One of the best innovations of the recent past has to be Uber. The name has become synonymous with transportation, and whether you’re at your friend’s birthday party, or enjoying the weekend in some club with your friends, Uber is there to be your designated ride.
Uber changed the way people perceive transportation, and although people tried to do something similar before, Uber was the first uber success in its lane.
Entrepreneurs who are interested in developing something similar can learn a lot from Uber. Today, there are a lot of similar apps in the market, yet, Uber has managed to remain one of the most popular apps.
If you have a similar idea, you can start focusing on making it a reality.
But before you do that, you should get an idea about Uber and how it works. We’ll discuss that in this article, and we’ll also try to determine the cost of taking on this project.
So, without further ado, let’s begin!
What is Ride-Hailing Service?
A ride-hailing service is a part of the sharing economy and shared mobility. It is a modern solution to the transportation problem. Instead of getting on a bus, or hailing a cab, with a ride-hailing service, you can contact the driver working for such a service through their website or mobile application.
Around the clock availability, along with an array of other reasons, is why these services are steadily growing in popularity. Let’s look at some of the reasons behind the rise of these services.
- The rise of technology and smart gadgetry has a lot to do with the growth of these services. People have, with open arms, embraced the steady growth of technology, and E-commerce has seen tremendous engagement from the population around the world. We’re not going back on that front, so there’s no reason to suspect that these services are going anywhere. The smart utilization of the growth of communication technology to give more power to users, as well as to people looking to put their driving skills and vehicles to good use while earning, is the boon of this development.
- Modern lives have so many facets that its hard to save time. Time has become the most significant asset amongst most people’s possessions. That’s why every second you keep, you can invest in freeing yourself and enjoying life more. With ride-hailing services such as Uber, it is easy to pre-book your ride, and choose your vehicle, driver, see expected arrival time, track them in real-time, and much more. You don’t have to worry about unexpected stops, fuel, driving sober, driving with many passengers, and other such things, which usually are on the mind of someone traveling in their vehicle or public transport.
- Ride-hailing services are also a neat solution to another problem that anyone can encounter. In an emergency, transportation, even when you have your vehicle, can be a hassle. You’re distracted by the situation at hand to focus on driving, and it’s also not an ideal environment for coming up with the right solution. An app like Uber can be helpful in these situations. With a couple of clicks on your Smartphone, you can have an Uber at your doorsteps within minutes. This way, you can deal with anything, without any distractions.
- Ride- bookings can be pricy, especially if you’re in a pinch. Cabs or any other traditional ride-booking service might cost you more than a booking, let’s say, an Uber. Ride-hailing services have a business structure beneficial to the users, the drivers signed up with such services, as well as the service providers. Users get cheaper, comfortable, and reliable transportation services, while drivers get flexible working hours, as well as other additional perks. With this design, the service providers also manage to benefit while growing the business.
- It is also a safe way of transportation. Services like Uber have a proper system of recording customer feedback and grievances, and there’s also a focus on providing reliable customer support at all times. Such services are not without any faults, and that fact is at the center of the progress that these services make as time passes. So, in a way, consumers play a lot more part in such a system, as compared to the traditional transportation system, where consumers have to rely more on service providers.
There may be more reasons for the growth that these services are enjoying, but you can get the idea. Now, if you’re interested in developing such an app for yourself, it is a good idea, especially at the dawn of this technical revolution.
But, before you go ahead with that, here are a few things to keep in mind.
Analyzing the Market
The first thing to do, before you start on your venture, is to study the market that you’re p[roving the solution for, and determine the state of it with extreme care. Sometimes, people tend to follow in the footsteps of successful ventures, such as Uber, without assessing the market needs and requirements. Without doing that, going straight ahead can be a mistake that’ll cost you a lot of your time and money. On the other hand, by finding out more about the market conditions and your target audience, you can come up with a relevant solution that can put right at the heart of the market in a big way. It’s all about being conscientious about the waters that you’re about to tread. If your market doesn’t require such a venture at present, maybe you can wait for a more favorable time, or look into other prospects advantageous to your market and yourself.
Forming a strategy
Once you’ve determined that your idea is well worth the risk in the market, your next step should be strategizing. Whenever you’re establishing a ride-hailing service like Uber, you have to consider all its components, i.e., the consumers, the drivers, and the management. It is ideal to come up with a unique and sustainable structure for your venture, that benefits each arm of your business, enough to give them an incentive for adding equivalent value to your enterprise.
You can have people who are also willing to go on this journey with you that you can discuss all this with, or you can wait for the next step to come into effect.
Finding the ideal App development Company
A crucial part of the whole process is finding an app development company that can turn your vision into reality. You are looking for a company with excellent credentials, skilled and experienced staff, as well as a transparent and communicative approach to development.
Usually, you can sit with the developers at these firms, and discuss your plan with them. You can find out which part of your strategy is sound, and which needs a little tuning. With this, you can correct and enrich your plan, and also get more involved in your project’s development.
You can look at a few different developer options before finalizing which one you’d like to work with for your project.
Cost of Development and timeline
Your budget is also a significant factor in determining your development journey. You have to keep in mind that there are differences in the charges, and approach to development among different development companies. It is not ideal to compromise on the quality or the ethos of the companies that you’ve shortlisted, but your budget and your timeline will determine in a big way, the company that you’ll be working with amongst this list, and that will subsequently determine the quality of your result.
To get the cards in your favor, you can find out the general cost of development across companies and countries, to get an idea, and then gather resources to aim for the best output.
Finalizing Features
When you’re all set with your business strategy, it’s time to look at the features of your app. Ideally, the basics need to go on the plate first. Afterward, you can discuss advanced features that you’d like to introduce, depending on the market requirements and your target audience.
Even if you start with just the basics, you can leave room for scaling at a later point. This way, you can keep a door open for growth in the future.
When you’re finalizing features, it is ideal to also look at other similar services (if any) in the market, and striving to produce an app that gives users a unique solution to the same problem. By doing this, you increase the chances of good reception by your target audience by a lot.
After considering all these things, let’s go into detail and look at the various components(features) of your ride-hailing app.
Features
A ride-hailing app, such as Uber, usually has various components to account for people connected through the app. These components are as follows.
- Passenger’s App
- Driver’s App
- Admin Panel
All three components have a few similarities and a few unique features that cater to the specific groups of people associated with them. Let’s look at these individually to get a better understanding of features that you might require for your app.
Passengers App
As the name suggests, this part of the developed product is specifically suited to cater to the passengers using your ride-hailing app. It is how your application is going to look to your users. It is a crucial part of your app design, and here are the top features your passenger’s app should have.
- Login/Registration – First and foremost, the login/registration portal for the users is necessary, so that’s a good start.
- Car Type – Different individuals have different preferences when it comes to riding a vehicle. Sometimes anything that can get you where you want to go, and sometimes, occasion demands something different. This option is a useful one for users.
- Booking and canceling rides – The option of booking, as well as canceling a trip, is a must in your app.
- Ride-Sharing – One of the popular trends among the users is ride-sharing. It is cost-effective, and it serves the purpose just fine. It is a useful feature to have.
- Live tracking of the vehicle/ Trip Tracking – The app should have a live tracking option, so users stay updated with the location of the driver in real-time. The same goes for during the trip.
- Scheduled Booking – Scheduled bookings can be extremely useful for users. Booking a ride in advance frees users, and they can go on with whatever they’re involved in without having to worry about booking later, or about not having the ride available just when they want to leave.
- The flexibility of Payment and Multi currency Support – It is not always feasible for the users to pay in a certain way, and instead, if they have multiple choices come pay time, it is going to make payments easy for them. Along with the flexible payment methods, you can also have a feature for multicurrency, so that doesn’t become an obstacle when your customers don’t have a choice.
- Safety features (SoS & File Complaint)- Ensuring the safety of your passengers as well as drivers is one of the most crucial parts of app development. SoS and File Complaint feature lets the users air out their grievances and call for safety in an unsafe situation.
- Automated E- receipts and Feedback – At the end of the trip, after the transaction, automated e- receipts keep the drivers as well as passengers notified. There’s also the feedback feature, which makes the app more credible.
Here are some other features for your passenger app.
- Alerts
- Edit Profile
- In-app chat
- Save destinations & Travel history
- Ratings
- Android and IOS Support
- Automatic fare calculation
- Multiple drop points (in case of a shared trip)
- Multi language support
Next, let’s have a look at the
Driver’s App Features
- User Login/ Registration – It is the essential entry point for your driver’s app.
- Accept or cancel Rides – Choice of accepting to canceling any trip is also an essential feature here.
- Start and End Ride – This feature is necessary for automatic fare calculation, and it is one of the essentials.
- Vehicle Tracking/see trip routes – It is also an essential feature to have, and you cannot have your driver’s app without it. GPS is also useful for navigating directions to the destination.
- Contact Passengers – It is another helpful feature to have in the app.
- Multi language Support – Multi Language support for your driver’s app is a must.
- Automated E- Receipts- Automated e- receipts are also what you should have in your driver’s app.
Here are a few more features to consider.
- Rate Card
- Alerts (Email and SMS)
- Scheduled Bookings
- Automated fare calculation
- Android and Ios Support
Now, let’s have a look at the features in the Admin Panel.
Since it’s the Admin Panel, most of these features manage various aspects of your endeavor.
Admin Panel
- User Management – To keep track and manage users connected with the app, this feature is a must.
- Trip Management – It is also one of the essential parts of the admin panel.
- Role Management
- Driver Management
- Vehicle Management
- Revenue Management
- Complaint and Rate chart management
Other than that, here’s what else you need.
- Multi-Currency support
- Daily reports and transactions tracking
- Flexibility of payment
- Vehicle (trip)tracking Geolocation boundary setting
- Automated fare calculation
- Trip invoice
Now, let’s break down the business and revenue model of Uber, so you can understand better, how Uber functions and generates money.
Uber’s Business& Revenue Model
Uber is one of the best examples of ride-hailing services gone right. Although now Uber has expanded in various directions, it is still one of the most relevant rides hailing services. Let’s have a look at the way Uber runs its business.
The service connects passengers looking for quick transportation and comfortable traveling experience with drivers. The demographic which uses Uber has expanded over the years. From people who don’t have a vehicle, to people who want to book a luxury car for a special occasion, Uber has a lot to offer. It has a range of cost-effective to luxury options for users to choose from with ease.
It is also an opportunity for people who are looking for jobs. It lets people who have a vehicle sign up with the app and drive passengers and earn a living. It is an excellent part-time or full-time job opportunity for people who have a vehicle and know how to drive well.
Here’s what Uber has to offer to its two segments.
Benefits for Passengers
- Passengers can quickly get a ride to anywhere they want to go.
- Prices are reasons if compared with most traditional means of transportation.
- A variety of offers and incentives for people using the app.
Benefits for Drivers
- An opportunity for earning to anyone who has a vehicle and can drive decently.
- The flexibility of working schedules is an enormous plus point for drivers.
- There’s no hassle of haggling as the app uses well-defined fare calculation and payment methods.
There are plenty of incentives for both users and drivers to use the app. So, how does it generate revenue?
There are a variety of ways Uber earns money. We’re not going to discuss Uber other ventures besides ride-hailing services at this moment.
Trip Charges
Uber connects passengers with drivers who are available at any given time. Once the ride is complete, the payment from the passenger goes to Uber. Uber then transfers the payment to the driver, after keeping their share which is between 15 to 30 %, depending on the region.
Cancellation Fees
After some time has passed after booking, Uber charges users a small cancellation fee. It is another way Uber makes money.
Surge Pricing
Surge pricing goes on whenever there is more demand than the availability of rides, and users have to pay extra per ride. The surging price calculation algorithm determines how much the change in pricing is going to be, and it makes revenue for Uber while solving the uneven demand and supply problem.
Leasing
The vehicle leasing programs run by Uber are also a way Uber earns money through the venture.
Premium Rides
From affordable to luxury car rides, Uber has a lot of choices for users. With premium rides, the profit margin is more, and Uber earns some more revenue this way.
Brand Partnerships and Advertising
Like many of the great businesses, Uber also has many brand partnerships and Advertising ties, which generate a lot of revenue for the company.
These revenue streams, along with revenue from other Uber ventures, make up majority revenue generated by the company.
Now, let’s move on to the cost of developing such an app for yourself.
Cost of Development
The cost of developing an app depends on which region you’re developing your application. Also, it depends on which firm or group you’re working with at any time. Here are the app development costs in various countries as of 2020.
- In the USA, the average cost of creating an app goes up to around $50 (or more) per hour.
- If we’re talking about the UK, the cost of development per hour is about $70 (or more).
- In India, you can get the app developed at a rate of around $25 per hour (or more).
- In Italy, app development can cost you around $80 (or more) per hour.
| Country | Hourly Charges |
| US | $50 |
| UK | $70 |
| India | $25 |
| Italy | $80 |
Now, let’s discuss the time it takes to accomplish developing various components of your app.
Geolocation and Routing
Geolocation is one of the first things to be developed in the process. It is an essential part of the app, and in this, various aspects of this feature are developed.
| Geo location Tasks | Number of Hours |
| Detect Users Location | 11 hrs |
| Set Pickup location | 17 hrs |
| Detect Users Location | 18 hrs |
Registration and Profile Development
It is an essential part of your app, and it will allow users to sign up and maintain a profile on your app for a seamless experience.
Let’s have a look at the time required for the development of various components of this feature.
| Profile Creation Tasks | Number of Hours |
| Registration | 3 hrs |
| Email- Password- Phone Number- Payment details | 33 hrs |
| Social media account- Phone Number- Payment details | 14 hrs |
| Password Recovery (Forgot password) | 11 hrs |
UI/ UX Design
Having a UI/UX design goes a long way in making your app credible and appealing to your users. Here’s how much time is spend on this feature.
| Design Tasks | Number of Hours |
| Android UI/UX design | 110hrs |
| iOS UI/UX design | 130hrs |
Notifications and Communication
Both of these features are essential for maintaining awareness for users, as well as for allowing communication. Here’s how much time it will take to develop these features in the process.
| Notification Tasks | Number of Hours |
| Push Notifications | 40 hrs |
| SMS Integration | 30 hrs |
Ride Bookings
Here are the various aspects of this feature and their time of development.
| Ride Booking Tasks | Number of Hours |
| Schedule a ride | 110 hrs |
| Book a trip for others | 240 hrs |
| Fare splitting | 116 hrs |
Ride Cost Estimation
The ride cost estimation algorithm determines the cost of any ride. Here’s how much time it’ll take to develop it.
| Cost Calculation Tasks | Number of Hours |
| Ride cost estimation | 26 hrs |
| Fare quote | 14 hrs |
Payment Portal
The payment portal for the app needs to be safe and reliable. Here’s how much time it’ll take.
Payment method screen (add cards, scan card, PayPal, cash) 67h
| Payment Gateway Tasks | Number of hours |
| Select Payment | 14 hrs |
| Info Screen | 4 hrs |
These are the numbers involved in the development process.
Conclusion
If you are sure about developing an app like Uber, the first thing you should do is get your plan in order and look for a reliable app development agency. You can discuss your idea, and build a framework for your app, with the developers. Afterward, you can estimate the cost of developing your app, based on the features in your app. You can do this by multiplying the approximate time of development with the hourly rate that the agency charges.
Summary: How much does developing an app Like Uber cost?
Transportation is a big Industry, and smart solutions like Uber help users by making the whole experience easier and more comfortable. Bringing something similar to the table, the chances of your success are high, especially right now. So, if you’re interested in executing your plan, you should get a consultation as soon as possible.
Typically, developing such an app can cost you anywhere from $50,000 to $150,000 (or more). Depending on various aspects such as the complexity, developer charges, timeframe, and so on, the cost can vary.
You can balance these aspects to get a desirable cost to output ratio.