How To Build A Taxi Booking App In 2025?

Rajeshwari Published On October 30th, 2025 Share it on

If you are thinking of developing your own mobile taxi app, you have come to the right place. Today, the need for an AI-powered taxi booking app cannot be ignored. 

Your app should match riders with drivers smartly, enhance their safety based on behavior analytics, use machine learning models to predict future booking trends, automatically adjust prices based on real-time demand, and use AI for navigation.

And, when it comes to building a taxi mobile app with AI features, you don’t have to start everything from scratch. You have a pre-built solution as well that can be launched in 48 hours.

The taxi app market size may grow at 4.2% every year, between the years 2023 to 2028, resulting in $283 billion at the end of 2028. Now, imagine how it would be if your taxi booking app could connect millions of people in the world. Awesome right? 

But not knowing how to build one that competes with other big apps without AI tech failure and overspending should not stop you. In this blog, we guide you through the step-by-step process of building one such taxi booking app and the pre-built solution. Let’s start.

What Are The Available Options For Booking A Taxi Ride?

• Taxi Ride-Sharing  
• Taxi Ride-Hailing

Taxi ride-sharing is when passengers share a trip with other passengers heading in the same direction. On the other hand, taxi ride-hailing is a private one-to-one trip passengers book. Your app should have distinct features based on these options. Let’s look some common differences between both:

Aspect	Taxi Ride-Sharing	Taxi Ride-Hailing
Route	Indirect routes, as sharing a ride with other passengers are involved	Direct to your destination
Number of Passengers	Multiple	Single Person or Single Group
Ride Cost	Lower as it splits	Comparatively higher
App Example	UberX Share	UberX
Benefits	Reduces traffic on road	Convenience for passengers and on-demand transport
Environmental Impact	Sustainable option	Causes high carbon emissions due to solo trips

10 Steps To Build A Taxi Booking App In 2025

Now you know the difference between taxi ride-sharing and taxi ride-hailing. Let’s see the step-by-step process involved in developing a taxi booking app. We have put a quick flowchart for your overview. 

Step 1: Market Research 

The global taxi market for ride-hailing is bigger than you think. “It is expected to reach $639.55 billion in 2032,” says Straits Research. The number of taxi users would be above 970 million by 2030.

You have to begin with thorough market research to identify customers’ pain points and industry trends. Even though Uber & Lyft are dominating, there are opportunities for new apps in niche areas. Here is a list of things you need to start doing:

• Analyze existing ride-hailing solutions
• Gather competitor strengths + weaknesses
• Review pricing models & quality of service offered
• Understand the user’s preferences 
• What challenges do users face currently
• Technological innovations of competitors
• Find out what’s missing in the market

Now, you will get a clear picture of what you can strategically implement in your app. Think about your unique selling proposition (USP) that sets your app stand out in the crowd.

The fact is, this market’s growth is driven by high demand for ‘quick and reliable rides, user convenience, and flexibility’. The increasing use of smartphones, followed by AI and digital payments, is an added advantage for you.

Step 2: Selecting The Niche

After analyzing several local markets, we have listed the niche where the opportunities lie. Based on your target region, the niche may differ. You have to identify which demographics or scenarios the taxi-hailing and taxi-sharing have unmet needs.

Demographics-Based Niches

When you customize services to particular segments, the app shall enhance safety, convenience, and build a great customer experience.

• Women-only ride: An app that connects female drivers with female passengers, ensuring safety and comfort
• Seniors-focused: Providing specialized transportation for the elders. In addition to pick-up and drop service, it shall include assisted boarding and scheduled rides for medical appointments
• Student shuttle service: Taxi rides for university students with affordable and safer rides on and around campus
• Corporate shuttle service: Scheduled group transport for employees that’s reliable than public transit and tax-deductible for the company
• High-end client: It may feature high-end vehicles and trained chauffeurs for business people or luxury riders
• Late-night commuters: The app shall be designed specifically for people traveling late at night with verified drivers available 24/7 

Service-Based Niches

Building an app for a niche users and not prioritizing features or offerings for that specific group would make customers abandon it. So you must carefully identify and develop app to meet the requirements of your user. 

Step 3: App Design & User Experience

Ever thought about what makes a user engaged in an app? A good UX/UI design is the answer. UX defines how the app works and UI focuses on how it looks. Let the app design ensure smooth navigation, and be optimized for accessing across Android, IOS, and web platforms. 

How Intuitive Should The Design Be While Developing A Cab Booking App?

Know the design factors to consider while building the app? No matter what, for both taxi-hailing and sharing apps, you must focus on the real-time tracking, easy online booking, trip history, and multi payment methods.

• Simple Design: Minimize the steps to request a taxi, make the user journey very simple. Displaying too many features, buttons, or pop-up banners is not recommended.
• Platform-friendly Navigation: Initially, focus on designing a simple navigation that can be used with ease.
• Speed & Responsiveness: If loading takes over 3 seconds, then your app abandonment rates go up, so optimize to reduce slow load times as they affect the performance.
• Intuitive Interaction: What if the clickable icons and buttons are not easy to understand? Users can feel frustrated, right? So while placing buttons or texts, keep them adequately sized and interactive.
• Resource Management: The download size of your app has to be optimized. We suggest using less bright colors to reduce battery drainage.
• Secure Login and Permissions: Implement simple and secure account setups. Permissions should only be requested when users need a specific function. 
• Professional Branding: You have to convey the brand through a recognizable logo and consistent visual design.  

UX Challenges & Solutions For Ride Sharing App

When it comes to ride-sharing apps, the main problem is that users doubt if they can trust strangers who are co-passengers. Only if personal security is guaranteed, users become long-term customers. 

Issues	User Concern Scenarios	UX Solution
Co-Passenger Behaviour	Dealing with impolite passengers	Passenger-to-Passenger rating feature, where temporarily passengers can be banned if negative reviews are high SOS button in app for immediate assistance
Ride Delays	Not knowing driver availability or other passengers will cause delays	Pre-booking shared rides can reduce anxiety & uncertainty

Here Are 4 Quick Visual Design Tips: 

• Use high-contrast color schemes meeting Web Content Accessibility Guidelines (WCAG) standards
• For dark mode implementation, avoid pure black backgrounds & use dark gray with light text to reduce eye strain
• Support text resizing up to 200% without functionality loss
• Use sans-serif fonts to enhance user readability

Step 4: Core Features Of Taxi Booking App

We can segment the core features under three interconnected components: the user app features, the driver app features, and the admin panel. You have to add real-time messaging, voice, SIP, and conversational AI-powered features to your mobile app. 

Taxi User App Features

Be it any app, if it fails to meet the user’s convenience or transparency, it’s not going to work. Let’s look into all the essential taxi user app features one by one.

• In-app Notification: Alert the passengers within the app when receiving any new messages or calls from drivers
• One-To-One Voice Calls: Allows passengers to make high-quality peer-to-peer voice calls
• Real-Time Voice, Chat & Omnichannel Support: Passengers can instantly contact drivers or the support team through voice calls, in-app chat, or other channels for getting quick help or updates whenever needed
• AI Agents: Virtual assistants can handle bookings and cancellations
• Sentiment Analysis: Detects passenger mood from feedback to improve the service and respond proactively

Taxi Driver App Features

Whether you decide to build the taxi booking app from scratch or go for a pre-built solution that can be launched in 48 hours, you have to make sure the solution is AI-powered.

• Incoming Call Notification: Notify drivers about incoming voice calls from passengers 
• Customizable KYC Workflows & Automation: Verify drivers with automated ID and document checks happen
• Real-Time Video KYC + Fraud Detection: Your app should confirm driver identity through live video, also AI flags fake documents or suspicious activity if any
• Customer Feedback Collection: Allow passengers to rate and review drivers to maintain accountability
• Operation Automated Follow-Ups: Reminders to update driver availability, respond to ride requests, complete pending documents

Full Access Admin Panel:

As a business owner or admin, you must have a central dashboard with full access to manage everything. You can monitor user activity, track driver performance, handle payments and resolve any disputes.

• Role-Based Access Control: You can assign permissions to staff for secure operations
• No API Access for Custom Integrations: Protect sensitive data from unauthorized external access
• Access to Results (Dashboard): You can view real-time analytics to monitor performance and make data-driven decisions accordingly

Step 5: Choose The Right Tech Stack

Keep in mind that the tech stack that doesn’t align with your app’s needs is not worth investing in. Your tech stack must handle real-time chat demands of ride matching, location tracking, or payment processing.

Frontend	Go with React Native or Flutter to build for both iOS and Android (cross-platform).  Swift for iOS and Kotlin for Android (native)	Cross-platform solutions provide a common codebase and preferred if your time + budget are limited Native development offers better performance and access to device-level features
Backend	Node.js	Node.js suggested for real-time applications
Database	NoSQL, PostgreSQL	NoSQL good for unstructured data and PostgreSQL for structured data
Cloud Deployment	Azure, AWS, Google Cloud Platform	For DevOps, we recommend using Docker and Kubernetes
Payment Gateway	Razorpay	We suggest to integrate at least 2 gateways to reduce transaction failure
API Integration	Google Maps API	Google Maps API tracks location accurately and helps drivers for on-time arrival
Real-Time Feature	WebSockets. Firebase Cloud Messaging, Apple Push Notification Service	Supports live location tracking and notifications alerts
Security Encryption	SSL or TLS	Make sure the users feel safer while using the app

Step 6: Figure Out Your Approach For App Development 

You have two approaches when it comes to developing any mobile app. The decision depends on your budget, launch time, data control, and specialized features. 

• Custom-build solution 
• Readymade solution 

Let’s say you choose option 1. Here, a custom mobile app is built from scratch to meet the unique features of your business. Most enterprises choose this option, as they get complete control over data, but requires heavy investment and can take up to 12 months.

In option 2, you have a pre-built solution with a quick launch time, and it comes with general functionality to cater to a wider business. The provider takes care of the app’s maintenance. The drawback is limited customization features and no full backend access. 

Factors	Custom App Development	Readymade Solution
Customization	The app is tailor-made to specific user needs	Customization options are limited
Launch Time	Takes up To 12 Months	Go live in less than a week or in 48 hrs
Data Ownership	Get full data ownership of the app, which is a business asset	Do not provide complete control over user data
Scalability	Unlimited, built for enterprise growth	Good for regional markets
Cost to Build	$50,000+ (high investment)	Lower upfront costs

So, both come with advantages and disadvantages. But what if you have a readymade solution that offers you 1000+ in-app features and full source code access? Yes, MirrorFly is one such pre-built solution where its CPaaS SDKs can be integrated into all tech stacks and browsers.

Today, the app development market is already saturated with many companies, making it challenging for any business owner to choose from. But MirrorFly is a top choice for 500+ brands worldwide.

Step 7: Tutorial To Build An Uber-like Taxi Booking App

In this section, we will build a taxi booking app similar to Uber using the MirrorFly Chat solution. We will build the app for Android devices using Android Studio IDE. 

Here’s a quick look at what you’ll need for this: 

• Android version: 5.0+ (API 21+)
• Java version: 7+
• Gradle version: 4.1.0+
• targetSdkVersion: 34+

To start the integration process, let’s see how to get MirrorFly’s License Key first:

1. Register an account with MirrorFly
2. Log in to your account 

Go to the app info section to get your license key. The key is required for authenticating your app with the MirrorFly transportation chat SDK. Only after this, your platform will be able to make use of the chat features.

Once your key is ready, we can begin the project in the IDE.

1. Set Up Project in Android Studio

Open Android Studio, select a new project, go to settings.gradle file (for Gradle 6.8+) 

Inside this gradle, add the maven repository

For Gradel 6.8 or higher, use this:

dependencyResolutionManagement {
    repositories {
        mavenCentral()
        google()
        jcenter()
        maven {
            url "https://repo.mirrorfly.com/release"
        }
    }
}

For Gradle 6.7 or earlier, use this code:

allprojects {
    repositories {
        mavenCentral()
        google()
        jcenter()
        maven {
            url "https://repo.mirrorfly.com/release"
        }
    }
}

2. Add SDK Dependency

In your app/build.gradle file, add the following dependency:

dependencies {
    implementation 'com.mirrorfly.sdk:mirrorflysdk:7.13.20'
}

Also, in gradle.properties, add:

android.enableJetifier=true


The dependency grants access to MirrorFly’s chat APIs, and Jetifier ensures compatibility with older libraries.

3. Add Required Permissions

To connect your app to MirrorFly’s chat servers, you must have the INTERNET permission. To enable it, in your AndroidManifest.xml, add the following permission:

<uses-permission 
android:name="android.permission.INTERNET" />

4. Initialize SDK

To initialize MirrorFly SDK, modify your MyApplication.java (or custom Application class):

ChatManager.initializeSDK("LICENSE_KEY", (isSuccess, throwable, data) -> {
    if (isSuccess) {
        Log.d("TAG", "initializeSDK success");
    } else {
        Log.d("TAG", "initializeSDK failed with reason " + data.get("message"));
    }
});

Additionally, make sure that the <application> tag of your AndroidManifest.xml contains the android:name attribute set:

<?xml version="1.0" encoding="utf-8"?>
<manifest xmlns:android="http://schemas.android.com/apk/res/android"
    package="com.example.uikitapplication">

    <application
        android:name=".MyApplication"  // Add this line.
        android:icon="@mipmap/ic_launcher"
        android:label="@string/app_name"
        android:roundIcon="@mipmap/ic_launcher_round"
        android:theme="@style/AppTheme">
        <activity android:name=".MainActivity">
            <intent-filter>
                <action android:name="android.intent.action.MAIN" />
                ...
                <category android:name="android.intent.category.LAUNCHER" />
            </intent-filter>
        </activity>
    </application>

5. Register User

Make the following call to register a user (a rider or a driver):

FlyCore.registerUser(USER_IDENTIFIER, (isSuccess, throwable, data) -> {
    if (isSuccess) {
        Boolean isNewUser = (Boolean) data.get("is_new_user");
        String userJid = (String) data.get("userJid");
        String username = ((JSONObject) data.get("data")).getString("username");
    }
});

6. Connect to Chat Server

After registering, the connection is created automatically. But you can keep monitoring for changes in the connection state:

ChatManager.setConnectionListener(new ChatConnectionListener() {
    @Override
    public void onConnected() {
        // Handle successful connection
    }
    @Override
    public void onDisconnected() {
        // Handle disconnection
    }
    @Override
    public void onConnectionFailed(@NonNull FlyException e) {
        // Handle failure
    }
    @Override
    public void onReconnecting() {
        // Handle reconnection
    }
});

7. Generate User JID

For sending and receiving messages, you’ll need a JID (Jabber ID).

String userJid = FlyUtils.getJid(USER_NAME);

8. Send a One-to-One Message

To send a direct message from passenger to driver or vice versa:

TextMessage textMessage = new TextMessage();
textMessage.setToId(TO_JID);
textMessage.setMessageText("Hello from passenger!");

FlyMessenger.sendTextMessage(textMessage, (isSuccess, error, chatMessage) -> {
    if (isSuccess) {
        // Message sent successfully
    }
});

9. Receive Messages

To receive incoming messages on your transportation app, set up a listener:

ChatEventsManager.setupMessageEventListener(new MessageEventsListener() {
    @Override
    public void onMessageReceived(@NotNull ChatMessage message) {
        // Display incoming message
    }
});

By this stage, your taxi booking platform will have the capabilities to send and receive real-time messages. Next, to add advanced features, follow this documentation.

Step 8: Testing The App

Go for testing the app to check the app’s compatibility, responsiveness, performance on Android, IOS, web, and at any network conditions. Parallely, you have to fix the bugs and errors if found. 

• Unit Testing: Validate each feature separately and ensure it functions without error
• Security Testing: Prevent data breaches, payment fraud, SQL injection, unauthorized access
• Integration Testing: You can check how different modules, APIs, or services interact with each other
• Compatibility Testing: The app should run smoothly on Android, IOS, web and on any operating system, ensuring compatibility
• Regression Testing: You can confirm if new updates break existing ones or not
• Performance Testing: Ensure app speed and stability during peak loads 
• Usability Testing: Helps identify UI/UX issues before you launch the app
• User Acceptance Testing (UAT): In this final testing phase, actual users or stakeholders validate the app against business requirements before launch

Step 9: Monetization Strategy 

In this step, while deciding on the right monetizing strategy, you must keep both user satisfaction and competitors’ pricing models in mind. We have listed the most proven models for your reference.

• Commission-Based Models: From the drivers, you can commission between 10% to 25% for each ride when it gets over
• Service Fees: You can add small fixed charges to the customer to cover the operational costs for customer support and their insurance
• Subscription models: Who doesn’t love to build loyal customers when they can start generating continuous revenue from them? For subscription-based models, don’t forget to offer customers discounted rides or an ad-free experience
• In-App Ads: You can do digital advertising within the app, promoting local businesses for passive income
• Corporate Partnerships: For long-term income, you shall partner with businesses to pick up and drop off their employees
• Affiliate Marketing: Let’s say you want to increase app engagement and revenue. You can partner with local businesses (example, a hotel) and offer special deals to app users when they make a trip to that specific destination (hotel)
• Diversification: If you think of expanding market reach and revenue, go for this option. You can leverage your logistics into a food delivery service as well. For example, Uber Eats, Grab
• Loyalty Programs: To retain existing customers, you can do a loyalty program

Step 10: Launch and Marketing

At this stage, you have to deploy the taxi booking app to the Google App Store or the Apple App Store, ready for public use. If speed and cost are your main concerns, then the readymade solution is the fastest way to launch. 

Here are some of our recommended effective marketing ideas:

• Social media campaigns
• Partner with taxi companies
• Driver recruitment campaigns 
• Rider acquisition campaigns 
• Loyalty and referral programs
• Provide new offers and discounts
• In-app advertising

Do not forget to do app store optimization, monitor user feedback, analyze app performance metrics. Before you start scaling the app, collect as much user feedback to tweak it in the app.

What Regulations Are There For Ride-Hailing & Ride-Sharing Apps In 2025?

In order to avoid any penalties and remain compliant with your country’s regulations, you have to know the legal requirements. We have listed the latest regulations for you to consider.

United States

• Safety and background checks include conducting fingerprint-based criminal background checks on all drivers every six months, using FBI standards
• Driver verification & working hours conducts verification (e.g., in-vehicle cameras, live photos, or biometrics) to ensure that it’s an authorized driver. It limited driver work to 10 consecutive hours
• California’s Clean Miles Standard (SB-1014) requires that all autonomous vehicles be electric and focuses on reducing carbon emissions per passenger-mile

India

• Safety regulations use a GPS security feature. Drivers are required to adhere to health guidelines issued by the central or state government for public safety
• Permits surge pricing during peak hours, up to twice the base fare
•  For unjustified cancellations, a 10% penalty, capped at Rs 100 either the driver or the passenger

Singapore

• Ride-hailing companies should protect driver and passenger data, handle operational disruptions safely
• Drivers holding licenses such as TDVL or PDVL, training hours reduced from 16 to 12 hours, encouraging more drivers

Vietnam

• Authorities impose strict licensing and tax policies, geographical restrictions on service coverage, and Electric Vehicle (EV) adoption

Canada

• Ontario’s Digital Platform Workers’ Rights Act (DPWRA) includes rights such as minimum wage for active work time, regular pay periods with transparent tip policies, and protection from unfair treatment

Germany

• EU Platform Work Directive says drivers shall be granted the status of full employees if the platform controls factors such as pay, working hours, and supervising performance

Why Choose MirrorFly For Taxi Booking App Development? 

We believe the above discussion helped you to know the step-by-step process to develop the taxi booking app, and the regulations to consider. Now if you’re thinking of the right app development company to choose, here is our recommendation. Go with MirrorFly.

Let’s quickly look into the top 15 reasons why you can hire MirrorFly as your mobile app development company.

White-Label Solution: Want to add your brand’s font, element, logo, color, and theme? Go ahead and do it.  Self-hosted Chat Solution: Allows you to deploy the taxi booking app in your own data center or cloud, or on MirrorFly’s dedicated cloud server Complete Data Ownership: You can take full control of your app’s infrastructure and security AI-Powered Real-Time Chat Software: Embed more personalized interactions in your taxi app with the AI features Dedicated Developers: 300+ in-house developers who launch and maintain your app when you want Free Migration & Free Integration: No worries about downtime. You can easily migrate your existing setup with MirrorFly. We assist you throughout the process SIP/VoIP Solution: MirrorFly lets you connect users via voice calls on internet-enabled devices using its secure voice call API Custom Security & Privacy: Comes with custom security encryption & privacy regulation Full Source Code Access: Lets you add, modify and remove any features from the solution as you prefer 100% Customization: With MirrorFly’s 1000+ in-app messaging & chat features, you can fully customize the taxi booking app 8+ Production Ready AI Agents: The intelligent chat, voice, and video agents can be tailored to your use case  Scale Up To 1 billion Conversation: Handles 1 billion+ active users without any issues 100+ Compatible Integrations: Easily integrate 100+ third-party plugins into your app that your customers use daily 15+ SDKs: MirrorFly offers SDKs that are developer-friendly and integrate effortlessly into your app 24/7 Support: No matter what your query or issue is, we are available to resolve it

Ready to build your taxi-hailing or taxi-sharing app with MirrorFly? Don’t wait. Fill this form, and one of MirrorFly’s experts will assist you further.