The ride-hailing industry has experienced exponential growth in recent years, with the global market expected to reach $185 billion by 2028, growing at a compound annual growth rate (CAGR) of 13.3%. This growth presents a huge opportunity for entrepreneurs looking to launch a taxi booking app. Whether you’re looking to create a taxi app from scratch or improve an existing model, it’s important to understand the components of a successful taxi booking app.

In this blog post, we’ll cover everything you need to know to successfully launch a taxi booking app, including the business model, app workflow, key features, and the best approaches to make a taxi app. We’ll also discuss how VivoCabs, a white-label taxi booking software can help to streamline the process.

Business Model for Taxi Booking Apps

When planning to create a taxi app, it’s crucial to determine your business model. A taxi booking app can generate revenue in a variety of ways. The most popular business models for taxi apps include:

  1. Commission-Based Model: This model is the most commonly used. In this structure, the app charges a commission (usually 10% to 30%) on every ride booked through the platform. This is a win-win model for both the platform owner and the drivers.
  2. Subscription-Based Model: This model involves charging both riders and drivers a subscription fee for premium services. Riders can access exclusive features like priority booking, while drivers might pay for increased visibility or reduced service fees.
  3. Surge Pricing: Surge pricing applies when demand is high, such as during peak hours or bad weather conditions. This model helps increase the fare prices, ensuring that drivers are motivated to work during these times.
  4. Freemium Model: A freemium model involves offering a free version of the app with basic services and charging for premium features, such as luxury rides or quicker bookings. This model can also apply to features such as in-app messaging or ride history access.
  5. Advertising-Based Model: Integrating ads within the app (e.g., during a ride or in-app banner ads) can provide another source of income. This model works well if you have a large user base.

Each business model has different pros and cons, so choosing the right one depends on your target market and the specific features you plan to offer.

Workflow of a Taxi Booking App

The workflow of a taxi booking app typically involves three main users: riders, drivers, and the admin. Here’s how each user interacts with the app:

  1. Rider Workflow:
    • Registration: Riders sign up with basic information like name, phone number, and payment method.
    • Booking a Ride: Riders enter their pickup and drop-off locations, and the app calculates the fare.
    • Driver Matching: The app matches the rider with the nearest available driver based on location.
    • Ride Tracking: Riders can track the driver’s location in real-time and get an estimated time of arrival (ETA).
    • Payment: After the ride, riders pay via their preferred payment method, and can rate the driver.
  1. Driver Workflow:
    • Registration: Drivers sign up by providing their details (e.g., vehicle information, license).
    • Ride Request: The driver receives ride requests based on proximity, and can choose to accept or decline the request.
    • Navigation: Once the ride is accepted, the driver is guided to the rider’s location and the destination using in-app navigation.
    • Payment & Earnings: The driver receives payment after the ride, with a portion going to the platform as commission.
  1. Admin Workflow:
    • Dashboard: Admins have access to a dashboard for managing riders, drivers, and overall platform operations.
    • Driver & Rider Management: Admins can approve driver registrations, track user activity, and handle complaints.
    • Fare Management: Admins can set fares and commissions, as well as adjust pricing based on demand.
    • Analytics & Reports: Admins get detailed reports on earnings, user activity, and feedback to improve platform performance.

Key Features of a Taxi Booking App

A taxi booking app must include certain essential features to provide a smooth experience for riders, drivers, and admins. Here are the key features required for each user group:

1. Rider Features

  • Registration & Profile: Riders can sign up with their phone number, email, or social media accounts and add payment information.
  • Ride Booking: Riders can choose their pickup and drop-off locations and select the type of ride (economy, luxury, etc.).
  • Real-Time Tracking: Riders can track their driver’s location and view the ETA.
  • Payment Integration: Offer secure payment options including credit/debit cards, wallets, and cash.
  • Rating & Review System: Riders can rate their drivers after the ride and leave reviews based on their experience.
  • Ride History: Riders can view their past trips and receipts.

2. Driver Features

  • Registration & Profile: Drivers can create profiles with their vehicle details, license, and background check.
  • Ride Requests: Drivers get notifications for available ride requests and can accept or decline them.
  • Navigation: Drivers get turn-by-turn directions for both picking up the rider and reaching the destination.
  • Earnings & Payments: Drivers can view their earnings and track completed rides.
  • Rating System: Drivers can rate passengers after completing each ride.

3. Admin Features

  • Dashboard: Admins have full access to ride statistics, user management, and financial data.
  • Driver & Rider Management: Admins can approve or block users and handle disputes.
  • Fare Management: Admins can adjust fare rates, set commission percentages, and implement surge pricing.
  • Analytics: Admins can track performance metrics, revenue, and customer feedback.

Approaches to Make a Taxi App

When it comes to making a taxi app, you have several options. Depending on your budget, timeline, and technical expertise, you can choose the most suitable approach:

  1. Custom Development:
    • Pros: Fully customizable to your business needs, scalable, and flexible.
    • Cons: High development cost, longer time to market.
    • Best for: Businesses with unique needs and larger budgets.
  2. White-Label Solution:
    • Pros: Quick to launch, cost-effective, and easy to customize within limits.
    • Cons: Less flexibility compared to custom development.
    • Best for: Entrepreneurs who want to launch quickly and affordably.
  3. Hybrid Approach:
    • Pros: Combines custom development and white-label solutions. Allows for some customization on an existing platform.
    • Cons: May incur higher costs than pure white-label solutions.
    • Best for: Businesses seeking a balance between customization and speed.

How Can VivoCabs Help? 

VivoCabs is a white-label taxi booking software that allows you to create a branded taxi booking app with all the essential features. With VivoCabs, you can skip the complexities of custom development and quickly launch your taxi service.

Here’s how VivoCabs can help:

  • Quick Deployment: VivoCabs is a ready-to-use white-label solution that can be quickly deployed and customized to fit your brand.
  • Customizable Features: While the app is pre-built, it can be tailored to meet your specific requirements, including custom branding, feature adjustments, and UI/UX changes.
  • Scalability: The platform is designed to grow with your business. Whether you’re starting in a local market or planning a global operation.
  • Secure Payment Gateway: VivoCabs integrates secure payment options, including credit/debit cards and mobile wallets, to ensure a smooth and secure transaction process.
  • Real-Time Tracking: The app comes with integrated GPS for real-time ride tracking, helping riders and drivers stay updated on the location and ETA.
  • Admin Dashboard: VivoCabs offers an easy-to-use admin dashboard where you can manage riders, drivers, fares, and track performance metrics.

By using VivoCabs, a white-label taxi booking software, you can focus on growing your business while leaving the technical aspects to experts. It’s an efficient, cost-effective way to create a taxi app and offer a seamless ride-hailing experience for both drivers and riders.

Conclusion

The ride-hailing industry is booming, and launching your own taxi booking app can be a lucrative venture. By understanding the workflow, essential features, and business model, you can make informed decisions as you develop your app. Whether you choose custom development or a white-label taxi app solution like VivoCabs, there’s no better time than now to dive into the world of taxi booking services.

With VivoCabs, you can take advantage of its pre-built, customizable white-label taxi booking software to quickly launch your app and offer a seamless experience to riders and drivers alike. Start your journey today and create a taxi app that’s ready to scale and succeed in the competitive ride-hailing market!