How to Choose a Suitable Taxi Dispatch Software Provider

MobyteLab News   •   Jan 14, 2020

What are the programming trends in 2018?

As the world advanced technologically, the need for high-tech features has increased and the taxi industry is not left out. Recently, there has been an influx of taxi businesses with cab dispatch systems. This digitized form of booking taxis has gained popularity amongst commuters and taxi businesses and today, almost every taxi business is trying to create a taxi management software

Building a taxi management software is a Herculean task. It involves months of planning and equally consumes a lot of financial resources. Thus, any taxi business owner trying to create a cab dispatch system must make the entire process worthwhile. To achieve this, one must take the necessary steps towards creating the perfect taxi application. 

First and foremost, you would need to choose or select a software provider. A software provider takes responsibility for creating taxi app solutions and ensuring that the application is free of glitches or bugs. 

Why Your Taxi Business Needs a Software Provider

When it comes to creating taxi app solutions, business owners are often faced with the problem of choosing between outsourcing or self-building. Although outsourcing is a better and more convenient option, a large number of taxi business owners are still unsure as to whether this option will be beneficial for their business.

Are you looking to create a cab dispatch system for your taxi business? Here’s why you need to hire a software provider:

  • Experience and expertise: When creating a taxi application, the one thing to look out for is expertise. Have you created a taxi management software before? Are you skilled in the intricacies and complexities of software development? If you have no history in the world of tech, your answers to these questions will likely be negative. Thus, it is highly advisable to hire a software provider. Software providers have to have the necessary skills and tools needed for creating a taxi application. In most cases, these technicians have skilled in all areas of app development, especially UI and UX design. Thus, to create the perfect taxi dispatch system, taxi business owners should outsource to software providers who have years of experience and expertise in their portfolio.
  • To stay focused: Running a taxi business entails more than just app development. It encompasses recruitment, profit monitoring, car maintenance and a wide range of departments which will require the owner’s attention. In as much as it is essential to develop a taxi app, it could also be quite distracting to taxi business owners. Creating an app requires time and attention and unless you are outsourcing, you may need to divert all your attention to the project. Outsourcing to a software provider takes a large part of the responsibility off the owner. With an expert handling the complexities of the app development, you can focus on other aspects of the business. This would help to keep your business running efficiently while creating a revolutionary application all at the same time.
  • Better security: Developing an application or a website involves a whole lot of aspects apart from UI and UX design. As a taxi business owner seeking to create a taxi app, heavy emphasis should be placed on security. Hackers can invade an insecure app and subsequently, the company’s earnings could be lost in one fell swoop. To achieve cybersecurity, business owners should look towards hiring an experienced software provider. Software providers ensure that your taxi application is highly secure and impossible to breach. Thus, you can protect your company’s data and earnings from hackers.

Find out more about the Ride-hailing Industry 2020: Opportunitites and Challenges, click here

The Cost of Building an App like Uber

Uber was one of the first companies to take the taxi industry into the digital age by creating a ride-hailing app. Ever since its introduction into the limelight, it has become the mainstream for commuters and a standard for other taxi companies to look up to. As such, there has been a clamor for Uber clones in the taxi industry. A large number of taxi companies are currently trying to create uber-like apps to boost their companies and stay on top of the competition.

This brings us to the big question: What will it cost to develop an app like Uber?

The Cost of Building an App like Uber, a cab dispatch system

Before one can adequately determine the cost of creating an app like Uber, he/she would need to outline the features and intricacies involved in creating the application. It is important to note that there is no exact cost for building an app like Uber. The cost could vary depending on various factors. 

Let’s take a look at the necessary features to be incorporated when creating an app like Uber

Features Needed on an App like Uber 

To create an app like Uber, certain features and options ought to be incorporated. To create an app like Uber, one would need to create two separate applications. One app is specifically designed for passengers while the other is designed for the drivers. 

The Passenger app: This application is specifically created for commuters who want to book a taxi. It comes with certain features and functionalities which make it possible for passengers to book a taxi. 

Some of the features of the passenger app include :

  • Registration/ Login features: This option enables passengers to create a profile on the app and access the profile. Similarly, commuters can use this feature to link the app to their social media accounts. 
  • Book a taxi: This feature allows users to book a cab to their preferred destination. With this feature, users can book a taxi and contact the driver as well to know his exact location. 
  • GPS: The passenger app should also have GPS and tracking services for passengers to locate their drivers and for the app to automatically decipher the passenger’s exact location. 
  • Payment options: This feature is quite vital as it provides passengers with a wide range of payment options. With this feature, passengers can make payments seamlessly either through cash or any other methods of their choice. 
  • Reviews and ratings: These features often go hand in hand. However, in some taxi apps, they are fixed under separate categories. The essence of the reviews and rating feature is to get customer feedback as well as user experience. Thus, after each ride, customers can rate the services and leave an opinion. This feature is quite vital for understanding customers’ needs and wants. 
  • Push notifications: Passengers can receive notifications concerning their rides and payment options by this feature.

The Driver app: This application is designed to enable drivers to pick up passengers and accept rides. The driver application comes with several features and functionalities which include:

  • Registration and login: With this feature, drivers can create visible profiles with their personal information and equally access their profiles any time they want. 
  • Bookings: This feature should be present to enable drivers to either accept or decline ride orders. 
  • GPS and navigation: The driver app ought to come with GPS and navigation features for drivers to immediately deduce customers’ locations and find the way they get lost. 
  • Push notifications: The driver can receive alerts immediately a ride that commuter orders and equally receive updates throughout the ride by this feature.

Apart from the features of the taxi application, the taxi business should consider several other aspects when trying to calculate the cost of developing the app.

To calculate the cost of creating an app like Uber, one must take into consideration the type of technology involved in the development process. Developing an Uber-like app requires you to, first of all, create a server upon which the app will be built.

Also, one must equally consider the individual stages of development to hazard a guess as to the cost of building an app like Uber. Each stage of development consumes hours of back-breaking work and could take months to complete. The stages of development include:

  • Backend development: This is the core of the app and is the very first phase in the development process. The software provider must first build the foundation and then linked to the user interface. The single database will store all of these. This stage is one of the most rigorous phases of developing a taxi application and as such, consumes more hours than any other phase. 
  • Creating a native application: This phase involves making the app accessible on both Android and iOS platforms. To cut down costs, one may consider making the app accessible on only one platform. However, this is not advisable as it could cost the company potential customers. 
  • UI/UX design: During this stage, the software provider will design the user interface in addition to the general outlook of the app. This phase determines how the app will look and how easy it will be to navigate. 
  • App management: This is the final stage in developing a taxi application and it involves testing the app for glitches and bugs. Here, the team provider has to test the quality of the app to determine if it is ready for use. 

Each stage could consume up to a hundred hours with a fixed amount being charged hourly. It is important to note that the hourly rates could vary depending on the developer and country. However, the average hourly rate is $50. Thus, one could end up spending $30,000 or more on developing an application like Uber. 

Make an app like Uber, The software provider, Taxi business

Tips for Choosing a Suitable Software Provider for Your Taxi Business 

Finding the right software provider for your taxi application could be difficult and time-consuming. However, to speed up the process, there are certain steps that one could take. 

First and foremost, it is important to truly define and know what you want. Understanding what you want would help you to choose a software provider suitable for the job. You can refer to the subtopic “Features Needed on an App like Uber,” above. 

Besides, one should also to crosscheck the provider’s certifications and portfolio. This would help you to determine if he/she is qualified for the job. 

Finally, when choosing or scouting for a software provider, it is important to discuss price rates and charges with him. Having an idea of his/her hourly rates could let you know if it tallies with your set budget or not. 


Choosing the right software provider for your cab dispatch system or taxi management system involves a lot of brainstorming. To start with, one would have to deduce the kind of taxi app he wants to build. This would help the business owner to make an informed decision and choose a suitable taxi dispatch software provider.

If you confused about Self-Building a Ride-Hailing System Vs Outsourcing, this article can tell you the pros and cons of each way, click here Self-Building a Ride-Hailing System Vs Outsourcing: Which is Most Cost-Effective?


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