Taxi app development Challenges faced by taxi booking app providers and solutions

Taxi app development: Challenges faced by taxi booking app providers and solutions

An Uber-like online taxi booking business is one of the most crowd-pleasing and commercially successful businesses of the 21st century. However, overly intensified markets and the failure of many new Uber-like companies make hidden business challenges of this industry pop up. So, if you are an entrepreneur, planning to kick off Uber-like taxi business and don’t want to fail, it is an essential need to know business challenges of online taxi booking business and ways to decode each of them.

By a happy chance, we have covered it in this blog which was written after having a long conversation with Coruscate’s business expert.

Following are the top 10 business challenges of online taxi booking industry that you have to know before going for taxi app development.


Government regulations for Taxi Booking Service



Whether you believe it or not, but the major challenge you have to overcome to kick off a profitable taxi booking app business is the government regulations. In recent times, the ridesharing culture has been accepted by millions of people, but due to lack of a strong arm, it has grown in a very dangerous manner. Many cases of assault and molestation are justifying it in the best possible way. Thus, the governments of all over the globe have finally reinforced the laws and regulations with additional and much iron-fisted regulations for the Uber-like app providers. Many companies which have failed to satisfy these regulations got banned permanently while some companies have suffered the loss of operational license for a limited time but lost sight of users for life-long.

So, it turns out a vitally important need to proceed in app-based ridesharing business after wrapping your mind around the government regulations.

In such an unsettled situation, Coruscate Solutions can come to aid. We have already documented all regulations of different markets and what does it take to satisfy these regulations. We even develop taxi app which does not disobey these laws and regulations in any way.

Competition in Taxi Booking Service


Competition in Taxi Booking Service

Competition is there in all well-explored industries and it should be. But when it becomes the reason for profit fall, you need to treat it like a challenge and start figuring out ways to overcome it before it gets worse.

Talking about the taxi booking business, introducing futuristic features in the app is the only way to get rid of cut-throat competition and get the throne of a top taxi app. In other words, if your taxi app is equipped with next-gen features, you will automatically attract more users than your competitors and so, you will easily be profitable.

Following are the few next-gen features which we encourage you to have in your taxi app to make it stands out.


  • Split payment
  • Vehicle selection
  • Interactive map and taxi tracking
  • Inbuilt messenger
  • Gamification
  • Voice recognition
  • Discount or referring program


Funding – How top brands gets funding for their taxi booking business

If you are jumping into the ridesharing market with the Uber-like app, you must be thinking to bag a huge amount of funds from some top-notch investors. But this is not going to happen so easily as ridesharing is the already explored business and the scope for the innovation now remains very limited. Thus investors are investing only in well-established ridesharing companies such as Uber, Grab, Lyft. However, you can derive many benefits from our funding channels. By paying just $10k or less which is, by the way, the cost of the taxi app development, you will get exclusive rights to know various tactics to attract investors by our business experts.

Lack of professional drivers

One of the reasons why people no longer feel safe while being in the cab is the poorly executed authorization process of the drivers. Even ridesharing companies want to avoid amateur drivers on-board, but they are helpless against the way the gig economy works.

However, with a few dedicatory developed module in the admin panel, you as a business owner can make sure that all drivers are professional and haven’t engaged in any illegal activities by asking them to upload their character and police check certifications in the app itself. You can even track their rating and if it falls below a certain limit, you can straightaway delete their profile with just a single click.

Taxi Booking App development cost


Taxi app development is the first step to start the online taxi booking business. Without the app, there is no other way to start such an online business. But luckily, a lot of taxi app development companies are claiming their expertise to develop a taxi app. And unluckily, the cost of developing a taxi app is not at all pocket-friendly for a startup.

However, this is not a reality. If they wish, they can really develop your taxi app within your budget. But they don’t. They charge you between $20k to $50k to deliver what they can build under $10k. So, finding an affordable taxi app development company is the challenge or maybe not as Coruscate can develop robust taxi app with all necessary features under $10k.

» Brand creation or trust-building

Delivering a next-gen taxi app with all distinctive features doesn’t help you to acquire customers for a long time if you fail to win their trust. And to win trust, you have to offer ultimate customer service. However, it is a resource-heavy and tedious business process.

Thus to reduce your efforts, you must have a dispute management module into your admin panel. This module contains all feedback and queries of the users which you or your team can filter and modify to track and solve every query in a very efficient way. Another way you can offer a memorable customer experience is by having AI-enabled chatbot feature in the app to answer the most common questions of the customers instantly.

» Riders’ safety

Most of the taxi app providers are overlooking it, but you don’t have to as it can lead your fresh startup to a dead end. So the question is, how your 10 or 20 people team can make sure the safety of 1000 passengers traveling with your company’s drivers?

You have many options. You can introduce two major safety features – SOS button on each screen of the app and option to share the current status of the ride with anybody. You can also ask a taxi app development company to accommodate a dedicated AI-based feature in the admin panel to identify the worthiness of drivers using factors like their driving pattern and users’ reviews.

Coruscate has figured out many other ways to make users’ riding experience safer. To know those ways, you can contact us.

» Efficient taxi allocation

One of the reasons why Uber is successful is its efficient taxi allocation. With its state-of-the-art matching algorithm, Uber never makes riders wait too long after requesting the ride. This matching algorithm considers traffic, one-way streets, rivers and bridges to allocate the driver to the rider rather than just allocating nearest driver. As a result, Uber carries out driver allocation in the most efficient way which eventually increases the user rate and profit.

If you want to have such an algorithm in your next taxi app, you need to hire only that taxi app development company which has been working on AI technologies.

We have already covered the working of the Uber’s matching algorithm in another blog here.

» Automation

Needless to say that automation can reduce the need for manpower and increase the business output to a significant level. It can open up many more business opportunities for you. One of the most successful startups, Go-Jek which offers more than 22 on-demand services including taxi booking, is handling 3 million drivers with the help of only 12 engineers and a robust automated system. If you want to achieve the same, automation is the key. With it, you don’t have to worry about some very important business processes like payroll, drivers’ verification, and business decisions.

» Earning more profit

Though the profit margin is relatively higher in taxi booking business than other mobility businesses, it still isn’t sufficient to satisfy your all financial goals. So, to earn more profit, you have to explore more ways to make profit. Surge pricing can be one. It is a very popular concept in the ridesharing industry. It basically increases or decreases the fare based on the demand. It may sound like a very easy way to boost profit, but it is not; it is a challenge.

To have a surge pricing module into your app, the most prior and fundamental requirement is the algorithm that keeps predicting the future demand and supply and setting the fare according to it. In addition to this, government regulations may also restrict you to earn more profit through surge pricing as they are not happy with this business model at all.

» In the nutshell

All challenges we have discussed in this blog are real and you are going to face it as soon as you jump into Uber-like business. However, there are ways to decode these challenges. By adopting the technologies and hiring a genius taxi app development company, you can easily overcome these challenges and keep moving towards your dream.

Coruscate is the top taxi app development company which can develop your taxi app within 45-55 business days and under $10k. We will also become your business strategic partner to keep you out from the dark side of this very profitable yet challenging business.

To know more about app features and ask for a free demo of the taxi app with consultation, you can contact our app scientist and business expert.


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