Taxi App Development: A Brief Guide To The Taxi App Business Model


Taxi App Development: A Brief Guide To The Taxi App Business Model

July 13, 2019 | By SYNARION IT

Ever since the taxi app development is introduced, its popularity has been mushrooming everywhere. Have you ever noticed why’s that? No awards for guessing, the reason is pretty simple and straightforward. Yes, it’s all about making customers/users happy and satisfied. And how would you do that if you’re planning to establish or already has a taxi booking service

taxi app development business model

There are already many online taxi booking apps in the market like Uber, Ola, Lyft, Careem, etc.  If there are so many competitors then how is it possible for the new player to start the online taxi booking business? There are plenty of good ideas that exist in the market. The thing that is missing in the business is the uniqueness of the idea.

Opt for a Unique Idea 

  • As uber started in 2009, if you look at trends of adopting different new idea you will find they keep adopting some unique ideas in their venture. As they started share taxis to capture a niche market share.
  • Similarly, Ola has started Ola auto to capture that commutator who cannot effort the taxi fair, for the cost is first then a luxury.

So you have to think of some different and unique taxi business ideas. It gives you to establish your business in competition. Make sure in advance the business of mobile app taxi booking must yield worthwhile business goals. 

What Are Taxi Booking Apps?

The concept of taxi booking apps is pretty simple. A passenger enters a destination and confirms their location. After that, the taxi app matches the passenger to a nearby driver. These apps include online payments, GPS tracking, and customer support as well.

Now let’s take a look at pivotal players on the global online taxi market.

  • With 91 million riders and 3.9 million drivers, Uber has become one of the most popular ridesharing apps. It operates in more than 700+ cities in 63 countries.
  • Today, Uber’s main competitor is Lyft, mainly in the United States and Canada. According to Second Measure, Uber and Lyft combined occupied almost 98 percent of the US ride-hailing market. 

But while Uber led by market share, Lyft pointed faster growth.

  • Meanwhile, Ola is the chief rival of Uber in India.  Ola has over a million chauffeurs across 110 Indian cities. That’s a lot more than the 29 cities covered by Uber in India. Ola has expanded to other countries like Australia and New Zealand.

India's Taxi Booking App Revenue

Here are some other ride-sharing apps you might have heard of-

  1. Gett
  2. Grab
  3. Curb
  4. Juno
  5. Hailo
  6. Easy Taxi
  7. Taxify
  8. Mytaxi 
  9. Careem
  10. Didi

Why You Should Have a Taxi App?

Conventional taxi services are constantly making way to more comfortable mobile app services. As, a taxi booking app, ordinarily, has high user engagement and customer retention. why so? Because this service is vital for 90% of folks worldwide.

Thus, sooner or later, you’ll apparently type onto Google – ‘how to get a taxi app’. Develop a taxi app like Uber or ola, and charge your price out of ride fares. Uber takes 25%, Lyft charges 20%.

Global Ride-sharing revenue

Global Ride-sharing revenue

1M rides – the average number of daily Uber rides.

So, I hope that you why you should develop a taxi booking app. So let’s take a glance at the business model and revenue model for taxi booking app development. 

Taxi Booking Business Model and Revenue Model 

Most of the well-known taxi booking apps Ola and Uber are cab aggregators who partner with taxi operators to provide rides on demand. For such platforms, the revenue model is based on the standards of pay-for-performance. 

Apart from this, such models receive a commission from the taxi drivers on every deal that occurs. Additionally, chauffeurs also have a fee for enjoying the facilities of the technology platform.


business flow chart

Some of the major types of business models are:

  • Aggregator Model
  • Ownership Model
  • Revenue Generation Model
  • Aggregator Model

Under this kind of business model, the customer contacts the taxi booking system provider that is the Admin. Then the admin contacts the taxi operators or car owners who, in turn, assign a taxi to the customer.

  • Ownership Model

This is the most critical business model used nowadays. Customers can book a cab for their trips via a smartphone having an on-demand taxi booking app. Consequently, passengers can enjoy a convenient taxi service after a cab operator or car owner reaches them.

  • Revenue Generation Model

For generating consistent revenue after developing a cab booking app, mobile app development companies can use the following arrangements:

  • Providing Premium Car services
  • Charging rides on a kilometer basis
  • Surge pricing in peak hours
  • Charging for setbacks or changing of schedules
  • Different price scales for different car models
  • Special charges for other delivery services

Key features for Taxi Booking App

Forthwith, to create a taxi app these features are obligatory.

Features of Taxi booking app

  1. Booking interface
  2. Real-time location tracking(Geo-location)
  3. Fare calculator
  4. Payment
  5. Loyalty program
  6. Push Notifications
  7. Chat

How do taxi apps make money?

So, let’s take a look at the most common revenue streams for a taxi booking app.

  • Commission

Taxi services generate revenue essentially by taking a commission for rides. Services like Uber, Ola don’t own cars. Instead, they pay cabbies as independent contractors. Each transaction is split between the chauffeur and the company. 

Both Uber and Lyft take about 20 to 25 percent commission from each deal/ride. Drivers get the remaining 75 to 80 percent of the total amount.

  • Surge pricing

When the demand for cabs in a particular area is high, charges for a ride automatically increase. Most of the taxi apps like Ola, Uber, and Lyft use this pricing strategy. In the case of high demand, the price is usually based on the number of available operators and requests.

  • Different car models

On-demand taxi Android App Development provides several taxi services to meet the needs of different audiences. The better and bigger the vehicle/car, the higher the price for a ride.


uber and Lyft Ride Types

Uber provides several options, from UberX with regular sedans (about 80 percent of all Uber rides) to UberBlack, which is Uber’s most expensive yet luxury service. There’s also UberXL, which can seat up to six riders and costs more than UberX. Uber also offers an option for shared rides called UberPool, which is more affordable for riders while letting Uber collect more revenue on each ride.

A taxi booking app like Lyft provides similar options. There’s the usual Lyft service, Lyft XL, Lyft Lux, Lyft Black, and Lyft Shared. 

Why Most of the Startups Go with UberClone or OlaClone

Uber clone script is frequently expanding since it provides numerous benefits that fit every need of the individuals in the field of taxi booking segment.  

Let’s see the additional benefits of this Uber clone script or Ola clone script

  1. Passenger can locate the cabby’s location by using GPS
  2. The owner can also track cab using Google Maps
  3. Track regular transaction and reports
  4. Integrate supplementary payment gateway
  5. In-app push notifications to riders and operators
  6. Easy and secure payment solution for customers and drivers

Make Your Own Custom On Demand Taxi App Development Solution Like Ola, Uber, Lyft with one of the leaders in the web and app development industry.


There’s no dilemma in the fact that taxi booking app development has brought a revolution not the ride-sharing market but as a business model where they reach out to serve clients at their location. 

A number of startups have already made their apps like Uber, Ola, and Lyft. Numerous others have made little monotonies to launch new businesses in different industry verticals.

Do you want to create a Taxi Dispatch Solution similar to Ola, Uber, and Careem? Get in touch with us and we will help you create the next one big thing.

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