How to Launch a Taxi Booking App like Grab?

Gone are the days of hailing cabs on the street corners, desperately waving down a taxi with an uncertain hope of catching a ride. Today, consumers desire seamless on-demand mobility solutions for convenient and more reliable transportation. In effect, several Transportation Network Companies (TNCs) such as Uber, Lyft, and Grab emerged, catering to such consumer demands and reshaping the approach to personal and public transport. However, the advent of such taxi-booking apps has revolutionized urban transportation.

The global ride-hailing market is projected to reach a staggering USD 384.56 Billion by 2031, boasting a compound annual growth rate (CAGR) of 13.3% over the period 2024-2031. This tremendous growth signifies a booming opportunity for businesses to capitalize on the ever-increasing consumer demand and launch an app similar to Grab.

In this blog post, we’ll delve into the intricacies of building an app like Grab, guiding you through the essential steps and key features to keep in mind. Furthermore, we’ll examine different approaches to materialize your business idea.

What is Grab?

Grab is a Singapore-based mobile technology company offering ride-hailing transport services, food delivery, and payment options. It started as a taxi-hailing app, ‘MyTeksi’ in Malaysia, founded by Anthony Tan and Tan Hooi Ling in 2012. By 2016, it had transformed into Grab (headquartered in Singapore) to become Southeast Asia’s leading super app by 2019, serving millions of users in over 500 cities across eight countries of the Southeast Asia Region.

Grab’s primary mission is to make transportation safer and more accessible while also driving Southeast Asia forward by creating economic empowerment for everyone. It aspires to be the everyday everything app for Southeast Asia and aims to simplify daily life by offering a comprehensive suite of services under one platform, including:

1. Rides: Grab provides various ride-hailing options, from taxis and motorbikes to carpooling and premium vehicles, catering to diverse transportation needs.

2. Deliveries: Grab offers extensive delivery options. Whether it is meals from your favorite restaurants, everyday essentials or parcel deliveries.

• Food: Through GrabFood, users can order from their favorite restaurants and have meals delivered straight to their doorstep.
• Mart: Centralize profile management to view and manage ratings, reviews, and ride histories for all drivers and riders on the platform.
• Rides: Centralize profile management to view and manage ratings, reviews, and ride histories for all drivers and riders on the platform.

 

3. Financial: Grab offers a mobile wallet (GrabPay) for cashless transactions within the app and at partner merchants. Additionally, it is expanding its reach by venturing into other financial services tailored for customers.

Success Story of Grab

The evolution of Grab from a simple ride-hailing app to a multifaceted super app is a testament to its innovative approach and relentless pursuit of excellence. The company’s success can be attributed to its ability to localize its services to meet the diverse needs of Southeast Asian customers. It was initially launched to address safety concerns in Malaysia’s taxi industry with the goal of providing a safer and more reliable option. Grab successfully managed to diversify its offerings through strategic investments and continuous innovation. The key milestones included:

• Extending beyond Malaysia, to its neighboring countries such as Singapore, Indonesia, Philippines, Thailand, Vietnam, and Myanmar.

• Introducing GrabCar (private hire car service), GrabBike (motorcycle taxis), and GrabExpress (delivery services).

• Diversifying into digital payment services, GrabPay, and food delivery services, GrabFood.

• Consolidating its market position by merging with Uber’s Southeast Asian operations in 2018.

Workflow of a Ride-Hailing App

1. The passenger requests a ride through the app– enters the pickup and drop-off location, selects the desired vehicle type, and confirms the ride.

2. The app identifies the nearby drivers and sends an alert for the ride request. The driver either accepts or declines the request.

3. After a driver accepts the ride, the passenger receives the driver’s details and vice versa. The passenger can track the driver’s location and see the estimated arrival time.

4. Once the driver reaches the pickup location, an OTP is shared by the passenger to initiate the ride.

5. After reaching the drop-off location, the driver marks the ride as ‘Complete’ and collects the payment.

Key Features to Launch a Ride-Hailing App

A successful ride-hailing app requires a suite of features that cater to both passengers and drivers while ensuring seamless management through an admin panel. To create such an app, here’s a breakdown of essential functionalities:

Rider App

1. User Registration/ Login

The app should incorporate easy sign-up and login options, enabling customers to quickly log in to the application through OTP, phone numbers, or social media accounts.

2. Schedule a Ride

Allow users to schedule their rides and streamline the booking process easily with minimal steps. Incorporate a user-friendly interface to boost user satisfaction and enable passengers to effortlessly select pick-up/drop-off locations, choose the desired vehicle, and navigate through the app.

3. Fare Estimator

An integrated fare estimator provides upfront cost transparency for passengers after selecting the desired vehicle type and entering ride details. This fosters trust and eliminates concerns about surprise charges with the passengers.

4. Real-time Tracking

Allow passengers to track their driver’s location in real-time and the route taken by them to reach the destination, providing peace of mind. Seamless integration with Google Maps will ensure familiar and user-friendly navigation as well.

5. SOS Alert

An in-app SOS button empowers passengers to send immediate alerts comprising all the ride details to their pre-designated emergency contacts. This critical safety measure fosters trust and demonstrates a commitment to passenger well-being.

6. Diverse Payment Options

Integrating diverse payment options such as cash, e-wallet, and credit/debit cards enables passengers to pay for the ride easily, catering to various user preferences. This flexibility not only ensures a seamless payment experience but increases user adoption as well.

7. Package Delivery

Provide an in-app solution for on-demand package delivery along with cab booking services. Integrating this feature into your application will expand the app’s utility and cater to a wide range of user needs.

Driver App

1. Registration and Verification

Streamline the driver registration process with a few login steps and clear guidelines to upload documents. Efficient onboarding will thus reduce barriers to registration on the platform and attract a larger pool of potential drivers.

2. Availability Status

Implement a simple sign-in/out toggle for drivers to manage their operational availability. This will empower them to work on their own schedule and optimize their availability for new rides.

3. Optimized Ride Management

Provide drivers with a centralized platform to view, accept, or decline new ride requests including detailed ride information for informed decision-making. Additionally, allow them to browse the details and stats of old cab bookings to help them optimize and analyze their services.

4. Navigation and Route Optimization

Integrate robust GPS navigation tools to assist your drivers in reaching pick-up/ drop-off locations efficiently. Additionally, leveraging Google Maps will also ensure a familiar interface and optimize route guidance.

5. Initiate Your Payout

Empower your drivers to request a withdrawal at any moment, enhancing their control over earnings. Incorporating this feature will foster driver satisfaction and improve the overall platform experience.

6. Subscription Packages

Introduce optional subscription packages for drivers, offering exclusive benefits and continuous savings through your app. Discounts on commission fees through tiered subscription packages will incentivize driver participation.

Admin Panel

1. Account Management

Equip admin with the ability to manage all user accounts (driver & passenger). This will include approving/rejecting registrations, verifying documents, and managing existing profiles.

2. Transaction Management

Provide admin with a clear overview of total earnings within a specified timeframe. Enable them to monitor payment processing, earnings (from commissions, sales, subscriptions, and more), and transaction history through a comprehensive earnings dashboard.

3. Fare Management

Empower the admin to define fares based on the vehicle type (per kilometer) and implement surge pricing for peak periods. This will not only ensure cost optimization but also allow for adapting fares to market demands.

4. Geo-fencing

Implement Geo-fencing to define operational areas within the app. This will empower the admin to precisely manage service coverage by country, state, or city. Furthermore, the flexible configuration will allow manual or radius-based selection, optimizing service availability.

5. Discount Management

A robust discount management system will allow the admin to create and manage targeted promotions for users. Offering customized and attractive discounts will help attract new customers and retain existing ones, significantly enhancing customer satisfaction and platform adoption.

6. Reports and Analytics

Integrate an intuitive reports and analytics dashboard for the admin to analyze key metrics and gain valuable insights into user behavior & overall platform experience. This will allow the admin to identify high-performing areas and optimize service offerings to drive growth to the platform.

Approaches to Build a Ride-Hailing App

There are two primary approaches to build a ride-hailing app like Grab:

1. Custom Development

Building an app from scratch offers complete control over features and design. It enables tailoring the app to address specific market needs and functionality. However, custom development involves a prolonged development process and requires significant time, expertise, and financial investment, potentially delaying market entry.

2. Readymade Software Solution

Ready-made software solutions provide pre-built scripts that replicate the core functionalities of a ride-hailing app like Grab. These solutions come pre-integrated with the latest features and require less time and investment to launch your platform.

Although each option has its pros and cons, readymade software solutions are generally more cost-effective and time-efficient compared to custom development.

How VivoCabs Help?

VivoCabs is a cutting-edge software solution pre-built with essential functionalities required to build a taxi booking app. It offers a compelling solution to expedite your entry into the lucrative ride-hailing industry. The software is designed meticulously taking into consideration the requirements of both riders as well as drivers. It delivers end-to-end solutions, from app development to deployment and maintenance. VivoCabs’s comprehensive suite of features provides a seamless experience for users, offering a plethora of customization options. Additionally, the application is available for both Android and iOS platforms, ensuring broad user reach. Following are some of the benefits that VivoCabs brings to business owners:

• Completely White Label
• Source Code Ownership
• No Recurring Charges
• Robust and Scalable
• Highly Affordable and Customizable
• One Year of Free Technical Support

 

Conclusion

The ride-sharing industry offers a promising avenue for entrepreneurs and businesses to capitalize on the ever-increasing demand and continued growth for convenient and reliable transportation. Launching a taxi booking app like Grab requires careful planning, understanding market needs, and choosing the right development approach. Whether opting for custom development from scratch or using a readymade software solution, the goal is to create an app that offers seamless, efficient, and reliable services to both riders and drivers. 

Leveraging a platform like VivoCabs can significantly reduce development time and costs, providing a robust foundation to build and grow your ride-hailing business. Thus, you can effectively compete in the industry and establish your brand with a unique value proposition, and innovative marketing strategies.