Develop a Taxi App Like Careem: Steps and Costs Involved

There was a time when the tag “Big City” was given based on the availability of the long-ranging metro network. But that’s not the case now! In the current scenario, a city qualifies for the title of the big city if its residents have the privilege of booking cabs or taxis with just a single click on their smartphones. 

Comfort. Quick. Affordable – On-demand taxi booking apps have been the best alternative of the overcrowded and slightly inefficient public transport system. And that’s the reason why such apps are in trend.

Apart from the government-regulated transportation industry, many businesses are also eyeing to invest in on-demand app development services like taxi booking services. If we talk about the Middle Eastern region, the revenue streams of the taxi segment is shooting up with apps like Uber, Hala, DTC, Hata, and Careem. 

Among these popular names, Careem has been famous for its services like on-demand food delivery, package delivery, and taxi booking services.

If you’re also seeking to build an app like Careem, we have got you covered. The following blog will help you understand the crucial aspects like costs and steps of building a mobile app like Careem. 

So, hold tight and read on!

Why Are Taxi Booking Apps like Careem Popular And Profitable In Dubai?

Having stated that Dubai, being a touristy city has always been ahead in making urban life more efficient with its smart city solutions. Dubai’s well-planned location, first-class infrastructure, and fast-growing economy make it a hot spot for taxi businesses.

Hence, building a taxi booking app would be the best decision due to the numerous benefits it brings. These apps have made travel more affordable for users and boosted the car rental industry. For example, Careem has around 48 million users. Its popularity comes from user-friendly services and advanced technology. 

Careem completed 70 million ride-hailing trips, wrapping up 2023. This significant growth highlights the app’s widespread use and success.

Add to that, investors are eyeing to put their money in a sector that offers tax exemption. Gladly, Dubai, among several other destinations, is the most frequently visited city with zero tax benefits. The city’s zero tax rate and technological advancements are major pluses, ensuring a high return on investment. 

Amidst this, one should be mindful of the fact that starting a taxi business with a team of drivers and a few taxis would require a heavy capital investment, solid planning, and keen attention to detail if you want to run your business smoothly in the long term. 

How Does A Taxi App Like Careem Work?

Sure, here are the steps simplified:

1. Enter Trip Details: Users enter their starting and ending points by typing or pinning them on a map. They can choose the type of vehicle, which affects the cost based on the vehicle and distance.
2. Confirm Ride: The app verifies the data and location and then confirms the ride.
3. Match with Driver: The app finds a nearby driver. Users get info about the driver and estimated arrival time. Drivers can accept or reject the request. If rejected, the app finds another driver.
4. Complete Ride and Payment: Once the ride is over, the fare is automatically deducted from the user’s attached credit or debit card.
5. Give Feedback: After the payment, users are asked to rate and review their ride.

Building a ride-sharing app like Careem takes a lot of effort, even though using it seems simple.

You may also like to read: Ride-Sharing App: Cost, Features, and Development Process

Why Should You Create An App Like Careem?

Careem and Similar Apps Are Earning Millions

Numbers can clear any doubts. Here’s what the data says about taxi-booking apps:

Key Metrics and Projections for Ride-Booking Apps and Careem

Minimal Investment Required

Careem and Uber use the same business model: the aggregator model. Here’s how it works:

• Three Panels: You create an app with three parts wherein one for consumers, one for drivers, and one for admins.
• Driver Partnerships: You work with drivers who already have their own vehicles. You don’t need to buy any vehicles yourself. Instead, you earn a big commission without spending on purchases.

Automated Management and No Hassle

The app handles everything: booking rides, managing drivers, and finding a new driver if the nearest one isn’t available.

All you need to do is build an app with similar or better features than current ride-hailing apps.

Key Features of an On-demand Taxi App Like Careem

Users Panel

• Registration/Log-in 

Keep it easy for your users to register or log in using their email, phone number, or social media accounts.

• Booking

Make booking a cab quick and easy. Let users enter the address manually or pin their pickup and drop-off locations on the map.

• GPS Tracking

Don’t forget to add location services to your app. This lets customers track their driver’s location before and during the ride.

• Payment

Trust us, offering multiple payment methods on your app is key to keeping customers happy. Be sure to include popular payment gateways.

• Ratings

Your users will be very happy if you ask for their feedback with quick rating and review options. This helps you improve your services and grow your user base.

• Push Notifications

Your customers will love knowing about the latest offers and discounts through push notifications. So, don’t skip this feature.

Drivers Panel

• Registration

Driver registration should include account creation and submitting and verifying important information, like their driver’s license and vehicle registration.

• Profile

For user convenience and safety, drivers must provide all required profile information, such as vehicle number, vehicle photos, photo, and phone number.

• Booking Confirmation

Notify drivers about booking requests and let them choose to accept or reject the ride.

• Mapping Services 

Make sure the driver’s panel on your app has mapping tools to help them with directions and estimated travel time.

• Trip History

Give drivers a dashboard where they can see their performance, trips, and earnings from providing rides.

• Drivers Support

Just like users, drivers might have issues with the app. Offering 24/7 support to quickly resolve their problems will be very helpful.

• In-App Chat/Call 

Let drivers use the app’s chat and call features to contact the rider if there are delays or if they have trouble finding the address.

Admin Panel

• User Management

If there are problems with rides, fares, or profiles, use the admin panel to address and fix these issues for your users. This tool lets you make necessary changes efficiently.

• Location Management

Use the admin panel to add or remove locations based on traffic and how much revenue those locations are bringing in.

• Reviews

Your admin panel should let you read all user reviews and feedback so you can make any necessary changes.

• Mapping Services

Your admin panel should let you access mapping services to track the location of drivers and users, helping you resolve any issues.

• Advanced Analytics

With advanced data tools, your admin panel can provide reports on revenue and app activity, helping you make smart decisions.

• Push Notifications

Use your admin panel to send regular push notifications about discounts and coupons to your users.

Advanced Features You May  Consider While Developing an App Like Careem

Pick-Up Location

The app helps passengers find nearby drivers and automatically gets their current location when they book a ride.

Ride Cancellation

Passengers or drivers can cancel the ride within a set time frame.

Split Payment

When sharing a ride, the cost of the ride is shared equally among the passengers.

Real-Time Tracking

The app lets users see the live location their driver is and how long it will take for them to arrive.

Gamification

Gamification increases customer engagement. Users and drivers can earn stars, badges, and other rewards.

Voice Recognition

Advanced apps use voice recognition features. Adding this to your taxi app can improve it.

Panic Button

If something goes wrong during a ride, users can press the panic button in the app to quickly alert the management for help.

The Tech Stack Required To Develop Taxi Apps Like Careem

The technology you choose for developing an app like Careem will affect the cost of mobile app development. Here are the essential tools and technologies you’ll need to build such an app:

• Backend Development: MySQL, MongoDB, Database, Node.js
• Android App Development: Java, Kotlin
• iOS App Development: Swift, Objective-C
• Payment Integration: PayPal, Braintree
• Map APIs: Google Maps/MapBox
• Firebase: For building a robust application
• Twilio: For SMS integration
• Amazon EC2: For cloud hosting
• Amazon S3: For cloud storage
• APNS: For push notifications
• Business Tools: G Suite, OneLogin, Zendesk, Asana, Delighted
• DevOps: Sentry, Puppet Labs, Terraform, Nagios, Grafana, Graphite

Since you are at it, you may also read about How to Create an On-Demand App: a Complete Breakdown for Business Owners.

Steps to Build an On-demand Taxi App

Identify Your Target Audience

With high competition, targeting everyone with your ride-booking app is risky. Identify your target audience and customize your app to their needs. For example, if your audience is working men within the age group of 25-45 looking for ride-sharing services, your business model should differ from an ordinary taxi app. Conduct surveys to understand their transport issues.

Plan Monetization Early

Once you know your target audience, plan your taxi app’s monetization strategy. This is crucial for maintaining cash flow. Look at industry leaders like DTC and Careem for inspiration or develop a unique strategy after market research. Options include charging drivers per kilometer or ride, or using in-app ads, though ads can affect user experience.

Create a User-Friendly Ride Booking App

After addressing monetization and identifying your target audience, focus on creating a user-friendly ride-booking app with an intuitive design. Since Dubai has a diverse population, include a “choose language” option with 3-4 popular languages. For best results, develop three separate versions of the app: one for users, one for drivers, and one for admins.

Develop Your Taxi App with a Unique Selling Point

Careem and other taxi apps have been around for years. So, to compete with Careem and Uber, you need a unique selling proposition. For example, RTA offers government authorization, while Uber and Careem provide exceptional user experiences. Decide whether to compete on pricing, user experience, or innovative features to stand out.

Invest in Marketing and Advertising

After creating a user-friendly taxi app, start marketing it across multiple channels. Use social media tactics like Zomato and Netflix’s viral meme marketing to engage your audience. Traditional methods like billboards and petrol pump ads are still effective in Dubai. You can also offer cash back during events like the World Cup or so to attract customers and boost brand visibility.

Pay Attention to User Feedback

Stick to your business model and marketing strategy for 4-8 months, but prioritize user feedback even if it means adjusting your plans. To show customers they are valued, make bold decisions like firing drivers who break rules. Add rating and review systems for drivers, offering redeemable bonuses for honest feedback to improve your service and build loyalty.

Offer Subscription Models

Subscription-based businesses are becoming common worldwide. Once users know your app, introduce subscription models for recurring revenue. Offer discounts and freebies to attract new customers. This strategy is used by taxi services like Uber and Careem, often in collaboration with popular food and clothing brands, offering discounts for subscribing or keeping a fixed amount in their cab wallets.

Treat Captains as Partners

Last but not least, the most overlooked step is to treat your drivers as partners. While focusing on user experience, don’t neglect them. Offer attractive commission programs and set lower commission rates than the industry standard. These rewards and driver-friendly policies will attract many drivers to register on your app, helping you build a large fleet of vehicles and drivers for your taxi app in Dubai.

Cost to Develop an App like Careem

A taxi app like Careem can cost between $4K and $20K. The final cost depends on the solution you choose:

• Ready-to-launch MVP: Up to $5,000
• A mix of readymade and personalized solutions: $10,000-$15,000
• Custom solution from scratch: $35,000-$50,000

The cost to develop an on-demand taxi booking app depends on several factors, such as:

Number of Features

The more features you add to your app to enhance its functionality, the higher the cost of developing an app like Careem.

App Design

If you want your taxi app to be visually appealing and well-structured, be prepared to increase your budget. An app with a complex design will need more resources than one with a basic design.

Third-Party API Integrations

To ensure your taxi app performs well, it needs integration with various third-party APIs like payment gateways, email registration, and mapping APIs.

Size and Location of Development Team

The expertise, location and size of your development team greatly affect the cost of app development. If you are getting your app built in a country like Dubai, then you can expect that the rates are pretty much cheaper than in the USA. 

Development Platform

It is another major point of concern when you proceed toward app development. You have three options, i.e., a native iOS app or Android app, or a cross-platform app. The costs of all three options differ from each other. However, the UX of native apps is considerably more thought-provoking as compared to cross-platform apps. 

Maintenance

App development costs also include ongoing expenses for maintenance, testing, debugging, and upgrades. These are essential for long-term success and cannot be avoided.

Final Words

This guide covers everything you need to know about developing a taxi app like Careem, including the steps, costs, and essential features. The demand for on-demand apps is growing, and you can get inside this market by offering the right features and unique customer experience.

Being a leading mobile app development company in Dubai, DianApps can help you create a top-quality app within your budget. Our team of skilled designers and developers will understand your needs and customer preferences to deliver the results you want. We are informed of the latest trends and technologies that can help you transform your app into a profitable business solution. With our affordable hiring models, you can expect your app to be built within the initially set budget. 

For a better understanding, reach out to our consulting expats and get started on a journey to build your dream on-demand app. 

Also read: Why Choose DianApps for On-Demand Car Wash App Development?