How much does it cost to create an Uber type application?

Whether you like it or not, Uber is currently the World’s largest startup with 50 million people using their ride-on-demand services in 450 cities. By end of June 2017, 5 billion trips have been arranged through the Uber app. So despite the controversies surrounding its management and operations, Uber, valued at 62.5 billion dollars, is still the most notable tech company of the hour.

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From a user perspective Uber is a perfect solution. You don’t have to stop what you’re doing to call a taxi, the driver knows where to pick you up, you see him coming, he comes quickly and you don’t need cash to pay for the ride. If you are a driver, Uber is perfect for you as well. All you have to do is to register as driver, download the app and you are all set. You know how much you will earn per kilometer, you choose when you work and how many rides you take. All in all, it’s a win-win situation.

Uber is the future, not only in the transportation branch, but in many others. The model where you order a service through a mobile app, schedule a suitable time and date of delivery and they pay for it using your credit card can be applied to many other situations, such as ordering food (UberEATS) or even arranging for a doctor home visit (HomeDoctor application created by itCraft development company).

Uber

Elements of an Uber type app environment

We regularly receive enquiries regarding development of such apps (12 so far!), be it related to transportation or other areas. As you can imagine, it’s a complex and multi-staged process. To build an app you have to ensure the right mix of experience and talented development team, it’s doable! Follow our step by step guide and find out where to start when you want to develop an app familiar with taxi booking platform.

Step 1: Designing the product

First of all, we have to agree on the basic functionalities of the app: ways of registering user profiles and logging, payment methods (eg. Apple pay, credit card), defining services, integrating the app with existing systems such as Google Maps and finally providing extra settings for every user.

Since the app will be used by two different groups (service users and service providers) you actually have to built two separate products that will meet the needs of those groups in terms of functionality, seamlessness of operations and safety of payments. It is important to have separate passenger app with booking interface and fare calculator and driver app with a simple cab booking interface that notifies about pickup point. Both should have unique UI and UX design to match users needs.

Step 2: Taxi app development on Android or iOS app?

The best answer to the above question is: iOS and Android. App like Uber requires 100% coverage. Discriminating users of either operational system can seem a cheaper option at the beginning due to reduced development costs, but at the end of the day will translate into lost profits. Unless you have a very strong case against building your app for Android and iOS, do not spare time and money. Having your app working under both system will eventually pay off.

Step 3: A web app is a must

Although some mobile apps do not have a matching web application, in case of Uber like app it’s a must. It gives service users and service providers access to their profiles and advanced settings which are not part of the mobile app. Why? Because the mobile app is designed to match users and service providers quickly and hassle free. All other functionalities which are not not used that often should be outsourced to the web application.

Step 4: Admin panel

The whole system needs to be supervised by someone. The administrator will deal with technical problems as well as act as mediator between users and services providers should there be any issues. And so, the administrator’s panel works as an umbrella system that controls and monitors everything that happens within the Uber type app environment.

Step 5: The engine: backend system and database servers

Backend development is crucial in such project. A special application has to be build to glue everything together and make sure it works properly. It’s the engine of the whole system where all user data and system logic is saved. All communications between different elements of the system (mobile apps, web app, administrator’s panel via push notifications) go through this component.

Uber

 

How much does it cost to develop an Uber type app?

Mobile app development is a niche where estimation is hard to do. What budget would be required to create any application of this type? The development cost includes specification, graphic layouts, app prototype, implementation of all components, internal tests, acceptance tests and application implementation support. Building an app comparable to Uber can easily exceed total cost of 100,000 US dollars net depending on hourly rate. Nevertheless, recent research shows that in the the next few years we will remotely order more and more services. So, if you have an idea for an Uber type taxi app, creating it with the right partner such as itCraft can be the best decision of your life. Remember, unique business model is an essential element here!

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Karol Wegner, Co-owner

Karol Wegner, Co-owner

Expert of modern, scalable mobile systems. Since 2010, as co-founder and co-owner of itCraft, Karol has been developing his own company that builds mobile apps. Creator of and investor in mobile startups.
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