How Much Does It Cost To Make An App Like Uber
How to Create an App Like Uber: Cost, Features, and More
People who live in large cosmopolitan cities with busy traffic and lack of parking space, refuse to own cars in favor of rideshare services like Uber. High demand for personal car rides makes entrepreneurs think about how to make an app like Uber and successfully launch it on local markets or even worldwide.
And, indeed, Uber-like app development seems to be a reasonable move not only for entrepreneurs but transport companies as well. The market of rideshare app development has never been so full as in recent years. New apps keep cropping up, heated by Uber and it's tremendous success, in the desire to grab a piece of a pie.
The companies that received worldwide recognition are always going to be a role model for the ones who make their first steps to success. So if you want to create app like Uber, it's important to comprehend the company's approaches to technology and business processes. For this, I suggest you read on to find out how to create an app like Uber and how much it costs.
Things to Know About Uber-Like App Development
Before we move on forward the topic, I would like to stress on the scale of Uber. Back at the end of the fourth quarter of 2020, the number of Uber users worldwide was 93 million per month. It's 19 times more than in the previous quarter (Statista reports). In addition to Uber, there is another huge company in the ridesharing sector – Lyft. However, compared to Uber, which already had 70% of the market in 2020, Lift had only 30%.
Uber currently operates in 84 countries and over 800 cities providing a 24-hour-per-day on-demand connection between riders and drivers through the Android and iOS app. Both parties are aware of each other's location and concerns over the car arrival time are no longer topical. Uber has captured a great share of the market with it's smooth app-user interaction, great marketing campaigns, and rare error reports.
Based on availability, there is a choice of various levels of Uber service:
- UberX – the most cost-efficient option
- UberBLACK – classy Uber with chic cars
- UberSUV – when the size matters
- UberLUX – the prime service needs no words
Various options for booking a car in Uber
As you see, this is a large company of the worldwide scale which, furthermore, has divided it's core service – ridesharing – into several smaller parts in order to fit different customer needs.
The secret of this trendy car-hailing service is concealed, but let's try to lift the veil a bit.
How Does Uber Work?
If you want to build an app like Uber, you should be aware of how the service works on the customer side. The general app performance can be shown in 5 simple steps:
- Step #1: Request. The customer requests a car instantly or on schedule via the app. Those requests are received by drivers nearby.
- Step #2: Matching. The driver may either accept or reject the ride. If they reject it, the request is sent to another driver.
- Step #3: Ride. The customer tracks the taxi approach and knows the estimated time of arrival.
- Step #4: Payment. The cashless way of payment and the price estimated beforehand make this process smoother for both parties. It's a weighty thing to remember when deciding to create an app like Uber.
- Step #5: Rating. It's an important component of Uber's business logic which enhances the service reliability.
How Uber service works
How Many Apps Do You Really Need?
If you're striving to create your own Uber app (or it's counterpart) there is the need for two apps. The original platform consists of the Driver App designed for drivers partnering with the company and the Passenger App meant for ordinary customers who book their rides. Apart from that, the platform should also come with an admin panel that's capable of managing and monitoring the platform's work.
Let's first consider the basic and advanced features you may implement in the app for passengers.
Basic features to build an app like Uber for customers:
- Geolocation and routing
- Payment integratio
- Registration and personal data management
- Call or text the driver right from the app
- Push notifications
- Ride cost estimation
- Top-notch UI and UX design
Advanced features:
- Scheduling a ride in advance
- Booking a ride for others
- Splitting a fare with companions
Now, let's take a look at the basic and advanced features which you can build in the app for drivers.
Basic features to create Uber app for drivers:
- Driver reports
- Advanced route optimization
- Personal profile editing
- 'Active/Inactive' option (active drivers are visible on the map, inactive aren't)
- Calling to a passenger from the app
- Generating daily/monthly reports of past bookings and earnings
Advanced features:
- Driver destinations
- Free cancellation within a set period of time
- Heat maps
The admin panel is the last but not the least thing you should consider. Admin panels are typically web-based and demand certain efforts on the part of your web development service vendor. It should give you a convenient overview of business processes as well as provide capabilities of managing payrolls and collecting user data.
Revenue Models for an Uber-like App
Depending on the objectives, your revenue model can differ from the Uber's one. This ride-sharing platform doesn't own a car park – it exploits drivers who have their own cars. Uber earns acting as a mediator by bringing drivers and passengers together.
So, Uber makes a profit from rides and has a ride calculator that mixes the following criteria:
- Base tariff (a fixed cost that the app charges for the ride service)
- Fee for reservation (a fee to cover the operating cost)
- Per minute cost
- Per mile cost
As you can see, Uber uses a fairly dynamic pricing model. Ride cost changes are dynamically influenced by factors – the availability of free drivers, holidays, bad weather, the current situation on the road, etc.
There are a couple of revenue models you can consider if you intend to build Uber app clone or it's counterpart:
- Charging fees from drivers
- Charging fees from passengers
How to Create an App Like Uber: Cost and Development Insights
How much does it cost to build an app like Uber? As usual, it depends on the functionality you are going to fill your app up with and the complexity you will bring to this functionality.
All the calculations you are going to see below are approximate and based on an average price of $50 per hour as for mobile app development services in our region (Eastern Europe, Ukraine). Back-end and mobile development are included in estimations.
Geolocation & Routing
Geolocation is the first basic feature to consider when answering the question of how to develop an app like Uber. In general, GPS technology is used to detect someone's location. Although, services like Uber allow them to track the location of the driver who accepted the ride.
Uber's slogan 'Get a ride at the tap of a button' reflects it's more than simple and appealing to user control, but it conceals complex processes and architecture behind the scene. In order to know the distance and run the routes, the routing server is needed. So from the moment customers launch the app until they get dropped off, Uber's routing engines work hard.
Routing and matching mechanisms are a big portion of Uber's core functionality that ensures a flawless service. So it would be a mistake not to mention these two features when figuring out the Uber app development cost.
Why Should You Integrate Geolocation into an App?
Let's talk a bit about the technical side of this feature.
When you pin the point on the map where you want the car to pick you up – it's Google Maps. When you track the real-time car movement – it's Google Maps. When the driver follows GPS directions – it's Google Maps again. Routes and directions in an Android version of the app are powered by Google Maps since it's the most native and easiest way.
So, Maps SDK is a must-have tool that has to be used in your tech stack to make an Android app like Uber. Geolocation API can also be used to get a user's precise location data.
Talking about an iOS version of the app, location services can be provided by the CoreLocation framework, while the MapKit framework can be applied for the selection of routes and directions. Developers usually apply classes and protocols of CoreLocation framework to set up the delivery of location provided by users' devices.
Payments
It's the next basic feature to think about when you come up with your own strategy of creating an app like Uber. Modern technologies enable straightforward financial transactions between all parties concerned and it's a benefit for both customers and drivers.
Uber provides its users with a fare calculator that ensures pretty accurate estimation right in the app. Uber fare rates depend on the service you order (uberX, BLACK, SUV) and on the city you are in. To estimate the fare for a ride, Uber uses four main criteria:
- Base fare
- Cost per mile
- Cost per minute
- Safe rides fee
Let's see how to create Uber app with cashless payments.
The first thing to ensure when you integrate a payment system in your apps is the customer's financial data safety. If your company strives to store and process credit card data, you need to meet all the nasty requirements that are known as PCI compliance. Once you're PCI certified it's time to integrate a cashless payment system into your app.
Another option is to rely on payment gateway providers that ensure fully supported PCI compliance solutions, like Braintree or Stripe. If you select the gateway provider for the Uber-like app, you can draw your attention to the following criteria:
- Payment gateway should be created specifically for mobile devices since many providers use the web view approach (a web browser masked as an app).
- The service should be easy-to-use and ensure quick user data extraction.
These requirements are met by PayPal group, particularly by Braintree payment gateway provider. So Uber uses Braintree for processing their credit card transactions. Original Uber app also uses the card.io platform to scan card numbers by using a camera.
One more important point here is to let users link several credit cards with their accounts.
Registration & Profile
Registration and profiles are the next two basic features for building an app like Uber. It's necessary for at least two reasons: you can keep track of your users base and your user base gets access to the full-fledged service. In terms of Uber-like app development that involves mobile payments – this feature is a must.
If you want to create an app like Uber, you may offer your customers a quick registration via social media or email. Uber itself provides for registration via Facebook, Google or email and asks for a phone number in addition.
As for the profiles, they may either contain a minimum of functionality (photo, name and car license number) or be sufficiently complete and feature-rich.
Additionally, it's a good idea to add a rating and reviewing system. This move will make a service a little more client-oriented by letting users know if the driver has a low rate (and vice versa). What's more, the rates of users can help you identify problems with the service quality before they negatively affect your company reputation.
Communication & Notifications
Communication and notifications are basic features that should be considered to make an app like Uber. Despite the fact that communication in ridesharing apps goes without saying, it's possible to make it even more convenient. Uber users can call or text their drivers without leaving the app.
An essential part of communication with customers lies in keeping them informed. SMS, email or push notifications can help with it and notify users about important events like order confirmation or car arrival.
The following tools can be used to build Uber app with flexible notifications:
- Apple Push Notification Service (APN) when you build an Uber-like app for Apple devices.
- Firebase Cloud Messaging (FCM) when you are going to build the app for Android-powered devices.
SMS notifications demand an additional step to be integrated into the app. You have to contact the telecommunication service provider to grant you such a possibility. For example, Uber prefers working with Twilio, but there are more options like Plivo, Nexmo or Sinch.
Ride Cost Estimation
It's also a basic feature that shows customers an approximate cost of the ride before they book it. In order to create your own Uber app with this feature under the hood, your software engineers should build an algorithm estimating the price based on the user's pickup and drop location.
If you decided to follow Uber's model and provide customers with diverse types of cars they can choose from, then you should also consider there are different fares for each type.
Schedule a Ride in Advance
This is an advanced feature that was introduced by Uber a couple of years ago. It allows customers booking a ride beforehand (within a timeframe of 15 minutes to 30 days) and plan their trips more accurately.
Ride scheduling can be a good supplement for the app's MVP the same as other advanced features that are laid down further in the article. You can add some of them to a feature list and create Uber app with broader functionality.
Book a Ride for Other People
The same as the beforehand ride scheduling, booking a ride for others is an advanced feature for Uber-like app development. It implies that a user can book a ride for a relative or friend through their own account.
As soon as the booking is made, the friend or relative receives the ride details via SMS the same as a driver.
Split a Fare
One more advanced feature that's worth consideration in case you're thinking over different strategies on how to build an Uber app. It allows users to split the cost of the ride with companions traveling with them.
UI/UX Design
As usual, a portion of app development costs falls on design. Ridesharing services are client-oriented and so they have to come with beautiful and easy-to-use UI/UX. Correspondingly, the Uber-like app development cost should involve design expenses.
While a lot of things can be said about what makes a good design, I prefer to minimize this description to two words: simplicity and clarity. You should stick to these two simple principles to make an outstanding design.
Uber app design
How to Build an App Like Uber for Drivers: Main Features
It's time to talk about how to build an app like Uber Driver for partners. It's also a very important part of building business the Uber way. In this section, I'll include only those features that can be helpful for drivers and effective for business at the same time.
Driver Report
Driver report feature is designed to ensure the safety of both parties: a driver and a passenger. This report is a brief outline covering the driving style of the driver for a certain timeframe (e.g. week or month). If incidents of driving in a careless manner take place and continue to happen, Uber can ban the driver who violates rules.
How to develop an app like Uber for drivers: Clean navigation and route building
Advanced Route Building
If you're planning to build a serious ridesharing business, then considerable investments into the route building functionality are inevitable. The better routes are optimized, the more efficient your drivers will be. Correspondingly, the level of customer satisfaction tends to rise.
Driver Destinations
The driver destination feature enhances the overall experience for drivers who partner with the company and so you should consider it before creating an app like Uber. Drivers can pick the preferred location and find passengers who need a ride in that direction. This way, drivers can effectively combine work with their personal affairs.
Free Cancellation Within 2 Minutes
This feature is designed to avoid the loss of time and money that arise when a customer abandons or delays the booked ride. I would say this is a must-have feature for Uber-like app development since it doesn't only minimize risks for drivers but business as well.
How does it work? The first two minutes after the car arrives are free of charge for passengers. If it takes much time for them to get to the car and start the ride, then additional charges are applied. In case passengers have canceled the ride after the set timeframe, they're obliged to pay a fee which is equal to a base ride fare.
Heat Maps
The heat map is another feature that greatly simplifies the work of a driver. With it's help, drivers can see the parts of the city with the highest demand for the service, drive there to get more requests and, correspondingly, generate more profit for themselves and your company.
It's pretty hard to estimate this feature without any project details since it's development time is dependent on multiple factors.
How to create Uber-like app for drivers: Heatmap feature
What Factors Influence the Uber App Development Cost?
There're a few more things that should be taken into account to create your own Uber-like app. Normally, starting relations with our clients, we expect to know their vision on fundamental issues. Apart from the general concept of the app, estimated budget, terms and requirements, we would like our clients to provide us with their business goals to ensure their achievement.
So let's view what factors can affect the price before getting to the final cost of building an app like Uber.
Features
A set of features you pick to build an app like Uber is the decisive factor of it's price. The development cost will range depending on basic and advanced features you would like to implement in the app.
For instance, Uber and Lyft have begun with MVPs of their services and were gradually scaling up.
Your Company Type
Another truly important factor is the company type. Do you own an established taxi service or want to launch a startup company? In the first case, you may want the mobile application that's developed with your business processes in mind.
Meanwhile, the creation of a startup company involves building the app alongside the business itself, which provides some flexibility but, typically, the tight budget.
Each type may require a different level of investment.
App Platform
Which platform to choose? This is an age-old question for many entrepreneurs. However, the answer to it is very simple: if you want your app to be widely used — choose both Android and iOS.
If your budget is tight, which is not an uncommon case, then you may develop an MVP based on either platform depending on your target audience and their preferences.
For example, Uber was launched on iOS first because iPhones were extremely popular in those days, having about 80% of the market share (on the US market).
Technology
In most cases, it's more reasonable to develop a native app rather than a hybrid one. The difference between them lies in architecture, programming languages, and many other aspects.
If you are a non-technical founder, it's a good idea to consult with a competent mobile development service provider before making a final decision on your Uber-like app development approach.
The Final Cost to Develop an App Like Uber
As mentioned, the cost depends on development time. Pay attention – this paragraph represents the time and costs to create only the MVP for an app like Uber. The final total price of the app will depend on the number and complexity of the features you want to add to your app.
So, how long does it take to build an app like Uber?
| Modules | Features | Approximate time, Android or IOS (hours) | Approximate time, back-end (hours) |
|---|---|---|---|
| Splash screen | - | 2 | - |
| Registration |
| 25 | 42 |
| Authorization |
| 23 | 28 (include front-end) |
| Total development time: Android or iOS | 50 hours | ||
| Total development time: Android and iOS | 100 hours | ||
Besides, add about $100 for the splash screen and $450 for the tutorial development (for one platform). So, the total cost of an MVP feature creation at the initial stage is $3,050 for one platform and $6,100 for both iOS and Android.
Now, let's see how much time and spendings you'll need to create an MVP feature for an Uber-like app for drivers and customers.
| Modules | Features | Approximate time, Android or IOS (hours) | Approximate time, back-end (hours) |
|---|---|---|---|
| Registration | - | 100 | 90 |
| Main screen |
| 176 | 53 |
| Profile screen |
| 26 | 32 |
| GPS Location | - | 11 | - |
| Total development time: Android or iOS | 313 hours | ||
| Total development time: Android and iOS | 626 hours | ||
Approximately, to create an MVP of your Uber-like app for drivers will cost $15,650 for one platform and $31,300 for two.
In the next table, let's look at the MVP features for an app like Uber that customers will use and calculate an approximate cost to create.
| Modules | Features | Approximate time, Android or IOS (hours) | Approximate time, back-end (hours) |
|---|---|---|---|
| Add payment method screen | - | 44 | 65 |
| Now flow |
| 146 | 151 |
| Schedule ride | - | 94 | 65 |
| Ride preferences | - | 28 | 14 |
| Trips | - | 80 | 120 |
| Initiation booking guest | - | 110 | 200 |
| Split fare | - | 55 | 80 |
| Order cancellation | - | 10 | 12 |
| Profile screen |
| 20 | - |
| Total development time: Android or iOS | 587 hours | ||
| Total development time: Android and iOS | 1174 hours | ||
The total cost of MVP of an Uber-like app for customers will be $29,350 for one platform and $58,700 for two.
Finally, the cost to develop Uber app should include expenses on admin panel creation since it's a must for every app.
| Feature | Approximate time, (hours) |
|---|---|
| Authorization | 6 |
| Admins management | 50 |
| Drivers management | 50 |
| Users management | 50 |
| Payments management | 35 |
| Promotions management | 36 |
| Reviews management | 28 |
| Issues management | 32 |
| Total | 287 hours |
So, base on the $50 rate, the total admin panel development cost is $14,350.
Taking into account all the factors mentioned in the article, the cost to build an app like Uber may range between $57,000 and $114,000 for one or two user apps (iOS and Android) respectively. Additionally, mind the price of admin panel development which may start at $14,350.
Tech Stack and Team
Our analysts have analyzed the functionality given and come up with an approximate set of technologies to use for the similar kind of a project as well as team members needed to successfully deliver it.
Team:
- Business Analyst
- Project Manager
- UI/UX designer
- Android/iOS engineer
- Back-end developer
- QA engineer
Technology stack for the Uber-like app:
- Kotlin for Android app
- Swift for iOS app
- Node.js for back-end
- Amazon EC2
- Amazon S3
- PayPal / Stripe
- Twilio
- Elastic email
- Socket.io
- Google Maps
- Google Places
- Google Directions
- Card.io
- APNS
- Firebase
- Facebook SDK
The list of technologies we mentioned above is approximate and may differ depending on your business objectives, app features, platforms, etc.
Cleveroad Experience
Projects connected with the transportation industry are always as challenging as exciting. Uber-like apps are not an exception. Not so long ago our team had a chance to work on the development of the MoveUp platform. We're proud to have this P2P ridesharing solution as a part of our portfolio.
The platform was created to connect drivers and riders with diverse needs. So the target audience is as follows:
- People with disabilities
- People with special medical needs
- Regular clients
- Riders with bulky items
The core functionality is pretty familiar to everyone. Users can see all available cars on a map in real-time mode. Once the order was accepted by a driver, users can see a car's geolocation on the map.
MoveUp's order and trip screens
Implementing the filtering system it was decided to shift away from standard algorithms to meet specific requirements of users. The created filtering system suggests drivers according to the user's in-app preferences. This helps exclude cases of matching a driver having a car that's not suited for the user's specific needs.
MoveUp's application menu
To learn more about the platform, you may also visit their website or look at the case study of this project in our portfolio.
Final Thoughts
Summing up, the single-platform app with MVP features nearly identical to the Uber app will cost roughly $57,000 at a $50 per hour rate. Bear in mind that's the price for a user-facing app, and normally you'd need one more for drivers along with the admin panel to be able to manage that all.
As said, the final cost of your Uber-like app is highly dependent on various factors and your personal preferences. A number of functions and their complexity are negotiable. Use our app cost calculator to find out the cost of other features you're interested in.
If you need any help in getting closer to your dream, please get in touch with us! Our managers will answer all your questions and provide you with custom project estimation.
Before you leave, you can also watch our video where we compare software development prices in different parts of Europe to help you cut on the development expenses.
The Cost of Software Development in Europe
Use our app cost calculator to find out the approximate time and cost of application development. It's a completely FREE tool.
Create an app like Uber: Cost calculator
Frequently Asked Questions
An Uber-like app will cost ~ $57,000 and ~ $114,000 for one or two user apps (iOS and Android) respectively. Admin panel cost starts at $14,350. Usually, you also need another app for drivers.
The hardest part is to develop the features. You'll need to think over app functionality for both riders and drivers.
- Basic features for customers include geolocation and routing, payments, notifications, ride cost estimation, calling or texting drivers from the app, and so on.
- Basic features for drivers are reporting, route optimization, 'active/inactive' button, calling to a passenger, etc.
There are 5 simple steps:
- Step #1: Request. Users request a car right away or on schedule via the app.
- Step #2: Matching. Nearby drivers either accept/reject the ride.
- Step #3: Ride. Users track the taxi approach and know when it will show up.
- Step #4: Payment. By a credit card attached to the user's account.
- Step #5: Rating. Users rate the ride and add comments.
Here are the basic steps to building an app like Uber:
- Sketch your app idea
- Do your competitive analysis
- Pick a revenue model
- Plan the features for your Uber app: for riders, drivers, and admins
- Find a reliable tech vendor that will build the apps for you
- Collect feedback and update your app regularly
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Jessica Lewis
21.04.2020 at 09:58
Thank you so much for telling us about the good taxi app development software, this article is very useful for us.
This is informative & very straightforward. Really helpful! Thank you!
Vitaly Kuprenko
09.06.2020 at 03:04
You're welcome! We're glad this post has helped you.
K
kudzie
23.06.2020 at 06:29
i love this article great use
ZD
Zaggard Dayve
29.06.2020 at 05:59
Very insightful, straightforward and educative
Hey thank you so much for this article, the explanation was great i just love it. ❤️
Vitaly Kuprenko
10.07.2020 at 10:31
Thank you, Ammar! We're glad you liked it.
OD
Ojuolape D
14.07.2020 at 03:31
Thanks for this article. It was very detailed and comprehensive!
its very insightful...we have got an idea of costs now because developer are in the habit of making the estimates for app development higher than it already is
JP
Jay Patel
05.09.2020 at 08:15
love you so much team, from bottom of my heart for this amazing work.
lol i think this article is a joke.. you are giving each feature a "time" and price like if your selling cakes
Vitaly Kuprenko
29.09.2020 at 01:43
We see a lot of requests from entrepreneurs who want to know an approximate budget. The numbers in this article aren't the final estimate. We've warned about that fact multiple times in the article. Still, we have tech consultants ready to estimate your project idea. You can refer to them for more accurate numbers. It's free of charge.
PP
pritesh patel
12.10.2020 at 11:55
super and great informer.
AJ
Arrah justin
26.10.2020 at 09:01
Thanks so much for that explanation is really helpful now l have an idea about the whole thing.
Brilliant explanation I enjoy reading it thank you
Very comprehensive information. Thanks
Extremely detailed article. I didn't have to read another article
TB
Tapesh Bhargava
13.07.2021 at 10:19
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02.10.2021 at 11:48
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Naveen khanna
02.10.2021 at 11:49
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How Much Does It Cost To Make An App Like Uber
Source: https://www.cleveroad.com/blog/estimation-checklist-how-much-does-it-cost-to-develop-an-app-like-uber
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