436 Views | 6min | Published On: February 2, 2023Last Updated: August 10, 2023
With the advent of technology, the on-demand ecosystem has seen a sudden boom. One category of this on-demand ecosystem is ride-sharing. If we go with a survey, the global ride-sharing market is expected to reach 332.50 billion USD in 2023 and 378.80 billion USD by 2027 with an annual growth rate of 3.31% (CAGR 2023-2027). Apart from this, the number of users is estimated to hit a whopping 1,452.8 million by 2027.
So if you are planning to develop a ride-sharing or ride-hailing app like Uber, Lyft, or Gett, you are on the right track. But developing these types of apps demands a huge budget. So proceeding without having a clear-cut cost estimation can cost you more.
Well, to help you out, this blog is going to take you on a journey where you will get an estimated cost to develop a ride-sharing or carpooling app like Uber or Lyft.
Why Develop a Ride-Sharing App like Uber or Lyft?
Well when it comes to investing time, money, and other resources it is better to invest in a business that can grow for years to come. Ride-sharing business is one such business that has numerous possibilities. It not only helps you earn a high ROI (Return on Investment) but also offers other benefits like a solid customer base, brand visibility, and so on with less supervision. Even if we consider some key statistics they speak out loud about the benefits of developing ride-sharing apps like Uber or Lyft.
36% of Americans are now preferring a ride-share app. This is almost double the percentage that was in 2015.
Uber and Lyft account for about 99% of the rideshare market in the US. Uber alone carries more than 70% of the rideshare market.
Uber has more than 93 million monthly active users in 2022 followed by Lyft with more than 18.6 million.
About 26% of ridesharing app users take benefits of ridesharing services monthly.
The ridesharing industry has made an astonishing 117 billion USD in sales which is 50% more from 2020.
Uber alone is taking more than 14 million trips every single day.
Needless to say, developing a ride-booking app like Uber or Lyft is a win-win strategy whether we consider the current scenario or the future.
A ride-sharing app must offer a rich user experience. Whether it’s a rider, driver, or the admin itself, all must be able to operate and take maximum advantage of the app without any lag or error. In order to do so there are some essential features that your app must have. Let’s go through them one by one.
Don’t want to read the whole list of features?
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Must-have Features for Riders
Registration: Users must be able to register themselves through their mobile number, Gmail, social media account, etc.
Ride Booking/Cancellation/Scheduling: Users must be able to quickly book or schedule a ride from the preferred location or cancel it as per the need of the hour.
Real-Time Tracking: The app must allow users to track the live location of a driver for getting an estimated arrival time or guiding a driver with the exact pick-up location.
Fare Splitting: The app should allow users to split the cost with other riders in case they are sharing the ride.
Multiple Pick-up & Drop-off Locations: Users must be provided with a multiple pick-up and drop-off location option in case they are going with their friends or known ones.
Multiple Payment Options: The app must offer multiple payment gateways to enhance user experience.
Review & Ratings: Users must be able to review and rate their ride-sharing experience on the app.
Trip History: There must be an option for users to view their ride history along with the fare they paid.
In-app Chat or Call Option: The app must offer freedom to users to chat and call both driver or customer support team in case of requirement.
SOS Panic Button: This emergency button is essential to offer safer rides and earn users’ trust.
Push Notifications: Users must be kept updated through push notifications.
Must-Have Features for Driver
Profile Management: Drivers must be easily able to create a profile and manage data in it by uploading required documents.
Accept or Reject a Trip: Drivers must be allowed to accept or reject a trip at their convenience.
Trip Information: The app must provide complete trip information about single or multiple passengers in case of sharing a ride.
Navigation: The driver must be provided with the required information to reach the passenger via the shortest possible route.
Riders Review & Ratings: Your app should not only be limited to passengers but also provide an option for the driver to rate or review passengers based on their behavior as there are many cases when passengers behave badly.
Summary Report: Drivers must be able to get insights into their working hours or earnings in order to improve their services.
Multimode Payment Reception: There must be an integrated payment system to collect payment through multiple modes.
In-app Chat/Call Option: The driver must be able to call or chat with both the passenger and the customer support team.
Must-Have Features for Admin
Scheduled Requests: Admin must be able to view all scheduled requests along with details like pick-up location, destination, payment method, etc.
User Reviews: The app must allow the admin to check and reply back to reviews in order to enhance user experience. The admin must also be able to block drivers and users in case their behavior is inappropriate.
Accept & Reject Requests: The admin must be able to add or delete partners and drivers.
Payment Management: The app must allow the admin to view complete earning details and manage payments.
Tracking: The admin must be able to track drivers along with their complete details.
Marketing Management: The admin must be provided with an option to manage ads, coupons, discounts, push notifications, etc.
5 Factors That Affect the Cost of Ride-Sharing App Development
The cost to build a ride-sharing app like Uber or Lyft depends on a number of factors. Ranging from customization to the region where your app development agency is located, all these types of factors decide the overall cost. Let’s have a walkthrough of some factors that affect the cost the most.
Features: Undoubtedly features play a major role in the overall ride-hailing app development cost. If you are going with basic features, the app will cost you less. On the other hand, if you are going with advanced features like speed limit alerts, real-time ID checks, the latest heat maps, other AI-based features, or specific features of your choice, it will cost more.
Tech Stack: Technology plays a crucial role in complete ride-sharing app development costs. The more advanced the technology the more will be the development cost. But it is essential to use the latest technology in order to beat the growing market competition.
UI & UX: It’s of no use to develop a ride-sharing app that does not please users. UI & UX plays a critical role in giving a unique user experience that motivates them to use your app more often. It’s all about icons, customization, push notifications, and other such factors that help you stand apart from others. The more eye-catchy & easy-to-use design, the more will be working hours and hence more will be the development cost.
Development Company & Location: The price of a ride-share app development varies according to the expertise a company holds as well as the region where it is located. It will cost you less to get your app developed in an Asian country like India as compared to the US.
Type of App & Platform: Whether you want to develop a native app or a hybrid app, or you want to go with an Android / iOS app, these factors will decide the total ride-hailing app development cost.
This is because the Android app costs more as compared to iOS due to its complexity as it has to be used on multiple devices. The same is the case with a native app which costs more than a hybrid app.
Total Cost to Develop a Ride-Sharing App like Uber or Lyft
Well when it comes to the final cost, you must understand that mobile app development solutions never come at a static price. It all depends upon the factors that are discussed previously. So if you want to add advanced features, high-end UX/UI, and so on, it will cost you more.
To give you a rough idea the estimated cost to develop an app like Uber or Lyft will lie between $30,000 – $120,000 taking an hourly rate of $30/hour. For better understanding, the hour and cost breakdown is presented in the table.
Alert – Hidden Cost: Apart from the initial development cost you are also required to spend 15 to 20% of the total app development cost per year for maintaining and updating the app.
Why is Apptunix the Best Bet for Your Ride-Sharing App Development?
With dedicated ride-sharing app developers, Apptunix currently serves over 200 Uber-like app businesses. Then why not take advantage of the situation and become part of the billion-dollar industry?
Additional Bonus: Want to know the right approach to taxi-booking app development?
You got it!
No need to read more text. Watch the video on Uber-like app development to understand the complete process in detail.
Frequently Asked Questions(FAQs)
Q 1. How Much Time Does It Take to Develop a Ride-Sharing App like Uber or Lyft?
On average, a ride-sharing app like Uber or Lyft takes about 4-8 months to develop. Rest it all depends upon the customization you want as per your business requirement.
Q 2. What is the Minimum Cost to Develop a Ride-Sharing or Taxi-booking App From Scratch?
With basic features, a ride-hailing app like Uber or Lyft will cost around $30,000. Rest it all depends upon your specific requirements.
Q 3. Which is the Top Ride-Sharing App in the US?
When it comes to the US, Uber is the leading ride-sharing app with about 71% of the market share. More than 25% of Americans use Uber at least once a month.
Q 4. How Much Does It Cost to Maintain a Ride-Sharing App?
It generally costs around 15-20% of the total app development cost per year. However, some companies offer huge concessions to their clients during the early stages. You can schedule a free session with us to get details on the concessions we offer.
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With about 7 years of experience (Technical & SEO Writing) and a solid technical background (Master of Technology – E.C.E with Wireless Communication as specialization), he has worked both as a freelancer and on a regular basis for prestigious IT organizations across the globe. Whether it’s Blockchain, Metaverse, Artificial Intelligence (AI) & Neural Networks, Machine Learning (ML), Internet of Things (IoT), Cyber Security, Cloud Computing, 5G Technology, or some other trending technologies he has written whitepapers, eGuides, blogs, technical documentation, guest posts, and so on for almost all. Here at Apptunix, he is generating B2B content.