How to Develop an App Like Uber? Everything You Need to Know
Lyft has 30% of the market share in the US but Uber beats the score with 70%.
Your ultimate guide to ride-sharing app development.
Table of Contents
Are you looking to develop and launch your own uber like app? Know this, before you step into the market, you need to make sure that you are genuinely ready to take on the challenge. Though developing a mobile application is not a piece of cake yet very rewarding when done the right way.
Above all, ride-sharing apps are extremely convenient for those with no means of transportation and also who don’t prefer commuting using busy and rushy public conveyance. Under these circumstances, uber clone app development seems like a reasonable move.
An Overview of Ride-Sharing Apps
Ride-hailing startups connect drivers with passengers on the go through a simple yet intuitive mobile application. Startups like Uber offer a platform for those who need to conveniently make some money. All they need is a car which they can operate as a taxi.
These mobile applications make use of advanced algorithms to match drivers with passengers in their nearby vicinity. In short, ride-sharing resembles a taxi service but with privately owned cars and drivers looking for part-time earrings.
But ride-sharing startups or businesses do not need to follow the licensing requirements that traditional taxi companies have to comply with – which gives them an advantage over traditional taxi services.
Some Interesting Stats
According to studies by Statistam, the ride-sharing market is worth over $60 million and is anticipated to reach $220 billion by the year 2025 – which is a huge jump.
Uber is among the most popular ride-sharing applications with over 3.8 million drivers around the world and double the riders. On the other hand, Lyft has 30% of the market share in the US alone but Uber already beats that with 70%.
Additionally, an estimated 25% of the population in the US leverages ride-sharing apps to commute from one place to another, at least once a month. Apart from Uber and Lyft, Didi is another giant in the ride-sharing industry around the world but largest in China – as it controls 91% of China’s market share.
How Do Ride-Sharing Apps Work?
I am sure many of you have experienced firsthand that metropolitan cities are usually jam-packed with traffic – even finding a parking space can be a hassle.
Apps like uber offer ease and relief to people daily. Thus, if you too are encouraged to develop an uber like app, at first you need to know how it functions. Once you know the ins and outs of uber clone app development – you can take it global in no time.
Step 1 – Ride Request
If you have used a ride-hailing app, I am sure you must be familiar with this step. The first step is to request a ride. Customers add their drop-off and pick-up location for fare estimation, choose the car of their choice and after they have hit the ‘request’ button – the app automatically starts finding the drivers in their area.
Step 2 – Matching
After the customer has requested a ride, at the same instance all the available drivers in the area will get the notification. Now the drivers can accept or reject the request. If the driver has accepted the request, he will start the ride. In case of ride rejection, the request is automatically sent to another driver.
Step 3 – Tracking
Through a comprehensive map integration, passengers can easily track the driver, based on which they can easily know the estimated time of arrival. Also, riders can contact the drivers through the app either through chat or call options to avoid any delays.
Step 4 – Payments
Before a customer boards the ride, the app will give you an exact estimation of the ride fare which makes the process smoother. This way none have to bicker about the costs. Also, multiple payment gateway integrations make the payment process hassle-free. Once the driver has picked up the customer, and successfully completed the ride, the customer pays the driver.
Step 5 – Ratings
At the end of the trip, the drivers expect customers to leave a review. Because reviews and ratings build up their profile. It is a very important step since it enhances the service’s reliability and trust.
Important Features to Develop an Uber like App
Basic Features for Passengers
- Customer Registration – Passengers can register through email, Facebook, and phone number. Once they have registered they are required to verify their accounts to start using the full services.
- Ride Booking – Customers can enter their pick up and drop off location for accuracy and select the car type.
- Fare Calculator – Once they have added their pickup and drop-off location, the app automatically calculates the fare for ease and convenience.
- Driver Tracking – For location accuracy and to know the estimated time of arrival.
- Payment Gateway – To be able to pay through the app either through credit card, PayPal, or cash.
- Push Notifications – To keep passengers up-to-date with trip request status, driver arrival time, car details, etc.
- Messaging – Ability to contact the driver through the app.
- Driver Rating & Review – To evaluate and enhance the service.
- Travel History – For customers to keep track of their previous ride details and transactions in case of any conflict.
- Customer Support – For 24/7 customer support.
- Ride Cancellation – In case the customer has changed his/her mind, or the driver is too far away from the pickup location and they need to cancel the ride.
- Interactive Map – For navigation in real-time.
- Advance Booking – Allows passengers to schedule a ride in advance.
- Rewards – Loyalty programs and rewards to increase customer acquisition and increase retention rates.
- Security Protocols – Panic button or helpline details to make the ride more secure and trustworthy for passengers.
Basic Features for Drivers
- Driver Profile & Verification – After the driver has set up his profile, a thorough verification process is conducted by the administrator (service provider) to verify the license, vehicle, etc.
- Real-Time Trip Alerts – To receive, accept or reject trip requests.
- Push Notifications – To alert drivers about the booking, location, route, trip charges, and completion.
- Navigation – To offer the shortest route through Google Maps.
- Reports – To provide statistical reports about earnings and daily trips.
- Chat – To text and call the passenger directly from the app.
- Preferences – To accept the requests based on preferred drop-offs.
- Waiting Time – The ability to charge for the waiting time more than 15 minutes.
- Forward Dispatch – Ability to accept other ride requests midway through a ride.
Features of the Main Admin Panel
- Fare management
- Passenger & driver management
- Booking & location management
- Review ride history of drivers and customers
- Check ratings & reviews
- Ability to send push notifications
- Content management
- Promotions, rewards, redeem points & discounts management
- Passenger & driver (customer) support
How Do I Build a Real-Time App Like Uber?
Outsource a Ride-sharing App Development Company
After thorough market research and in-depth analysis choose a company well versed in developing uber-like apps. Make sure to check out their portfolio for similar products and overall success rates.
Define What You Want to Develop
You should be sure about what you want to create and for whom (target audience). Make sure to have a clear understanding of your app’s vision, mission, and goals; both short-term and long-term. Decide on the features that can serve as a real MVP, your development platforms, and revenue models.
Determine the Look & Feel of Your App
In this step, your team of designers works on mapping out the user journey, creating wireframes, user interfaces, and transitions. After which they create a fully functioning prototype to share with the development team to develop a product while maintaining the harmony, balance, consistency, and branding guidelines of the app.
Product kick-off by the Development Team
You need to make sure that every member of your development is familiar with their responsibilities and expectations. They have all the resources and tools to ensure smooth working. Also, make sure to have a dedicated project manager overseeing the work through agile practices. Moreover, DevOps team is a must since they make the app development process smoother and faster.
Ensuring the Quality of the Product
You need to make sure that the product meets the set standards of quality every step of the way. Run automated quality assurance tests for accuracy and to speed up the processes.
Final Release on Play & App Store
In this stage, you upload all the assets to the app and play store for promotional purposes. You beta test the product to ensure everything is working as it should. Here, you do everything that needs to be done for the app and play store approval.
Post-Development App Maintenance
Making sure the app is working fine is a continuous process that never ends even after the deployment. You should detect bugs and crashes, monitor the app’s performance, and enhance the product to meet the changing market trends based on user’s feedback regularly.
How Much Does it Cost to Make an App Like Uber?
The final cost of the app will depend entirely on the complexity of features, development platform, team setup and hourly rate of all the key stakeholders involved such as senior developers, junior developers, UX/UI designers, business analysts, project managers, scrum masters, and QA engineers.
Since an uber like app needs three different app structures to function therefore based on their anatomy and feature set, the overall cost can fall somewhere around $50,000 – $60,000.
Uber’s Monetization Models
If you are starting out and have little idea about how you can monetize your app or generate revenue, below is how uber’s revenue model works:
Commissions – They are one of the most important ways of generating revenues for ride-sharing apps. Uber charges a 25% commission on each ride whereas Lyft charges only 20%.
Peak/ Surge Factor – Uber’s surge follow the demand and supply rule – meaning the app will incur extra charges if only a few drivers in any particular area are available.
Premium Service – Uber offers sedans and SUVs for premium users – which definitely cost more.
Ride Cancellation Charges – In case the passenger has changed his/her mind and cancels the ride when the driver is near the pickup location, they will have to pay additional cancellation charges.
Car Lease Policy – Uber lends cars to drivers who don’t have their own.
Partnerships – Uber charges a fee to other businesses to advertise and/or promote their services.
Not sure from where to start? Get in touch with us today.