How to build a ride-sharing app in 2023?

The ride-sharing industry has exploded in popularity in the past few years. This is due to these services' convenience, price, and safety. Ridesharing has exploded in popularity in recent years. This has made getting around town much easier for many people. With the help of ride-sharing apps, people can get around town quickly and easily.

The idea is simple: Instead of owning a car, you can use an app on your phone to hail a ride from someone who is already driving in your direction. The driver gets paid, and you get a ride. This is often cheaper and more convenient than taking a taxi or renting a car.

Ridesharing has the potential to change the way we get around town. It's not just about getting a ride from a stranger. With ride-sharing, you can also connect with people in your community. You can find rides to work, meet new friends, and even save money.

Ridesharing has a lot of potential benefits for both the rider and the driver. It can be cheaper and more convenient for the rider than taking a taxi or renting a car. For the driver, it can be a way to make more money and supplement their income. This is a rapidly growing industry, and many companies offer ride-sharing services.

Considering the popularity of ride-sharing, many entrepreneurs and industry tycoons are investing in this app heavily. This blog piece has brought you several essential aspects needed to build a rideshare app.

Let's take a ride…

Market Overview

Ride Sharing Market will be worth $185.1 billion by 2026- Marketsandmarkets.com.

Ride-sharing services have taken off in recent years because of several factors. The most significant is the cost of owning and operating a car in today's society. Younger generations don't want to cope with the high costs and additional driver payments associated with owning a car.

In the near future, ride-sharing services will thrive in cities with high vehicle ownership costs and limited parking as these services become more practical in congested areas.

Growth in the global ride-sharing market is significant and shows no signs of slowing down. This is primarily due to the emergence of more local ride-sharing apps aiming to take over the market.

Top 5 ride-sharing apps

• Uber
• Lyft
• DiDi
• Grab
• Curb

How to build a rideshare app ?

An app cannot only be built based on its idea but multiple aspects are involved in its development. So let's begin …

Study competition

The first thing that all entrepreneurs should always do is research their competitors before starting a mobile app. This will help them understand what their target market is looking for and how to make their app stand out from the rest. Additionally, it is essential to research the different app stores and find out what kinds of apps are doing well and which ones are not. This will give entrepreneurs a good idea of what they need to do to be successful.

Identify the UVP of the app concept.

All too often, people try to copy what someone else is doing and end up failing. It is crucial to be unique and offer something no one else does. This will make people want to use your app over others. It is also essential to have a clear and concise value proposition. This will make people want to use your app over the competition. Make sure that it is clear what your app does and how it is different from the rest.

Decide monetization model

There is no way a business will develop and grow unless it is monetized. The primary objective of a business is to make money; without money, a company cannot survive. In today's fast-paced and globalised economy, businesses must be able to generate revenue quickly and efficiently. The most common way to do this is to sell goods and services.

Build an MVP

The most brilliant move to make a successful ride-sharing app is to start with an MVP (minimum viable product). This will help you learn about your customers and their needs, as well as how you can best serve them. By building an MVP first, you will not only save money on development costs, but you will also be able to get customer feedback more quickly.

How to decide on a monetization model?

While the sharing economy is growing in popularity, there is a lack of understanding about how it works. The on-demand ride-sharing model is a prime example of how the sharing economy can be used. This model connects supply and demand quickly and seamlessly, making it possible for people to communicate with drivers who want to make money.

Commission Fees

A commission-based revenue model is a monetization model that charges a service fee for each payment transaction. In this model, the company or individual providing the service (such as a broker or an agent) earns a commission from each successful transaction. The commission-based model is often used in industries with a high volume of transactions, such as real estate, insurance, and stock trading.

Advertising

Regarding mobile apps, advertising is one of the most popular revenue sources. In-app advertising allows you to show ads from third-party providers and profit from each one clicked on or viewed. However, you need to ensure that advertisements are placed in the right place else they can irk your customers.

Collaboration

Collaborating with other companies is an excellent way to earn money in mobile apps. You can pitch your app to a larger company and propose that they use it as a promotional tool. They'll pay you a certain amount for every download your app generates if they agree. You can also collaborate with companies that offer similar products or services to yours.

Important features to be included

User Registration

Registering with your rideshare application should be simple and easy. After a user creates an account, they must provide their name, email address, phone number, and password. Also, users should get the option to log in through their social media platforms to avoid the hassle.

Driver Search

The ride-sharing apps offer a convenient way for people to save money on their travels. Connecting drivers and other travellers looking for a similar route, these apps help reduce the time needed to get from point A to point B.

In addition, users should be given the freedom to select the route, mode of transportation, and whether or not they want to travel with other people. This makes it easy to find a way to travel that is both convenient and affordable.

They can simply search for a ride-sharing app and book a ride. This allows riders to avoid waiting in long lines or spending time on the dreaded bus ride.

Real-time notification

Being able to see if any significant events are happening in the area is crucial for both the driver and the client. If the driver is informed of these events, they can plan their route accordingly to avoid traffic congestion. For the client, see if any events are happening near their pickup or drop-off location can help them plan their time better. Knowing these events in advance can help make the whole experience smoother for both parties involved.

Geolocation

When you're out and about and need to get to your destination, you can rely on the GPS location feature to help you out. Google Maps provides a live feed of the driver's whereabouts, so you can rest assured that you're always in good hands.

Advance booking

Ride-sharing apps are gaining in popularity because they offer a significant advantage over traditional forms of transportation. For example, ride-sharing apps allow users to reserve a ride at a prearranged time and location, which gives them a significant advantage. This is because the rider does not have to worry about finding a free ride or waiting for the bus.

Payment

Cashless transactions have been on the rise recently as consumers move away from carrying physical money and toward paying for goods and services electronically. This trend has been especially prominent in the ride-sharing industry, where passengers typically pay for their rides electronically through a mobile app. Several reasons for this shift away from cash payments include the convenience of electronic payments and ride-sharing companies' ability to track and manage cashless transactions more quickly than cash payments. Nevertheless, some passengers still prefer to pay for their rides in cash, so ride-sharing companies need to offer this payment option.

Push notification

Push notifications are an important way to keep users updated about their rides. They can be used to inform the user as the ride is booked, who the driver is, how far the cab is from the user and more. By keeping users constantly updated, it ensures that they have a smooth and enjoyable experience.

Rating & Review

Review and rating allow drivers and passengers to rate each other in the ride-sharing app. This helps to create a trusting environment and allows for better customer service. With so many different options available, it can be challenging to know which app to choose, but with this feature, it becomes easier for passengers to pick the right app and its offered services.

Ride cancellation

If a user wants to end a trip, they should be able to do so without being penalised or charged. It prevents passengers from cancelling or delaying their planned trips to save time and money. In addition, it would be more user-friendly if the app had a feature that would suggest an alternative route if the one the user is on is particularly congested.

Localization

Suppose you are looking for a ride-sharing app for your business scaling to the international market. In that case, you must ensure that your chosen company can provide the service in multiple languages. You should also ensure that the company has a good reputation and is willing to work with you to create the app you want. The company should also be able to provide you with a reasonable price for the service.

Rider History

Riders must be able to see all the booked and scheduled rides and the relevant information under a single section as My Rides. This would include their current location, the time of the ride, and any detours or changes that may have been made to the itinerary.

Offer ride

Whenever a driver decides to offer a ride, he must be able to choose the pickup and drop-off locations, the date and time when they get ready to pick up passengers, and the number of available seats in their vehicles. The driver will also be able to see if any requests fit the driver's route and schedule. If the driver cannot offer the ride, he can decline the request. 

How long does it take to build a ride-sharing app?

Building a ride-sharing app requires a lot of effort and a significant amount of time. Depending on the features, functionalities, and platforms you want to integrate, the backend and front-end development could take anywhere from several months to over a year. This is a considerable time investment for any company. This is why many startups choose to outsource their mobile app development.

How much does it cost to build a ride-sharing app?

The cost of creating a rideshare app - is one of the most asked questions that can never be avoided. However, when it comes to talking about the cost involved in the development of the ride-sharing app concept, then you should know there is not one single factor involved but multiple that impact the cost holistically—the number of features, functionalities, technology, OS, and location of your developer. If you want a clear picture of how much it would cost to build an app, then getting an exact numerical figure wouldn't be possible, but you can get a ballpark figure.

A ride-sharing app, on average, can cost you anything between $30,000 to $80,000 or beyond, depending on the abovementioned factors.

In conclusion

There has been unprecedented growth in the rideshare app market globally in recent years. Driven by the increasing demand for transportation alternatives and new technology, the top ride-sharing companies are raking in millions daily.

Taxi services are an important part of the global economy, and ride-sharing is no exception. Ridesharing services, such as Lyft and Uber, can be considered a niche section in the broad industry of online taxi services. While these services may not be as popular as traditional taxi services, they are growing in popularity and have the potential to become more widespread in the future.

You should take a plunge into ride sharing app development, as there is promising ROI waiting for your business.

Keep watching this space for more engaging app ideas and development strategies.