Originally posted on https://spdload.com/blog/cost-of-uber-like-app/
UberCab, now known as Uber, was launched in 2010. In February 2011 it had a $60 million valuation. Today, its valuation is $82 billion. Is this magic? No tricks, just a well-made MVP with enough potential to become a current Uber version.
If you want to build your own Uber-like app, you can become its next strong competitor. Let’s find out how much it will cost. Here is the spoiler — not as much as you may think, it is much cheaper.
There are several reasons why Uber is that popular. First of all, the app ensures fast and safe trips wherever you are and whatever time it is. Uber became a game-changer showing how to save money even though you have no personal vehicle.
Today there is a strong demand for the Uber-clone apps. But why is the Uber case so inspiring? Being probably the most famous unicorn company ever, Uber still impresses with its extreme controversy. However, its financial success speaks for itself.
There is no escaping the fact that Uber has got a lot of mileage out of the demand for sharing economy, especially among millenials. The marketing strategy worked just fine and the company with its idea were totally embraced. Thus, now there are many companies that want to beat Uber in its own game.
At this point I would like to stop chanting the praises of Uber. What may become more advantageous for your business is to know its cons. Uber is imperfect and, thus, the market is glad to meet new efficient solutions in this field.
The most annoying Uber feature for customers is a so-called “Surge Pricing”. This feature works great with service providers though. Meanwhile, the customers are not happy with doubled or even tripled prices during rain or peak times.
Customers often witness cancellations of their planned trips. It makes them disappointed, especially if it happens shortly before the important occasions. On the other hand, the Uber drivers are not satisfied with their salary.
However, I consider these things to be of secondary importance. The main reason why Uber loses grounds lies in continued loss of personalization. The company launches new features like UberAir or UberEats and reaps benefits. But people don’t like Uber as much as they used to.
Even though the app functions perfectly, people are ready to pay more and use services like Lyft, Juno and other uber-like apps. It is obvious that the market looks for new solutions and your app can be the next game-changer in the field.
In April this year, Uber named its main ride-hailing competitors and I was not surprised to see such companies as Lyft, Ola, Cadeem, Didi, Taxify and Yandex.Taxi in the list.
The strongest competitor is still the same — Lyft. While Uber and Lyft have practically similar prices, the main reason of Lyft success is a driver-oriented strategy. The company believes that if they are treating drivers well, drivers will treat riders well. And this isn’t just in words, but in deeds. Lyft was keeping watch on how Uber came through various culture-driven scandals and decided not to go down the same road.
Today, Lyft creates driver centers and company-sponsored bank accounts, adds community space for drivers education and meetups. But again, these perks are only the result of the company’s strategy, which lies in desire to support drivers and build up loyal relationships with them.
The Lyft example shows that the right strategy can change the game. In my opinion, if the company wants to become the next Uber competitor, it should take into account all the strengths of Uber and don’t be afraid to face competition.
Take a look at Via, Hailo, Easy Taxi and other apps. They are recognizable and profitable. Do they want to substitute Uber? Of course, but it is very important to follow through in your own way.
Essentially, Uber has its process flow. It comprises 6 processes that can be seen below.
The successful implementation of these processes is made possible due to various integrations Uber uses.
There are three main functions Uber uses to provide their essential services. They are Geolocation, Push Notifications and SMS and Payment Gateways. To implement these functions Uber integrates with different services.
Geolocation is a key function for any Uber-like app. I may say that it conveys the meaning of all the apps in this market niche.
Geolocation allows to identify the device location. It is integrated via CoreLocation framework for iOs devices and Google Location API services for Android.
Geolocation provides point-to-point directions for both driver and the client. This is implemented with the help of MapKit framework and Google Maps Android API for iOs and Android respectively.
Both Uber clients and drivers got several push notifications. They ease the process of organization the trip. For the Uber clients push notifications clarify their trip status. They tell when the driver for their trip is found. The notifications also inform the client that the driver is close to his or her location. The client also receives a notification in case the driver has cancelled the ride. Moreover, they inform client about the increased demand for drivers in their district.
The push notifications and SMS is implemented via integrations with Apple Push Notifications for iOS and Firebase Cloud Messaging for Android. Both of the platforms also allows Twillio integrations for text messaging.
The third function upon Uber is built is its payment gateways. The e-commerce services integrations are crucial for such apps like Uber. The app uses Braintree, Stripe and PayPal payment gateways. Uber also integrates with Apple Pay for iOs and Google Wallet for Android.
If you want to develop an Uber-like app, it may be hard for you to determine what to do first. The process of development, however, is predetermined. The step-by-step instruction I suggest is made to ease this process and to calculate the bottom-line cost.
1. Project Discovery:
Uber has various features to satisfy the needs of both customers and service providers. I would like to focus on this matter. It is very important for you to know these basic features.
Essentially, there are three roles of users — rider, driver and admin ones with the wide range of features.
|Initialization of the project, architecture planning and construction||24||24||0|
|Passenger’s personal account (Sidebar)||4||2||2|
|Login and registration via email and phone (field validation)||16||8||14|
|I Forgot My Password||6||4||4|
|Mask for the Phone number field||0||5||1|
GEOLOCATION AND ROUTING
|Core Location Framework Integration for iOS||0||5||3|
|Google’s Location APIs for Android||8||8|
|Google Maps Android API for Android||30||32||8|
|Google Maps Integrations||30||32|
GEOLOCATION AND ROUTING
|Choose Vehicle Type||8||1||4|
|Choose Pickup Location||30||30||10|
|Vehicle Information and ETA||8||3||5|
|Receive driver arrival notification||12||0|
|Payment Systems Integration||32||32||0|
RECEIPTS AND REFUNDS
|Android UI/UX Design||50|
|iOS UI/UX Design||50|
|Initialization of the project, planning and construction of architecture||0||24||0|
|Driver’s personal account (login and registration via email and phone)||8||4||4|
|Getting information about the client and his location||4||5||5|
|Android UI/UX Design||50|
|iOS UI/UX Design||50|
|Personal administrator account (login and registration via email and password)||8|
|Details of the driver, operations on him (ban, etc.)||8|
|Passenger details and related operations||8|
|Editing Travel Rates||12||30|
|Displaying the location of the device (passenger / driver) and sending data on the change of location to the server with a frequency determined in advance||20|
Summing up, if you choose to hire an outsource company, the cost of Uber MVP will be roughly $45 000. The local agencies’ price will be approximately $150 000. Meanwhile, the most-budget friendly option is hiring freelancers, which will cost you about $30 000.
There are four main options to define the development cost of MVP — outsource companies, local agencies, in-house development or hiring freelance team.
Let’s consider an outsource option. The average price for an outsource specialist in Ukraine is $30 per hour and thus, for example, the four-member team will cost $120 per hour.
In comparison to outsourcing companies, we can take a look at the local agencies. Their prices will be approximately 3 times more expensive.
If we are talking about freelance specialists, the price will be much lower compared to outsource. But you may face a lack of mutual understanding, poor coordination and specialists unwillingness to bear responsibilities.
The total cost for developing with the basic features can be seen in the summary table below. It also includes the process of development, project management, quality assurance and code review.
Essentially, the cost of developing an Uber-like app depends on your vision of the project. The main factor that influences the final cost is the set of the chosen features. You can add your own as well as use some advanced features Uber has. It fully depends on the general concept of your future app and estimated budget.
The platform type for your app will certainly affect the cost. I will recommend you to solve this question only after comprehensive research on your potential audience and its needs. You can start with developing an app for one most utilized platform. But, usually to develop an MVP you need both Android and iOS versions.
The Uber story of success bears a faint resemblance to Cinderella story. The company entered the market with a clear-eye understanding that it would be good enough to reach 5% of top U.S. cities and hit $20 million in revenue. But everyone knows the story ending — they covered all top cities in the U.S., 30% of the world’s countries and generated $11 billion in revenue. Pretty interesting turn of events, isn’t it?
The Uber’s controversial path to success, however, was premised on the various right (and sometimes on-the-edge right) marketing decisions. Thus, you need to understand that the main expenditure item of the MVP is exactly the marketing, not as much as the development itself.
In 2010 UberCab, as it was called in those days, launched in San Francisco with prices about 1.5 times as much as standard cab. However, it was so easy to order a car, that people were ready to pay more. Along with providing various customer benefits, Uber focuses on various target groups. It offers them various ways to ride in the selected area. They cover different needs and have different prices. Thus, Uber has economy UberX, premium Uber Black and other products Uber WAV that have their own targeted strategy.
Today Uber faces a strong competition and the market needs new solutions as never before. The ridesharing is still trending. Moreover, its market is anticipated to grow with a healthy growth rate of more than 20% over the next 6 years.
It may be hard enough to beat Uber, but I would recommend not to set this mission at first place. What is important here is to work out your own strategy, consider the features you want to implement and don’t be afraid to find a room for innovations. Your future app can be the next game-changer, if it introduces changes to the market. Anyway, the first thing you need to do is to set your own goals and move stepwise. That is the only way to yield favorable results and become successful.
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