On-demand apps are all over the place. The high-end, speed and ease of use offered by these apps make the model of on-demand an extremely popular one across all industries. One of them is the car rental industry. The increasing demand for car rental services in the UAE as well as other Middle East regions has increased the demand for apps that allow car rentals such as Ekar massively.
But, it requires lots of effort and expense to build an app that is similar to Ekar. On average, car rental app costs could be anywhere from $20,000 up to $300,000, and even more to create an Ekar-like car rental app. What are the main factors that determine the cost of developing a car rental app?
Let’s get some insight into the solution to this issue in our article. Before we do that, let’s take a look at Ekar’s business model which makes it a profitable business.
How Does Ekar App Work – The Business Model
Ekar is the Middle East’s most popular self-drive mobility business that provides users with on-demand access to thousands of vehicles at the click of their mobile applications. The cars can be rented by users for short-term car sharing as well as long-term leases.
It operates a pay-as-you-drive business model that allows users the option of paying by minutes, hours, days, monthly, or weekly.
It was established in 2016 to fill in the gaps in the car-sharing market. The Ekar car rental service has raised more than $17 million in capital and is now one of the most sought-after business models across the Middle East.
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What is the cost to create an app like Ekar?
The price of creating an app such as Ekar is more complicated to calculate than it may appear. A variety of factors have a major influence on the total cost, including the platform of the app, features, technology stacks, structure of the team, and overall complexity. Because of the variable hourly rates for developers from all over the world and the fluctuating hourly rates of car rental apps, development costs are further affected.
With this many variables and variations that affect the mobile app for car rental cost, is it possible to estimate the total price?
We believe that the MVP-style version of the mobile application for car rental will cost between $20,000 to $100,000. If you choose to add advanced capabilities and features to the mobile app your development cost could rise in the range of $ 300,000 or higher.
Factors Affecting the Car Rental App Development Cost
As various aspects like the features, platforms and the tech stack impact the development costs, let’s explore these aspects in greater detail below.
01. Tech Stack
To allow a car rental application to stand out among competitors it requires the most up-to-date and advanced technology stack.
- Real-time Analytics: Apple Flink, BigData, Cisco, Spark, Hadoop
- Database: MailChimp Integration, Postgres, HBase, MongoDB, Cassandra
- Voice, SMS, & Phone Verification: Twilio, Nexmo
- Payments: E-Wallets, Stripe, PayPal, Braintree
- Cloud Environment: Azure, Google, AWS
- Push Notifications: Push.io, Twilio
02. Team Structure
To create an app for car rentals that is a boon for your company, it’s crucial to choose a reputable on-demand mobile app for a car rental development firm like iTechnolabs. iTechnolabs will not only be able to count on experienced and proficient developers but also a whole team of testers, managers, and designers who use the most effective methods of product development to transform your idea into real-world success.
The team structure that is required to create an effective car rental app will look something like this:
- 1 project manager for 1 project
- 2 experts in QA
03. Location and Hourly Rates of the Hired App Development Agency
The hourly rates for app developers from around the world vary widely, which can affect the total cost of developing an app similar to Ekar.
For example, hiring a developer within the US could cost anywhere between $150 to $250 per hour. However, in Europe, it could cost between $120 to $180. In reality, hiring a developer in India is between $40 and $80 an hour. Don’t be fooled, the fact that a cheaper rate does not suggest a lower quality. The only thing that affects the price is the economy of the nation.
04. Features Used in the App
Features are among the primary elements that greatly impact the cost of development for an app for car rental. While adding basic features may be a significant portion of a budget for development, adding some of the most advanced features is essential for success in the highly competitive market.
In the next section Let us look into the features you must include in your Ekar-like car rental application.
The Essential Car Rental App Features
When listing the functions that any app should have when listing the features app must have, it is essential to think about people who might use the app. The features of an app for car rentals must cater to three kinds of customers including customers, drivers, and managers of the app. Let’s look at which features you must have to ensure the development of your app for car rentals is flourishing.
1. For passengers
- Two-factor authorization
Passengers must be able to create the password and then confirm it with an email or a phone number. The information will remain private and secure within the application.
- Customized transportation
The settings for the ride should be able to be customized for passengers. They must be able to select their pick-up and drop-off locations, the timing of the pickup, the language as well as the race of the driver, and so on. The app should be geared toward ease of use for customers.
- Live tracking of vehicles
It is essential to monitor every trip beginning with the driver’s arrival until the end of the journey. They should also be shared since passengers may want to share the live track of their journey with their loved ones to ensure safety.
Don’t limit your options for payment. Try to integrate as many options as you can, such as debit cards, credit cards, UPI Cash, app coins, etc. Be aware of what you can do to include payment processors in mobile applications.
- A simple trip-matching algorithm
Based on the preferences provided by the user Based on the preferences of the customer, the app should connect passengers to drivers and then send out requests.
2. For drivers
- Accreditation of drivers
The licenses and documents of the chauffeurs have to be checked when creating the profile.
- Management of rides
Give chauffeurs a few alternatives to handle their orders, locate customers and then accept or decline requests.
- Optimization of the route
Optimize your maps to show the fastest route that is not crowded to complete a trip quickly. Learn how to include geolocations in your application.
- Language settings
Provide drivers with English and other local language choices to use the application.
- Earning history and Order
You can display the monthly and daily earnings from rides for each driver.
3. For Admin
- Interactive dashboard
A dashboard is essential to display all data in the app in real-time, in a structured way that you can use.
- Content management
Administrators decide where content goes and what content is shown to all users of the application.
- Management of the revenue
Managers must be able to see the full timeline of transactions and the revenue they earn.
- Management of the type of vehicle
Managers should be aware of the cars being employed, their models, and their rates.
- Bonus payment system
The administrators manage bonuses, benefits, and discounts for drivers and passengers.
Advanced Features to Include in Your Car Rental App
To remain ahead of the market and be different from your competitors it is crucial to add extra and more sophisticated features to your app. To ensure that you are in control of the cost of development they can be added after the successful MVP release of your app to rent cars.
- Camera access: A camera in-app function makes it easy to upload documents that are needed to rent a vehicle. For example, driving license or ID card, and many more. It also assists by uploading photos of any damage to the vehicle during the pickup. It also helps the customer quickly input the payment details of the card.
- CRM: A well-designed customer service interface can elevate your application to a new level. Integration with CRM will allow the Admins to keep better relationships with their customers, while effortlessly rolling out promotions such as newsletters, emails as well as other communications. Here’s a brief overview of the entire procedure for implementing CRM for your company.
- On-app Chat: The most efficient method of interacting with car owners is through chats in-app. The ability to provide the user with a variety of chat options such as video, text, or the ability to chat via voice is an option popular with the majority of users.
How do you make money from a Car Rental Platform like Ekar?
To make your car rental business model a success, it is crucial to establish a solid plan to generate revenue. Here are some ways to monetize your business that you could implement for your company.
1. Commission Base
Car owners can list their cars on car rental apps. The app’s owners pay for service as a fixed proportion of the owner’s profits.
2. Service Subscription fee
Similar to other services on demand such as car rentals, car rental companies can offer a modest subscription fee to offer enhanced features to their most important customers. However, the owners of cars offering their vehicles to share can operate subject to a listing fee. Car owners who have more shared cars may be given discounts or special offers.
3. Car Rent
Businesses may rent their cars to app users as a way to earn money, or lease them to drivers and then employ them. Users who pay for transportation will make money for both the driver as well as the business.
Related Article: An Overview to Car Rental Mobile App Development: Features & Types
Eager to know the cost estimation for your car rental app?
The app market for car rentals is growing at an astonishing rate. The Statista report on the growth of the car rental market between 2017 and 2025 can be seen below. The total revenue in the rental market for cars is projected to reach $110 million 894.2 million by 2025.
In the UAE this industry is growing even more. growing at a CAGR of 9 percent the investment in this sector continues to come in. The segment of self-driving cars is expanding at the fastest rate in the car rental sector and is growing at 12.4 percent.
If you are looking for a software company to develop a Car Rental App like Ekar for you, look nowhere else, for you have landed at the right place. iTechnolabs will guide and help you throughout the process by developing the best suitable application for your business.