How To Create An App Like Uber? Uber Business Model Explained

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Uber App

Create An App Like Uber : Uber Technologies, Inc., commonly known as Uber, is an American company that offers vehicles for hire, food delivery, package delivery, couriers, freight transportation, and, through a partnership with Lime, electric bicycle and motorized scooter rental. Before analyzing the way to create an application like Uber, we need to understand and learn more about the app.

It is a ride-hailing company that offers the Uber mobile app, which you can use to submit a trip request that is automatically sent to an Uber driver near to you, alerting the driver to your location. The accepting Uber driver will then come and pick you up and drive you to your requested destination. The Uber automatically finds out the navigational route for the driver, calculates the distance and fare, and transfers the payment to the driver from your selected payment method, without you having to say a word or grab your wallet. This is how Uber business model is designed for the users.

Unsurprisingly, Uber is the best taxi app on a global scale and is present in 600 cities across 65 countries. Even with competition from other similar taxi booking apps, the company is still the dominant player within the ridesharing market. Among other apps like Uber is Lyft, Curb, Easy Taxi, Gett, Summon, Flywheel, Grab (for Southeast Asia), DiDi (for Brazil, Mexico, Asian countries), and many others.

Create An App Like Uber |  how the Uber app works?

Before moving onto the technical way of how to make an app like Uber, let us understand the working of the app.

The initial prototype of the app was developed by Garrett Camp and Travis Kalanick. Officially, the Uber app was launched in 2010 on iOS and it was impressive to observe that within the first six months the app reached 6000 users, and also it completed 20,000 rides. For starters, the Uber app attracted both drivers and riders by hosting and sponsoring tech events and by giving trial rides in San Francisco. The city is well-known for its tech community and takes each chance to make life more convenient. The Uber service employs a free, downloadable iOS and Android mobile application that connects passengers and riders 24/7. These days, Uber serves 75 million users with 15 million rides per day globally.

Uber app works

Each trip request is directed to Uber drivers who use their vehicles. The closest car can reach you within a few minutes, while parties are aware of each others’ location.

The Uber app includes 5 sub-steps which are important to clarify from the customer perspective. So, to get a better understanding when asking – how to make an app like Uber, let’s first examine the app functioning:

  1. Step one includes the Creation of a trip request with the end destination. The user can observe the upfront pricing of a trip’s fare, which is also based on vehicle type among Uber categories.
  2. Step two includes verification of the trip. The user confirms the data and the pickup location on the application.
  3. Step 3 includes matching up with the nearby available driver. On their end, a driver can accept or decline a request, this completely depends on the driver.
  4. Step 4 includes the payment process is done automatically in-app after the ride is complete. Beforehand, the user adds a credit or debit card, PayPal account, ties Android or Apple Pay, etc. Users may also change the default tip for the taxi service.
  5. Step 5 including rating is requested after each taxi ride and is a core component of Uber app business logic.

Uber app calculates the ride fares by combining time and distance indicators. If the vehicle is driving less than 11 mph (18km/h), the rider is charged per minute. If the car is moving faster, then the charge is per mile.

How much money does Uber make?

Since we’re talking about how to build Uber, we think you should know how much money this business earns.

You’ve probably heard that Uber has had some troubles becoming profitable in the U.S. Only this year did the company start to turn a profit. Uber takes a 25 percent commission per ride, but what it earns in profits is only $ 0.19 per ride on average. The rest goes to interest, taxes, and equity-based compensation for employees.

Most of the money earned by Uber goes to anti-fraud efforts, credit card processing, customer support, marketing, and software development. Even though Uber’s $66 billion valuation makes the company seem like a huge money bag, it doesn’t make that much profit.

Create An App Like Uber

How much does it cost to Create an App Like Uber?

When you develop an app like Uber, you happen to develop two apps, i.e. one for the drivers and one for the users. While developing the applications you will be required to pay for the following services-

  1. iOS and android native app development.
  2. Backend development.
  3. Web development.
  4. Design
  5. Quality assurance.
  6. Project management.

The time that takes to develop the app is about 5000 hours. The cost of the development of the app depends on the service provider’s hourly rates. The cost might vary from $20 per hour to $150 per hour.

What are the other features that Uber provides to the riders?

Apart from allowing the riders to request a trip, there are several other features offered within the Uber app for the riders. For instance, you can add your home and office address to the Uber app to avoid putting the location again and again, and thus saving your time by adding the address to it permanently. You can also add “Trusted Contacts” to your Uber account too. Once someone is set up as a Trusted Contact, you can share your trip status with a single tap. It’s also possible to add a family member to your account, allowing them to share your default payment method so you can pay for your loved ones to use Uber, as well as get trip notifications when they use it.

You can also make use of the feature “split fare” that will allow you to split the fare with whoever you’re traveling with.

uber rider

These are the other features that a rider can enjoy while using the application, these features help and bring ease to the riders. To build one such model and grow your business you can rely on Leciel Technologies.

For more information or to clear any doubt or query, you can contact

Ravi Sharma
Ravi Sharma
I am passionate about content writing. I write articles for businesses that want to see their Google search rankings surge. My articles focus on balancing informative content for the website that helps businesses to connect with customers through content online. Find more about digital marketing concepts here that could grow your business.