How to Build a Ridesharing App?

Ridesharing has evolved, and we can say this with conviction. It has taken over a substantial segment of the transportation industry within a few years of its inception, thanks to the emergence of ridesharing apps.

Leading the evolution are well-known companies- Uber and Lyft. There are other players, such as Ola, Curb, Wingz, and Gett. As the competition intensifies, new horizons emerge for passengers, vehicle owners, and other stakeholders.


As we all know, ridesharing is a service offered by a company that helps users quickly find a ride at affordable rates.

Unlike the conventional method, where businesses own vehicles, the service provider only facilitates exchanges between travelers and car owners in ridesharing.

The ridesharing market is growing at a steady rate. As per, the ridesharing market revenue size is expected to touch the $220B mark by the year 2024.

ridesharing market stats 2017-2024

In the US, except for year-end plunges in 2020 and 2021 due to the spread of the coronavirus, ridesharing transactions have been slowly picking up since April 2020.

Uber sales were up 49% YOY, and Lyft sales were up 29% YOY in May 2022, says the Bloomberg Second Measure report. Uber still monopolizes the US market with a whopping share of 72% to establish its position as the top ridesharing app in the country.

What makes the ridesharing business promising?

The ridesharing business has exciting days ahead should the trends continue traversing the same curve. 

Here are some of the reasons driving the ridesharing industry:

  1. Accessibility
  2. Adaptability
  3. Flexibility
  4. Penetration to the masses
  5. Versatility

Before we go ahead and list the steps to build a ridesharing app, let’s look at how it works in real-life use cases.

Step 1- The user opens the app

The user specifies the pick-up location and destination, reviews options for vehicle type, price, and estimated travel time, then books the ride.

Step 2- The driver receives the ride request

The driver notices and accepts the ride. The system keeps travelers in the loop with all the updates, including the approaching vehicle. 

Step 3- The vehicle picks up the user

The rider and the driver match the identities of each other and validate the destination before the ride begins.

Step 4- The user reaches the destination

In most cases, the driver follows the in-app navigation of the cab-sharing app to drive to the destination. 

Step 5- Payment and reviews follow

As soon as the ride is marked as ‘concluded’ on the carpool app, the system calculates the charges. After payment, both driver and rider get options to rate each other.

Types of Ridesharing apps:

Ridesharing apps are of three different types. Here is the list:

Carpooling apps

In the carpooling approach, the passenger or a group of people and the driver travel together to the destination. Carpoolers are often friends, colleagues, or relatives who travel daily. They share the fare among themselves. Usually, they do not pay a commission to a third party.

Ridesharing apps

Drivers of passing cars work like taxis. Here, passengers may not travel to the same point as their driver. The driver may pick up another passenger at the end of the trip and keep moving.

Peer-to-peer apps

In the peer-to-peer approach, owners rent their cars to others for a certain time on a fixed rental fee.

Why use a ridesharing app?

Ridesharing applications offer a win-win situation to both businesses and riders. Here are a few reasons why businesses have ridesharing apps and users use them.

Benefits for businesses

Speeds up the service delivery

A ridesharing mobile application helps businesses boost the speed of the services they offer to their customers. 

Increases the horizon

With a mobile app, a business can increase its reach in terms of customer acquisition and service deliverability. 

Creates a revenue source

An app owner gets a source of profit with the launch of a ridesharing mobile app. 

Allows to partner with freelance drivers

When you introduce a ridesharing app, you can partner with other players and freelance taxi drivers in the area to increase your efficiency. It helps you focus on maintaining the app while your freelance partners take care of a substantial part of the transportation.

Communication with clients

With ridesharing apps, businesses can provide excellent customer service and deliver their users a great customer experience. It helps them establish better relationships with their clients.

Benefits for riders

Alternative option

Ridesharing apps offer users a notable alternative option to conveniently travel from one place to another.


Ridesharing apps are generally an affordable option for riders to travel. Some platforms present exciting referrals and other promotional programs. Users can make the best use of such promotions to avail of more discounts.

Real-time updates

One of the most important benefits of cab-sharing apps is the transparency and live-tracking feature. Riders can easily locate their rides using the live-tracking option.

Easy payment options

Carpool apps come with various payment options, such as online modes. These options make it easier for the riders to make payments for seamless travel.

How to make a ridesharing app?

Here in this segment, we will go through the steps of creating a rideshare application. 

Discovery & research

This step is probably the most significant one vis-à-vis the best carpool app creation. Having a unique niche and a fair idea about riders’ requirements are critical aspects.

You should take into account the needs and expectations of the customers and other stakeholders so that you can incorporate everything. You may also study leading existing applications to know the flow and their functionalities. 

Prepare a feature list

Features make your cab-sharing app engaging, efficient, and noteworthy. Feature-rich apps tend to do well as they offer better amenities and convenience to the users.

However, overloading an application with features and functions can be counterproductive. So, please be careful with them.

Some of the renowned rideshare applications, such as Uber and Lyft have three segments dedicated to Rider, Driver, and Admin. Here’s the list of the corresponding features:

Rider Driver Admin
Sign up Sign up Booking management
Customer account Drive account Location management
Push notifications Ride notifications Fare management
Fare calculator In-app navigation Notification management
Ride booking (for self & others) In-app messaging & calling Support section
In-app payments Trip history Review & feedback management
Real-time tracking Payment status Communication management
Ride history Rating & reviews Promotion & discount
In-app messaging & calling
Location bookmarking
Rating and reviews

Choose an app development platform

Once you are done with the above two steps, you need to choose a mobile application development platform. You may choose a native or a hybrid platform depending on your requirements and preferences.

Final Words

You are good to go after you have figured out the right app development platform for your project. You may hire a team of dedicated developers to get your app developed. You may take stock of the development progress during the development process.

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