The Said and the Unsaid Story of Taxi Booking Apps By Taxi Booking App Development Company

Author by Chintan Parikh

taxi booking app development company

Do you remember how a taxi was ordered before the taxi app existed? You had two options: telephone a taxi company or take a taxi on the street. Today, taxi booking apps are revolutionizing the taxi industry with innovative technologies that offer alternative solutions for both customers and drivers. Archisys- the best taxi booking app development company.

Currently, customers can book a taxi 24/7, see exactly how far the taxi driver is assigned and pay digitally. On the other hand, the driver can accept or reject a taxi request through the application, call the customer in case he is not in the agreed place and offers different payment methods to make the transaction faster and smoother.

The main actors such as My taxi, Uber, and Cabify demonstrated that it is a profitable commercial strategy and, therefore, they encouraged many entrepreneurs and small businesses to launch similar taxi reserve applications with the expectation of repeating success, collaborating with taxi booking app development company to create their own model. In the last decade, the number of automated taxi solutions has increased and the popularity of taxi applications continues to increase.

In this article, we will cover the value proposition and income model of a taxi app. In addition, the functionalities of a known taxi application will be analyzed in order to obtain more information about the technical aspects.

Offering a Bilateral Value Proposition

We must take into account that taxi applications are bilateral, therefore, it is essential to have a value proposition for both parties, both for customers and drivers. The taxi app is intended to result in a reduction in search and transaction costs, which is exactly the key feature of a multilateral platform

The Value Proposition For The Consumer

Order a taxi in one click 24/7

Locate the driver

Know the price and the estimated duration of the trip

Lower prices than traditional taxis

Flat rate for certain frequent destinations such as airports

Transactions without cash

A rating system and opinions

Discounts and free trips on certain occasions.


The Value Proposition For The Driver

Generation of income

Flexible schedules

Simple payment system

Possibility of contacting the client

No need for investment

Possibility of earning more in rush hour

Insurance coverage

Capture customers faster and easier

It is important to keep in mind that these value propositions are examples and that they should be considered as “general”.

taxi booking app development company

Income model of a taxi booking apps

In addition to being aware of possible value propositions for the client and the driver, we will now try to provide more information about the revenue model of a taxi booking application. To explain this in the simplest way possible, we will take a closer look at the famous Uber taxi application. Let’s find out what your source of income is.

Different cars for different customers

Remember when everyone used to travel in the same type of taxi brand and similar model? Those days have ended thanks to the fact that nowadays customers have the possibility to choose the type of vehicle in which they wish to travel. Uber, for example, has not been limited to a specific type of car or a particular segment of customers.

There are multiple options like Uber X, Uber Black, for those who prefer to travel in a black car, Uber Taxi, for those looking for a more economical solution and Uber SUV, for those who want a luxurious car. They offer their customers the possibility to choose the type of car they wish to travel in, which gives them a new taxi booking experience.

An effective pricing strategy

The primary aspect of the Uber application is its pricing strategy. Taxi companies usually increase travel rates when there is more required than supply. Instead, Uber charged clients a fee based on traffic density and the time it takes to get from point A to B.

In addition, the price per kilometer changes automatically depending on the number of drivers available and the number of taxi orders. This price algorithm aims to encourage drivers to go to work when the demand is higher.

Understanding the functionalities

Now that we have analyzed the value proposition and income model of a taxi app, it is time to dig a little deeper and examine the functionalities of this type of application. Once again, we will use Uber as an example to make it easier to understand.

The bases

From our experience as a taxi booking app development company, we know that the technical aspects of an uber clone app are not simple to understand. Let’s start with the basics and study so that each function is used.

1. Ease of Registration
The option of being able to register through Facebook, Google + or the classic way – with a telephone number and a password. Offering the option to access through a social network allows the application to transfer personal information to the application in a matter of seconds. Additionally, it is important to differentiate the users of the drivers when they enter the app.

2. Personal Profile
Users and drivers can add, edit or delete their personal details at any time through the app.

3. Email Modules
The notifications via email are very useful to send payment information, trip details, payment confirmation, digital wallet information or to reset the password in case of forgetting.

4. Car Search Function.
In order to assign a taxi as quickly as possible to the customer, Uber integrated a search option for cars that are at the minimum distance in kilometers. This lets the client filter only the taxis closest to their location.

5. Availability of Cars
If the status of a car is active, users can ask for a ride. Once the car is reserved, its status automatically changes to inactive so the driver does not need to change it manually. For the user, when the path request is accepted, he can no longer change the destination address.

6. Rate Estimation
Since the business model depends on the trips paid, it is important to include a rate estimation mechanism. In this way, the app can estimate the tariff correctly based on the standard prices for a specific distance.

7. Multiple Means of Payment.
Users have the possibility to pay by credit or debit card through the application. Another option is to transfer money to the Wallet application.

8. Ease of Location
Integrating Google Maps helps calculate the distance and route between point A and point B. It also allows the driver to locate the client and the latter, once the trip is accepted, see the location of the driver.

Additional Functionalities

1. Categories of Cars
This option allows the customer to choose the type of car he wants when booking the taxi. This allows for reaching different segments.

2. Car Lists
This allows drivers to list all the vehicles they use to perform the taxi service. The details of the listed cars can be modified or eliminated in a simple way. The owner of the application can see all the cars listed.

3. Promotional Codes and Free Trips
Each time a new user registers in the Uber application using a promotional code their first trip will be free. Once that person makes that trip, the user who gave the code will receive a free trip.

4. History
The client has access to his travel history and there he can access the date, time, place of collection and arrival, total cost and details of the car and the driver. The driver can see the trips made through the application.

5. Management of Cities
The owner of the app can decide which cities he wants to offer this service. If the results were negative in a specific city, it can be easily eliminated.

6. Multilingual
If the application is available in different countries such as Uber, it is important to present it in the appropriate languages.

In Conclusion 

They have revolutionized an industry that was static for a long time. In many countries, the taxi industry has been subject to tariffs in the manner imposed by the local government. 

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