Ride Sharing App Development: Features, Steps & Cost Breakdown

The ride-sharing industry is accelerating at a much faster pace. Despite the presence of established players like Uber, Lyft, and Bolt, there are significant challenges that existing ride-sharing apps can’t resolve. This creates a unique opportunity for your idea of a ride-sharing app development to make a significant impact.

• High surge pricing & unpredictable fares
• Long wait times & canceled rides
• Safety concerns & poor background checks
• Inconsistent driver behavior & service quality
• Hidden fees & additional charges
• Poor customer support & issue resolution

Not only do the challenges with existing Uber-like apps make your investment worthwhile, but the below-mentioned statistics also present an opportunity for your app to impact the ride-sharing industry significantly.

This high demand for innovation and meeting riders’ expectations underscores the need for your app to step in and offer something that truly meets the needs of riders and drivers alike.

Therefore, let’s dive into this blog that uncovers the operations of ride-sharing apps, must-have features, some exclusive features that stand you out ahead of the competition, and the cost of developing a ride-share app.

How Does Ride Sharing App Work?

You must have used or experienced the existing ride-sharing application once in your lifetime. We have listed the entire rider journey to show you what it’s like.

User Registration & Profile Setup

• New User: The user downloads an application from Play or App Store. Then they add details like Name, DOB, Mobile Number, and Payment Method.
• Existing User: The app saves the credentials of existing users, such as name/email ID, password, address, payment method, and ride history, so once they log back, they do not need to fill in all the details.

Ride Request Initiation
Once the user logs in, the next step is to select the pick-up location and destination by typing in the search bar, to enhance user experience, you can even add a voice command feature so users don’t need to type, making the process more user-friendly and comfortable.

Driver Matching
Once the rider adds pick-up and drop-off locations, the request is submitted to the app, and the application then uses an algorithm to find the nearest possible drive. The app then checks the feasibility, proximity, distance, and traffic conditions.

The driver’s panel shows the commission they will receive upon completing the trip and allows them to accept or reject the ride.

Ride Confirmation & Details
After accepting the ride by the driver, the driver’s details pop up on the ride’s screen. For example, name, vehicle number and model, driver’s phone number, route preview, and estimated arrival time.

Pickup and Ride Progress
Once the driver arrives at the location, the rider must provide OTP before the trip begins. As soon as the journey starts, the rider receives the route update, including navigation and real-time traffic analysis.

Ride Experience
The ride experience is equally important because it makes your ride-sharing app preferable to others. It is essential to offer a dynamic ride experience, including music preferences, chat options (to communicate with drivers), and comfort options.

Ride Completion & Payment
Once the rider arrives at the destination, the driver must finish the ride from the app, upon which the ride-sharing app calculates the fare. Previously, the fare was calculated based on factors like peak hours, time, price surge, distance, and tolls. But from now on, there is a fixed fare method. This method benefits riders since the drivers cannot cheat on them, ensuring a secure and fair payment system.

Also, the rides get to select from suitable payment options, such as:

• In-app wallet
• Cash on arrival
• Credit/debit card
• Ratings & Reviews

Once the ride is completed and payment is made to the driver, both parties should give ratings and reviews to each other.

Drivers can provide riders with reviews and ratings based on their behavior, while the latter rate drivers based on several factors, such as professionalism, vehicle condition, driver attitude, and driving experience.

Driver’s Earning

Once the rider pays, it is automatically transferred to the driver’s bank account after the ride-sharing app deducts their commission, usually 15%-25%.

Now that you know the journey of a rider and driver in the ride-sharing industry-specific application. Let’s discuss the stakeholders’ expectations for your ride-sharing app development idea.

So, these were some of the core functionalities of each stakeholder of the ride-hailing app. You must have heard or could have experienced Uber, but do you think that’s the only ride-sharing application in the market? Well, there are tough competitors to Uber, but they all sail in the same boat.

5 Best Ridesharing Apps

Below are the top ride sharing apps you must know about, and for your convenience, we’ve mentioned their pros and cons. Keep a close on each disadvantage and devise a solution; your ride-sharing app will have many users.

Uber

• About: Established in 2009 with exclusive services like UberPool, UberBlack, UberX
• Number of Active Users: 161 Million active users
• Operational Regions: 70+ countries & 9000+ cities
• Monetization model: Commission-based models (15%-30%)

Lyft

• About: Founded in 2012, serving only North America
• Number of Active Users: 44 Million
• Operational Regions: 600 cities in the United States and Canada
• Monetization model: Commission-based model

Ola

• About: Launched in 2010, offering services like OLA Micro, Mini, and Prime
• Number of Active Users: 200 Million
• Operational Regions: India, Australia, New Zealand, and United Kingdom
• Monetization model: Commission- and subscription-based model

Grab

• About: Launched in 2012, offering food delivery services and digital payment while being Southeast Asia’s leading ride-sharing company.
• Number of Active Users: 37.7 Million
• Operational Region: South East Asian Countries (Mainly Singapore, Malaysia, Indonesia, and Thailand)
• Monetization model: Commission-based model

Bolt

• About: Established in 2013, offering car and two-wheeler hailing & food delivery services.
• Number of Active Users: 150 Million
• Operational Regions: 50 countries across Europe, Asia, Latin, and America
• Monetization model: Commission-based model

Ride Sharing App Features (Stakeholder Wise)

Whether you build a rideshare app separate for riders and drivers or an all-in-one app, key features are necessary for either of these considerations.

Let us explore some of the must-have features of ride-sharing apps when you are figuring out how to build a ride-sharing app.

User Registration and Account Management

The first and most basic requirement when you create your own rideshare app is a registration page. It allows the user to register themselves in the app by entering the simple yet necessary information in the app to keep the registration process simple.

• For Riders

The best way to make the registration process more manageable for the rider is to allow them to sign up using their existing Google, Facebook, or Apple account or email ID/phone number.

Further, the more crucial details, such as their first name, last name, and payment method, can be completed later when they complete their profile after registering.

• For Drivers

Unlike the riders who can quickly register on the app, the drivers must have approval from the rideshare company. For this, you can ask for the driver’s information, such as their tax verification number, name, contact information, and anything else that the rideshare company may find crucial for approving the driver to work with the company.

Note: The crucial information required may be different depending on your country.

Further, when setting up their profile, riders must provide information, such as a photo and work schedule.

Geolocation and Map Integration

Eliminate the need to enter the pick-up locations manually by adding a geolocation feature to the app. However, they would have to add the drop location manually. Further, the map integration and geolocation would help you with the following:

• Precise ride matching
• Automating route map creation
• Finding the shortest route possible
• Finding the distance for fare calculation
• Real-time tracking
• Fetching the driver’s exact location
• Navigation for drivers
• Calculating the ETA (Estimated time of arrival)

Ride Request and Matching Algorithm

After the riders have added their pickup and drop-off locations, the next step in creating a ride-sharing app is enabling them to request rides.

Geolocation integration is not the end of the story; think about creating a strong migration algorithm that connects the rider with ride closest to his present location.

Make sure the app displays the different car kinds and their associated prices, which are determined by the distance of the trip and the cost of the particular car type. This will facilitate ride-requesting by informing the rider about pricing and automobile kinds.

In-app Communication Between Riders and Drivers

After selecting the ride from the nearest rides available, the next feature that would enable the driver or riders to communicate until the driver arrives are various options of in-app communication like chat and audio calls to discuss the itinerary specifics or for the drivers to inform their arrival.

Fare Estimation and Payment Processing

Depending on the following factors, the fare of the rider’s ride is estimated:

• Routes
• Types of vehicles
• Traffic conditions

Ensure that the fare estimation is done before the rider requests the ride; this way, the rider will be clear about the fare before sharing the ride.

To offer riders ease of payment, most ride-sharing apps integrate with in-app third-party gateways for secure and quicker payment processing: PayPal, Stripe, Braintree, etc.

Driver & Rider Rating and Feedback System

The ride-sharing company needs to know if the driver is doing their job correctly or not through the rider’s feedback/reviews and ratings. The rider reviews also give insights into drivers’ driving skills and behavior.

This is true for riders who should be banned from using their services; this is where the driver’s reviews and ratings play a crucial role.

Stand Out Your Ride Sharing Application from Competition (Exclusive Features)

In the crowded ride-sharing industry, only those that meet riders’ expectations survive. Considering the rider’s ease and how you can provide the service, we have listed some exclusive features you can integrate into your ride booking application.

• AI-Voice Assistant Ride Booking

No more typing! Make your riders’ lives easier by allowing them to book rides easily with voice commands.

• AR-based in-app Navigation Feature

Don’t let your rider struggle in crowded places. Try the AR-based navigation feature to help your rider locate the driver without hassle.

• AI-based Suspicious Activity Detection

Integrate an AI-enabled suspicious activity detection feature in your rideshare app to make users feel relaxed about suspicious situations and believe they can count on you.

• Panic Button & Live Streaming

This feature in your ride-share app lets your users know that your emergency contacts and services will be notified even in an emergency.

• Voice-backed SOS

A pre-set voice command triggers an emergency alert without unlocking the phone. This feature in your ride-carpooling app can build trust and boost your brand image.

• Rewards & Gamification

Let your riders and drivers earn rewards and points upon referring their family and friends to your ride-sharing application.

• AI-Supported Fare Prediction

There might be times when fares peak. In such cases, in-app notifications will proactively notify users of the best time to book the ride. They can even suggest early booking to avoid fare surges.

Ride Sharing Application Development Process

A ride sharing app development process involves a predefined set of steps, including industry research, technological requirements for developing and selecting the business model, and defining features. Sit tight and follow each step, as we have answered all the whys below.

• Industry Research & Business Model Selection

Any mobile application development requires thorough market research of existing carpooling platforms like:

• Ride share app ratings
• Driver & customer reviews
• Features
• User interface and experience of each uber-like app
• Application flow & functionalities
• Target audience (be specific about your target audience)

Connect with a ride sharing app development company to learn market insights. Or, if your targeted location is flooded with ride-share platforms, you can conduct surveys to know which is the rider’s favorite.

• Setting up Features & Functionalities

• Technological Requirement

Before deciding on ride-share app development, you have two options: native and hybrid. Both platforms have pros and cons, but to give you the gist, native mobile apps are built and run on specific platforms: either iOS or Android. On the other hand, hybrid mobile apps work on both operating systems without any glitches.

• UI/UX Design & Prototyping

Prototyping helps to understand the end product’s appearance, whether any further changes are required, or what new can be initiated in the ride-share application. The prototype teaches you about the screen layout, usability, and app flow expectations. If you are confused about UI/UX trends, go through our entire blog.

The major benefit of minimum viable product, prototyping, or wireframing is identifying all the errors or flaws in the pre-launch levels. As a result, your final ride share app development won’t take much time, and you can release the app promptly.

An intuitive and user-friendly app design is crucial in hooking customers to the app. Connecting with a carpooling app development company could help you pick an attractive application design.

• API Integration & Development

A seamless API connection is necessary to integrate various functionalities in a ride-sharing program. It includes GPS and mapping services (Google Maps, Mapbox), payment gateways (Stripe, PayPal), and authentication systems (OAuth, Firebase Auth). Strong API development ensures smooth communication between the application’s frontend, backend, and third-party services, enhancing user experience and performance in general.

• Testing & Quality Assurance

Comprehensive testing and quality assurance (QA) are critical to ensuring a bug-free and secure application. This stage involves functional testing, performance testing, security assessments, and user experience (UX) testing to identify and resolve any issues. Automated and manual testing approaches help deliver a reliable, high-performance app that meets industry standards.

Read more: 5 Best Mobile Testing Tools 2024 Edition

• Deployment & Launch

After testing, the app was released in stores like Google Play and Apple App Store and moved to production environments. This entails setting up database administration, cloud hosting, and server infrastructure to handle real-time ride requests effectively. Platform requirements must be followed, and performance must be optimized for seamless operations for a launch to be successful.

• Support & Scalability

Post-launch, continuous support and scalability are necessary to maintain app performance and accommodate growing user demand. Regular updates, bug fixes, security patches, and feature enhancements ensure a seamless user experience. Additionally, implementing scalable cloud solutions allows the app to handle increasing traffic, expanding its reach without performance bottlenecks.

How Much Does Ride Sharing App Development Cost?

Here’s a tabular breakdown of estimated hours for developing a ride-sharing app based on stakeholders, functionalities, and development stages. Review and let us know if you have any doubts or queries.

 

Hire rideshare app developers to get started with your idea, witness the development, and rectify it.

• Total Estimated Development Time:

1,250 – 2,500+ hours (varies based on complexity, team size, and region)

Now, just multiply the total hours by the developers’ hourly charges, and you will get an estimated quote for your ride-share app. The budget may vary, so connect with the ride-share app development company before deciding anything.

How to Monetize a Ride Sharing App?

Monetizing your ride share application helps you gain profits and expand your business. Since there are multiple monetization models available, it may become confusing to choose the right one for your business. Thus, we have decided to provide a wealth of information for the monetization model:

Commission-Based Model (The Classic Approach)

This model is a common way to make money through ride-sharing apps. You can charge a commission for each ride. For example, Uber and Lyft typically charge 20% to 30% of the total fare. As a ride-share app owner, you can earn money upon every ride completion. You only have to balance commission rates so riders and drivers do not switch to other lucrative ride sharing platforms.

Surge Pricing (Make More When Demand is High)

Have you ever observed how prices increase in inclement weather or during rush hours? That is an example of surge pricing. Fares are raised by an algorithm-driven model when demand outpaces available drivers. This maximizes revenue while encouraging more drivers to log on.

Subscription Plans for Drivers (Steady Income Stream)

You can offer driver subscription plans instead of charging a commission per ride. For example:

• Weekly or monthly plans: Drivers pay a fixed fee to access the platform.
• Freemium model: Allow limited free rides, but premium features (like priority ride requests) require a paid plan.

This model gives drivers predictable costs while ensuring you get consistent revenue.

Ride Passes & Memberships for Riders

Apps like Uber and Lyft offer monthly ride passes where users pay a fixed amount to get discounts on all rides. This strategy locks in customers and guarantees revenue even if they don’t ride as frequently.

In-App Advertisements (Earn While Users Scroll)

Our app can serve as a digital billboard by displaying ads for restaurants, retail stores, and other businesses. Monetization options include:

• Banner ads on the app’s home screen.
• Sponsored placements
• Partnerships with businesses offering discounts for riders.

Corporate & Business Partnerships

Many companies provide employees with ride-sharing benefits. You can partner with corporations, hotels, and airlines to offer business travel solutions. For example:

• Corporate ride programs where businesses get discounted bulk rides for employees.
• Hotel and airport tie-ups for easy transportation.

Carpooling & Shared Rides (More Rides, More Revenue)

Allowing multiple passengers to share a cab/taxi unburdens riders from paying hefty fees while increasing your platform’s earnings per trip. Some apps like UberPool and Lyft Line follow this model, optimizing routes and maximizing car occupancy.

Premium & Luxury Ride Options

Some customers prefer high-end travel experiences, which is where premium services like luxury rides, executive cars, or chauffeur-driven services can help you earn more by attracting high-paying users.

Delivery Services (Expand Beyond Ride-Sharing)

Many ride-sharing apps offer multiple services, such as food delivery, courier services, and package transportation. You can also create another income stream by allowing drivers to deliver food or parcels during off-peak hours.

Cancellation & Convenience Fees

A cancellation fee is charged if a passenger cancels a ride after a specific time. Additionally, you can introduce priority booking fees where users pay extra for faster ride-matching or guaranteed availability.

Conclusion

Ride-sharing apps have revolutionized urban transportation, offering a seamless, cost-efficient, and environmentally friendly travel method. These platforms make commuting more affordable for passengers and allow car owners to earn extra income while maximizing fuel efficiency. With the ride-sharing industry continuously expanding, now is an excellent time to launch your own app.

By now, you’re familiar with the key aspects of developing a ride-sharing app, including its features and revenue models. While industry leaders like Uber, Lyft, and Grab dominate the space, there’s always room for innovation. Your app can stand out and capture a niche audience with the right strategy.

Do you have a unique vision for a ride-sharing platform? Our experienced developers and designers specialize in building high-performance, scalable applications. As a trusted software development company with over 3,000 successful projects, we have the expertise to bring your idea to life.

Contact us today—fill out the form below and create something exceptional together!