How Much Does It Cost to Develop an App Like Uber & Careem?

When you look into the on-demand economy, you will find a picture of growth where businesses who are working on the on-demand model are highly successful and have over time become the investor’s favorite.

Now, an on-demand ecosystem is made up of a number of different categories like – ride booking, food delivery, at-home services, and even job on-demand, amongst others.

Out of all the different categories, the one that has been a recipient of constant demand and fund influxes is on-demand taxi app development. A doing of the constant surging of gross booking valuations for years on end.

As per Statista’s report, the revenue in the ride-hailing market is forecasted to reach $165.60 billion by 2024. Additionally, with an anticipated CAGR of 6.83%, the global market volume is expected to hit approximately $215.70 billion by 2028.

When you look into the market of the on-demand taxi booking apps, you will find that a major part of the world is dominated by Uber and Lyft. But when you move towards the Eastern nations like the Middle East, the one name that will come out as the market leader is Careem.

The rate at which Careem has grown in the MENA region since 2012 has made it popular enough for businesses to enter the space. However, when talking about investment in Careem and Uber-like app development and scalability, the most common question that comes to mind is about the cost involved in the process.

On average, the Careem and Uber app development cost can range from $40,000 to $ 300,000.

This blog aims to guide you through the crucial factors influencing the Careem and Uber app development cost, along with other vital aspects essential for a successful app launch. Let’s delve into the details!

The Advancement of Taxi Booking App Development Similar to Uber & Careem

As revealed earlier, the market volume for taxi services is forecasted to soar to a staggering height in the upcoming years. The increasing market share can be attributed to the growing consumer preference for convenience, the expansion of digital payment options, and the integration of advanced technologies like AI and GPS for improved service efficiency.

Uber, a global leader in mobility services, has garnered an impressive user base, boasting 150 million monthly users by the fourth quarter of 2023. Operating in 70 countries worldwide, Uber facilitated over 9.4 billion trips in 2023 alone. The company’s robust performance translated into remarkable financial figures, generating over $37 billion in net revenue in the same year.

Careem (currently acquired by Uber) is another prominent player that operates as a ride-hailing service across several regions, primarily in the Middle East, North Africa, and South Asia. In terms of performance, Careem has exhibited notable growth and success in recent years. As of 2023, the company boasts a significant presence in over 100 cities across its operating regions. With a total of 97 million rides completed, Careem’s extensive network and dependable service has made the app standout in the market.

Considering the remarkable success of these on-demand taxi booking apps and the expanding market, businesses have an excellent opportunity to tap into this growing sector. By developing similar apps, they can cater to increasing consumer demand, adopt innovative technologies, and ultimately secure a share of this lucrative market. This approach not only meets current user expectations but also positions businesses for future growth as the industry continues to evolve.

Understanding Careem and Uber App Development Cost

Creating a mobile app similar to Uber and Careem involves navigating various cost-related hurdles. Factors such as feature complexity, technological advancements, UI/UX design intricacies, and the geographic location of the development team all contribute to the overall expense. As outlined, the estimated cost for building a custom app akin to Uber and Careem generally falls within the range of $40,000 to $300,000.

Factors Influencing the Careem- and Uber-like App Development Cost

Several pivotal factors converge in the development of an app like Uber and Careem. Each of these factors plays a crucial role in augmenting the app’s functionality and user experience, thereby impacting the Careem and Uber app development cost.

App Complexity

The app’s complexity, including the number of features, user roles, and integration with various services like navigation, payment gateways, and notifications, directly impacts development costs. More intricate features such as real-time tracking, route optimization, and multi-language support require additional time and resources, thus increasing Uber app development cost.

Design Requirements

User interface (UI) and user experience (UX) design are crucial for ensuring an intuitive and visually appealing app. High-quality design elements, including custom graphics, animations, and a user-friendly interface, often require more design hours and may incur higher Uber app development cost.

Compliance and Security Standards

Adhering to regulatory requirements and implementing robust security measures are paramount for protecting user data and ensuring legal compliance. Integration of features such as two-factor authentication, data encryption, and compliance with GDPR or other data protection regulations may add to overall cost to develop taxi booking apps like Uber and Careem.

Development Team and Location

The skill level and location of the development team also significantly impact Uber and Careem app development cost. Hiring developers in regions with higher labor costs, such as North America or Western Europe, may result in higher hourly rates compared to outsourcing to regions like Eastern Europe, Asia, or South America.

Third-Party Integrations

Integrating third-party services into the app, such as customer support chatbots, social media sharing capabilities, and loyalty program management tools, enhances its functionality but also impacts development costs. Licensing fees, API usage costs, and development time required for seamless integration contribute to overall Uber and Careem app development cost.

App Platform

Developing for multiple platforms (iOS, Android, web) increases development costs due to the need for platform-specific coding, testing, and maintenance. Deciding whether to build a native app, hybrid app, or utilize cross-platform frameworks also impacts cost to build an app like Uber & Careem.

Tech Stack

The choice of programming languages, frameworks, libraries, and databases influences development costs. Utilizing cutting-edge technologies or specialized tools may require additional investment but can also result in improved performance, scalability, and future-proofing of the app.

Quality Assurance

Thorough testing and quality assurance (QA) processes are valuable for identifying and fixing bugs, ensuring app stability, and delivering a seamless user experience. Investing in comprehensive QA testing, including manual and automated testing methodologies, contributes to overall cost to build an app like Uber & Careem but is crucial for maintaining app reliability.

Maintenance

Ongoing maintenance and updates are essential to keep the app functional, secure, and compatible with evolving technology and platform requirements. Budgeting for regular maintenance, bug fixes, feature enhancements, and platform updates is essential for the app’s long-term success and adds to the overall cost to build an app similar to Uber or Careem.

After exploring taxi booking app development costs, let’s move towards comprehending the significant features that contribute to its success and user satisfaction of apps like Uber and Careem.

Key Features of Careem- and Uber-Like App Development

Like almost all the apps falling in the on-demand category, the on-demand taxi booking apps also have three components – Customer side, driver side, and admin panel.

In order to develop an Uber-like app, it is essential to understand the different types of apps that would come together to form one single on-demand application.

Let us look into the different elements now –

Passenger App

This is the app screen that the passengers interact with. It has all the elements starting from entering the mobile app to setting a location, booking the ride, calculating the fare, contacting drivers, making the payment, and finally giving them ratings and reviews.

Registration

An important feature of the app is to allow users to log in/sign up with their existing IDs and social media accounts.

Taxi type selection

Allowing the users to choose the vehicle type they want to ride will instantly increase the demand for your app, just like it did for Uber.

Booking

This, of course, enables the users to book the rides with your app any time and anywhere.

Push notifications

Push notifications are a great way to make users aware of the on-going discounts on the app and other relevant updates.

Feedback

It is a must-have. This allows users to share their experiences of your services with other users, which is a great promotion tool in itself. Plus, you will also get to know about the room for improvement.

Ride History

This feature helps riders to check their riding history, in case they want to take the ride with the same driver.

Price Calculator

Another must-have feature is a price calculator, otherwise, how would the users know how much the ride would cost them beforehand?

Payment

Make sure to provide multiple payment gateway options to the users, i.e., debit/credit card, net banking, etc.

Calling

Incorporating the calling feature will help the riders call the drivers from the app, if the need arises.

In-app messaging

In-app chat facility is something that improves the overall experience of riders and drivers alike. They can share real-time information with the help of this functionality and enjoy it better.

Driver App

This app element revolves around the drivers/captains (Careem’s nomenclature for drivers). While both passengers and drivers share a number of common elements, there are a few extra Uber app features in the driver part of the application. Some of those extra elements are – navigation, ride estimation, active or inactive option, reports on trip stats and payroll, etc.

Active/Inactive Status

Under this feature, drivers can choose to display their status and let users know of their availability.

Profile Editing

It will allow drivers to update their profile, i.e., information regarding the vehicle they are driving, years of experience, etc.

Calling

Incorporating the calling feature will help the drivers call the riders from the app, if the need arises.

In-app Messaging

In-app chat facility is something that improves the overall experience of riders and drivers alike. They can share real-time information with the help of this functionality.

Activity Alert

It helps drivers know of any new booking in their vicinity, so that they can accept or reject the ride.

An indispensable feature is the GPS navigation. Otherwise, how would the driver ever locate the rider? Or the booked destination?

Estimation

Just like it is important for the riders to know the cost of the ride, so should the drivers.

Reports

Under the reports feature, drivers can have information regarding trips and earning on a daily basis.

Admin Panel

The admin side of the on-demand taxi booking app is usually a web application, which is used to save, manage, and then review all the activities happening on the app. Here are some of the features

Vehicle Management

The admin can access all the information related to the vehicles registered with the company.

Billing and invoice

With this feature, admin can easily see the daily earnings made on the platform and number of rides taken every day. This helps in further data analysis.

Compliant Control

Remember the feedback that users drop? It is all displayed in this section. So, that the admin is aware of the experience and satisfaction of users with the app.

Role Management

The admin here can manage everything related to assigning rides and everything between the drivers.

Vehicle Tracking System

The safety of the users and drivers is prominent. So, this feature helps the admin to keep track of the vehicle.

Promotion and Discount Management

It is from here that the admin manages all the discounts, coupons, and promotions going on within the app.

Between all the three app components, there are a number of shared yet most important features that help answer how much it would cost to develop an app like Uber or Careem. The next section of the article is about those features and the approximate time and cost it involves to build such features for an app like Uber.

Critical Features to Develop a Taxi Booking App: Uncovering Pricing and Development Efforts

Uber-like app development cost would fluctuate based on the features incorporated into the app. Hence, it is advisable to assess the feasibility of each feature carefully. Here are some of the most essential features businesses need to incorporate in their ride-hailing apps:

Registration

Creating the user profile or registration is a must-have element for the application’s driver and customer side. When it comes to the customer-side registration process, businesses need to focus on getting information related to their name, phone number, and email address. On the other hand, the data you will collect from the drivers will be much more extensive. In addition to the general contact information, you will need to ask for the driver’s photo ID, license, copy of the license, etc.

To gather information effectively, you can also consider incorporating options for social media account integration when developing a ride sharing app like Careem and Uber.

Development Timeline: It takes a dedicated app development company around 120 – 150 hours to develop the signing-in and profile creation functionality in Uber–like app development.

Pricing: The approximate cost to develop this feature starts from $3000.

GPS

GPS is another vital feature that lays the base of on-demand taxi app development. Taxi booking apps revolve around these three main usages of the GPS facility mainly for–

Identify Device Location: One of the most useful features of on-demand taxi booking apps is that users don’t always have to enter their information; the app can fetch their precise location using the Map functionality.

In the case of the Android-based Uber Clone app, developers primarily use Google Location Services API to fetch the user’s location. In iOS apps, the CoreLocation Framework is used. Additionally, both iOS and Android platforms leverage Wi-Fi functionality and Bluetooth Beacon to improve better location tracking.

To Give Driving Directions: Both Android and iOS offer platform-specific APIs for showcasing turn-by-turn driving routes to the drivers. Android utilizes the Google Maps Platform, which includes the Directions API, while iOS uses MapKit for integrating driving directions into applications.

Development Time: Integrating GPS functionality when building an app like Uber usually takes 120 – 150 hours.

Pricing: The total cost for incorporating geolocation and routing features in an app like Uber starts from $6,000+.

[Also Read: How to Develop an Uber Clone App using Location Based Services]

Messaging/Push Notification

The passenger and driver need to be connected to know the ride status and estimated arrival time, send updates in case there are any delays or the ETA increases, etc.

Now, the one way to connect the driver and the passenger is to incorporate a calling facility into the app. However, this can increase the overall time a user spends on the app, which may be seen as a disadvantage by modern customers who prefer a quick in and out time.

The other way to notify both the driver and the commuter about the trip status is through messaging or push notifications. In this case, the commuter gets a pop-up notification of the ETA on their smartphone.

Now, there are two ways your partnered mobile app development company would incorporate the functionality in your car booking app –

• For Android – Google Firebase and for iOS – Apple Push Notifications.
• Nexmo, Plivo, and Twilio are the platforms that can be incorporated to exchange messages amongst the devices.

Development Timeline: While it takes about 36 – 40 hours to integrate push notifications in an Uber clone app, the SMS Integration time is 20 to 30 hours.

Pricing: The approximate cost to integrate the push notification functionality ranges between $2000 to $3000.

In-App Payment

One of the best selling points of an Uber clone app is the ability to send and receive payment from within the mobile app, as well as the benefit of viewing the ride’s cost estimate on the app screen.

To enable in-app payment in your on-demand taxi booking app, you will have to use third party payment gateway integrations. It is vital to keep in mind that integrating these payment gateways impact the overall Uber app development costs. Here are the multiple payment gateways we rely on as a dedicated on-demand app development firm–

• Stripe
• Braintree
• Paypal Mobile SDK
• Google Wallet and Apple Pay

Development Hours: It takes around 100 to 120 hours to integrate payment within the app.

Pricing: An approximate cost to build payment features for an app like Uber starts from $6000.

Driver Report

This feature ensures the safety of both drivers and passengers. The report encapsulates the driver’s driving style and is for a specific timeframe—a week or a month. So, in instances where a driver drives carelessly, either once or repeatedly, the report would help Uber decide if the driver should be banned for violating traffic and safety rules.

Development Hours: It takes somewhere around 80-100 hours to integrate drivers’ report feature within the app.

Pricing: The approximate cost of building the driver report feature for an Uber-like application starts at $2,000+.

How to Develop an App Like Uber?

Developing a taxi booking app involves a meticulous methodology, extensive research, and crucial considerations to ensure the creation of a compelling and impactful application. Let’s explore the taxi booking app development process!

Define Goals and Features

In order to build your own Uber app, begin by defining the goals, such as providing convenient transportation services, enhancing user experience, and maximizing profitability. Outline key features like real-time tracking, fare estimation, driver ratings, and multiple payment options to meet user needs effectively.

Build a Team

Assemble a proficient team comprising developers, designers, project managers, and legal advisors with expertise in on-demand taxi-booking app development and transportation regulations. Collaborate closely to ensure seamless execution of the project from conception to deployment for creating an app like Uber or Careem.

Design

Craft an intuitive and visually appealing user interface (UI) that facilitates easy navigation for passengers and drivers alike. Pay attention to details such as map integration, booking forms, and profile management to enhance user experience and engagement for developing a Careem clone app.

Adhere to Regulations and Compliance

Familiarize yourself with local transportation regulations and compliance requirements to operate your taxi booking app legally and safely. Ensure that your app adheres to regulations related to driver licensing, vehicle inspection, insurance, and passenger safety.

Develop

Utilize state-of-the-art technologies and programming languages to develop the frontend and backend of your taxi booking app. Implement features such as user registration, trip management, payment processing, and driver allocation to create a seamless booking experience for users.

Secure Data and Communication

Implement robust security protocols to safeguard user data and ensure secure communication between passengers, drivers, and the platform. Employ encryption techniques, secure authentication methods, and data privacy policies to protect sensitive information from unauthorized access or breaches.

Test and Refine

Conduct rigorous testing across various devices and platforms to identify and rectify any bugs, glitches, or performance issues. Solicit feedback from beta testers and stakeholders to refine the app’s functionality, usability, and overall user experience.

Deploy the App

Prepare your taxi booking app for deployment on major app stores such as Google Play Store and Apple App Store. Follow the respective guidelines and submission processes to ensure compliance and seamless distribution to users.

Maintain and Support

Provide continuous support and maintenance to address any issues, implement updates, and enhance features based on user feedback and market trends. Regularly monitor the app’s performance metrics and user reviews to ensure optimal functionality and user satisfaction.

How do Apps like Uber Make Money?

Now that we have crossed the threshold of Uber-like app development cost, it’s time to move to greater things.  If you have been long fascinated as to how Uber manages to earn billions of profit every year, then let’s unlock this secret, shall we?

Price Surge Model

Under the price surge model, Uber instantly increases the per-mile cost when it witnesses the high demand in a certain area. Moreover, prices can also increase if there are complications with the weather. Now the question is, how is the new price decided? Well, it depends entirely on the number of available drivers and the number of requests made by people who want to travel. The model is working so incredibly for the company that it has applied for a patent on surge technology.

Commission from Drivers

Companies deduct a percentage-based commission from drivers for every completed ride facilitated by the platform. The commission structure varies based on factors such as location, service type, and promotional offerings.

Cancellation Fees

Riders who cancel a ride request after a certain time threshold or if the driver has already arrived at the pickup location are charged a cancellation fee. This fee compensates drivers for their time and effort and discourages frivolous cancellations, thereby reducing driver downtime and maximizing earnings.

Subscription or Membership Programs

Offering subscription or membership tiers to riders provides access to exclusive benefits like discounted fares or priority service in exchange for a recurring fee, enhancing customer loyalty and revenue stability.

Advertising and Partnerships

Collaborating with brands or businesses to display ads within the app or promote sponsored offers to riders creates an additional revenue stream. Partnerships with local businesses for referral commissions or discounts further augment revenue.

Data Monetization

Analyzing anonymized ride and user data to derive valuable insights and trends enables businesses to monetize this information by selling aggregated reports to interested parties, such as researchers or government agencies.

By implementing these monetization strategies strategically, a taxi booking app like Uber can generate sustainable revenue while providing valuable transportation services to riders and drivers.

Transform Your Vision into Reality with Appinventiv: Building Your Own Uber-Like App

Appinventiv, a leading on-demand app development company, excels in partnering with businesses to create innovative and impactful on-demand service applications. We work collaboratively with your teams to craft high-quality applications, offering tailored solutions to address the unique needs and objectives of your business.

Our on-demand app development services encompass comprehensive concept ideation, strategic UI/UX design, seamless frontend and backend development, rigorous quality assurance testing, deployment, and ongoing maintenance.

Our team of seasoned experts combines unparalleled service with extensive expertise in app development, ensuring a personalized approach for both established businesses and newcomers alike.

Reach out to us today to embark on a transformative journey of creating cutting-edge taxi booking apps.

FAQs

Q. How long does it take to make an app like Uber or Careem?

A. Developing an app like Uber or Careem typically takes 9 to 12 months or more. The exact timeline depends on several factors, including the scope of features, design complexity, and platform compatibility. Basic functionality, such as user registration, ride booking, and payment integration, can be developed relatively quickly. However, incorporating advanced features like real-time tracking, in-app chat, and dynamic pricing will extend the development time.

Q. What are the benefits of developing an app like Uber and Careem for businesses?

A. Developing an app like Uber or Careem offers several benefits for businesses. These include market expansion, as such apps allow companies to reach a broader audience and tap into the growing demand for on-demand services. Revenue generation is another key benefit, with multiple revenue streams, such as ride commissions, driver subscription models, and partnerships with local businesses.

Q. Why should you integrate geolocation into an app?

A. Well, geolocation comes among the key features of on-demand taxi booking apps like Uber. It allows the admin to keep track of the vehicle. Moreover, it helps in connecting the drivers and riders by updating them of each other’s real-time location. This makes the experience all the more excellent and services more effective. However, one thing to keep in mind is that it adds up to the cost of building an app like Uber.

Q. How much does it cost to build an app like Uber?

A. On average, Uber app development cost ranges from $40,000 to $300,000, depending on the features, complexity, platform compatibility (iOS, Android, or both), and the geographic location of the development team. Additional factors influencing the cost include the level of customization, integration with third-party services, and ongoing maintenance and support.

THE AUTHOR

Dileep Gupta

DIRECTOR & CO-FOUNDER