How much does it cost to develop an application like Uber? We are faced with this issue and its variants roughly ten times a day. The answer is always the same: Celadépend!
Uber’s business model has led to the adaptation of many platforms to demand in the vertical market. They position themselves as disruptive forces, exploiting the tendency of supply to demand that can be seen everywhere in the world. Many chain companies already well entrenched in the system are being disturbed. The e-commerce principle and the involvement of multiple stakeholders make these platforms difficult to design, master and standardize.
Related Reading – Uber’s Business Model
Entrepreneurs and companies seeking to build something similar in different vertical markets often find that this comparison is more appropriate, hence the origin of this question. Several factors must be taken into account in order to obtain a correct estimate. Let’s quickly look at these factors to understand the design of a UberX platform. I am confident that this will also provide a better understanding of the reasons behind us at Future WorkTechnology, approaching things in a modular way, and designing a Mobile Backend as a Service (or MobileBack) service on demand. Create a winning value proposition for entrepreneurs and businesses that aim for continued success.
A) Is your business model exactly the same as Uber? If not, how is it different?
UberX can be described as a platform to deliver a product or provide on-demand service, which is aggregated online and serviced offline. But a great deal of variation can occur when we begin to analyze the various implementations in this field.
Is it a taxi / limousine company, or an on-demand service platform designed for another vertical market? When you try to find a solution to help your taxi / limousine company with an experience similar to that of Uber, there are many companies that will be able to provide you with solutions of white brands. When you start to expand, ground transportation (shuttles / events / transportation solutions for children / seniors / civilians / large companies etc.), beauty, home services, deliveries, etc. Are complicated and it is difficult to find a predefined approach that works.
We have faced this problem for 15 months, and we have found a top-down approach to solving it. The basis is that there are some modules – correspondence, planning, follow-up, payments, customer returns, notifications, aggregation and inscriptions that form the backbone of such platforms. We have created background code blocks or a MBaaS-based framework to manage the majority of usage scenarios that can be launched by a commercial on-demand business model. For more information on the functional choices that help define each of these modules, download this eBook that talks about Building Blocks for a service-on-demand technology.The underlying principle is that the visible part by all must be developed in a customized way. Optimizing the background structure ensures that we do not reinvent the workings when it comes to customizations or more unforeseen cases.
In the case of an application similar to Uber, it is useful to keep the general scaling structure associated with all possible start-ups. It is proven that all business applications, whether or not they resemble Uber, must go through the 4 steps mentioned below. But the fact is that most on-demand service platforms are associated with networking effects / changing manuals / answering the question of who the egg or chicken first appeared, etc. Clear understanding of these steps is much more important. The question then becomes, are we trying to validate the business model that performs less than 1000 transactions per day, or are we talking about a system that has already standardized in several geographic areas by means of frames Highly optimized logistics?
The priority areas during the different stages of the evolution of a platform are different. The first difficulty is to launch a functional product on the market that will fulfill the criteria of the basic interaction. Once the Minimum Sustainable Product is launched, it is often a race to reach the labor market, which could prove to be laborious. Once the labor market is within reach, the next barrier will be to get the most appropriate economic entities (Customer acquisition costs / lifetime values), while continuously improving The cohort data. This step usually requires a lot of attention on building analytical capabilities.
Now it should be clear to you that the cost of developing an application such as Uber depends on many factors. But here is an attempt to estimate. Building a Sustainable Minimum Product for an on-demand service application involves creating web and mobile interfaces for both procurement and demand. Add this to the fact that native experiments are the expected standard that leads to parallel development actions if one chooses to pass both on iOS and Android. The other important point is the nerve center / administrative council that doubles as a GRC and dashboard to control some critical operations. Everything is connected by the IPAs that act on the central databases and control logic – a part of the background frame run on the cloud.
With a modular approach that takes advantage of a pre-built IP, we at FUTURE WORK TECHNOLOGIES are able to reduce the time and cost of operations by around 30%. In addition, since the engineering teams at Future Work Technologies are based in India, we offer consistent budgetary arbitrage while ensuring regular communication generally associated with internal teams. Commitment processes have evolved through more than 5 years of distributed product development. Overall, the costs for a Viable Minimum Product using the future technological approaches of work can go down to between $ 40k and $ 80k. But in addition to financial benefits, the most important value proposition we propose is the experience gained from having developed more than 50 on-demand service platforms in different geographical areas and areas of expertise. This makes our consultative approach where, at every step, we draw inspiration from the manual of many implementations with which we have been directly and indirectly associated.