On-demand bike taxis are also available in Brazil, China, Pakistan, and the USA. Still, not all of them have a mobile bike taxi booking app. Therefore, you can launch the first bike taxi service app in your country and succeed in it.
When thinking about how to make a taxi app, you should not limit your business idea within the borders of your own country.
That might sound surprising, but there are still countries where Uber is not available. For you, as for the prospective taxi app owner, this situation creates a perfect market opportunity to build your taxi-hailing services.
Currently, Uber is not presented in Brunei, Oman, Malta, Iceland, Luxembourg, and Cyprus.
Sounds great, right?
Now that you have an idea of how your taxi app will beat Uber, let us continue.
Even with an outstanding unique value proposition, your app should be profitable for your business.
But, how to start an app like Uber and make money from it?
Read on and find out!
Uber has two sources to earn money:
- The app charges a commission from drivers
- Uber conducts marketing campaigns with other businesses.
Now, let’s take a look at them in more detail.
Commission from drivers and passengers. When the driver receives an online booking via the app, Uber charges commission for each booking. The commission varies between 20-25% of the total ride cost.
Service fees. Apart from driver commission, Uber charges passengers a flat booking rate. When applying this model, you might add other costs as security, service, or money transaction.
Cancellation fees. You can charge this type of payment in case the passenger cancels a ride.
Third-party promotional. Uber makes money from promotional collaboration with famous brands like Hilton, Pepsi, Spotify, and more.
Still, here are some ways to compete with Uber, as described below.
Your app for taxi service should be attractive for both drivers and riders. For that, you need to create a unique value proposition for both sides.
Here are some examples:
The value proposition for the customer. You should motivate passengers to use your app by offering them something your competitors do not have.
That might be:
- The option to track the driver arriving
- Free rides or discounts on certain occasions
- A fixed price for common destinations such as Railway stations or Airports.
- The in-app payment gateway for cashless transactions
- Estimated duration and cost of the ride
The value proposition for the driver. How to attract drivers to your taxi services if there are so many competitors? You can choose the following:
- Insurance coverage
- Opportunity to earn more in peak workload
- Low barrier to entry or no investments to join the business
- Flexible working hours
- Easy procedure of mobile payment
There could be even more options to attract users to your app and stand out among competitors.
Let us move on.
Apart from a unique value proposition, you can find a free niche in the taxi booking app market and succeed in it. For instance, electric cars.
Since people are more concerned with ecological issues, they make conscious choices toward the environmentally-friendly means of transport. Thus, an eco-friendly taxi app would be a great idea.
An example is Green Cabs Taxis, a leading New Zealand environmentally-friendly taxi company. The company positions itself as guilt-free because they use electric vehicles and add tree-planting donations into each fare.
After the Uber upheaval, numerous organizations have begun to put resources into ride-hailing application advancement and embrace a similar business technique to get a beneficial income. And the worldwide taxi market is expected to show a compound annual growth rate of 9.22% by 2024.
To conclude, the taxi industry is expected to grow, as well as the number of taxi-hailing mobile apps.
Still, you can take a moment to develop a cab service software and acquire your market share.
A step-by-step guide on how to make a taxi booking app
Apart from a unique value proposition, find a niche in the taxi booking app market with low competition.
Gather requirements for taxi mobile app development and improvements that can be made.
Create detailed technical specification of product functionality, the app architecture, and tech stack to be used.
Divide each project part into different tasks, starting to implement each task based on their priority and conduct unit testing to find logical errors.
Taxi app developers deploy the app to the live environment to ensure that it runs properly on all devices.
With over 91 million monthly active users, Uber remains a strong competitor for all taxi-booking startups.
Do you want to enter the taxi booking industry?
In this article, we are going to tell you, not only about how to build a taxi app like Uber and the development cost but also about strategies to beat Uber and gain your market share.
Now, let’s begin.