6 Steps to Create An App Like Uber In 2024

Last updated on September 4th, 2024

It’s likely that you currently have multiple on-demand transportation apps installed on your phone, reflecting their widespread popularity and demand. As more businesses enter this space to challenge well-established industry giants, we’ve witnessed significant shifts, such as the way Airbnb reshaped the hotel sector and Uber transformed the traditional taxi industry.

According to Research and Markets, the on-demand market is expected to expand by an impressive $4.75 billion from 2022 to 2026, with an astonishing Compound Annual Growth Rate of 60.77%. This suggests that launching a new ride-sharing app now is a strategic move.

However, given the competitive landscape, it’s essential to approach on-demand app development thoughtfully if you aim to create a solution that meets the needs of an already crowded market. In this article, I will outline everything you need to know about building a successful and competitive app like Uber. Let’s get started!

Table of Contents

What’s a ride-sharing app?

To put it simply, a ride-sharing app acts as an intermediary between users—like someone wanting to travel from one location to another—and service providers, such as professional drivers. Most of these Uber-like applications are designed with a mobile-first approach, offering exceptional convenience that enhances the user experience.

With just a few taps on your screen, you can request a ride and pay seamlessly through your linked card or various cashless payment options like Google Pay or Apple Pay. In no time, the service you requested is en route, highlighting the appeal of on-demand services.

Popular location-based on-demand apps

Let’s take a brief look at the present landscape of the on-demand apps market.

It’s evident that the impact of these applications extends beyond just the taxi sector; a surge of nimble competitors is shaking up various industries in their quest for market leadership. Below are a few notable examples:

Taxi apps examples

Uber: Connects drivers with passengers across more than 900 metropolitan areas globally, with a revenue of $17.46 billion as of 2021.
Lyft: A popular alternative to Uber, operational in 644 cities within the US and 12 cities in Canada, generating a revenue of $3.2 billion in 2021.
FreeNow: A ride-sharing service in Europe that functions in over 100 cities, reporting a revenue of $2.6 billion in 2019.
Bolt: Active in over 150 major cities across 35 countries, with a revenue of $150 million as of 2020.

Car-sharing apps examples

Sixt: This company operates in over 2,000 locations across more than 105 countries, with a reported revenue of €442 million in 2021.
ShareNow: Formed from the merger of car2go and DriverNow, ShareNow serves 18 cities throughout Europe, generating a revenue of $69.25 million as of 2018.
Zipcar: Active in various cities across seven countries worldwide, Zipcar’s estimated revenue was $278.8 million in 2019.

Food-on-demand apps examples

Uber Eats: Serves over 6,000 cities across 45 countries with a revenue of $8.3 billion as of 2021.
DoorDash: Active in more than 4,000 cities in the US, Canada, and Australia, generating a revenue of $4.8 billion in 2021.
Glovo: Operates in over 20 countries worldwide, with a reported revenue of $904 million as of 2021.
Grubhub: Active in more than 3,200 cities across the US, earning a revenue of $2 billion in 2021.

As illustrated, many on-demand apps are thriving in the market. If you’re inspired by their achievements, you might consider developing your own app or expanding your existing business to include on-demand services. Regardless of your motivation, I will provide a step-by-step guide to help you in creating such an application, which I hope you will find beneficial. Let’s get started!

Step 1: Define target markets for your Uber app alternative

Kicking off the app development process with thorough background checks is a prudent strategy. Since you’re aiming to create an app like Uber, it’s essential to gain insights into your potential customer base and establish a clear direction for your development efforts. Begin by identifying the specific market you plan to target, and I recommend starting with a country. Different countries present unique economic landscapes, leading to varying transportation needs.

For instance, if your chosen market already hosts numerous scooter-hailing services without any ridesharing options, that should raise significant concerns. However, don’t rush into developing your Uber-like app; there may be other factors at play regarding its absence in the market. To better understand the landscape, look into previous ventures attempting to implement a similar idea and analyze their failures.

This could reveal valuable lessons to steer clear of common pitfalls. If you find no existing attempts, expand your research further. To align with the example of taxi-hailing services, examine traffic patterns, especially during peak hours, as introducing ridesharing in highly congested areas may not be advisable. And if you’re feeling adventurous, contemplate alternative modes of transport—helicopters, planes, flying taxis, or even submarines!

Step 2: Research and pick your ride-sharing app business model

In this step, it’s crucial to outline your user personas, scenarios, and workflows, while also preparing the Business Model Canvas and the Value Proposition Canvas. Founders often perceive this as an unproductive exercise, yet our experience indicates that businesses engaging in detailed product workshops—where these strategic aspects are thoroughly explored—tend to gain a clearer understanding of their business model, the necessary steps for project completion, and ultimately create a more competitive product.

Additionally, crafting user stories can enhance your project; these are comprehensive descriptions of the features you intend to include in your application. While you could simply compile a basic feature list, developing user stories can be beneficial in estimating the timeline and costs associated with the app development process. Our product design services encompass all these elements to ensure a well-rounded approach.

Step 3: Ride-sharing app MVP development

With your research complete, the next step is to gear up for development. It’s essential to avoid jumping straight into building a full-scale enterprise application. Instead, focus on developing incrementally by creating a Minimum Viable Product (MVP).

This approach allows you to launch a functional product in the market while minimising time and costs. It’s a proven strategy that maximises your return on investment during the early development phases.

Picking the essential Uber-like features

To effectively start the development of your ride-sharing app, it’s crucial to identify the core feature that will serve as the foundation of your platform. From there, you can integrate secondary features that complement the main one, ensuring your initial users receive a comprehensive Uber-like experience. Here are the key factors to consider during this process:

Complexity of the Feature: Assess how complicated each feature is to implement.
Relevance to the Core Feature: Determine the importance of the feature in relation to the main functionality of the app.
Implementation Timing: Decide whether it’s advantageous to develop certain features early on, so as not to complicate future development stages.
Development Costs: Evaluate the financial investment required to build each feature.

Remember, a successful ride-sharing platform typically consists of several applications: one for end-users, another for drivers or service providers, and an administrative panel for management and employees.

Passenger app

If I were to highlight one element that is vital for the success of an app like Uber, it would undoubtedly be the passenger app. While the backend operations may not require perfection and can be somewhat rough around the edges during the MVP stage, the passenger-facing application must stand out.

Prioritising user experience and interface design is essential; the app should operate seamlessly without crashes and feature a thoughtfully designed array of core functionalities. This approach is crucial for creating that impressive first impression.

Basic features: what your taxi app must have

Phone Number-Based Registration: Employ phone verification alongside email registration to prevent users from exploiting one-time email accounts for promotions. However, make email mandatory for marketing and support communications.
Booking Process: Keep it straightforward; users should easily select their pickup and drop-off locations and place their order.
Trip Cancelling: Allow users to cancel trips without burying the option in multiple menus. Accessibility is key to maintaining user satisfaction.
Card Payments: While cash-only might seem simpler, implementing card transactions can prove essential for scaling, especially if you lack investor backing.
Basic Support: Integrate a support chat feature (like Intercom, FB Messenger, or WhatsApp) or create a simple FAQ with contact links.
Basic Ticket Validation: For services issuing tickets (like bus hailing), include a manual validation process where passengers show tickets to drivers who mark them as validated in the app.
Push Notifications: Keep users updated with notifications on ride status and driver arrival for a better customer experience (CX).
Navigation for Passengers and Drivers: Ensure both parties have access to reliable navigation tools.
Estimated Time of Arrival and Live Ride Location: Display the estimated arrival time and real-time location of the vehicle to keep users informed and reduce frustration.
Basic Settings: Provide options for users to update their phone number, password, email, and notification preferences.
Vouchers and Friend-Invite Promotions: Incorporate a promotional system to attract users, similar to successful strategies seen in established services like Uber. Integrate with a suitable SaaS for ease of management.

Advanced features: what your Uber-type mobile app could have

Cash Payments: Cash transactions present several challenges, notably the difficulty in tracking payments. Implementing fraud prevention measures will be essential for maintaining control. Additionally, handling cancellation fees can be problematic; if a cash payment is made and a user cancels, there is no straightforward way to charge a fee. To address this, consider establishing an internal wallet for each user to process fines or refunds. This system can allow refunds as internal credits that users can redeem later in the app.
Multi-Seat Tickets: When developing a bus hailing service, incorporating multi-seat ticketing is vital to cater to varying passenger needs, such as parents traveling with children or caretakers assisting individuals with disabilities. Be sure to limit the number of tickets one user can purchase to prevent abuse of the system.
Trip Scheduling: Offering the ability to schedule trips for a later time is a useful feature that enhances user experience.
Advanced Support: Look to organizations like Uber for inspiration on implementing exceptional customer support systems.
Trip and Driver/Passenger Ratings: Implement a rating system for both drivers and passengers to foster accountability and improve service quality.
Split Payments: Facilitate split payment options to ease the burden of bill-sharing among friends or group members.
Extended Settings: Allow users to enhance their profile with features such as profile pictures, home and work address specifications, security options, advanced notification settings, and theme preferences.
Advanced Ticket Validation: Integrate sophisticated ticket validation methods like ultrasonic technology or QR codes to minimize fraud and reduce human error, streamlining the validation process.
Business Accounts and Invoicing: Develop features for business users that enable single-ride or monthly invoices for easier expense tracking.
Driver Tipping System: Incorporate a tipping feature to encourage appreciation for excellent service, boosting driver morale and income potential.

Service provider app

When developing a service provider app, like the driver’s app for Uber, it’s essential to focus on how drivers will utilize the solution. While creating applications for Bussr, a bus-hailing app from Indonesia, we prioritized the needs of the drivers over elaborate design elements. Drivers require an intuitive interface that minimizes their time spent on the app, allowing them to concentrate on driving safely. Thus, the app’s screens should be streamlined, clearly indicating the driver’s destination at all times.

The navigation feature should exclusively show relevant route information and upcoming stops while driving. When handling ticket sales and validations, the app should provide only the necessary details, designed for quick corrections of errors. For instance, if a driver accidentally validates the wrong passenger’s ticket, they should be able to easily undo the action with a simple swipe. To prevent mis-swipes, actions should be constrained by requiring a specific swipe duration. Key features to consider include:

Simple ID Card-Based Registration Process: Implementing a straightforward registration system that utilizes ID cards will facilitate the recruitment of drivers or service providers, reducing initial bureaucratic hurdles in the application process.
Basic Settings: Enable service providers to manage essential personal information such as their name, password, email address, invoice details, and phone number within the app.
Navigation: Instead of creating a bespoke navigation system for the taxi app, allow users to integrate with existing navigation applications of their choice.
Service Delivery Process: The app must support service providers in executing their services and confirming successful completions. In cases where delivery is unsuccessful, the app should offer a straightforward method for processing free cancellations.

Admin app for an Uber-like app

To integrate the components outlined thus far, implementing a back-office application is essential. This application will empower your employees to oversee user and service provider management, track business analytics, and initiate promotional campaigns. The choice of admin panel will hinge on the technology stack you opt for. If your technology stack relies on PHP or Python instead, it’s crucial to choose a dependable admin panel solution that offers ample customization options, enabling your developers to create additional modules autonomously. While pre-packaged solutions may be more accessible and cost-effective, they often fall short of aligning perfectly with your business needs. It’s essential to avoid having to switch panels after launching your ridesharing app.

Picking the right technology stack

When it comes to selecting the right technology stack, there are several factors that can influence your decision. Consider the following points:

Your CTO may have a preference for a particular technology, which could guide your stack selection.
Certain features might require specific technologies to function effectively.
Consulting with an external software development agency can provide valuable insights based on their expertise with different technologies.
With an experienced developer on your team, almost any choice can be the right one, as most applications, such as Uber, are not overly complex.

Picking a development and design team

Now that your technology stack is decided, it’s time to start development. You can choose from the following paths:

In-house Development: This straightforward option involves recruiting your own team of developers, project managers, testers, and designers. While this approach allows for greater control and alignment with your company’s vision, it can be time-consuming and expensive. Additionally, if a developer doesn’t meet expectations, replacing them is not as easy as it would be with an external partner.
Freelance Development: Often the most affordable route, freelance development comes with significant risks. You may have limited control over the development process, which can be detrimental. However, it may be a viable option if you’re working with a tight budget and need to create a prototype to attract investors before committing to full-scale development.
Nearshore/Offshore Development: Outsourcing your development to an established team can mitigate some risks associated with freelancing. Working with a registered company means they are likely to uphold their reputation by delivering quality work. Additionally, these companies boast substantial expertise and a robust portfolio. If performance issues arise with an assigned developer, substitutions typically happen in days or weeks rather than months.

Ultimately, your choice will hinge on budget constraints and your investors’ expectations.

Delivering the MVP

Once everything is set in motion, prepare yourself for the next 6 to 12 weeks dedicated to developing a viable MVP (Minimum Viable Product). It’s crucial to have a clear understanding of the features you’ve chosen for this stage, as modifying them during the development process could delay delivery and lead to frustration within your team. Since you won’t be directly involved in the development, this is an ideal time to pivot your focus toward sales and marketing strategies. It’s essential to ensure your app stands out among competitors; otherwise, the project risks falling short and could jeopardize your business’s success.

Step 4: Marketing and user acquisition

While marketing is a broad topic that warrants an in-depth discussion on its own, it’s important to touch on a few key strategies tailored for promoting apps like Uber. Effective marketing for such platforms often requires adopting innovative approaches that engage potential users. For instance, leveraging social media channels to create buzz and using targeted advertising can significantly enhance visibility. Additionally, implementing referral programs encourages users to share the app with their network, fostering organic growth and user acquisition.

Vouchers

If you’ve observed launch campaigns from Uber, Bolt, or similar on-demand services, you may have noticed that during the initial months—sometimes extending beyond that—many users rely heavily on voucher-exclusive usage of these apps. Discount codes, such as “50% off,” often flood your inbox. While this strategy can be costly, as companies typically pay their service providers the full wage while only collecting half of the revenue from each order, it proves effective in attracting new customers.

From a business perspective, this model demands significant capital investment, but it does bring in users. However, as the promotional period concludes, a decline in orders is likely among those unwilling to pay full price. Ideally, though, you’ll have cultivated a loyal base of satisfied users who appreciate your services and will remain committed beyond the initial discounts, forming the cornerstone of your customer base.

Building situational awareness

Just like vouchers, discount codes can be strategically used to engage both service users and providers to strengthen your brand and establish market presence. For instance, around Valentine’s Day, DoorDash communicated with their delivery personnel to encourage them to take advantage of special promotions.

In this email, they highlighted that by delivering Valentine’s Day meals and gifts, drivers could earn additional bonuses. The message emphasized the excitement of helping customers celebrate while simultaneously boosting their income during a peak season, effectively motivating their personnel to participate in the promotional efforts.

Step 5: Further development and growth

Once you’ve successfully launched your MVP and secured your initial customers, it’s crucial to keep the momentum going—there’s no time for celebration just yet. Instead, you’ll want to revisit the process and start the cycle anew. For our clients, we typically facilitate a retrospective meeting to evaluate the MVP stage.

During this session, we document both the successes and missteps encountered during development, enabling us to enhance our effectiveness in future iterations. Following this reflection, we conduct a product workshop to brainstorm ideas for further enhancements.

We then prioritise these suggestions, ensuring that we maintain an agile approach while concentrating on a clear set of objectives within short, incremental phases.

Step 6: Fraud prevention

Uber, alongside similar ride-hailing applications, grapples with the significant challenge of fraud. The detection and prevention of fraudulent activities necessitate considerable effort, as individuals often devise clever schemes to exploit the system—though only a few manage to execute their ideas successfully. For example, Uber incentivizes drivers with bonuses for achieving specific ride targets, which can tempt some to use fake location applications to manipulate their GPS data and falsely claim ride completions without actually performing them.

However, Uber is aware of these potential deceptions and employs an extensive array of location metrics, including speed and altitude, gathered from their drivers’ devices. When fraud is suspected, Uber can examine altitude alongside location data to identify inconsistencies that raise red flags, ensuring the integrity of their service and preventing losses from fraudulent practices.

Important: Common On-Demand Taxi App Development Mistakes To Avoid

Building an Uber-like application

As highlighted, creating an application like Uber presents a considerable challenge; however, by employing the right structure, the process can be streamlined, allowing for minimal disruptions throughout each development cycle. I sincerely hope this guide proves beneficial to those eager to invest their time, effort, and resources into improving any market that could gain from a ride-sharing platform or other location-based on-demand services.

Should you require assistance or wish to leverage our vast experience in developing scalable, user-friendly software, please do not hesitate to contact us at itechnolabs.ca

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