Are you running a taxi business or launching a ride-sharing startup? In today’s competitive market, having a mobile app is essential for operating a successful taxi service. The taxi app market is projected to grow at a compound annual growth rate (CAGR) of 4.2% between 2023 and 2028, highlighting the increasing demand for convenient and efficient ride-hailing solutions.
For entrepreneurs in this industry, investing in a taxi app is not just a wise decision—it’s a necessary one. However, understanding the costs associated with taxi app development is crucial for making informed investment choices. In this article, you will learn:
- How much does it cost to develop a taxi app?
- The factors that influence the development cost of a taxi booking app. Â
What is the cost of developing a taxi app?
The cost to develop a taxi app can be bifurcated into a Basic, Medium, and Advanced App. Let’s jump straight to the estimated cost of each one of them:
- Basic Taxi App: In the case of an app with basic features and UI/UX, the development cost ranges between $10,000 to $30,000.
- Medium Taxi App: With few more features at this stage, the estimated cost ranges between $15,000 to $60,000.
- Advanced Taxi App: With the latest and most advanced features, appealing UI-UX, and strong backend infrastructure, the cost can start from $100,000 and can even go higher.
These costs are subject to change based on specific requirements, additional features, and the geographical location of the development team.
Factors that influence the taxi app development cost
There is no fixed cost for developing the app, but you should know that a taxi app development cost depends on several factors. They are as follows:
App Platform
The cost depends on the platform you want to develop the app, whether Android or iOS. Developing an app for several platforms with different sets of codes will cost you more as it requires more time and resources. This is called Native app development.
Generally, entrepreneurs consider building hybrid apps. This cross-platform approach uses a single code set and developer to create the app for both platforms. It will reduce development costs and time. This is a cost-effective solution, but in the end, the decision is entirely yours, as native app development also has its own advantages and uniqueness.
Features of the taxi app
Features are essential in influencing the taxi booking app development cost. The more advanced features integrated into the app, the complexity of developing the app increases, thus increasing the price.
If you consider developing an app with basic features, it will cost you less. However, suppose you build an advanced app with features like an AI chatbot, GPS tracking, multiple payment options, push notifications, real-time driver monitoring, etc; in that case, the cost tends to increase.
The combined features and UI/UX will decide the ROI.
App design
The first thing customers notice when they open an app is its UI and visual elements, which retain them. To ensure customer satisfaction, you must provide a user-friendly experience by optimizing the app’s visual elements. There are two kinds of app design:
- Basic design: This design comes with the most basic visual elements, usually the pre-built templates on which the app is built. It is a faster and cheaper solution, but its creativity and uniqueness are limited as the design is more generalized.Â
- Custom design: These apps have appealing elements that reflect their branding. With a high level of customization, the app’s design is unique and attracts customers, but as the complexity increases, it requires more investment and time. Easy onboarding and smooth browsing are common elements of these designs.Â
Third-party integration
Third-party integrations are required to build any application, whether primary or advanced. For example, payment methods require payment gateways; for that, it is necessary to integrate the API of PayPal or any other payment gateway. In the same way, if you want to provide more functionality in the taxi booking app by providing SMS or chatbot features, then a third-party API integration is required to make them work in the app. These integrations will also require you to pay for the APIs, thus increasing the taxi booking app development cost.
Location of the Development Company
The last and most crucial factor that affects the cost of developing a taxi booking app is the location of the development team. It is essential to know that there are countries with lower labor rates, generally the eastern countries. For example, the rates are usually lower if you hire a developer from India. Therefore, you can hire an experienced developer at a much lower rate than in Western countries.
Conclusion
Before developing an app, it is essential to know the cost of developing a taxi booking app and the factors affecting the price. There are options like building an Uber clone app with a pre-built interface and codeset like Uber. With just minor modifications, you are good to go. This way, it will cost you somewhere between $10,000 and $30,000 only. The number of ride-hailing users is expected to reach 97.36m by 2028, showing the excellent timing and opportunity to develop one.
Working with an experienced app development company can be a game-changer for your business. They can provide valuable insights and help you take your taxi business to the next level. If you want clarity and guidance on the cost of developing an app like Uber, consider connecting with aPurple and get thorough support on your development journey.
