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HomeTaxi App Development GuideHow Does Taxi App Works?

How do taxi apps like Uber work behind the scenes?

Owning a taxi app like Uber can give you an edge to succeed in the taxi dispatch industry. To make it work efficiently, you’ll have to understand the nuances of how a taxi app like Uber works.

The app-based taxi business will flourish since the number of smartphone users who rely on apps is increasing every day.

It’s wise and sensible to create a taxi app for your taxi dispatch business, provided to know how to control the platform and make it work for you!

Parties involved in the taxi app:

The parties involved in the business are three kinds;

  • The rider is the end-user of the platform. The Rider app will have features and functionalities that make the rider’s booking experience more exciting and fun.
  • The driver is the service provider of the platform. The Driver app has features that’ll help him manage his service efficiently.
  • The admin is the owner of the platform. The Admin web panel helps him in monitoring and managing the on-demand taxi business at ease.

How does a taxi app like Uber work in real-time?

Now it’s time to learn how the magic works and how to generate revenue using the on-demand taxi app!

User app workflow while booking a ride:

  1. Log in to the user app (rider app) by giving your phone number and you’ll receive an OTP to authenticate your registration.
  2. Once done, you’ll be a registered user (rider) of the platform.
  3. Type in your pickup and drop location in the search bar.
  4. Choose a vehicle from the categories according to your budget. Because an estimated fare will be shown on the bottom of the vehicle category.
  5. Place your booking once you are satisfied with everything.

Driver app workflow while taking a trip:

  1. The driver has to log in to the app by giving their phone number, then the documents such as driver’s license, vehicle registration, insurance, and other vehicle details.
  2. The driver has to set a payout method to receive their earnings promptly by giving their bank details into the app.
  3. The driver can accept or decline the ride requests shown on their screens.
  4. If the driver chooses to accept the ride, then they will receive the rider’s pickup and drop location, name, and other contact information.
  5. The driver can navigate to the rider’s location using an inbuilt map in the app.
  6. The driver can either call or chat with the rider without leaving the app.

Ride workflow:

  1. Once the ride is complete, the driver has to click the complete ride button for the actual ride fare to appear on the screen.
  2. The rider (user) can either pay for their ride using cash, debit, or credit card, or an in-app wallet to maintain contactless payment.
  3. The driver can add the toll fees (if applicable) and rate the rider based on the trip experience.
  4. The rider can tip the driver for their service and rate the driver based on the ride experience.

Earnings distribution methodology of the taxi app:

The commission is charged to the rider based on the flat fee or a distance-based fee. This will be decided by the admin who can alter and manage the system using the platform.

  • The commission is charged on the riders’ (user) bills named as the rider service fee.
  • The driver earnings will be the ride fare minus the driver service fee.
  • The admin earnings will be the sum of the rider service fee and the driver service fee.
  • An automatic earnings distribution to the driver makes more sense in the long run for an admin. Since he cannot possibly handle manual payment when the business grows.
  • The admin has to have an option to manually stop the payment to the driver if there are any complaints about him.

Learn more about the business and revenue model of taxi app.


This is how a taxi app like Uber works. All the process is digitized and systematic, which will help the admin to have some monitorable control over his taxi business.

Imagine getting the best version of the readymade taxi app for a reasonable price?

Wooberly is a ready-made taxi app like Uber that is 100% customizable and scalable for your on-demand business needs.

Schedule a FREE Demo with our team to get the look and feel of our product!

We know you might have a lot of questions! Don’t shy away from contacting us via WhatsApp or email us at [email protected]

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