. Around 25% of the entire ride fare is charged by the platform. Other strategies to make money include subscription packages, price increases based on demand, cancellation fees, and extended wait times.

  • Partnership

Uber is the world’s largest taxi booking platform that makes money from promotional partnerships. It makes money by promoting other brands’ content and helps them to reach their target audience. Here, the target audience gets benefits in the form of coupons, discounts, gifts, etc.

  • Advertising

One of the best ways for Uber to make money is to advertise for nearby companies. Businesses that are advertised may be billed on a cost-per-click or cost-per-mile basis. This advertising model allows Uber to generate additional revenue while providing businesses with targeted exposure to potential customers.

So this is how an on-demand taxi booking app solution like Uber makes money. Now, before analyzing the taxi booking app development steps, examine some essential features that make such an app better to use.

Top Features of Taxi App Like Uber

Features of a taxi booking app software like Uber play the most important role in enhancing passengers' and drivers' experience worldwide. The advanced AI-integrated features and other technological advancements are shaping the way passengers book and have a safe ride. Let’s examine the top features of taxi-booking apps like Uber.

Passenger App Features

The top features that Uber like app development offers to its passengers are as follows:

User Registration

This feature allows riders to complete the registration process easily and quickly. It gives several login options including phone number, email, social media, etc.

Fare Estimation

The fare estimation feature allows riders to see the fare before confirming the ride. This enhances transparency, eliminates overpricing, and builds trust in the platform.

Real-Time Ride Tracking

Real-time ride tracking allows riders to see the location and status of their rides in real-time. This makes the rider safer in an unfamiliar location and also gives a location-sharing option.

Navigation and Route Optimization

This feature allows riders to track the real-time location of drivers and their progress. It also helps riders to see the most efficient route, traffic conditions, road closures, etc.

In-app Messaging

The in-app messaging feature allows riders to make replies to driver queries and share any details. It connects riders with drivers and makes a seamless ride-booking experience.

Multiple Payment Options

Uber offers diverse payment options to riders so that nobody faces any inconvenience while paying. It offers cash payment, digital wallet, cards, gift vouchers, etc to riders.

Ratings and Reviews

This allows riders to give ratings and share reviews according to their ride experience. It helps in promoting service quality and things to be implemented.

Alerts Option

Alert option features are also incorporated with an app like Uber. It allows riders to send immediate alerts to their emergency contacts.

Driver App Features

The top features that taxi booking app software like Uber offers to its drivers are as follows:

Registration and Verification

This feature allows drivers to easily register their profile on a taxi app like Uber. And it gives drivers the option to easily upload their documents and verify their profiles on the platform.

Availability Toggle

The availability toggle is a feature that helps drivers manage their operational hours and accept ride requests when convenient. This gives flexibility to drivers to optimize their work.

Real-Time Ride Requests

This allows drivers to see the real-time ride requests from passengers and easily accept and decline the request. Drivers can also track their ride history, canceled trips, etc.

Live GPS Navigation

To build a ride-sharing app, you must incorporate a live GPS navigation feature. This feature helps drivers by optimizing routes and improving efficiency.

Earning and Payouts

It allows drivers to view and analyze their earnings and payouts. The feature helps drivers set up direct deposits, use next-day cash-out, use auto pays, check payment status, etc.

Subscription Offers

Drivers get subscription offers from the platform to reduce the commission rates. This gives priority support and incentives to drivers.

Admin App Features

The top features that Uber like app development offers to its admin are as follows:

Profile Management

The admin can view and update all user profiles, ensuring proper management. It provides access to driver and passenger data, promoting efficient monitoring.

Ride Monitoring

They can track real-time rides, ensuring safety and monitoring driver performance. It offers visibility into ride statuses, helping manage operational efficiency.

Passenger Details

This feature allows the admin to manage passenger information, including ride history and ratings. This helps in offering personalized services and addressing customer concerns swiftly.

Payment Tracking

This feature allows the admin to manage passenger information, including ride history and ratings. This helps in offering personalized services and addressing customer concerns swiftly.

Commission Management

They can oversee and manage the commissions earned by drivers. This allows for effective distribution, tracking, and adjustment of earnings based on performance.

Reporting and Analytics

This allows the admin to generate detailed reports on operational metrics. It helps in decision-making, tracking performance, and identifying trends for future improvements.

Communication Features

Admins can communicate with drivers and passengers directly through the app. This improves coordination and enhances problem resolution during ride-related issues.

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Steps to Build an On-demand Ride Hailing App Like Uber

Now the main question is how to build an on-demand taxi app like Uber. Well, the following steps must be taken into consideration to build a ride-sharing app:

Steps to build taxi app like uber

1Technical Audit & Research

Making a list of the requirements for Uber like app development must be your first step. You just need to create an app that works with your current business model if you already have a taxi booking service. However, if you're beginning from scratch, everything must be arranged according to your vision. In both cases, you must identify and understand what unique benefit you’re going to provide to your customers.

2App Documentation

After choosing the kind of app you want to create—native or hybrid, for example—you need to think about the app documentation. You have to choose whether to release the software for iOS, Android, or both platforms. This is crucial since it determines how the app development will go. Following this decision, the technical specs, architecture, and tech stack that will be utilized are listed.

3App Development

You will have two choices. Either follow the taxi booking app development procedure from scratch or get a ready-made solution. In each scenario, the project entails several processes that are further broken down into more manageable, distinct jobs. After that, these duties are finished according to priority. Throughout the process, additional unit testing is carried out to find and fix any logical flaws.

4App Deployment

Once the app is fully developed and tested, it's time for deployment. The app is submitted to app stores (iOS App Store, Google Play) for approval. Ensure that all configurations, such as payment gateways and delivery tracking features, are thoroughly tested before launch. Monitor performance metrics to quickly address any issues post-deployment and ensure smooth operations.

5Maintenance & Support

Post-launch, the app requires regular maintenance to ensure continuous functionality. This includes fixing bugs, updating the app for new OS versions, and improving features based on user feedback. Offering reliable customer support is crucial, helping users with issues related to orders, delivery tracking, or payment, while ensuring the app stays competitive and aligned with market trends.

Thus, these were the five steps of Uber like app development. Now, learn some strategies that will help you build a ride-sharing app and launch it successfully in today’s competitive landscape.

5 Tips to Succeed in Today’s Competitive Taxi Market

Building a taxi booking app software and competing with the top ride-hailing companies like Uber is daunting but achievable. Here are some tips that will help you to succeed in today’s competitive taxi industry:

1Offer a Unique Value Proposition

Focus on providing exceptional experiences for both riders and drivers to ensure customer loyalty and satisfaction.

2Expand to Underserved Areas

Target untapped or underserved regions to dominate the market and establish early leadership with localized services.

3Cater to Niche Segments

Specialize in unique offerings like eco-friendly rides or luxury services to attract loyal customers in specific markets.

4Build Strategic Partnerships

Collaborate with local businesses, like hotels or airports, to enhance visibility and expand your customer base effectively.

5Prioritize User Experience

Ensure seamless, intuitive app design, fast service, and reliable customer support to keep users coming back consistently.

How Much Does it Cost to Build an Uber Like App?

Uber like app development cost depends on the factors, development process, and cost. The factors that affect the cost of your Uber-like app are as follows:

Features: The more features of taxi apps like Uber (ride booking, payments, GPS), the higher the cost of the application.

Development Stack: Choice of programming languages and frameworks.

Platform: Developing for iOS, Android, or both (cross-platform).

Design & UI/UX: Custom, high-quality design increases cost.

Backend Development: Complexity of backend systems like APIs, databases, and real-time services.

Payment Gateway: Integration of secure payment systems like Stripe.

Third-party integration: Integrating services like mapping and SMS.

Development Team Location: Geographic location of the development team (e.g., North America, Europe, Asia Pacific).

Let’s understand the on-demand taxi app development cost by analyzing a table:

Development Type Estimated Cost
Basic $2,000-$10,000
Standard $10,000-$30,000
Advanced $30,000-$60,000 or more

The white label solutions for taxi apps like Uber are cost-effective. This type of on-demand taxi booking app solution can be launched quickly with less money and time. It expands product offerings, builds trust, and focuses on core business functions.

You can launch your taxi app like Uber in a week with white-label solutions. These prebuilt apps are ready-to-launch solutions that you can customize and scale as per the your demands and requirements.

How Quickworks Will Help You Launch Your Taxi App Quickly?

Quickworks is an on-demand taxi app development company that allows you to launch your taxi app quickly and effectively. We offer white-label solutions/prebuilt applications that are developed with cutting-edge technology and the latest technological advancements.

Our white-label solution cater the growing demand of entrepreneurs looking to launch a taxi app like Uber quickly. The prebuilt applications that we offer are fully customizable, allowing you to tailor the app to meet the unique needs of your business.

By using our white label solution, you save time and resources typically spent on building an app from scratch. This enables you to enter the market faster and with less money and effort. Our platform includes all the essential features of a taxi app:

  • Real-time GPS tracking
  • Secure payment gateways
  • Ride scheduling
  • Driver and passenger ratings
  • Multi-language support

These features, coupled with our robust backend system, ensure smooth operations and scalability.
Quickworks provides continuous support and regular updates to keep your taxi booking app development aligned with industry standards. This ensures that you stay competitive in the ever-evolving ride-hailing market. With our expertise and ready-to-use solutions, you can confidently launch and grow your taxi business.

So what are you waiting for? Launch your own taxi app like Uber by partnering with us and stay ahead of the competition by offering unique benefits to users.

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Frequently Asked Questions(FAQs)

You can create a taxi app like Uber by following steps, including:

  • Research the Market
  • Define the app’s features.
  • Choose an app development platform.
  • Hire a development team.
  • Develop MVP
  • Test and Launch

You can also choose a white-label solution/pre-built app if you seek cost-effective solutions and want to launch the application quickly.

The cost to build a taxi app like Uber is somewhere between $4,000 and $30,000 with a white-label solution. However, AI-integrated features increase the overall development cost and can cost you up to $50,000 or even more.

Uber uses Swift for iOS and Java/Kotlin for Android. The backend infrastructure of Uber relies on various technologies, including Node.js, Python, Go, and Java. This enhances the scalability and efficiency of the application.

The features that differentiate a successful on-demand taxi app are a user-friendly interface and real-time GPS tracking. Multiple payment gateways, driver and vehicle information, in-app messaging and calls, ride bookings, push notifications, ratings, and customization are other essential features.

You should consider challenges including driver recruitment and management, user experience, competition, safety features, pricing strategy and technological challenges. Apart from that, two more crucial issues that cannot be avoided are customer service and regulatory compliance.

You can monetize your taxi app by generating revenue through commission on rides, cancellation fees, in-app advertising, and premium feature subscriptions. Dynamic pricing and additional service fees like payment processing or security checks are the ways to monetize taxi apps.

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