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Available in 80 countries, Uber today has 75 million active users across the globe. The fact that Uber has completed 5 billion rides tells us how successful the application is. No wonder every organization that has decided to launch an on-demand cab service has only one question – how to start a cab company like Uber?

Although the answer isn’t that simple, we’ve made sure that you get your answers in a simple way.

In this blog, we will discuss how to start a cab company like Uber, the Business and Revenue models of Uber, the features required for your on-demand cab services application, and their associated costs.

Ready to create your own rideshare app? Let’s get started. 

 

How to Start a Business like Uber?

How to start a cab company like Uber (1)

In the quest of “how to start a cab company like Uber,” most start-ups and organizations miss the necessary steps that act as the building blocks to their business.

Let us briefly discuss the main steps that every start-up should follow to make an Uber-like application.  

  • Conduct Market Research

When the question “how to start a cab company like Uber” is on your mind, conducting market research is not the answer you’re looking for. However, an economic analysis is crucial to the success of your organization. 

The market for on-demand services is ever-growing. Having a thorough knowledge of your competitors, key demographic, opportunities, money risks, and other future challenges can help you make prudent decisions that will ultimately make you provide better services.

With such insights about your target market and competitors, it won’t take you long to get a return on investments

  • Choose a Business and Revenue Model

A good business and revenue model guarantees high ROI and streamlines your cab booking services. You can choose any business and revenue model that suits you the best. 

You can also choose to opt for the Uber business plan to know how to start a cab company like Uber, which we will discuss later in this article. 

  • Consider the Legal Aspects

The choices for choosing a legal entity for your cab company are generally two, namely:

General Partnership – 

This is an ideal business structure for companies that want to operate on a small scale and have limited resources.

Limited Liability Company – 

This is an ideal business structure for companies that want to operate on a large scale via serving individual and corporate clients.

  • Launch the MVP Features

To know how to start a cab company like Uber, you need to focus on the app’s features. The Uber platform and similar cab companies have three applications, mainly:

    • Customer App
    • Driver App
    • Admin Panel

Each of these includes different features, and incorporating all of them in your ride-share app can make your project very expensive. Therefore, the best solution is to create your own rideshare app and launch the MVP features first. 

The apps should include basic and necessary features such as:
    • The customer app – cab booking, ride estimation, geolocation and routing, payments, etc. 
    • The driver app – accept/decline requests, route optimization, earning and delivery reports, etc. 
    • Admin Panel – simple features to efficiently manage drivers, users, payments, and promotions. 

We will discuss these applications and their features later in detail. 

  • Work on Advertising

What’s the point of your application if people are not aware of it? 

Your application could be packed with features, and your company could provide the best services, but if you’re not advertising well, your company will take a hit.

Before answering the question “how to start a cab company like Uber?”, you may need to find answers to various other problems as well, the most important question being “how to advertise like Uber?”

You can start with television, newspaper, and radio adverts. Flyers and handbills are a great way to reach out to customers too. However, these advertising options can be expensive. 

It is better to opt for digital advertising. Facebook, Instagram, Google Ads, and Youtube are great ways to advertise. You can reach your target audience while being easy on your pocket. 

 

Uber Business Model and Revenue Strategy

How to start a cab company like Uber (2)

Every business is unique, and so is their business model. 

Although following a successful organization’s business model does not guarantee success, it sure does explain the company’s goals, intent, and prospects, which can give you some great insights. 

Instead of offering an Uber business strategy PDF explaining how to start a cab company like Uber, we will provide you with a comprehensive Uber Business Model Canvas. This will help you get a quick glimpse of the Uber business plan and the reason behind its success. 

How to start a cab company like Uber (3)

As you can see, the Uber business plan speaks about nine elements – its Key Activities, Key Partners, Key Resources, Value Proposition, Customer Relationship, Revenue Stream, Customer Segment, Channels, and Cost Structure. 

If you look at the Revenue Stream mentioned in the Uber business plan, it will answer your most asked question – how does Uber make money? 

Let’s discuss this in detail:

  • Ride Transaction Fee

Uber takes 20-25% of each fare booked by the app, and the driver takes the remaining portion. The fares differ according to the demand, city, and type of vehicle.

  • Surge Price

Uber makes extra revenue during high-demand periods and peak hours. When the demand is high, the rates increase according to specific algorithms.

  • Leasing to Drivers

Uber provides the option of leasing cars to those who want to work as drivers but don’t have their own vehicle. Apart from the security deposit, they charge a weekly rental, which gets deducted from the driver’s earnings. 

  • Cancellation Fee

As per Uber policy, a passenger gets charged with a cancellation fee if they choose to cancel the ride after a set time-frame (in most cases, after five minutes). 

  • Other Services

Here are the alternate services that Uber offers:

    • UberRUSH – motorcycle pickup service.
    • UberEATS – an on-demand food delivery vertical.
    • UberBOAT – water-taxi service (Istanbul, Turkey, and Croatia)
    • UberCHOPPER: – helicopter ride service in selected cities.
    • UberFREIGHT – Uber for trucks.

Therefore, if you know the Uber business plan and its revenue model, you’re half-way there in learning how to start a cab company like Uber.

To further understand the application’s success, let’s examine the app’s basic functionality from the customer’s point of view. 

Five sub-steps from the customer’s perspective:

  1. Trip Request
  2. Matching the Nearest Driver
  3. Trip Confirmation
  4. Payment Procedure
  5. Rating and Review 

Apart from these, the app’s ride pricing factors include both time and distance. 

  • If the vehicle is moving at speed less than 18km/h (11mph), then the user is charged per minute
  • If the vehicle is moving at a faster speed, then the user is charged per mile. 

Other features include charging a cancellation fee in case the traveler decides to cancel the ride. (The charges vary depending on the ride type and your city.)

 

If you are looking for more guidance on how to start a cab company like Uber, we are more than happy to assist you. Feel free to reach out to us and create your own rideshare app today. 

 

How to Create Your Own Rideshare App Like Uber?

How to create a rideshare app

A significant portion of the answer for “How to start a cab company like Uber” lies here. 

Every aspect is equally important – the business model, revenue strategy, marketing, advertising, etc. However, if you want to create your own rideshare app and want it to be successful, you need to focus on your app’s features.

There are various basic features that every cab booking app should include in their project. In this section, we will discuss the different features of the three variants of your project, namely:

  • Customer App
  • Driver App
  • Admin Panel

Apart from these basic features, we will also provide you with some great ideas to include in your project to make it stand apart. 

Let’s discuss these in detail. 

Customer App Features

The customer app is the variant used by the end-users. Therefore, if you wish to know how to start a cab company like Uber, having a thorough knowledge of the customer app’s features is crucial. 

The application includes the following features:

  • Registration/Log-in

Users can register via their email address, phone number, or link their social media accounts.

  • Cab Booking

This feature allows the user to select the pick-up location and choose the type of ride they want. 

  • Fare Calculator

Users can check the fare of their ride in advance. The fare can vary depending on the user’s location, the destination’s distance, and the type of ride. 

  • Live Tracking

This feature allows the user to check the live location of their drivers. It also highlights the estimated time of arrival. 

  • Payment

Users can choose to pay via their e-wallet, debit card, credit card, or cash.

  • Notifications

This feature provides vital information about their request’s status, the details of the driver and vehicle, OTPs, estimated time of arrival, estimated time to reach the destination, etc.

  • Rating and Review

The customer can rate the driver and their overall experience via this feature after completing their ride. 

  • Travel History

Users can access their past travel information along with previous payment modes and details of the driver. 

  • Customer Support

In case a user faces any issue, they can choose this feature and resolve their problems with a chatbot or by speaking with a trained customer executive on call or text.

 

Idea Usher suggests the following advanced features that can be included in your app:

  • Waiting List – Users’ requests can be queued with the help of a waiting list during peak hours while ensuring that each user is efficiently attended to.

  • Split Payment – Users can choose to split the payment if they are traveling in a group.

  • Ride Later – Users can choose to book a ride in advance for a particular time or day later.

  • Discounts – Users can opt for the available discounts via this feature. This boosts the overall retention rate. 

  • Panic Button – To make the ride safer for the users, you can provide a panic button’s feature. 

  • Voice Recognition – Voice commands to book a cab can be a great feature to your application

Driver App Features:

The driver app is the cab drivers’ variant, and developing this app right can increase the overall efficiency.

Let’s look at the app’s features while keeping in mind – how to start a cab company like Uber?

  • Driver Profile

This feature includes all driver’s vital information, such as name, address, and contact details. 

  • Accept/Decline Requests

The drivers can accept and decline requests as per their availability, schedule, and proximity of the location within a limited time frame via this feature. 

  • Geolocation and Route Optimization

With the geolocation feature, the driver can reach their customers and stores’ exact location. 

  • Notifications

This feature provides vital information about the user’s location, payments, estimated time to reach the destination, etc.

  • Earnings and Delivery Reports 

This feature allows the drivers to track down his daily, weekly, and monthly earnings and delivery reports. 

 

Idea Usher suggests the following advanced features that can be included in your app:

  • Heat maps – Drivers can choose to move to a location with a higher passenger ratio.

  • Daily/Weekly Quests – Drivers can choose to complete pre-defined daily/weekly targets and earn more via this feature.

  • Forward Dispatch – Drivers that are completing a ride can still accept requests via this feature. 

 

If you are looking for more guidance on how to start a cab company like Uber, we are more than happy to assist you. Feel free to reach out to us and create your own rideshare app today. 

 

Admin Panel 

The admins are responsible for organizing the drivers, check on customer satisfaction, and ensure that everything is under control. Thus, they need a central point of control to manage the total earnings and analytics effectively. 

Let’s look at the panel’s features:

  • Dashboard

This feature allows the admin to supervise the drivers and app users via using a single web-based platform. They can also add, edit, and delete various profiles via their dashboard.

  • Managing Drivers

Admins can access each driver’s profiles along with the information related to their total earnings, ratings, and total rides. 

  • Managing Users

Admins can handle all the customer queries and access information such as cancellation fees, discount codes, reviews, the total number of rides, etc.

  • Analytics and Reporting

The admin analytics feature gives a clear picture of all the vital information and helps report the total earnings made daily, weekly, and monthly. 

  • Location and Fares Management

The admin can manage the base-fares of different cities and locations via this feature

 

Idea Usher suggests the following advanced features that can be included in your app:

  • Vehicle Management – The admins can keep a record of the vehicle and its insurance and overall maintenance.

  • FAQs – The admins can look after the frequent queries and tickets raised by users with this feature’s help.

  • Multi-level Admin Access – Different admins can access different parts of the dashboard easily without any hassle. 

 

Overall Cost of Developing an Uber-like App

How to create a rideshare app

To know how to start a cab company like Uber, you will first need to know how much it costs to make an app like Uber.

The cost of developing an application is never static, as each application has its own features and purpose. Keeping in mind the basic features of your on-demand cab service application, the final costs of your app would range anywhere from $60,000 to $120,000 for iOS and Android platforms

Here is the split of the time and cost it takes to develop the basic features of an on-demand taxi application like Uber:

  • Registration and Profile

Registration is an essential part of your application as it gives you the details of your users and drivers. 

The cost and time taken to build this feature are as follows:

    • Time:
      • Android: 60 hours
      • iOS: 60 hours
      • Cross-platform: 80 hours
      • Admin Panel: 50 hours
    • Cost:
      • Android: $1,500
      • iOS: $1,500
      • Cross-platform: $1,800 
      • Admin Panel: $1,200  
  • Notifications

Notifications help users and drivers to stay updated. This is again an essential feature that you should include in your cab booking application. 

The cost and time taken to build this feature are as follows:

    • Time:
      • Android: 24 hours
      • iOS: 24 hours
      • Cross-platform: 32 hours
      • Admin Panel: 16 hours
    • Cost:
      • Android: $600
      • iOS: $600
      • Cross-platform: $700 
      • Admin Panel: $400 
  • Cashless Payment 

This feature gives users the flexibility to pay for their rides via their preferred mode of payment. 

The cost and time taken to build the feature of cashless payments are as follows:

    • Time:
      • Android: 80 hours
      • iOS: 80 hours
      • Cross-platform: 120 hours
      • Admin Panel: 60 hours
    • Cost:
      • Android: $2,000
      • iOS: $2,000
      • Cross-platform: $2,500 
      • Admin Panel: $1,500 
  • Geolocation and Route Optimization

Geolocation and Route Optimization is an essential feature to include in your on-demand taxi booking application. It helps the drivers pick and drop the users at their exact locations. 

The cost and time taken to build the feature are as follows:

    • Time:
      • Android: 100 hours
      • iOS: 100 hours
      • Cross-platform: 150 hours
      • Admin Panel: 100 hours
    • Cost:
      • Android: $2,500
      • iOS: $2,500
      • Cross-platform: $3,300 
      • Admin Panel: $2,500
  • UI/UX Design

Another answer to “how to start a cab company like Uber?” is to develop a spot-on UI/UX design. Most start-ups do not realize this, but your application’s User Experience (UX) and User Interface (UI) are highly responsible for your application’s success. 

The cost and time taken to build the feature are as follows:

    • Time:
      • Android: 60 hours
      • iOS: 60 hours
      • Cross-platform: 75 hours
      • Admin Panel: NA
    • Cost:
      • Android: $1,500
      • iOS: $1,500
      • Cross-platform: $1,800 
      • Admin Panel: NA
  • Ride Scheduling: 

This feature helps the user to make prior bookings for their ride. They can select their preferred date, time, and location and travel without the hassle of on-the-spot booking.

The cost and time taken to build the feature are as follows:

    • Time:
      • Android: 40 hours
      • iOS: 40 hours
      • Cross-platform: 60 hours
      • Admin Panel: 24 hours
    • Cost:
      • Android: $1,000
      • iOS: $1,000
      • Cross-platform: $1,300 
      • Admin Panel: $600

These were the associated costs of including the said features in your project. 

The estimation of your on-demand taxi application can differ as per different companies and experience of your app developer. Also, businesses can customize their application and add/remove features as per their needs. 

So, on an ending note, you first need to study the market, advertising strategies, business and revenue models, and app features to know how to start a cab company like Uber.

 

Choose Idea Usher 

Now that we’ve provided all the relevant answers to your question of how to start a cab company like Uber, I’d like to mention that we have solutions to all your business and technology needs. 

Idea Usher can provide you with tailor-made solutions and help you create your own rideshare app.

Don’t believe us? We have a proven track record of having more than 1 million downloads on every app we develop. Feel free to reach out to us to know more about how to start a cab company like Uber and get a quote for your On-demand Cab Services Application.

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