How To Build a Taxi App with Profit-Making Revenue Model?

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There is tremendous hype in the taxi industry today. People prefer online taxi booking to waiting for an offline taxi under the sun. With outgrowing taxi-hailing services, will you be able to imagine any other taxi business other than Uber or Lyft?

Taxi service apps are always available in your pocket to serve you quickly and conveniently. So, either startups or any other established taxi booking business, should adopt digitization and create a taxi apps. 

Having an app to your taxi business will fetch more customers and loyal customers. Although to win the competition in the market, an app alone is not enough. You need to be aware of the business model of the business and the revenue model of the taxi-sharing business. 

According to statistics, the global online taxi business will grow from $31.03 billion in 2021 to $34.82 billion by end of this year with CAGR of 12.2%. 

With this stats you can understand that starting a car rental business is not easy as it sounds. Also, the revenue model that helps to sustain the business in the market. Let’s have a look at the revenue model that is only a profit-making secret towards success. 

List of Revenue Models That Gave Success to Taxi Business


Taxi booking on applications in this area is productive as of now. A few groups need to involve taxi booking services as they find them more helpful and solid than the traditional methods for transport. The revenue model of the taxi booking applications business is additionally wonderfully contrasted with other internet-based organizations like e-commerce adventures.

All the innovation, infrastructure, and activities move to an outsider organization that deals with these applications. The income produced from this business divides among the application service provider and the cab driver who utilizes the services to its fullest. 

The models for creating income in this business are unique, and there are different choices about how much investment is required while starting up the business. 

You can likewise ask a mobile application development company to direct you. They will have a better option like clone solutions or making an app like Uber at a lower cost than developing one from the scratch. 

So, let’s study the different revenue models of the taxi booking business. 

  • Revenue from Individuals

In the least view, taxi is one of the major source to commute for people from one point to another. This method of transportation is an extension of an enormous gathering. The development might be two points of the city or between the urban areas. Also, the sharing of ride insight with somebody to different people groups help to get income.


  • Revenue from Services

On account of income created from services, taxi services companies provide booking apps for a client. This help is more reasonable for money managers. Assuming you are a taxi organization or vehicle rental organization, the stage gives booking administrations to your clients.

The taxi booking stage acquires the quantity of administrations. Assuming we investigate Uber, they extended the administrations to various types of people groups. Model: Uber Black, Uber X, Uber Go, Uber Luxury. These are completely made wide income for the specialist co-ops.

For instance, there is Uber Black – for the individuals who like to drive in a dark vehicle, Uber Taxi – for those searching for a more practical arrangement, and Uber SUV – for those clients who need an extravagance ride. 

Uber offers its clients the chance to pick any car of their choice they need to drive themselves, giving the entire thing a new taxi booking experience in light of explicit client sections. Offering similar types of help to various groups and various spaces help to get more income.

  • Revenue from Corporate Booking

It is a critical income model for the taxi business, yet it’s confronting fierce competition from different companies as of now. 

The taxi companies offer a dedicated vehicle with proficient drivers for making a trip to the airport or railway stations. Book the rides ahead of time through these applications too. A decent level of around 25% of the absolute booking includes in the fee as commission.

  • Commission from Payment Gateways

Many people nowadays use credit or debit cards for making payments. The taxi companies get a decent amount of commission for every payment made by the client. In any case, the rate is not exactly different models, and it changes from 15% to 20%. Even through other payment gateways, these taxi booking companies do fetch some revenue. 

  • Outstation Booking Commission

Whenever individuals book a taxi through such applications for voyaging significant distances or visiting places outside their home urban communities, they should pay more than the expense of a nearby excursion toll. The service providers get more gain from these long trips as they charge around 30% of the total fare as commission.

  • Taxi Rentals and Leasing Activity

If you have any desire to get by renting your taxi vehicle or leasing it to different taxi service providers, you can likewise use such applications to furnish you with clients. The specialist organization will charge 10% of the absolute passage as commission.

As may be obvious, there are different income models for a fruitful taxi professional Uber. In any case, the one with a singular client is most well known in light of the fact that people are bound to use such services than corporate clients or limited scope organizations.

Apart from these income models, there are different decisions for this business. For example, you can likewise decide to carry out a prepaid model in which the client will pay 25% of the complete charge ahead of time, or you can likewise go for a postpaid arrangement under which clients will pay the total once they arrive at their goals.

The most essential thought in this business is the area and accessibility of vehicles in light of the fact that these administrations work better in urban areas where individuals use public vehicle or cabs. On the off chance that they don’t find taxis, the people who pick such service providers will not be happy with the experience.

  • Dynamic Pricing Model

It is generally named as surge pricing. Here, the cost isn’t fixed. It tends to be dynamic in view of traffic, request, and supply. A fundamental part of the Uber App is its convincing fares.

A fundamental part of the Uber App is its persuading valuing. As a rule, taxi organizations raise rates for their movement costs when the request is higher than the supply. Uber’s differentiation, costs rely upon the thickness of traffic and the movement time starting with one side then onto the next.

In the cost per kilometer changes relying upon the number of accessible drivers and solicitations made by clients who need a ride. This estimating calculation is intended to urge drivers to get on the path when they need it most.

  • Pay Per Hour Revenue Model

The pay per-hour model accompanies a limitation on the number of hours that can be leased, and it functions for individuals who need vehicles for individual excursions as it were. For this situation, you will not need to pay over 20% of the total cost as commission.

  • Ride-Sharing Option

Ridesharing is another best alternative income stream for the taxi business, however, it doesn’t function well in all cases. For example, on the off chance that you need more clients to share the ride during top hours, this will not be truly productive on account of low inhabitance rates. The commission charged can be around 25% for this situation.

  • Ride-Hailing Business

Ride-hailing is a revenue model utilized for taxi organizations and other ride-sharing organizations like Uber and Lyft. An application will be utilized to make appointments that are then satisfied by drivers related with the organization. The uber vs lyft price charged for this situation shifts from 25% to 35%.

There are many other factors that push the revenue of the taxi business like:

  • Trip Commission
  • Premium Rides
  • Cancellation Charges
  • Advertising for the Brands
  • Promotional Collaboration

Final Take Away- Revenue Models of Taxi Business


Indeed, you are now aware of the top revenue models and different ways of upgrading your taxi booking business income. You may now begin the idea of starting a taxi business with a taxi app development company that might stand separated from the group.

The mobile app development for your business may not be so easy for you. In this way, you might enlist an experienced clone solutions provider who expertise in cloning apps like Uber or Lyft taxi business and discuss your application needs, highlights, and functionalities you want to remember for your application, period, and the financial plan you have settled for your application development. Following an orderly method for fostering a portable application will result in a completely included and natural application that will improve your client experience and in this manner the income of your application.