A prominent question that get a long with people is ‘How to start with the taxi business like Uber within your city?’ Through, this step-by-step guide get all the answers for your taxi app development.

Mobile applications have taken the taxi business by storm.

Times have changed!

The market for traditional taxi services is taken by the Lyft & Uber Business model.In fact, the whole taxi business can be run through a mobile app. Due to the growing trend of taxi booking apps that has resulted in a potential useful business model for taxi startups and ventures.

Moreover, the success of Uber has solidified the faith in the startups based on taxi booking mobile apps. So, now you can also start an Uber in your city, but before doing that there is a lot that you need to understand and learn about the process and the cost to start a business like Uber. 

Don’t know how to start a taxi service like Uber? Not to worry!

This blog article is a perfect guide for those who are willing to start a cab company like Uber, Lyft, Didi, etc can know the process to start, cost and overall Taxi app market.

But, before that let’s clear out a few basics.

Why It Is Crucial To Start A Business Like Uber?

Since its inception, Uber has been dominating the taxi industry. Many apps have found their distinguished place in the market, like Lyft, DiDi, etc. Various stats will give backing for the former points:

  • The ride-hailing and taxi industry will reach US $74.91B by 2027.
  • In the first quarter of 2023, Uber’s revenue grew by 29%, reaching $8.8 Billion.
  • Over 300 million people will use taxi apps in 2023 for commuting.

Hence, setting up a taxi service company like Uber business model is one of the best business ideas, which involves much more effort to establish.

You don’t have to be a transportation expert before starting this type of Uber business. All you need to know ranges from the mobile app features, its business model and the cost of realizing the next Uber-like business idea.

How to Start a Taxi Business like Uber?– Key Points To Consider

Steps to know how to start a taxi business like uber
A prominent question might arise:’ How to start a Taxi company?’ So before you start researching online, there are various steps that you can follow so that you can develop a perfect taxi business as per the relevant market:

1) Do Competitive Research

Before starting on how to start a Uber business, it is not worth doing market research with the money risks and future challenges. Being prepared to analyze top competitors currently running their service.

Look through the competitor’s services and do deep analysis to find loopholes and know which service you might provide in a better way.

2) Determining Your Niche & Define Goals

For better competition in a marketplace, carving your niche and defining goals is crucial. Know the list of services you are willing to offer, and you can attract customers and superior services to offer them.

Though, the process is critical to determine the goals wanted to achieve with your solution. It’s crucial to consult your team and define the main objectives of your business that you are willing to establish and then finalize your brand’s niche and goals.

3) Identify The Buyer’s Persona

The buyer’s persona means to imagine an apt image of your buyer and include services that can help focus on time with quality leads, guide a product development towards your target customers.

You can go through following steps to find out your buyer’s persona like research demographic information, identify issues, know the priorities, find their concerns, know their buying process, etc.

4) Take Care of The Legal Procedure

Generally, the taxi business at the start is bound to be a Limited liability company or a partnership, and then they grow into a company format. Hence, decide which path you want to accustom for your start-up like Uber business:

  • It works for people who are starting and have a moderate amount of seed money.
  • If the company is growing and serving corporate and individual clients, then LLC is a perfect choice.

5) Hire A Reliable IT Partner

It would be best to have a reliable software partner for your business to build a taxi software like Uber. You should have an on-demand app development partner who knows the market inside and out of the business.

A skilled set of developers can provide the best technical solution development. Hence, you can easily connect with us for such amazing technical services.

6) Plan Your Budget

If you are willing to start budget planning, start your own Uber business. It is the prominent way to anticipate your expenses and prevent unexpected costs that are not as planned. Besides, it is worth considering that you want to invest in:

  • UI/UX Design
  • Development & Testing
  • Release & Technical Support
  • Advertise & Marketing

7) Schedule MVP Features

The on-demand Uber app can be quite expensive to build for your business. It can be quite an expensive task as you have to build:

  • Admin Web Panel
  • Drivers App
  • End-users App

If you have a tight budget, launching an MVP app first is the best solution. Our recommendation is to start with the basic functionalities and features if your budget is constrained.

8) Strategize Your Marketing Plan

There are multiple ways to strategize your marketing plan though, there are no rules as you can create a marketing strategies, advertising and everything is estimated to be fair. You can take help of latest marketing tactics like posting on Facebook, Twitter, Instagram and creating a Youtube Ads many more.

Hence, start your Uber taxi business by taking into consideration this process. Now, let’s move on to know the cost to start a taxi like business.

Ready to be your own boss and start your own cab company? Let’s get started!

How Much Does it Cost to Start a Taxi Business like Uber?

After learning about the massive earnings of Uber, Lyft, Grab, and similar types of taxi companies, you may fearfully think, “how much money do I need to start a business like Uber?.”

Well, believe it or not, you don’t need a million-dollar investment in starting a business like Uber.

Initially, if you are thinking that how to start a taxi business like Uber with one car? Then you can also start your own taxi service just with one car and expand as your business grows.

Even though you may not need a million-dollar investment (Praise the Lord!!!) you still need a budget. So, let’s find out how to start a business like Uber with fewer investments.

Before jumping on to the business of starting your own Uber business you need to ask yourself these questions.

What kind of taxi business do you want to start?

There are numerous types of taxi services you can start which involves a taxi moving passengers and goods between the location of their need.

Some of the taxi service examples are

  • Low Cost Car Rental
  • Water taxi service
  • Kids’ taxi service
  • Medical taxi service
  • Airport taxi service

What is the scope of running a taxi business?

Before proceeding further in the taxi business, always look for the room to maneuver your business and remember the key question, what do you need to start a taxi business in your city?

Carry out the survey to find out the present and future scope of Uber’s business model in that area.

Who are your competitors?

Scrutinize the details of your competitors.

  • What is their current condition in the market?
  • Are they earning well?
  • What is their growth rate?
  • How did they start their taxi startup?
  • How do they work at present?

Get their ABCs out and study their working model.

You need to find out the weaknesses and strengths of your competitors. It will facilitate you in making competitive strategies.

Will you find enough passengers for your area?

Carry out a survey of the area where you are starting a taxi business.

Suppose you start a taxi business without doing the survey in your area and later you find that your areas have a good transport system and passengers can conveniently utilize it.

Hence, to avoid this do proper research before launching your taxi business.

What is the future of your Uber-like Taxi Business?

Obviously, you won’t open a business that will have less chance of growing. Hence, knowing whether there is a chance to grow your business in-future or not becomes indispensable for you.

Once you find an answer to these questions you can proceed further to invest in your taxi app business.

Now let’s come to point of discussion and know what will it cost to start a taxi business.

What’s the Cost of a Taxi Car?

The prerequisite to opening a taxi business is a taxi car. So the only expensive investment that you will be making is on a car to be used as a taxi.

Depending on the car model and condition (if you are going for used cars) you will have to shed around $15,000 from your pocket for a car.

It is best to start a taxi business with one car so that the car-related costs would be limited to only one, initially.

Buying a used car is advised as they comparatively cost less than new cars but you must thoroughly check it when you buy because a faulty car can cost you more than a new one.

How Much Does it Cost to Buy Taxi-Related Accessories?

Taxi top light, Taxi cab meter, taxi paint or decals on the car, etc. are needed to transform your car into a taxi.

The goal is to make your taxi as much visible to the customers as possible, to get more customers.

An average taxi cab meter can cost you around $150 per piece. While the taxi top and decals will cost you comparatively less, at around $80.

But if you go for paint instead of decals for your car the cost would rise significantly.

You would also need to install a radio or cell phone communications system in each cab to keep in contact with your drivers.

How Much Does it Cost to Develop a Taxi App?

In this digital era where every start-up or business needs to be on the internet not just to survive but properly thrive. Hence, your taxi service should have a mobile app to help you reach customers easily and fast.

To start the uber business model, you need an Uber-like app that would help you get customers via the internet.

To Make an online taxi/ Cab service app you would need expert taxi app developers who know how to code and design your taxi app.

This app will be made according to your preferences and requirements. So the design and features of the taxi app would be of your choice.

The cost to develop an app like Uber depends on many things:

  • Are you building your app from scratch or using Uber app clone scripts?
  • Do you need just the basic features or want more advanced features?
  • Do you hire a local (higher cost) mobile app development company or outsource (lower cost) your project?

All these factors and many others depend on how much does it cost to start up a taxi business like uber?

Your app development cost can be as low as $4999 to $65,000.

Apart from the taxi mobile app development process, there are certain expenses that add to the cost of starting uber like taxi business.

Particulars Cost
App Development From $4999 to $65,000
Licensing $800
Insurance $300
Gas and other incidents $700
Vehicles $15,000
Equipment such as Top Lights, Meters, etc. $700
Calibration and Installation $500

Going for the low-cost taxi booking software solution is never the right move for any taxi Start-up business.

Hence, try to find a taxi app development company that has at least some years of experience in developing taxi app solutions.

Read More: All in One Car Rental & Taxi Booking App

Which Revenue Model to Choose For Uber Type Business?

The revenue model for starting an app like Uber and making it profitable. Besides, there are various strategies that you can follow while starting the Uber taxi business:

  • Commission Based Revenue

After the passenger pays for the ride, Uber transfers the fees per ride after charging a commission of 15-30% in advance. Besides, in Ubereats as well 30% is charged from the restaurant partners. It is the preferable model of Uber in every business type.

  • Delivery Based Revenue

There are multiple types of fees: Pickup fee, delivery fee and distance fee(per mile). The amount will vary depending on the drivers’ location, distances and availability. Besides, Uber will take around 25% of the total sum. Besides, for orders cheaper than $12, Uber will charge a $2 fee, which they call a ‘small orders fee.’ This model is preferable for the Ubereats type of app.

  • Advertising Revenue

Uber business also tends to earn revenue from exclusive promotions in the app. UberEats offers restaurants a chance to place their restaurant advertisements on the app through fees and commissions. As a result, of placing higher on the list and attracting more customers.

  • Subscription-based Revenue

Uber also offers the purchase to Uber One, which will cost around $9.99 per month or $99.99 per year. Uber One members tend to receive a $0 delivery fee plus eligible for 10% of eligible orders in restaurants and stores marked with the Uber icon. Besides, the subscribers will receive $5 in Uber cash on eligible deliveries. They will also get almost a 5% discount on most ideas.22

Note:- You can choose any monetization models or combine several as per the services offered.

Read More: Taxi Dispatch Apps: 5 Tips To Improve Your Taxi Business

Excellent WebWorld Can Help You Create An App Like Uber…

You need the best weapon to be a partner for creating your app development solution to beat the competition. This blog provides basic information on the cost of starting a Uber business.

In this blog, we have covered all the topics to start your journey of making an app like Uber. Hence, if you are convinced and looking for a reliable On-demand app development company – Connect With Us!

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If you are thinking of starting your own taxi business, then building an app is the first and foremost thing to begin with.


The taxi industry is a necessary means of transportation, especially in urban areas. The reason? It provides both – economic as well as mobility solutions. Economic solution because many people have got employment in the taxi industry and mobility solution as it helps you to go from one place to another freely.

Yes. You can run your taxi business from home as far as you have one cab. The only prerequisite is to get a private hire license with vehicles like minibusses, and it can transport 7-8 passengers.

There are two ways:

1. Renting the cabs to drivers
2. Splitting the fares with the drivers

Undoubtedly, taxi companies have enormous expenses. But they too make way to earn money. Big companies usually rent cabs to the drivers daily or weekly. In rental cars, drivers find passengers on their own. On the other hand, both the company and driver agree on a fixed ratio to divide the total income in fares splitting.

A big yes. Companies usually look to make money by investing less. And taxi cab service serves to be the best bet. The reason is that the customer demand for cabs keeps on increasing. But simultaneously, compliant planning and service are essential to driving your taxi business to success.

You can be a self-employed taxi driver. There are many benefits to it also. You can be an independent worker and set your work hours, which also helps you balance your personal and professional life. Also, you can get payments from all the journeys you complete.

The simple way to start an Uber like business is an 8 step process:

  1. Do Competitive Research
  2. Determining Your Niche & Define Goals
  3. Identify The Buyer’s Persona
  4. Take Care of The Legal Procedure
  5. Hire A Reliable IT Partner
  6. Plan Your Budget
  7. Schedule MVP Features
  8. Strategize Your Marketing Plan

The working of the taxi business is quite an easy task as you just need to own the fleet of vehicle and hire the drivers to drive the vehicles.

Paresh Sagar

Article By

Paresh Sagar

Paresh Sagar is the CEO of Excellent Webworld. He firmly believes in using technology to solve challenges. His dedication and attention to detail make him an expert in helping startups in different industries digitalize their businesses globally.