Riding Into The Sunset: How To Create a Ride Sharing App

One of the effects globalization has brought into our life is the increased mobility of people. We commute to work, move to other countries, make intercontinental business trips, travel for pleasure, and hike to feel one with nature. The simplest way to reach a destination is to use your own transportation means. However, owning one runs contrary to the mobility trend which presupposes a perpetual readiness to pull anchor and get on the move on short notice. The solution to this dilemma is offered by ride sharing companies that spare travelers the bother of owning a vehicle but allow them to accomplish their trip and save drivers’ fuel expenses at the same time.

What Is Rideshare?

Have you ever thumbed a ride? Well, then you basically know what ride sharing is. A driver following his or her route picks up some passengers who happen to be going in the same direction. In return for the lift, they are expected to partake in the ride cost.

How is it different from classNameical taxi services? For once, it is not an on-demand ride. The driver will go to his or her destination any way irrespective of the presence or absence of companions. Then, unlike a taxi, carpooling (which is another name for ridesharing) is not about making money. The only money drivers earn is, in fact, the reimbursed sum on fuel cost. And finally, car owners might have reasons other than financial for finding co-travelers. For example, on a long-distance ride, having another person with a driver’s license on the passenger seat is an excellent opportunity to switch roles from time to time, providing rest for the weary driver.

How to Develop a Ridesharing App

A successful strategy that will help you to build a carpooling app includes three steps:

1. Preliminary research

Before plunging into this business headfirst, you should try to sound out how deep the ocean that beckons you so much is. And first of all, this refers to the competition you will face.

Even the top ridesharing companies like Lyft, Uber or BlaBlaCar fail to make a profit in some areas, so you should visit their local websites and read through customers' reviews to find out the reasons. In this way, you will learn about the problems passengers encounter, avoid some mistakes, and get plenty of tips on how to make a rideshare app that will work.

Another perk you will get from such research is awareness of your potential market. Some neighborhoods and even areas like, say, Beverly Hills aren't the best places to start a carpooling business since their well-to-do denizens aren't likely to book even a personal cab, to say nothing of sharing a ride with someone to cut down on riding fare. Conversely, the busy downtown zone of a large metropolis will abound in potential clients for your rideshare company.

2. Implementation

However strange it may sound, the first steps for the procedure of rideshare app development are made offline. At the outset, you should obtain necessary permits and licenses, starting with a general business license down to specific permits (like vehicle-for-service permit, drivers’ medical and character certificates, vehicle permit and insurance, etc.) mandatory for this industry. That done, you may begin buying inventory or leasing cars if the purchase is beyond your budget. And only after all these procedures are completed it is time to create an application.

3. Innovation

To stay ahead of the competition, you mustn't stay put. It means constant updating of your app and your business model in general, fine-tuning them both to new variables and emerging challenges.

While developing your own application, you won’t have to reinvent the wheel, since the best ride sharing apps are basically tailored similarly.

Ride Sharing App Features

What you should realize is that you will in fact need three apps: the passenger app, the driver app, and the admin dashboard. Each of those will require a set of must-have features.

For a passenger app they are:

• Login/signup registration. It should include email and social media login options, as well as payment processing.

• Booking interface. This is the place where passengers enter the address they start from, specify the car type and driver preferences (if any), and arrange for the pickup place.

• Price calculator. It allows estimating the ride cost, which could be done before actually booking a ride.

• Payments. It offers a choice of payment methods, typically between cash and automatic in-app payment via credit card.

• Tracking. This function coupled with the GEO location feature is used to track the driver’s location, make in-ride or after-ride updates, and so on.

• Push notifications. Through it, passengers are kept informed on order status, time of the booked vehicle’s arrival, its model, license plate, etc.

If you wish to create your own rideshare app that is especially user-friendly, you may add such features as messaging, ratings and reviews, multi-language and multi-currency support, panic button, and even special rides for ladies.

The driver app has to include:

• Register/profile feature. It should contain the driver's verification and administrator's approval as well as the driver's schedule.

• Booking. It is the pivotal feature for this app, since it will enable the driver to accept or deny an order, get customer location and ride destination information and booking history. Ideally, it should be coupled with Google map integration.

• Push notifications. These are obligatory not only for passengers but for drivers as well, since they contain booking data (including location, route, and payment), order alerts, and updates.

Optional functions may include driver support, panic button, reviews and ratings, messaging and so on.

The admin dashboard is called to serve the company’s management so it should enable viewing ride postings and chatting between drivers and passengers, as well as numerous managerial tasks (website management, email template management, currency rate and multiple language labels, site banner management, etc.).

These general guidelines are universal, yet the app features may be modified depending on the vehicle type offered for ridesharing.

Creating an App For Green Vehicles

The global trend of reducing reliance on fossil fuel has led to the boom in bicycle and scooter usage, and consequently, such green vehicles are becoming increasingly available for ride sharing. What are the features a bike or scooter sharing app must have?

1. Availability

People must have 24/7 access to dockless bicycles in any place. And the app should direct them through GPS to the nearest location where they can hire a bike.

2. Prompt bike unlocking

It is done by pressing the "unlock" button and scanning a QR code, after which the customer can use the bike or scooter right away.

3. Foolproof payment

This is not just about a single-click payment. App developers must take precautions against disclosing the clients’ payment card details so that they feel secure employing your company’s services.

4. Booking in advance

Customers must be sure that they will reach their destination on time without worrying that no vehicle will be available when they get to the hiring point.

Yet, before starting a bike or scooter sharing business, you should be aware of potential pitfalls you may face. Since it is a comparatively novel trend, there might be a problem of finding a developer who knows how to create a rideshare app tailored for this particular business. Besides, the absence of clear traffic regulations for scooters may incur accidents which, coupled with bad road conditions, is likely to serve as an obstacle on the way of running such a business.

Whatever type of vehicle you are going to hire out through your app, it is important to realize how the app can generate revenue.

Pros and Cons of Building a Ride-Sharing App from Scratch

Opting for custom development means you can start building a ride-sharing app entirely on your terms, shaping its features, pace, and growth exactly as you envision.

Pros of creating a ride-sharing app from scratch

We’ve gathered the most notable advantages below.

Customization

When you choose to create a ride-sharing app from scratch, you gain the freedom to implement:

• Customized features tailored to your business model
• A unique design that sets your platform apart from competitors

Scalability

Speed to market often plays a critical role in success. Initially, you may launch with only core features to meet your time-to-market goals. However, with custom ride-sharing app development, expanding the functionality later is far smoother thanks to flexible architecture and feature adaptability.

Security

Handling sensitive data such as drivers’ and passengers’ personal information requires robust protection. A skilled development team can integrate advanced encryption protocols to ensure security and build user trust from day one.

Cons of building a ride-sharing app from scratch

Like any industry, ride-sharing development comes with its challenges.

Cost

Building a a ride-sharing app from scratch typically demands a higher investment than using a ready-made solution. But even if you start with a ready-made option, its limitations in scalability often mean you’ll eventually need to rebuild the app from scratch to keep growing.

Time

On average, delivering a functional MVP takes about three to six months, depending on the complexity and scope of the app’s functionality. This longer timeline is a compromise to achieve a fully tailored product.

How Do Ride Sharing Apps Make Money?

Choosing the right monetization strategy is essential for the success of your ride sharing business. It not only determines how you generate revenue but can also help reduce future operational costs. The main ways to profit from your ride sharing app include:

Commission model

Also known as a transaction fee model, this is the most common approach among top ridesharing services. The app owner takes a commission from each payment transaction between driver and passenger. This method ensures a steady income stream as long as rides are being booked through the platform.

Rent charge

If your business model includes providing vehicles, you can charge for vehicle reservations, duration of usage, waiting time, or other service-related factors. This is especially relevant for companies offering scooters, bikes, or car rentals through the app.

Partnerships

Partnering with car manufacturers, fleet operators, or EV providers can open new revenue channels. These collaborations not only expand the range of vehicles available to your users but can also enhance your brand’s image. For instance, some ride-sharing companies have partnered with automotive brands to accelerate the adoption of electric vehicles in specific markets.

Advertising

Integrating third-party ads into your ride sharing app can generate additional income. While this model is less common in the industry due to concerns about user experience, it can still work in moderation. The key is to balance ad placement so it doesn’t disrupt the booking process or deter users from returning.

How to Market a Ride-Sharing App

Once you launch your mobile application, it’s essential to have a solid plan for how you will market it. Below we are sharing three effective strategies to consider when you create your own rideshare app.

• Referrals: Offering referral incentives is a proven way to attract your target audience and encourage them to try your rideshare app;

• Partnerships: Forming partnerships with automotive or technology companies can boost visibility and appeal;

• A loyalty program: A well-structured customer loyalty program can provide ongoing benefits to frequent riders. This can spark word-of-mouth marketing and encourage repeat usage. The key is to focus on the unique value your mobile app can deliver to its most loyal users.

Cost To Make a Ride Sharing App

Another money-related issue is the cost to make a ridesharing app. It is determined by the time the developers need to design the app and by the hourly rate developers charge.

As far as the time is concerned, most of it is spent on web quality assurance, with the passenger app development close by.

The hourly rates follow no universal pattern since they greatly depend on the location the developer hails from. For instance, the US companies charge between $100 and 150 per hour while European ones offer their services at $40-80, with twice as little charged by Asian web developers. Multiply that figure by 200 hours at least, which are necessary to develop each app element (the driver app, the passenger app, and the admin dashboard), and you will arrive at the total amount you will have to fork out.

If you are only starting your business and possess a limited initial budget, the wise solution is to hire a developer from Eastern Europe. Our company offers high-quality services of a dedicated team of experts who can deliver a top-notch product at an affordable price.

Top 3 Ride-Sharing Apps

Studying the most successful players in the market can provide valuable insights when planning to create a ride-sharing app with unique features. Below are three of the top ride-sharing apps that have set industry benchmarks.

Uber

Founded in 2009 by Garrett Camp and Travis Kalanick under the name UberCab, Uber began as a luxury car ride service. The official Uber mobile app launched in 2011 in San Francisco and is now available for both iOS and Android users. At the end of 2021, Uber commanded over 69% of the ride-sharing market share. In 2020, the company generated $18.13 billion in gross bookings worldwide, with a global net revenue exceeding $11 billion.

Lyft

Launched in 2012, just a year after Uber, Lyft is another major San Francisco-based ride-sharing company. Holding roughly 31% of the U.S. market share, Lyft is the second-largest player in the sector. In 2020, the company generated over $3.5 billion in global revenue, and in the first quarter of 2021 alone, it reported $609 million in revenue.

BlaBlaCar

Headquartered in Paris, BlaBlaCar is an online carpooling marketplace connecting drivers and passengers traveling between cities to share journey costs. The platform has over 26 million active members and also runs BlaBlaCar Bus, an intercity bus service. The company earns revenue by taking a commission of 18%–21% on each booking and has secured multiple funding rounds, reaching a valuation of $1.6 billion in 2015.

Conclusion

With thousands of people constantly on the move, it is no wonder that ride sharing is becoming ever more widespread in the global world of today. If you want to succeed in the carpooling business, a feature-reach and user-friendly mobile app is something you can’t do without.