How to Start a Taxi App Development in 2021? [Features + Technology + Cost]

July 5, 2021

By Saaradha Thilagam S

We all understand that the ride-hailing business has been growing over the past half a decade. Online taxi services are getting popular as it is convenient, costs less, easy to book, ensures safe rides, and with attractive offers.

If you are planning to start an online taxi service and have no clue how and where to begin the research, this guide is just right for you!

We give you well-researched reading material on how to start planning the taxi app development process for your on-demand taxi business in 2021!

Here, you’ll get to know from the market performance to answers to all the questions that whirl your mind!

Why is an on-demand taxi service better than a traditional business?

Well, there are various reasons why an online taxi business is far better than running a traditional taxi business. To start with;

  • It could ease out the manual operations of maintaining the trip details in an Excel sheet.
  • The admin (you) will be able to assess the performance of the business with the data they generate when their taxi business is online.
  • The admin can track the number of riders and drivers registered on the platform.
  • There will be flexibility in running the taxi business when it’s online.
  • The admin of the on-demand Uber-like business will be getting valuable feedback from the platform users and can work towards improving the business.

How is the on-demand taxi app industry performing in the last five years?

Taxi app industry statistics 2021

With time, people demand customized services. And key market players are eager to provide the best to retain their customers.

The performance of the app-based taxi business of the year 2019 is $302 billion, and in 2020 – even with COVID-19 an estimated revenue of $192 is extracted.

The Compound Annual Growth Rate (CAGR) is expected to be 17.4% in 2024, which means there is no putting a stop to this business model.

Step by Step guide to developing a taxi booking app [2021 & beyond]:

These are the 3 steps to follow to start an on-demand taxi app development

Step 1: Figuring out the business model to run the on-demand taxi business.

The adaptable business model for a taxi app like Uber is an aggregator model.

The aggregator business model’s core objective, in this case, is to connect the riders and the drivers through a common platform with user-friendly features and offers given by the admin.

Step 2: Planning out the revenue model of the on-demand taxi business.

The revenue model that compliments the aggregator business model would be the commission-based revenue system.

The admin of the platform will be earning based on commission from the riders and the drivers.

Step 3: Getting to know the features that work best for each user.

Features for the rider:

As the rider is the end-user of the taxi booking app, they’ll have certain undeniable expectations from the platform.

These are some of the features that a rider would like to have in their app,

  1. One-step registration:
  2. Having a one-step registration process increases the user conversion rate.

    The riders can use the taxi app right away by registering with their phone number.


    You can also verify the phone number using OTP.

  3. Categories to choose from:
  4. The riders would like to pick from the options such as a bike, mini car, luxury car, etc.

  5. Fare estimation of the ride:
  6. It’ll be comfortable for the riders to choose their ride option using the fare estimate shown in the app before booking the ride.

  7. Wallet option:
  8. The riders need not leave the app anymore!

    They can pay for their ride using the in-app wallet option.

  9. Live tracking:
  10. The rider can track the driver with the real-time location in the process of the ride.

  11. In-app chat:
  12. With this feature, the rider can communicate with the driver to give details about the location – they can either call or text their drivers.

  13. Schedule a ride:
  14. The rider would like to schedule their rides well in advance. This enhances the users’ booking experience.

  15. Precautionary notification:
  16. Since the pandemic has taken over the world, it is nice to get reminded to wear a mask to protect ourselves from the risk of getting the infection.

Taxi app development

Features for the driver:

As the driver, they’ll like to have certain features that help them get through the ride smoothly. These are the features they look forward to;

  1. View the trips:
  2. The driver would like to take a look at the details of the current trip and the trips that he completed.

  3. Updating the driver’s status:
  4. The driver must have an option to say whether he is online or not accepting the ride requests.

  5. Receiving earnings:
  6. The driver must be able to receive his earnings by adding his bank account details to the platform.

  7. Push notifications:
  8. With the push notifications feature, the driver will be notified of his actions within the app or any instructions from the admin.

  9. Dynamic routing facility:
  10. Dynamic routing helps the driver to find the shortest route to the rider’s location.

  11. Cancellation reasons:
  12. If the driver chooses to cancel the ride request, he can choose a cancellation reason from the list predetermined by the admin.

Features for an admin:

As the person who manages a taxi business like Uber, you must be able to decide the admin panel features before starting your taxi app development process.

  1. Booking management:
  2. The admin is obliged to oversee the number of bookings, the details of the rider, and the driver of the particular booking.

  3. Geo-fencing:
  4. The admin can fix the geographical location within which the platform should function./

  5. Automatic earnings distribution:
  6. Manually paying off the drivers is impossible. Having an automatic system can enhance the process of distributing the earnings to the drivers.

  7. Promo code:
  8. The owner of the platform may give out discounts and coupon codes to the riders using the promo code option under the admin panel.

  9. Notification management:
  10. The admin must be able to pass on the instructions via a push notification to the users. (both riders and drivers)

  11. Cancelled booking management:
  12. The admin must be able to know what are the reasons for the cancelled bookings. Also the number of bookings that have been cancelled and its details.

    Reach out to us for your taxi app development!

What is the best technology to build an on-demand taxi app like Uber?

Yeah! I know. “What is the technology that is used to build this exclusive output?”

It must be everyone’s question. To answer all your technical questions regarding the app. Read further.

Flutter is an open-source UI software development kit that specializes in cross-platform coding. It was officially launched by Google in December 2018.

The core advantage of using Flutter for taxi booking app development is, it gives out results like developing in a native app when it is not.

Learn more on why we use Flutter for on-demand app development?

What is so special about Flutter and why do developers prefer it?

Flutter app developer

To answer your question – you’ll just need these 5 points that’ll give you enough reasons to trust a Flutter developer with your taxi app development.

1. Single codebase:

The developers don’t need separate codes for Android and iOS to build those apps. Flutter uses a single code base to create cross-platform applications.

2. Upgraded User Interface:

Flutter developers use the widget library to build both the Cupertino and the material design, which gives an impeccable UI.

3. Cost-saving technology:

The business owner need not worry about spending too much on the cost of development.

4. Quick app testing:

As the Flutter developers use a single code base for both Android and iOS, the testing time also reduces.

5. Performance upgrade:

Flutter has a hot reload feature which means the developers can visualize the issues being fixed as and when the changes are happening.

Learn more about brands that use Flutter to develop their apps! And know how successful they are!

How on-demand taxi apps like Uber work?

Here, you’ll get to know the ride-booking story from the start to the end.

  1. Download the app on your smartphone. Give your phone number to get registered. You’ll be receiving an OTP to the registered number. Enter the number and viola! You are one of the users.
  2. Given your pick-up and drop location, you’ll see the vehicle categories with the fare estimate per category. Pick your ride and confirm.
  3. The taxi app matches you with the nearby driver available. Once the driver accepts the ride, you’ll be able to see the driver’s details, in-app chat, and call options.
  4. Then, the driver will reach your location to pick you up.
  5. Before starting the ride, the app will remind you to follow the safety measures.
  6. Once the ride gets completed, the app will redirect you to the payment section, where you can choose either cash, debit or credit card, or wallet option to make the payment.

Get the best ready-made taxi app solution!

Cost of development taxi booking app:

When it comes to the cost of taxi app development, it depends on the features that you pick and the platforms you choose.

Some software development companies build their apps from scratch using native technology which is highly labor-intensive
(5 to 7+ months and $40/ hour on development and design).

We offer a ready-made Uber clone app – Wooberly, which is 100% customizable and scalable – as the business grows.

We built Wooberly using Flutter, a cross-platform technology that reduces the developing time so much more.

Our actual product cost includes the white labeling charges as well. This means you can rebrand our taxi application to match your brand.

Contact us to get a fair price for our product!

We charge $25 per hour [as of July 2021] if you choose to add new features or customize the base platform.

Also, we offer free server installation and mobile app submission.

Make smart choices for your business!

How to choose the right taxi app development company?

Taxi app development

These are some of the reasons that you should consider before choosing the right taxi app development company for your business;

  1. They must provide you with constant updates during the app development process.
  2. They must extend their technical support during the launch of the app in the App Store and the Play Store or during any issues with the app functionalities.
  3. Check out their testimonials and the app performance of their client companies.
  4. Learn whether they use the on-trend tech stack to develop their apps.
  5. Finally, see whether their costing fits your budget.

This complete guide will help you sort out any issues that your business circumstances throw your way when it comes to on-demand taxi app development.

Prevention is better than cure. It is important to educate yourself when you start any business. Cheers!


1. What an on-demand taxi app can do?

The on-demand taxi app can help users to book taxi services with just a click.

2. How much will it cost to start an on-demand taxi services business?

The cost of the development of an on-demand taxi app depends upon the features and benefits that you want for your taxi business.

3. What are the three things to look into for a taxi app development company?

The three foremost things to look into in any taxi app development company is:

  • The willingness to collaborate with you on your terms.
  • Technical support regarding the app development and installation whenever necessary.
  • The product of the software development company must be within your budget.

4. What is the core technology involved in the development process?

Flutter is a cross-platform software development kit used as the core technology in developing the ‘Wooberly’ product.

5. How to communicate with the technical experts?

You can contact us through WhatsApp or drop us an email at [email protected] We are here to listen and help you with your on-demand taxi business.

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