Developing An App Like Uber: How Much Does it Cost in 2023?

In April 2017, Uber opened up about its finances for the first time to Bloomberg and reported a global loss of $3.8 billion for 2016. This included losses from its China business, which it sold in the summer of 2016—without it, net adjusted losses were $2.8 billion. In 2010, the company received its first major funding, a $1.3 million round led by First Round Capital.

Vishal is an experienced, hands-on software architect involved in the architecture, design, and implementation of service-oriented architectures, mobile apps, and web-based systems. He has significant experience and expertise in application, integration, and architecture. In 2014, Uber transitioned completely to a service-based architecture system , wherein the backend, frontend, and database were integrated into one robust system. Service-based architecture supports both synchronous and asynchronous applications, fetches real-time information, and is best suited for location-independent services and requests, which was the base of Uber’s operations. In addition to its Dutch companies, Uber has separate subsidiaries in each country where it operates.

How much does it cost to make an app like Uber?

This information is sent through a web application firewall and load balancer, which helps to ensure that the data is secure and properly distributed. However, as the platform grew, the need for new features also surged. And to integrate new features, the development team had to deploy all the code at once. This affected the app’s speed and made the process of introducing new features extremely risky and time-consuming. This is because every integration could potentially bring the entire system down. Uber is a highly successful taxi-hailing service that offers ultimate convenience to passengers.

structure of the Uber application

Uber uses an open-source ringpop to make the application cooperative and scalable for heavy traffic. Ring pop has mainly three parts and it performs the below operation to scale the dispatch system. It’s really easy to just tap a button on our mobile phone and get the cab available within a few minutes whenever and wherever we want. You can use our MVP Cost Estimator to verify the initial investment needed to kick off the development of your Uber-like MVP. Using this approach, we make sure we stay agile while being focused on a concrete set of goals we aim to achieve using short incremental periods.

Takeaways: Uber’s Software Architecture & Tech Stack 📋

Imagine you wish to book a ride for your grandmother through your account. It allows much more flexibility on the client side of things, as it allows them to plan ahead and incorporate the ride into their daily itinerary. User experience plays a crucial role in the success of your app. You’d wish to impress your clients with an easy-to-use and stunning UI/UX. Remember to keep PCI compliance as a top priority if you want to store and process credit card data. Once the GPS locations are loaded to Kafka they are slowly persisted to the respective worker notes main memory and also to the DB when the trip is happening.

  • Brilliant design can have many aspects, but minimalism, clarity, and simplicity normally stand out.
  • They are being criticised (among others) for how they treat their own drivers and their impact on taxi jobs.
  • That trip from Destination A to Destination B seems pretty simple, and straightforward, but behind this trip, there are thousands of servers, coding, architecture and system design for ensuring 100% success.
  • Only if you know your target audience will you be able to properly communicate with them.
  • Providing a good user experience leads to better user acquisition and greater downloads.

An Uber-like app can increase your chances of success in the SaaS industry. Now all the cities computation happens in the same system, since the workers the DBnodes are distributed by regions the demand request will be sent to the nearest datacenter. But IT shouldn’t just handle currently available supply, i.e. cabs which are ready to ride customer but also tracks the cars about to finish a ride.

Uber self-driving cars

The cost to build an app like Uber may range anywhere between $67,000 and $150,000 for one or two user apps (for iOS and Android), respectively. You would also need to include the price of an admin panel development that could start at $14,000. The development team you hire would use different programming languages based on your requirements. The tech team should have expertise in the following programming languages or tools to build an app like Uber. The software development cost will depend on the features that you wish to implement in the app. On the technical side, developers can use Google Maps for real-time car movement.

structure of the Uber application

As soon as you get in the car, the driver will take you to your chosen destination, using the navigation system of the app itself. Unfortunately, decentralized growth also means shared service functions are repeated in every market to pivot quickly and execute – Marketing, Customer Support, HR, Finance, IT, etc. Decentralized functions create an app like uber lead to fragmented decision making and differentiated approaches to solving common problems. However, one rather interesting point that was revealed in the IPO document and subsequent annual report, was the significant cost of revenue. These reports indicate that the biggest elements of it are insurance and payment costs.

What is surge pricing and how does it impact Uber’s revenue?

The issue also raised questions about the fairness of who ends up paying the taxes. Driver advocacy groups have argued for some time that Uber is avoiding a tax at the expense of its drivers, something The New York Times found evidence to support. The paper estimated that Uber’s miscalculation could have cost drivers hundreds of millions of dollars. Uber Technologies Inc.’s (UBER) explosive growth and seemingly endless controversies have made it one of the most fascinating companies to emerge over the past decade and a half.

structure of the Uber application

However, a thorough examination reveals that Uber’s revenue model is more complex than trip commissions. Becoming an Uber driver is not a herculean task; you only need a driver’s license and a car to apply. The Uber offices conduct a shortlisting process, after which the drivers are enlisted and given Uber phones to connect with passengers. Different payment methods are available depending on where you use the app.

Uber’s Competitors

To mitigate the effects of a data center failure, Uber uses driver phones as a source of trip data. When the driver’s phone app connects with the dispatch system or an API call is made between them, the dispatch system transmits the encrypted data to the driver’s phone app, which receives the data every time. When demand surges and the supply of drivers is low, the algorithm increases the price of rides to encourage more drivers to hit the road.

structure of the Uber application

Plus, let’s not forget that the passenger informs the destination on the app, which avoids misunderstandings when we are talking about people who do not speak the same language, which is a positive point for both sides. It goes into effect when demand (passengers) outstrips supply (drivers) by a particular threshold. A user can request a ride through the application and within a few minutes, a driver arrives nearby his/her location to take them to their destination. Earlier Uber was built on the “monolithic” software architecture model. They had a backend service, a frontend service, and a single database. They used Python and its frameworks and SQLAlchemy as the ORM layer to the database.

System design for Twitter

Uber took the whole process online, and it also made taxi-booking and ride-sharing a lot easier, more transparent, and cheaper. Uber has a Dispatch system (Dispatch optimization/DISCO) in its architecture to match supply with demand. This dispatch system uses mobile phones and it takes the responsibility to match the drivers with riders (supply to demand). These systems have much more complex architecture and there are a lot of components joined together internally to provide riding services all over the world.