Online vs Offline Taxi Business: Which One is Better Uber, Lyft or Local Taxi?

Mayur Panchal
blog updated dateUpdated Date: Apr 25, 2024

online vs offline taxi business

The taxi business has come a long way. The first taxi on the street was in the late 1800s. Since then, yellow taxis have been the best choice for commuting among locals and tourists.

But with apps like Uber, the traditional market has been disrupted. Now, consumers have more choices than ever when taking a ride.

While both services charge based on the distance traveled, Uber is still gaining momentum in the market. Based on the new market trend, the vital question on the minds of cab owners is:- Are traditional cabs irrelevant in this day and age? Or Are cab companies living in the past?

Well, this is a much-debated topic around the globe. So, let’s find out which option would fetch you better results.

Offline vs Online Taxi Business (Comparison Side of Admin, User, and Driver)

To know which option is better for you, one has to study the working of each business model in detail. Let’s look at three sides of the taxi business.

Admin Panel

Offline Taxi Business Online Taxi App
If you own a taxi business, one has to manage many tasks. Whether it’s managing booking, taking care of the revenue and assets, and getting timely updates. Simply, the online taxi app makes things easier for you. The admin panel gives you a clear picture of the revenue of your business. Moreover, you can manage all the company’s activities through a dashboard.
Simply, understanding how to manage all these activities can become tedious; your company has to bear heavy losses by not getting timely updates. One mistake can bring your company into big trouble. With an application, you just need to make a few taps to get any information about your business. So next time when your driver does not reach the destination, you can know right through an application.
With the array of features the taxi business application provides, the best one is the management of revenue. As a taxi business owner, now one would know where each penny is earned from and where it gets utilized.

Passenger App

Offline Taxi Business Online Taxi App
Gone are the days when one would show a hand to grab a taxi. Moreover, it becomes difficult to get a passenger with the offline taxi business. Also, the tech-savvy passenger avoids making a call every time he has to book a cab. Passengers have fallen in love with the ease of booking a taxi with one tap on their phone. Moreover, they don’t have to wait endless minutes to find a cab. The limitations of offline taxi booking have been solved through a taxi app.
And the central issue any passenger faces is the payment. Either they run out of cash, or it’s hard to find the change. Hence, these minor issues tend the passenger to avoid booking an offline taxi. With the feature of live chat with the driver, the passenger is informed about the latest update of the driver. Well, such fewer hassles make them go for online taxi booking services.
Though the offline taxis manage to get several passengers, the number is not fixed. Therefore, there is a high chance of playing in the same numbers and not having the opportunity to increase the passenger ratio. The major drawback of offline booking taxi services is that the driver and the passenger are not connected before, during the drive and after the drive. Conversely, in online booking services, one gets all the information in the fist of his hand.

Driver App

Offline Taxi Business Online Taxi App
Well, without timely updates from the driver, the owners would never be able to know what the drivers are up to. Most of the time, it becomes difficult to measure the productivity and efficiency of the drivers. In turn, the taxi business has to suffer from the underutilization of resources. With the driver side panel of the application, the drivers need to register and sign up with the app. They are quickly notified about the passengers looking for cabs in nearby places.
One can hire professional drivers that would never fail you to solve the issue. But again, if there is no communication between the drivers, there will be more issues. And even with phone calls, it becomes difficult for the passenger to track the driver on a timely basis. Within just 40 seconds, the passengers are notified about the driver’s confirmation. The drivers choose to accept or decline the ride according to their availability.
So, a seamless process of booking happens with online taxi booking applications. Moreover, it offers the owners total control over their resources.
Surprisingly, today online taxi applications are making insane profits in the taxi business. Let’s explore some of the best taxi applications ruling the market.
Unlock the Future of Transportation with Our Taxi App Development Solutions!

Top Mobile App-Based Taxi Services

Let’s quickly scan the three mobile app-based private cab services that inspire you to take the same road.

market shares of taxi app in us

Image:-  Source


Uber is becoming a verb for grabbing a taxi. It serves about 93 million active users throughout the year. Clearly, we can say that over 93 million users prefer online taxi services.

Moreover, when we consider the total market share of Uber in the U.S., it is 68%. Well, of course, this number is enough to prove that it has been growing exponentially since the launch of Uber.

Read also: How to Make an App Like Uber?


Today, if we talk about the most prominent competitor of Uber, then it’s Lyft. When we study the Lyft business model, it has some differences. For instance, they do proper background research on the driver before hiring them.

Launched in 2012, the Lyft taxi business is the second largest in the sector, which means it controls one-third of the U.S. market share. And in the future, the company will give tough competition to all the other taxi businesses.

This was all about how online businesses are sailing in the taxi market. After reading the facts and figures, the vital question is whether the traditional taxi services need to change. Digitization is a must to survive in this world.

Why do taxi service companies need a mobile app?

A branded taxi booking app has become the necessity of the hour for the taxi business. One better understands the current market with taxi app development, reaches a more extensive customer base, and gets your tax business streamlined.

Moreover, the primary purpose of your business is to earn higher profits every year. And digitizing your business can bring you lucrative benefits. How? Let’s explore!

Read also: Uber vs Lyft

How do I make my taxi business profitable?

  • Overhead cost-cutting
  • Streamlined and automated business operations
  • Increased Driver productivity
  • More significant better revenue and profitability
  • Enhanced customer experience by offering quick on-demand taxi services

There has been a burning question coming to the mind of various offline taxi business owners, just like we will discuss in the next.

Read also: Want to Build a Taxi App in Dubai?

Will Uber Type Ride-Sharing Eventually Replace Taxis?

Looking at Uber’s growth, we can say that Uber is like a complement in larger cities and the Uber penetration is much higher in several cities.

ubers presence around the world

The uber business is spreading like wildfire. So, yes, we can assume that the uber-type taxi business will replace regular taxis shortly.

Now, if you are thinking about taxi app development, then in the next section, we have provided you with all the costing details.

How much does it cost to build a taxi app like Uber?

Now, coming to the vital part of the blog is how much it costs to build a taxi app like Uber. No, don’t worry; it doesn’t cost you a million dollars to start a business like Uber.

There are two options for developing a taxi app for your business. Firstly you can create an app from scratch, adding your customized features according to your business requirements.

On the flip side, if you think that Uber app features satisfy all your business requirements, you can also choose an Uber clone application. The benefit of selecting a clone application is that you can simply add and remove those features that you think are necessary.

Besides, the cost is also a significant factor in heading for a clone development. The clone app would cost you around $10k-$25k USD, and app development from scratch would cost you $30k-$50k USD.

How can aPurple Help you with your Taxi Business?

Is the idea of digitizing your taxi business on your mind?

This is the right time for making your taxi app shine out in the market. If you are looking for a clone app development solution then talk to our experts for guidance. You can also check our latest portfolio- Book a ride portfolio!

We have aided many businesses in making their digital presence. Connect with our team!


1. Is Uber Cheaper Than a Taxi?

If you want to take a long trip, Uber is cheaper than a taxi. But for a shorter trip, a taxi is more affordable. At times, Uber offers users timely rewards and discounts, which become cheaper.

2. Why Build Your Taxi-Booking App With Us?

aPurple is a renowned app development company, and it is well known for giving the best clone solutions in the market. They have experts with years of experience that will guide you with your taxi booking app development.

3. Where Can I Find a Company to Build an App Like Uber?

Several companies offer you clone solutions for your requirements. One of the renowned companies is aPurple, and they have years of experience in giving clone solutions to businesses.

4. Why Do You Need an Uber Clone App for Your Taxi Business?

Well, most taxi apps offer you the same features. So the wise choice would be to save some bucks by choosing a clone of a successful app like Uber.

Mayur Panchal
Mayur Panchal is the CTO of aPurple. He is passionate about tech trends, clone apps, on-demand app solutions, and innovations across various domains. He loves to share his expertise through engaging content and inspiring others to discover the future of the IT world.

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