Startup10 MIN READ2021-12-09

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

UberAppDevelopmentCost
Uber App Development Cost

Who would have thought that traveling would be so easy? With a few taps, you get a ride to your destination. Absolutely a lifesaver. All thanks to Uber for relieving us from the hassle of finding a taxi. Because it is budget-friendly, convenient, and not everyone can afford to buy a vehicle, the demand for taxi-apps like Uber is increasing.

Currently, it has 93 million active users and a global market value of $72 billion. Seeing the success of Uber, the services like Ola Cabs, Easy Taxi, etc., emerged in the market. For a business owner, entrepreneurs, investors, etc., it is an opportunity. That is why many of them think of developing such apps. And why not? The stats are enough to persuade anyone.

And if you are also thinking of developing, then stay tuned. We will guide you through the features and total cost to build an app like Uber.

Who needs Uber and why?

  • The passengers
    • Looking for a convenient ride.
  • The drivers
    • Looking for ways to earn money.
  • Business owners, startups, and entrepreneurs
    • Absence of local Uber-like apps
    • Increasing demand of such apps

In this article, we will look from the perspectives of startups, business owners, and entrepreneurs looking to build an app like Uber considering passengers' and drivers' needs and try our best to get rid of every confusion you have.

First, let's understand its working mechanism.

How does Uber work?

First, the passenger requests a ride for the nearby vehicles registered on Uber. Your contact details and real-time location is shared with the drivers. Also, you will get to know the exact cost.

Then, the drivers within a range get the request. He has the option to either accept or reject the request.

When a driver accepts your request, the real-time map will let you know and track his/her location.

After reaching the destination, the user pays for the ride. You can either go for cash or online payment.

Finally, the user gives ratings and reviews to the Uber driver.

The working process looks simple, but there are mountains of features to consider when building a Uber app.

What to consider?

Features

Without considering what features make an Uber-like app, it will be impossible to plan your next step and start the development process.

Like Uber, you have the option to consider these three different apps:

  • Passenger
  • Driver
  • Admin Panel to manage the passenger and driver apps.

Passenger App

The important features you can include in the passenger app are:

Registration: Generally, the users should be able to register using Gmail, Facebook or their personal phone numbers.

Profile Management: To save and edit name, payment options, phone number, and other contact details.

Booking: Interface to enter your location and destination, ride type (car, taxi, or bike), and get confirmation from the driver.

Routing and tracking: To track the driver's route in real-time and see the estimated arrival time.

Fare calculator: To calculate the total cost of the ride before the confirmation.

Payments: Integration of the payment options.

Push notifications: It can be SMS, email, or push notifications. It helps to update the passenger about the confirmation from the driver, arrival time estimation, etc.

Calling/Messaging: To keep in touch with the driver through the app.

Ratings and reviews: To give reviews and ratings to the drivers. It motivates the drivers to provide the best experience to their customers.

Cancellation: To cancel the ride.

Maps: To see the real-time map.

Driver App

Important features you can include in the driver app are:

Registration: To register to the system before using the service.

Profile Management: To save and edit contact and payment details.

Push Notifications: To get updates about the booking details, locations, routes, reviews, ratings, etc.

Accept and reject: To accept or reject the booking.

Price calculator: To calculate the cost of the ride.

Maps: To see the real-time map.

Calling/Messaging: To contact the passengers directly from the app.

Reports: To see the earnings on a daily, weekly, and monthly basis and view the riding history.

Waiting time: To earn extra cash when a passenger is late to the pickup location or cancels after booking.

Forward dispatch: The drivers can accept the next booking during the current ride.

Admin Panel

Admin panel is a central hub

  • To add or delete users
  • To verify the users
  • To keep track of drivers and passengers data
  • To manage and monitor payments, locations, booking, notifications, and payouts
  • To generate reports
  • To make discounts and other offers
  • To check the ratings and reviews.
  • To provide support to drivers and passengers.

Revenue models for the Uber-like app owners

Without any revenue, it is impossible to generate profit, maintain the app, and provide better services to the users and the stakeholders. So, here are some possible ways to generate income from the platform.

Fees from passengers: Taking commissions from the total cost of the ride.

Fees from drivers: Taking commissions for using the system.

Fees from trip cancellation: Taking fees as a penalty from the drivers or passengers if a confirmed booking is canceled.

In-app ads: Charging third-party users for promoting their business within the app.

What affects the development cost of an Uber-like app?

You shouldn’t think that the cost to build an app like Uber will be the same everywhere. If that is what you are thinking, then you are making a horrible mistake. The development cost depends on various factors.

Here is a list of factors that affect the development cost.

Features

Apart from the features mentioned above, there might be more, like booking a ride in advance, fair split, etc. So, the total cost will vary depending upon your requirements.

The more the features, the more the total development cost and vice versa.

Regions

The development cost varies depending on geographical areas. Here is a list of the average base hourly rate of software engineers in different countries in 2021:

  • USA: $46.32
  • Germany: $56
  • UK: $71
  • Sweden: $67
  • Ukraine: $37

Source

Platform

The development cost also varies depending on the mobile platform: Android or iOS. Because the app developed for one operating system will not work in another.

So, it is best to target a platform: Android or iOS, or both.

If you ask us, our answer is both platforms. Since there are users who use Android as well as iOS, we can't miss either of them.

Technology stack

The development cost may vary depending on the technology stack you use.

Uber's technology stack includes:

  • Application and data: jQuery, Python, Node.js, React, NGINX, Java, MySQL, PostgreSQL, MongoDB, Redis, Amazon EC2, Kafka, Swift, Go, Objective-C, Backbone.js, Cassandra, Apache Spark, Hadoop, Apache Thrift, RIBs, AresDB

  • Utilities: Google Analytics, Elasticsearch, PayPal, Twilio SendGrid, Twilio, Mixpanel, Optimizely, Crazy Egg, TensorFlow, Heap, Braintree, HackerOne, Ludwig

  • DevOps: Grafana, Sentry, Terraform, RequireJS, Prometheus, Puppet Labs, Nagios, Zookeeper, Graphite, Jaeger, Brunch, uberalls, Zap, M3, Makisu, Kraken by Uber, Peloton

  • Business tools: G Suite, Asana, Zendesk, Mattermost, OneLogin, iDoneThis, Delighted

Source

Development team

The development team's expertise, experience, and size also affects the overall development cost of building an app like Uber.

The development team may include:

  • Project Manager
  • UI/UX Designer
  • Android and iOS Developer
  • Back-end Developer
  • Quality Assurance Engineer

However, the number of members you need in a team depends on the project's size and schedule.

Type of your company

Last but not the least, your company type also affects the total development cost. If you are a startup, then the budget plays a crucial role.

However, for an established company, the budget might not be a big problem for developing the app.

Total development cost estimation

Considering all the functionalities mentioned above, below is the breakdown of the total development cost.

Every cost you see here is based on our region (Asia), i.e.$30 per hour.

The development cost is estimated based on our development team's experience and skills. However, it may vary depending on your needs and the requirements of the app.

Total development cost to build the passenger app.

Features Android(hr) iOS(hr) BackEnd(hr) Cost($)
Registration 45 50 43 4,140
Profile Management 39 43 25 3,210
Booking 81 87 39 6,210
Routing and Tracking (Maps, GPS, etc.) 42 51 71 4,920
Fare Calculator 21 21 26 2,040
Payments Integration - - 40 1,200
Push Notifications 29 30 24 2,490
Calling/Messaging 12 12 12 1,080
Ratings and Reviews 44 44 26 3,420
Total 313 338 316 29,010

Total development cost to build the driver app.

Features Android(hr) iOS(hr) BackEnd(hr) Cost($)
Registration 43 46 26 3,450
Profile Management 40 47 27 3,420
Notifications 32 32 22 2,580
Accept and Request 52 52 32 4,080
Reports and History 47 47 26 3,600
Status 32 34 20 2,580
Total 246 258 153 19,710

Total development cost to build the Admin Panel.

Features Android(hr) iOS(hr) BackEnd(hr) Cost($)
Dashboard (includes every feature mentioned above) - - 300 9,000

Other development costs.

Features Hours Cost($)
UI/UX Design 220 6,600
QA 199 5,970
Total 419 12,570

The overall development cost will be $70,290 (Android+iOS+BackEnd+UX/UI+QA).

How can you be successful like Uber?

If you are planning to be successful like Uber, then you can think something out of the box. You should consider selling your unique point. Doing the same as Uber might not work if you don't have a local Uber-like service. Otherwise, it might be challenging.

So, here are some possible ways you can bag success, like Uber.

  • Investors, sponsorships, and in-app ads are some of the options. With the help of these, not only you, but it will be a win-win situation for passengers and drivers as well. Read further to know how.
  • You can add new ways for drivers to earn money. It means more commissions to you.
    • For example, monthly rewards for the best drivers based on ratings and reviews. Moreover, it will encourage more and more people looking for ways to earn money to use the service.
  • You can make the cost of the ride affordable and convenient compared to other taxi-app services for the passengers. This way, more users will use your app. But, how?
    • You can consider in-app ads, sponsorships, investors, and commissions to cut down the fare price.

The more the users, the more revenue you can earn and the more successful you will be.

Why choose Truemark Technology?

Truemark Technology has been in the field of software development for many years.

If you need any help making your Uber-like app a reality, then feel free to contact us. Plus, we provide a free consultation service to help you answer all your queries.

Benefits of working with us:

  • Affordable without compromising on quality
  • Daily and weekly standups
  • Design mockups
  • Weekly meetings and presentations
  • Implementation of best industry practices

For us, customer satisfaction is above everything, which is reflected in our work and dedication towards the projects. So let's have a chat and work together.

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Kiran

Kiran

Digital Marketing Associate

Building a knowledgeable world bit by bit

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