How Much Does It Cost to Develop an App Like Careem & Uber?

Updated 07 Feb 2024
Published 27 Sep 2022
Satyam Chaturvedi 2854 Views
on-demand taxi app development in UAE

Developing apps for mobile devices has revolutionized many facets of our daily lives by providing us with cutting-edge tools for gaining easy access to information and services on the go.

In light of the increasing demand for taxi applications around the world, on-demand taxi app development in UAE has seen significant reinforcement in recent years.

An on-demand taxi app like Careem has raised the bar for the whole taxi sector with its cutting-edge interfaces and user-friendly functions for booking cabs in a matter of minutes.

The worldwide taxi app market is expanding at an unprecedented rate, and now is the ideal time to develop ridesharing apps like Careem, as the business has nearly recovered from the past pandemic and is thriving in response to rising global demand.

Taxi-booking mobile apps market
Image Credit: statista.com

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This blog will give you the information you need to move on with the development of the top taxi booking app in the UAE.

We will brief you on the average cost to build an app like Careem or Uber and the variables that contribute to that figure.

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On-Demand Taxi App like Careem: Business Model

It’s important to learn about the various revenue models used by taxi apps before you begin to develop ridesharing apps like Careem. There are typically three main ways to introduce a taxi app:

Business Model of on demand taxi app

  1. Aggregator Model
  2. Ownership Model
  3. Revenue Generation Model

The aggregator model is the most popular among these 3 business strategies, and it is used by any top taxi booking app in the UAE. We will use Uber as an example to let you comprehend the aggregator cab application model.

Uber works with a vast network of independent taxi drivers who operate a wide variety of cars. There are three different app modules: one for the driver, one for the passenger, and one for the administrator.

Now, when a user requests a ride and specifies his location, Uber will alert the nearest available driver to come to pick him up.

The ride request is subject to the driver’s approval or rejection. Once a driver accepts a booking, Uber sends the customer a notification with the driver’s and car’s information.

Benefits of Developing an On-Demand Taxi App like Careem 

Benefits of Developing An On Demand Taxi App

Simple Administration

Manually overseeing the entire fleet can be more difficult than it sounds. The good news is that a single gateway makes the process simple. Imagine trying to manage your fleet without the help of a mobile app.

It could involve a large number of calls and messages, misunderstandings, chaos, and issues. Wasted time on a pointless conversation is common in these settings.

For this reason, it’s beneficial to develop ridesharing app like Careem for your company. The integration of your company with on-demand business models like Uber will improve the speed and convenience of your operations.

Facilitates Tracking

Once you’ve decided to create a simple taxi app like Careem or Uber, it’s a good idea to include monitoring technology to make your solutions more appealing to potential users. The GPS capabilities built into the app allow for the safe monitoring of both drivers and passengers.

Greater ROI With Low Investment

You may open up a world of opportunity for yourself by developing one of the top ridesharing apps in UAE. In this way, you can easily connect with more potential clients without spending money on brand-new transportation options.

If you want to start a service like Uber, all you have to do is create a mobile app, and the drivers or riders who sign up for your service will be required to provide their own motor vehicle. Commissions will be the main source of income for you.

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Develop Ridesharing App Like Careem: Main Components to Consider

Most on-demand apps, including those that facilitate taxi bookings, are divided into three modules: the user interface, the drivers’ section, and the backend administration.

It’s crucial to have a firm grasp on the several app modules that would merge into a single on-demand taxi app while discussing the cost to build app like Careem & Uber. Let’s examine the various components now:

1. Passenger Module

This will be the component in your on-demand taxi app like Careem, where passengers will interact. Everything from downloading the app to requesting a ride, determining the cost, contacting a driver, completing the transaction, and leaving feedback or ratings is included.

Components of Ridesharing App Development(Passenger-Module)

Registration

Allowing users to sign up and log in with preexisting credentials and accounts on social media is a crucial part of the app’s design.

Choice Of Taxi Model

Adding a feature like Uber’s, where users can select the sort of car they wish to travel in, will improve your app’s popularity quickly.

Booking

Users can schedule rides using your app at any time, from any location.

Prompt Alerts

Sending out push notifications about in-app purchases and other important app updates is a terrific way to keep your consumers in the loop.

Develop App Like Careem

Feedback

This is an absolute must-feature for an on-demand taxi app like Careem. Customers should be able to comment on the services they have used, which is a powerful form of advertising. You will learn where there is still opportunity for development.

Ride History

If a rider has already taken a trip with a given driver, they can view their journey history with this functionality.

Cost Estimator

A fare estimator is also essential since, without it, passengers would have no idea what their ride will cost.

Payment

Be sure to offer a variety of payment gateways (such as credit and debit cards, online banking, etc.) to your users.

Calling

Riders will appreciate being able to contact their drivers directly from within the app in the event of an emergency.

Messaging

The ability to communicate with one another within the app is a great feature that benefits both riders and drivers. This functionality will allow them to exchange and receive information in real-time, enhancing their experience.

2. Driver Module

This aspect of the application focuses on the drivers/captains (Careem’s term for drivers). While the Uber user experience is similar for both riders and drivers, the driver app does provide a few perks that the passenger app doesn’t.

The optional extras include a navigation system, an estimate of how long a ride will take, the choice to be either active or passive, reports on travel and paycheck statistics, etc.

Components of Ridesharing App Development(Driver-Module)

Status Of Driver

It’s a way for drivers to announce their availability to passengers.

Profile Modification

Driver profiles, including details on the car they drive, their experience level, and other relevant data, will be editable.

Calling

If a driver needs to contact a passenger, they can do so directly from the application with the inclusion of a calling option.

create a simple taxi app like Ube

Messaging

An in-app conversation feature benefits both riders and drivers. With this feature, they may exchange information in a timely manner.

Activity Notification

It notifies drivers of any nearby bookings so they can choose whether to accept or decline them.

Navigation

GPS is an important and useful function to get assistance for navigation. If not, how might the driver find the passenger? Or the location where they have a reservation.

Cost Estimation

Similarly, just as riders benefit from knowing the fare, drivers too need to be aware of it.

Reports

In the reports section, drivers can get daily information regarding travel and earnings.

3. Admin Module

The backend of an on-demand taxi app like Careem is often a web app where data is stored, managed, and reviewed. Features include, but are not limited to, the following:

Components of Ridesharing App Development(Admin-Module)

Vehicle Administration

The administrator has full access to data on all company-owned cars.

Invoicing and Billing

The administrator of an on-demand taxi app like Careem will get a clear view of the daily earnings produced on the platform as well as the daily ride count, thanks to this functionality. Insights gained from this can be used later.

Controlling Compliance

Do you remember the suggestions people make? The admin can gain insight into the quality of service provided by the app by learning about its users’ opinions and feedback.

Strategic Handling of Assigned Tasks

The admin has complete control over override allocation and communication amongst drivers.

A System for Monitoring and Tracing Vehicles

Priority is given to the security of passengers and motorists. Therefore, the admin can monitor the car using this functionality.

Management of Sales and Discounts

The administrator may control all of the app’s promotions, coupons, and discounts from this section.

Cost to Make an App Like Careem or Uber: Development Insights

How much does it cost to build an app like Careem or Uber? Typically, this is dependent on the functionality that you intend to incorporate into your app as well as the level of complexity that you intend to bring to those features.

Cost to Make an App Like Careem

Using Geolocation and Routing 

When trying to figure out the cost of making an app like Careem or Uber, the first thing you need to do is figure out how to use geolocation.

The Global Positioning System (GPS) is commonly used to determine a person’s whereabouts. However, an on-demand taxi app like Careem lets riders monitor their driver’s whereabouts in real-time.

“Get a ride at the push of a button” may be Uber’s catchphrase, but behind the scenes are complicated processes and infrastructure that make the service possible.

The route discovery server is required for calculating distance and executing routes. The routing engines at Uber are constantly at work, from the minute a passenger opens the application to the time they are dropped off.

A significant part of Uber’s basic functioning is the routing and matching technologies that guarantee the service’s perfection.

Therefore, it would be incorrect to ignore these two functions when calculating the budget for the Careem ride-booking app in Dubai.

Payments

When planning your budget for the Careem ride-booking app in Dubai, this is the next fundamental aspect to consider.

Customers and drivers alike can profit from the streamlined financial transactions made possible by today’s cutting-edge technologies.

In order to help its customers estimate their trip costs, Uber has integrated a fare calculator directly into the app. Pricing for an Uber ride varies by city and by the type of service requested.

Uber employs four primary factors to determine a fare estimate:

  • Base fare
  • Charge per mile
  • Cost per minute
  • Safe rides fee

The security of your customer’s financial information should be your top priority when integrating a payment system into your apps.

Compliance with the stringent standards established by the Payment Card Industry (PCI) is essential if your business plans to store or handle credit card information.

A cashless payment solution should be added to your application once you have received PCI certification.

A second choice is to use a third-party payment processor like Braintree or Stripe, which offers PCI compliance solutions with complete support.

Given that many service providers employ the web view method, it is imperative that a payment gateway is tailored to mobile devices being developed. 

Enrollment and Personal Details

The next two fundamental characteristics necessary to create an Uber-style app are registration and profiles. At the very least, this is required so that you can monitor your user base and provide your users with the full experience of your platform.

An easy way to get users to sign up for your app quickly is to integrate social media or email signups, as Uber has done. Uber’s own website allows signup using Facebook, Google, or email and also requests a phone number.

In terms of profiles, they can be either stripped down to their bare essentials or packed to the gills with advanced options. Including a star rating and review section is also recommended.

By informing customers if their driver has a bad rating, the service will become more customer centric.

Furthermore, customer feedback might alert you to issues with the service’s overall quality before they can damage your company’s image.

develop an app like careem

Notifications and Communication

When designing an app like Uber, it’s important to think about fundamentals like communication and notifications.

Those using Uber can contact their drivers by phone or text message without leaving the app. Maintaining open lines of contact with your consumers is crucial to maintaining a healthy relationship with them.

SMS, mail, and app alerts can assist with informing users of significant events, such as order confirmation or vehicle arrivals. These resources can be employed to create an Uber application with customizable alerts:

  • If you’re making an app similar to Uber for iOS devices, you’ll need to use Apple’s Push Notification Service (APN).
  • If your target platform is Android, you should use Firebase Cloud Messaging (FCM) during development.

Adding support for SMS notifications to the app requires extra development time and the cost to develop Careem clone app increases. For this to be an option, you’ll need to speak with your phone company.

Estimated Fare Cost

An estimated fare is displayed to the consumer before they order the service, which is a standard feature.

To implement this in your own Uber-like app, your team of programmers will need to devise an algorithm that estimates the fare based on the user’s pickup and drop-off locations.

If you’re going to follow Uber’s lead and give riders a wide range of vehicle options, you should also give some thought to the fact that those options will likely come with varied price tags.

Ride Scheduling

Uber first launched this advanced capability a few years back. Pre-booking a ride helps consumers save money and time, and it also improves their trip planning

Reservations For Others

Scheduling a ride for someone else is a premium feature for Uber-type app development that might hike the cost to develop Careem clone app. This means that an individual can use their own account to arrange transportation for a loved one.

When they schedule a ride, their friend or family member receives an SMS with all the pertinent information, just like a driver would.

Cost Sharing for a Ride

This is another advanced feature that you should consider while developing an on-demand taxi app like Careem. Users should be allowed to divide the fare among themselves and any other passengers in the vehicle.

User Interface and User Experience Design (UI/UX)

The design phase takes up the significant cost to build app like Careem & Uber. Since ridesharing is customer-facing, it’s important that the UI and UX be polished and straightforward.

Features Essential to Creating a Driver-Supporting App like Uber

Essential features to create a app like uber

Driver Report

The purpose of the driver report function is to protect both the driver and the passenger. This report provides a high-level summary of the driver’s behavior over a specified time period. Careless driving might result in a driver being permanently banned from the platform.

Advanced Route Planning

Large sums of money will need to be poured into the route creation features if you intend to create a successful taxi application. Your drivers’ productivity will increase in proportion to how well their routes are optimized. As a result, we see an increase in overall consumer satisfaction.

Driver Destinations

When designing an app like Uber, it’s important to keep the driver destination feature in mind because it improves the driver experience overall.

The driver can select a starting point and look for people who need rides along the same general route. This allows drivers the flexibility to manage their time for both business and personal obligations.

Two-Minute Cancellation at No Cost

The objective of this functionality is to reduce the time and money wasted when a customer cancels or delays a scheduled ride.

It’s an essential component for any app that aspires to be like Uber because it reduces concerns for both drivers and customers.

So, how does it function, exactly? Passengers are not charged for the first 2 minutes following the arrival of a taxi.

There will be a surcharge if they take too long to arrive at the car and begin the ride. Passengers who cancel their rides after the allotted period will be charged the total amount.

Analytical Heat Maps

Another helpful tool is the heat map, which shows drivers the quickest routes.

Helping drivers discover which areas of the city have the biggest demand for the service, they can then travel to those areas in an effort to increase their request volume and, ultimately, their earnings for both them and your business.

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What Variables Impact the Taxi App Development Cost?

Features

The final cost of developing an application like Uber depends on the features you choose. You should expect a wide variety of costs for development, based on the complexity and number of features of the app you want to create.

Uber and Lyft are two companies that have started with minimum viable products and are now expanding.

Who you are as a Business?

Have you thought of starting a cab business, or do you already run one? In the first scenario, you might be interested in a mobile app made just for your company’s needs.

In contrast, launching a startup necessitates concurrently developing both the software and the firm itself, a strategy that affords some flexibility but is often constrained by a limited funding pool.

App Platform

What platform should be chosen? For many business owners, this is a perennial dilemma. The solution, however, is straightforward: develop for both Android and iOS if you would like your application to reach the widest possible audience.

If you’re working with a limited budget, your MVP’s foundation should be the platform most preferred by your intended users.

For instance, Uber’s initial release was only for iOS because, at the time, Apple’s mobile operating system had a near-monopoly (80%) of the market dominance.

Technology

Creating a native app is usually a better option than a hybrid app. The architectures and programming languages they use are just two examples of the various ways in which these two types of architecture differ from one another.

How much does the Taxi App Development Cost?

Taking into account the aforementioned variables, the cost to build a mobile app like Careem & Uber is between $28,000 and $35,000. This is a rough estimate of the cost to design a native app on a single platform from the ground up.

Bottomline

The final price of your Uber-like application will rely heavily on a number of variables and your individual preferences. You can bargain for a simpler or more complicated implementation of a wide range of functions.

Both the nature of your intended audience and the current market scenario are factors that should be thoroughly investigated.

To ensure timely project delivery, create a comprehensive list of requirements and find a scalable app development agency in UAE. If you commit yourself thoroughly and systematically to the undertaking, you will succeed.

FAQs for Taxi App like Careem

  • How much time does it take to develop an app similar to Uber?

    The schedule for developing different features relies on technology preferences, the team of developers, their capabilities, number of functionalities, and overall program complexity. It can take anywhere from 2 weeks to 5 months to create an app that resembles Uber.

  • What is Uber’s primary language of code?

    The engineers at Uber mostly use Python, Node.js, Go, and Java in their code. Initially, they focused on two primary languages: Node.js for the marketplace department and Python for everything else.

  • Why should I invest in creating a taxi app like Uber for my company?

    On-demand service providers can count on a steady stream of consumers thanks to the benefits they offer their clients in terms of accessibility and speed. Creating a taxi app is a straightforward process that will also assist in personnel management and the optimization of other business operations.

  • Why does Uber stand out from the crowd?

    By using private vehicles, Uber drivers save money by not having to pay for taxi medallions, commercial insurance, and other taxi industry necessities.

  • What is the future of taxi app development?

    There has been a steady increase in the number of people using taxi booking applications over the past few years. It is anticipated that the taxi and ridesharing market would generate $314 billion in revenue in 2022. By 2026, revenue is projected to reach $386 billion, reflecting annual growth of 5.30% over the next four years.

Satyam Chaturvedi

Satyam Chaturvedi is a Digital Marketing Manager at Arka Softwares, a leading app development company dealing in modern and futuristic solutions. He loves to spend his time studying the latest market insights.

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