How to Build a Taxi App in 2025? Features, Development Process & Cost Estimation

Smartphones have made life easier for people, allowing them to access everything from groceries to clothes with just a few taps. With doorstep deliveries becoming the norm, transportation is no longer a hassle. Taxi-booking services further simplify travel by offering convenient price and route comparisons, ensuring a seamless commuting experience.

Due to the rising demand for taxi-booking services, entrepreneurs are constantly seeking opportunities to enter this booming market and build billion-dollar businesses. Industry giants like Uber, Lyft, Careem, Ola, continue to dominate the space. According to a research report by Statista, the taxi-booking market is projected to reach $175.70 billion in revenue by the end of 2025, growing at an annual rate of 4.91%. Additionally, user penetration is expected to climb to 28.6% by 2029.

Are you planning to develop a taxi app with unique features and functionalities that fulfill user expectations? If yes, this guide will help you understand the key aspects required for taxi app development, including the cost, technology stack, complexities, and features. A leading mobile app development company like DianApps can help you with the taxi booking app development process and other factors. 

Let’s move forward to identify the essential features required for taxi booking apps like Ola. 

Must-Have Features to Develop a Taxi Booking App in 2025

An on-demand ride-sharing app is a lucrative business opportunity for entrepreneurs looking to enter a rapidly growing market. Moreover, grabbing these opportunities is relatively simple. However, to stay competitive, taxi-booking applications must offer unique features that set them apart from traditional taxi services.

The features of ride-sharing apps can be categorized separately for drivers and passengers. First, let’s explore some essential features that both types of ride-sharing apps should include.

Routing, Direction, and Geolocation

Geolocation and routing servers remain the most important features for all carpooling apps. Most entrepreneurs are afraid of the myth that GPS puts the transportation industry in danger. Based on research, this myth has been considered true, but not entirely. 

GPS locations can’t calculate an accurate route and distance, so taxi booking service development can’t fully rely on GPS devices for accurate routing and ride-sharing procedures, they will require a routing server. 

Account Creation and Profile

Another factor that is required to track the base of the users after the successful rideshare app development is customers’ and drivers’ profiles and the registration process. Ensure to keep the registration process simple, allowing them to register through social or Gmail accounts. You can also ask for their additional information, including phone number, age, etc. 

Furthermore, a driver needs to fill out the important information, including name, vehicle license number, and photo. 

A Smooth UI/UX Design

UI/UX design is a crucial aspect of taxi application development that involves high development costs. To ensure a smooth UI/UX experience, it is essential to hire separate developers and UI/UX designers for Android and iOS, as both platforms require expertise in different frameworks.

Recommended Read: User-Centric Design: The Importance of UX/UI in Mobile App Development

Now, it’s time to learn about the important features of passenger and driver carpooling app development separately. 

Must-Have Features of Taxi App for Passengers

Here are some of the important features that are required for the passenger’s taxi booking application:

Geolocation

When a passenger selects a pick-up or drop-off location, the geolocation feature automatically sets a route map. 

User Profiles

Ask for important information from users while creating a profile, such as preferred mode of transportation, location, most preferred routes, and user names. 

Search Filters

A carpooling app development should include a search feature to help passengers identify drivers traveling to their preferred location. With search features, an app must also have a filtration feature that allows users to sort the type of vehicle, driver’s gender, and price. 

Rise Cost Estimation

Users get an estimated cost of the route based on the type of vehicle, conditions, and other features. 

Reservations and Cancellations

Ride-sharing apps have a reservation and cancellation feature that allows users to travel at any time from anywhere. 

Chat and Call

Once a ride is booked, an app must provide chat and call support with the driver to ensure seamless communication and discussion of the routes. 

In-app Payment Options

An in-app payment system ensures efficiency and secure payments when a rider has to pay for tolls, or driving services. 

Push Notifications

Push notification is considered an essential feature to keep users updated, with offers, discounts, ride status, etc. 

Here are some of the more important features that you want to integrate: 

• Hiring a ride for someone else
• Pre-planning future rides.
• Dividing the cost of the ride among friends.

Must-Have Features of Taxi App for Drivers

As of now, you must have understood the important features required for passenger carpooling app development, now it’s time to look at some of the most essential driver-side features to include in your ride-sharing app. 

Login

This feature allows drivers to log in to their portfolios using their personal credentials.

User Profiles

While creating a driver profile, ensure to ask for data such as the driver’s name, phone number, license number, preferred routes, and location. 

Accept or Reject Request

Drivers must choose to accept or reject the request based on the pickup and drop off location provided by the passenger.  

Trip Information

Driver must have an accurate description of the trip including pick-up, drop-off, and expected mileage. 

Integrated Navigation

This feature provides the best possible way for the drivers to find pick-up and drop-off locations. Routes are decided based on the real-time traffic conditions.

Reviews and Ratings

This feature even allows drivers to rate riders based on their attitude. The taxi booking app allows drivers to rate, and passengers can also rate their traveling experiences.

Push Notifications

The push notification system provides alerts to the driver when they have a ride, and it also reminds drivers to pick up passengers. 

Contact Passenger

The driver gets the contact details of the passengers, which helps them to inquire about their provided pickup route. 

Receive Payments

This feature allows drivers to get payments from the passengers without any delay or hassle. 

Recommended Read: Why Every Home Services Business Needs a Custom Mobile Application in 2025?

Stepwise Process of Developing a Taxi Booking App

Developing a taxi app in 2025 requires a smooth development process to ensure user satisfaction, business success, and functionality. Whether you want to build an app like Lyft or a custom ride-hailing app, be sure to follow the step-by-step process of app development to attain your business goals efficiently. 

Market Research and Competitive Analysis

Before embarking on the journey of taxi app development, ensure to conduct thorough market research. While researching, ask yourself certain questions, including: 

• Who are your target users? (Passengers, drivers, fleet owners, etc.)
• What features do they expect in a taxi app? (Real-time tracking, multiple payment options, etc.)
• Who are your competitors, and how can you differentiate your app?

Analyzing successful taxi apps like Uber, Lyft, and Bolt can help you identify key trends and opportunities in the industry.

Define Your Business Model

The second most important factor for the success of your application is to decide how your taxi app will generate revenue. Some of the popular monetization strategies include: 

• Commission-based model – Charging a percentage of each ride
• Subscription model – Offering premium plans for drivers or passengers
• Advertisements – Earning through in-app ads
• Surge pricing – Increasing fares during high-demand periods

Choose the Right Technology Stack

Selecting the best tech stack is essential for a smooth and scalable taxi app. Your app should support multiple platforms like iOS and Android and include backend technologies such as:

• Programming languages – Kotlin (Android), Swift (iOS), or Flutter for cross-platform apps.
• Database – Firebase, PostgreSQL, or MongoDB for efficient data storage
• Cloud services – AWS, Google Cloud, or Microsoft Azure for hosting
• Payment gateway integration – Stripe, PayPal, Razorpay for seamless transactions

Recommended Read: Top Programming Languages to Learn in 2025

Design the UI/UX for a Seamless User Experience

A visually appealing and easy-to-use interface plays a vital role in user retention. Focus on:

• Simple registration & login process (Email, phone number, or social media login)
• Interactive maps with real-time tracking
• Easy navigation for drivers and passengers
• Seamless payment process with multiple options

Develop the Core Features of Your Taxi App

To create a high-performing taxi app, include essential features such as:

For Passengers:

• Ride booking and fare estimation
• GPS-based real-time tracking
• Multiple payment options
• Reviews and ratings for drivers
• Ride history and trip details

For Drivers:

• Ride requests and navigation assistance
• Earnings dashboard and daily reports
• Availability toggle (Online/Offline mode)
• Push notifications for ride updates
• In-app chat support

For Admin Panel:

• Dashboard to manage users and drivers
• Fare and commission management
• Analytics and reporting tools
• Promo codes and referral system

Build an MVP (Minimum Viable Product)

Instead of developing a full-fledged app from the start, launch an MVP with essential features. This helps in: 

• Testing the app’s usability and performance
• Gathering feedback from real users
• Reducing initial development costs
• Making improvements based on user behavior

Test the App Thoroughly

Before launching your taxi booking app, conduct rigorous testing to ensure a bug-free experience. Types of testing to focus on:

• Functional testing – Check core functionalities like ride booking and payments
• Performance testing – Ensure the app works smoothly under heavy traffic
• Security testing – Protect user data and transactions
• User testing – Get feedback from real users and make necessary improvements

Deploy and Launch the App

Once testing is complete, upload your app on the Google Play Store and Apple App Store. Optimize your app store listing by:

• Using relevant keywords in the title and description
• Adding high-quality screenshots and videos
• Encouraging users to leave positive reviews

Post-Launch Maintenance and Updates

Launching your taxi app is just the beginning. To stay ahead in the competition, continuously improve your app by:

• Fixing bugs and optimizing performance
• Adding new features based on user feedback
• Updating security measures to protect user data
• Running marketing campaigns to attract new users

Cost Estimation of an On-Demand Taxi Booking Application 

Planning to build a taxi booking app like Careem. The first question that comes to your mind is how much it costs to build a ride-sharing app like Careem. Let me clarify to you that the cost of developing an app depends on various factors including the choice of platform (Android, iOS, or Cross-platform), the complexity of the application development, the location of the developers, and the expertise of the development team. 

Let’s first look at the cost breakdown based on Platform (Android, iOS)

Both Android and iOS apps provide multiple growth opportunities to businesses. If you were in search of Android app development cost or iOS app development cost, this section will help you to understand the cost breakdown based on platforms. 
The cost breakdown shown above is not the accurate cost of development, it is just an estimate. If you want to know the accurate cost of development, you can connect with an on-demand app development company like DianApps. Experts here will understand your requirements and give an accurate cost estimation based on your conversation with them. 

Recommended Read: How Much Does It Cost To Hire An Android Developer To Build An App?

Cost Breakdown Based on App Complexity

The complexity of the app can be categorized into three segments, low complexity, medium, or high complexity of the application. Let’s look at the cost estimation based on these segments.

Final Words

This blog must have clarified your doubts related to the cost of taxi app development, essential features, and the development process. 

The ride-hailing app is useful for people living away from their homes, as this evolution has saved them from depending on public transportation. This app swiftly helps customers to commute from one place to another in less time as compared to public transportation. 

Taxi-booking apps have made booking facilities just a few taps away from the customers, making it an interesting business model. Entrepreneurs can seek help from a taxi-booking app development company to build a successful app.