How to start an app-based transportation business like Uber?

February 11, 2021

By Mohamed Natheem

Uber – The pioneer of app-based transportation business inspired many young minds to start their businesses.

But, the fact is only some of them succeeded in their business venture. The factor that hindered the startup process was the imperfect plan and execution.

So with this article, we’ll provide you the exact details that you need to start and run your app-based transportation business successfully.

Anddd! You’ll get a bonus tip at the end of this blog that can help you start your business 10X faster.

What can you get from this article?

  • What is an app-based transportation business?
  • How does it work?
  • App-based transportation business ideas
  • Simple steps to start your app-based transportation business
  • How can you earn from the business?
  • How to create a transportation app like Uber?

What is an app-based transportation business?

It is a business model where customers can book or schedule their rides using mobile applications.

Some examples of app-based transportation business are,

  • Uber
  • Lyft
  • Grab
  • Bitaksi
  • Convoy

We know these apps, but what’s the background processes that happen on these applications that made them indispensable?

Let’s get into it.

How app-based transportation apps work?

We are always keen to know behind-the-scenes processes of anything that we love.

Here’s how the transportation apps like Uber works,

  • The customer requests the service using the mobile app
  • The app matches the request with the nearby service providers
  • The service provider accepts/rejects the request
  • The app displays the customer details and location to the service provider [If the request gets accepted]
  • The service provider reaches the customer’s location, and the service gets done
  • The customer pays for the service via cash, card, or in-app wallet
  • The customer rates and reviews the service provider

Looks interesting, right?

Want to know more about the business opportunities in the app-based transportation sector? Read through the blog.

App-based transportation business ideas

There are numerous potential transportation business ideas that you can start and be successful.

Some evergreen and innovative business ideas that you can try in 2021 are,

Steps to start your app-based transportation business

1. Choose your niche

As we already discussed, there are a lot of fresh ideas that you can choose to start your transportation business like Uber.

You’ve to be clear with your niche and your target customers before stepping onto the market research.

2. Market research

The transportation business is a highly competitive niche but also a profitable one. Hence, doing complete market research is the best way to start your business.

Market research can help you identify,

  • the feasibility of the product
  • the target customers
  • the competitors in the market

3. Business and revenue model

After the successful market research, you have to pick up the best business and revenue model that can help you grow and gain a competitive advantage over others in the market.

4. Register your business and take care of other legal activities

Now that you’ve chosen your business and revenue model, you have to register your business with your country’s business bureau.

Then, you’ve to get the required licenses to operate your business.

5. Build your fleet

Your ‘Fleet’ is one of the important parts of your transportation business. You don’t necessarily have dozens of vehicles to start your business.

Instead, you can start with one or two, and make a profit. Then start building the fleet step by step.

6. Create software that can help manage your business

The app-based transportation business [or smart transportation business] need software that allows,

  • the customers to book the services
  • the service providers to offer the services
  • the admin to manage the business

For instance, Uber uses an on-demand mobile application that allows its users to book the services instantly.

To create an on-demand transportation app like Uber, you’ve to pick the best app development company to get started.

7. Promote your business

What’s the use of creating a business when no one’s heard about it? So, build a strong marketing plan to promote your business to the target audience.

You can use digital marketing strategies such as digital advertising, social media marketing, app store optimization, SEO, etc.

How can you earn from an app-based transportation business?

The app-based transportation business acts as a bridge that connects the service providers and the customer.

You earn by collecting the service fee from both customers and the service provider for using the platform.

This is one of the best revenue models that transportation businesses can use to increase their profit.

Fact

The pioneer of app-based transportation, Uber employs this revenue model.

Sounds interesting, right?

With that, let’s get to know the steps to create a transportation app like Uber.

How to create a transportation app like Uber, Lyft?

Creating an app like Uber needs a complete understanding of the process involved, features to be added, technology, etc.

This may seem a lot to consider.

But don’t worry. I’m going to simplify the process for you.

In the following sections, we’re going to see the exact steps that you need to create your transportation app.

Let’s get started.

1. Choose the features to be included

The first step in creating an app-based transportation app is to choose the set of features to be included in the MVP of your customer and driver app.

2. Select the technology on which you wish to create your transportation app.

For an MVP, select the technology that is proven to be the best and cost-efficient. We suggest you pick Flutter, as it is the fastest-growing cross-platform app development framework.

It is cost-efficient and powerful to create an MVP.

3. Find the best app development company

This is the crucial step in creating your transportation app. Here are the few tips that can help you pick the best app development company.

  • Check out their portfolio
  • Go through the customer reviews of the company
  • Chat with them to understand their customer support quality
  • Verify their development standards
  • Consider their experience in creating the app that you need

4. Share your requirements and sign an NDA

Some companies like us, sign an NDA [Non-disclosure agreement] to protect your sensitive information.

So choose the company that’s ready to sign an NDA before sharing your ideas and requirements.

5. You’re ready to takeoff

You’ve identified the features and functionalities, picked up the right technology, and found a way to choose the perfect transportation app development company to create your app.

After developing and testing your app, now you’re all set to take off.

Want a bonus tip?

We’ve already simplified the development of the transportation app in our previous steps.

But, we’re going to make it even simpler.

The thing is, there are ready-made software solutions like Uber available in the market right now.

They’ve every feature and functionality you need to create your transportation app.

You can buy and customize them based on your requirements. But the catch is, you have to choose the best.

Why choose ready-made apps rather than opting for creating from scratch?

  • Cost-efficient
  • Completely customizable
  • Faster time to market
  • Suitable for business of any sizes

Now it’s your turn.

We’ve discussed the opportunities, ideas, and steps in creating an app-based transportation business in 2021.

Go through the steps that we mentioned and kick start your career as an entrepreneur.

Need any technical assistance?

Drop us a message via WhatsApp or Mail.

Thanks for reading. Cheers!

 

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