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Starting a Taxi Business

How to Create a Taxi App: Features, Launch Options and a Checklist

Published: Updated: 11 min read
Two smartphones showing a taxi passenger app and a driver app

How to create a taxi app? There are two ways: commission custom development or launch the app on a ready-made platform for taxi companies. For small and mid-sized companies the second route is usually faster and more predictable: the app is published under your company's name and logo, not the platform's. It's important to understand that a taxi booking app is only the storefront. Behind it you need a driver app and a back-end system that calculates prices by your fares, dispatches orders, takes payments and keeps records. Below we look at what such an app is made of, which features passengers and drivers need, and how to prepare the launch.

What a taxi app is made of

When people say "taxi app", they usually mean the screen where a passenger requests a car. In reality it's a system of three parts:

Part What it does
Passenger app Booking, choosing a class and price, payment, car tracking, trip history
Driver app Shifts, receiving and completing orders, taximeter, navigation, balance
Back end and admin panel Fares, order dispatch, dispatch office, cash desk, reports, notifications

The passenger app can't work on its own. When a passenger taps "Book a taxi", the server has to calculate the price, find a suitable driver according to the dispatch rules, send the order to the driver app, notify the passenger about status changes and process the payment. So in practice, the question "how to create a taxi app" means "how to launch the whole chain".

Custom taxi app development or a white label platform

Criterion Custom development Ready-made platform
Time to launch Long: design, development, testing Shorter: the main work is configuration
Budget Large upfront investment and ongoing team costs A fee for using the system, no development costs
Back end Has to be built separately Already exists and is connected to the apps
Dispatch and telephony A separate project Included in the system
Updates and support Your responsibility Handled by the vendor
Unique features Anything, at your expense Within the platform's capabilities
Brand in app stores Yours Yours: passenger and driver apps are published under your company's name and logo

Custom development makes sense if you have an unusual business model and your own development team. If the goal is to launch a taxi company and get orders directly, it's more practical to take a white label taxi app platform and focus on service. When people talk about "buying a taxi app", this is usually what they mean: you don't get source code, but ready-made connected apps and a system you configure for your company.

Taxi booking app features

Below is the feature set of the Tonotel passenger app. It works as a checklist even if you choose a different route.

Login and first launch

  • Login by phone number with a four-digit verification code. There's no password: the first login is the registration.
  • The app is published under your company's brand, with its name and logo in the app stores. The passenger goes straight to you, without picking from a list.
  • The company provides its own privacy policy text.
  • The interface is available in four languages, including Ukrainian, Romanian and English, matching the phone's language.

Placing an order

  • A map with a pickup pin: the address is determined by the map position and can also be typed in manually.
  • Available cars nearby on the map (can be turned off).
  • Multiple route points and a note to the address.
  • Service classes ("Economy", "Comfort", etc.) with the price on each card before booking. If no destination is entered, a "from" price is shown.
  • Advance booking for a chosen time.
  • Options (child seat, luggage and others) and a note to the driver.
  • The passenger can adjust the price within limits set by the company. The feature can be turned off.

Payment

  • Cash, bank card, bonuses, invoiced payment for corporate clients.
  • A bank card is added through the payment gateway's page inside the app.
  • Bonuses are applied with a slider at payment.
  • Promo code and referral code in a single field.

During and after the trip

  • The current order screen: status, time to pickup, price, the car's plate number, model and color, the driver's name, photo and average rating.
  • Push notifications on order progress.
  • A call to the operator, and to the driver if the company allows it.
  • Order cancellation before the trip starts.
  • Trip rating, trip history and repeating a past order.
  • Saved addresses: home, work and others.
  • Company news and an FAQ section, both filled in by the company itself.
  • A "Become a driver" item linking to the application form for new drivers.

The taxi driver app

The driver app runs on Android and is published under the company's brand: each company has its own name, logo and colors. Main features:

Feature What it gives
Shift and break The driver goes online and offline with one button
Stands and queues The driver checks in at a city sector and sees their place in the queue
Broadcast with tabs and filters Orders by price, radius, destination zone; auto-accept for matching orders
Accepting and completing an order Statuses "Arrived", "En route", "Completed", route on the map
Taximeter Fare calculated from the actual trip, if the company has enabled it
Map and navigation Route to the customer and for the order
Driver profile Balance, payments, order history, rating
Store Buying work terms or an advance payment, if the company has enabled it
Messages and chat with the dispatcher Preset messages, answers to questions, conversation
Photo inspection Photos of the car on the company's request
Panic button An alert to the dispatcher in a dangerous situation
Self-registration A new driver fills in the application form right in the app

The company switches some sections on or off in its settings: stands, taximeter, store, rating, history, payments.

How to create a taxi app on a ready-made platform: step-by-step plan

  1. Set up the dispatch side. Vehicle types, fares for every "order type × vehicle type" combination, stands and dispatch rules. Without these the app has nothing to show.
  2. Create a separate order type for the app. Then you can distinguish app orders from phone orders in fares, dispatch rules and reports.
  3. Define service classes. Internal vehicle types get customer-friendly names and icons: "Economy", "Comfort", "Minivan". The class name is short, up to 10 characters.
  4. Choose payment methods. Cash is mandatory; card, bonuses and invoiced payment are added as needed. Card payments require a connected payment gateway.
  5. Set up login. Phone number verification by code and the SMS gateway that sends the codes.
  6. Fill in the texts. The company's contact phone, privacy policy, the "Become a driver" link, cancellation reasons for customers.
  7. Set booking rules. Minimum and maximum advance booking time, whether a destination is required, the limits for passenger price adjustments, showing cars on the map.
  8. Fill in the FAQ and publish your first news item.
  9. Prepare notifications. Push notification templates for order statuses. The app profile and push notification keys are set up by the system vendor.
  10. Prepare your brand. The company name and logo under which the passenger and driver apps will be published in the app stores.
  11. Test. Go through the whole passenger and driver journey with test orders for every class.

Pre-launch checklist

  • [ ] The company name and logo for the passenger and driver apps are approved.
  • [ ] Every service class has an enabled fare, and the price is calculated.
  • [ ] The company contact phone has been replaced with the real one.
  • [ ] Limits for passenger price adjustments are set explicitly, or the feature is off.
  • [ ] Advance booking is available for the required time range.
  • [ ] Customer cancellation reasons are chosen and clear.
  • [ ] Verification codes arrive and the SMS gateway works.
  • [ ] Card payment goes through with a test card, and driver compensation is set up.
  • [ ] Push notifications arrive on Android and iOS.
  • [ ] The FAQ is filled in and a welcome news item is published.
  • [ ] Drivers are trained to handle app orders.

How to promote the app after launch

An app with no installs is just an icon in the store. What helps at the start:

  • A first-ride promo code with an activation limit and an expiry date.
  • A referral program: the passenger gets a bonus for inviting a friend.
  • Ride bonuses and a loyalty program for every Nth order.
  • Dispatchers spreading the word: on a call, they can suggest that customers install the app.
  • In-app news about promotions and changes.
  • Tracking in reports: the "Last app activation" column in the customer report shows who actually uses the app.

Frequently asked questions

How do I create my own taxi app?

There are two routes: commission custom development or launch the app on a ready-made platform for taxi companies. Either way you need three parts: a passenger app, a driver app and a back-end system that calculates prices, dispatches orders and keeps records. On a ready-made platform you configure fares, service classes, payment methods and texts rather than writing code, and the passenger and driver apps are published under your company's name and logo.

What features should a taxi booking app have?

At minimum: login by phone number, choosing addresses on a map, choosing a service class with the price before booking, advance booking, payment methods, car tracking, order cancellation, trip rating and trip history. Useful extras: promo codes, bonuses, a referral code, saved addresses, company news and an FAQ section.

Can I build just a passenger app without a driver app?

A passenger app doesn't work on its own: the order has to be passed to someone, priced and tracked through to completion. So you also need a driver app and a dispatch system. On a ready-made platform all three parts are already connected.

Can a taxi app accept card payments?

Yes, if the company has set up card acceptance through a payment gateway (merchant acquiring). The passenger adds a card in the app and selects it when booking. Besides cards, cash, bonuses and invoiced payment for corporate clients are available.

Can I buy a ready-made taxi app?

Yes, but what people usually buy isn't a standalone app but access to a ready-made platform: passenger and driver apps together with the back end, dispatch and cash desk. This is faster and cheaper at the start, and the vendor takes care of updates and support. Custom development gives you complete freedom over features but requires a budget, a team and time. In Tonotel the passenger and driver apps are published under your company's brand, so customers see your taxi in the app store.

How long does it take to launch a taxi app?

With custom development, months: the apps and server have to be designed, written, tested and published. On a ready-made platform the main work is configuring fares, service classes, payments and texts, plus testing, so launching usually takes noticeably less time.

Summary

Your own taxi app is a combination of a passenger app, a driver app and a back-end system. Custom development gives you complete freedom but takes time, budget and a team. A ready-made platform lets you focus on what matters: fares, service and customers. In Tonotel the passenger and driver apps are published under your company's brand and are already connected to dispatch, fares, the cash desk and loyalty programs, so launching comes down to configuration and testing.

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