How To Build An Uber Like App Development In 2023? Everything You Need To Know

What’s the first name that comes to mind when you are in a hurry to reach someplace? Uber! 

Well, that’s because it’s a brand that commenced a whole new industry of on-demand ride-sharing back in 2009. Today, Uber operates in over 900 cities worldwide with a market valuation of $49.14 billion in 2022

The on-demand taxi hiring industry has grown enormously since 2009 with some prominent names like Ola Cabs, Lyft, Grab, Cabify, Careem, Hala, etc. As a result, more and more entrepreneurs are looking to make the most of this booming industry. 

Do you have an innovative idea to begin your endeavor in this flourishing industry? Well, there are plenty of things you need to know first. For instance, the business model, the features to include in an Uber-Like App Development, and the overall cost to build one, among other crucial aspects. 

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So, let’s get started!

Uber Business Model 

Uber’s business model majorly revolves around two customer segments: riders and drivers. It works on a commission-based business model where the driver gets a 70-80% cut from the total fare. The rest goes to the ride-sharing platform. However, this percentage cut gets down to 50% if it’s for a short distance.

Uber’s unique value proposition lies in the convenience it provides to a rider and drivers. So, instead of waiting for a taxi, the taxi comes to the rider, at its premises. Besides, a mobile phone and an internet connection are only the two prerequisites for a rider. 

Here’s how the Uber’s workflow looks like.

  • A rider requests a taxi service
  • Notification is sent to nearby drivers
  • One of the drivers accepts the ride 
  • The driver gets the ride details
  • Payment Process 
  • Rating rides and performances

Features to Integrate Into An Uber-Like App Development

The features you choose to create Uber-like app with, make all the difference in how the audience is going to perceive it. Here are some of the common features you should have if you are aiming to enter this on-demand taxi market with a competitive app.    

Geolocation & Routing

Uber-Like app development starts with geolocation and routing servers. It helps with seamless routing and ride-matching mechanisms. Now, any expert developer would take almost 100 hours to integrate into an app, and costs around $2500, for iOS and Android both.

Registration & Profile Creation

User registration and profile creation are the two most important features that a user encounters first while visiting your app. One way to make this process quick & straightforward is registration via a social media platform or email.  

Cashless Payment

If you want to build Uber app, make sure you integrate the app with a secure and seamless payment gateway. In addition, the platform uses a fare calculator functionality that evaluates various factors, including the type of vehicle, base fare, cost per minute, cost per mile, etc.

It takes almost 80 hours to build a payment integration feature for both Android and iOS platforms that costs around $2000 each. 

App Notification

To keep your customers updated with your latest offers & discounts, Uber uses push notifications for both Android and iOS platforms. In both cases, it costs around 24 hours and $600 hours to build. 

Prior Ride Scheduling 

People also like to book rides beforehand to avoid last-minute hiccups and ride unavailability. This is a significant privilege to avail to your customers – something that will help you to attract more customers. 

This essential ride-scheduling feature takes around 40 hours for the developers to complete and costs around $1000.

UX/UI Design

A crucial part of Uber-like app development is UI/UX design. This also comprises the biggest cost chunk among any other aspect. The simple-more-sophisticated UI/UX of an app, the better the chances of more engagement on the app, especially, at the initial stage of app rollout.

It takes around 60 hours for the developers to create Uber-like app (UI/UX) and costs around $1500.  

Ride Cancellation

A user may want to cancel a ride even after booking the ride due to some reason. In such a scenario, a ride cancellation feature doesn’t necessarily incur extra charges to the rider, if it’s done for a valid reason. 

How Much Does it Cost To Create Uber-Like App?

Now, if you want to create Uber-like app, the overall app development cost is a crucial aspect to consider. Moreover, the cost aspect also depends on the app development team you hire. 

If you hire a reputed app development company, a basic-featured Uber-like app development costs around $50,000 – $60,000. However, this estimation depends on the different companies, skills, and expertise of app developers. The more complex features you integrate your app with, the higher the cost. So, a complex, more sophisticated app may cost around $100,000 – 120,000.

Alternatively, if you want to build Uber app with an in-house team, you should hire developers on an hourly basis. While choosing your app development team, make sure you compare the best from different countries. This allows you to choose a more convenient option and prevents you from overspending.

The hourly cost of expert developers from three major countries like the USA, India, and UAE is $80 – 120, $15 – 25, and $20 –25 respectively.

Final Thoughts

Considering the exponential growth in on-demand taxi services, there has never been a great time to enter the industry. Now, the process to build Uber app is long that requires expertise in different business aspects, and most importantly, a large capital investment.  

Hence, you must collaborate with an app development company that not only has a background in similar projects but can promote your business with perfectly-designed marketing campaigns.


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