Last Updated Date 11th March, 2025
The ride-hailing industry has redefined public transportation across the globe, offering an on-demand, app-based alternative to traditional taxis and public transit. This innovation has revolutionized the urban mobility landscape, connecting passengers with drivers and offering reliable transportation. With its blend of convenience, affordability, and accessibility, ride-hailing apps have become a cornerstone of modern commuting.
From metropolitan hubs to smaller cities, millions of people rely on ride-hailing services daily, making it a key driver of the on-demand mobility economy. However, the ride-hailing sector in the United States is one of the largest and most dynamic in the world, reflecting the broader global trends while presenting unique market characteristics.
Home to tech giants like Uber and Lyft, the U.S. market exemplifies innovation, competitiveness, and adaptability. Thus, understanding the dynamics of this fast-paced industry is essential for businesses aiming to launch their own ride-hailing app in the U.S. market.
Therefore, in this blog, we will provide you with an in-depth exploration of the market to start a ride-hailing business in the US. From understanding the market dynamics and trends to identifying opportunities and the steps to build a successful ride-hailing app, you’ll gain actionable insights to establish a competitive advantage in this thriving industry.
If you’re considering to start a ride-hailing business in the US, gaining insights into the market dynamics is crucial to establishing your foothold and driving success in this space. Here are some insights on the US ride-hailing market:
The ride-hailing business in the US is experiencing transformative shifts as consumer preferences evolve and technology continues to push boundaries. Businesses in this space must keep a close eye on the following significant trends shaping the market:
1. Increased Demand for Convenience: Modern lifestyles have made convenience a top priority for consumers. The rise of on-demand ride-hailing apps is closely tied to the growing need for quick, reliable, and hassle-free transportation. This trend has been further fueled by urban congestion, a decline in private car ownership, and the increasing demand for shared mobility options.
2. Technological Advancements: A ride-hailing business in the US thrives on innovation, with technology serving as a cornerstone for operational efficiency and customer satisfaction. Companies like Lyft use predictive analytics to match ride requests with driver availability, reducing wait times by as much as 30%. Similarly, app-based features such as dynamic pricing, gamification for driver retention, and loyalty rewards are gaining traction as key differentiators in the market.
3. Rise of Eco-Friendly Options: Environmental sustainability has become a focal point for ride-hailing businesses in the US. According to a report by the Environmental Protection Agency (EPA), transportation accounts for 29% of greenhouse gas emissions in the US. Thus, with this growing demand for green solutions in the US, ride-hailing apps like Lyft and Uber have responded by integrating more EVs into their fleets, launching Green Ride options, and committing to transition to all-electric fleets by the 2030s.
4. Corporate Ridesharing Partnerships: The B2B ride-hailing business in the US is expanding rapidly, with companies recognizing the benefits of flexible, on-demand transportation for employees. Corporate-focused services, such as Uber for Business and Lyft Business, are gaining popularity.
5. Adoption of Multimodal Mobility Solutions: As a part of the broader shift toward sustainable urban mobility, ride-hailing businesses in the US are increasingly incorporating multimodal solutions into their platforms. For example, Uber and Lyft now integrate micro-mobility solutions like scooters and e-bikes into their apps, allowing users to choose cost-effective and eco-friendly options for short-distance travel. By providing users with a variety of transportation modes within a single app, these companies aim to enhance customer convenience while promoting environmentally friendly travel.
6. Rising Popularity of Subscription Models: Subscription-based ride-hailing models are gaining traction as consumers seek predictable costs and added benefits. These programs not only offer cost savings to frequent users but also create a steady income flow for companies, aiding in long-term financial stability.
The US ride-hailing market is dominated by established players and a growing number of innovative entrants. However, it is essential to look carefully at the trends they follow to start a ride-hailing business in the US:
Uber stands as the undisputed global leader in the ride-hailing market in the US, with a staggering revenue of $37.2 billion in 2023. This marks a 16% year-on-year growth, underscoring its dominant position with a 76% market share. With an impressive 14 million rides completed daily, the company’s extensive service portfolio and seamless user experience set the benchmark for the industry.
Lyft, with a 24% market share, is Uber’s primary competitor in the US ride-hailing industry. Known for prioritizing customer experience and driver satisfaction, Lyft emphasizes community-oriented services and competitive pricing. By targeting key urban markets and fostering partnerships, Lyft continues to innovate in areas such as eco-friendly transportation and ride-sharing to attract a loyal user base.
Operating primarily in the B2B sector, Gett generated $281.7 million in revenue. Focused primarily on enterprise clients, Gett integrates traditional taxi services with app-based convenience, optimizing travel for businesses.
According to the Global Impact Report, Cabify reported $900 million in gross revenue in 2023. The company combines technology with sustainability, offering eco-friendly transportation options. By catering to both individual and corporate clients, Cabify enhances urban mobility while addressing environmental concerns.
Curb bridges the gap between traditional taxis and app-based services, operating in over 60 U.S. cities. By partnering with local taxi fleets, Curb provides reliable and accessible transportation options for diverse urban populations.
Bolt, a globally recognized ride-hailing service, reported annual revenues exceeding $2.11 billion. Bolt’s rapid growth and technological innovations position it as a potential competitor in global markets. Its focus on affordability and eco-friendly transport solutions resonates strongly with urban consumers worldwide.
The US ride-hailing market, while dominated by major players, still offers substantial opportunities for new entrants who are innovative in their approach. By targeting specific gaps and leveraging advanced technologies, you can launch a ride-hailing app in the US to establish a strong foothold in the competitive landscape.
Below, we outline key areas where opportunities lie:
While urban areas like New York, Chicago, and Los Angeles have saturated ride-hailing markets, many rural and suburban areas remain underserved. By targeting these underserved regions with tailored solutions, such as affordable pricing or vehicles for long-distance trips, you can establish a loyal customer base. Focusing on these communities allows your app to address unmet needs and gain a competitive advantage in a less saturated market.
Large ride-hailing players often overlook specific customer needs, leaving room for specialized services catering to particular demographics or demands. By catering to niche segments such as—pet-friendly rides, eco-friendly options, rides for the elderly or disabled, or safe student transportation—you can differentiate your ride-hailing app from competitors. Delivering tailored solutions for such underserved groups not only fosters loyalty but also builds your reputation as a provider that goes beyond generic services.
Corporate transportation represents a lucrative market for ride-hailing services. Offer ride-hailing services for employee commutes, corporate event shuttles, or last-mile deliveries. Partnering with businesses to provide tailored, efficient, and scalable solutions enhances your revenue potential while establishing long-term client relationships. Positioning your app as a reliable B2B partner unlocks access to steady contracts and strengthens your market presence.
Leveraging advanced technology in this competitive market can set your ride-hailing app apart. Integrate advanced features into your app to deliver a superior user experience and attract users. Features such as enhanced safety systems, flexible payment options, and robust reports & analytics tools improve the user experience of your ride-hailing app and drive growth. Additionally, invest in cutting-edge technologies that position your app as a forward-thinking solution, setting it apart from competitors.
Collaboration with established entities amplifies growth opportunities, accelerating your entry into the market and providing access to established networks. Partner with local governments for public-private initiatives, align with travel and hospitality sectors for tour & travel services, or collaborate with taxi companies for taxi fleets. Such strategic alliances enhance service quality, boost brand visibility, and provide access to critical resources, enabling you to scale efficiently and gain a competitive edge in the U.S. market.
Entering the U.S. ride-hailing market requires a targeted and innovative approach. Thus, by focusing on the above-mentioned opportunities, you can carve out a distinct position for your ride-hailing app in the US.
Building a ride-hailing app in the US requires a focus on user-centric features that ensure convenience, safety, and reliability. Below, we outline the key features essential for a ride-hailing app:
1. Quick Login: Seamless registration and login processes using social media accounts, email, OTP, or phone numbers improve the onboarding experience for users.
2. Ride Bidding: Allowing users to bid fares for the rides can add a layer of flexibility and attract cost-conscious customers, especially during non-peak hours.
3. Real-Time Tracking: Utilizing high-precision GPS technology for real-time vehicle tracking ensures transparency and builds trust by allowing passengers to monitor their ride’s progress.
4. Fare Estimator: Integrating an in-app fare estimator to provide fare estimates before booking enhances transparency and helps users make informed decisions.
5. SOS Button: A dedicated SOS toggle to ensure passenger safety by connecting passengers with their pre-designated emergency contacts providing the essential real-time updates on the ride.
6. Flexible Payment Options: Offering multiple payment methods, such as credit/debit cards, digital wallets, and cash, accommodates diverse customer preferences and enhances convenience.
1. Easy Registration & Verification: Simplified onboarding with seamless document uploads, background checks, and quick approvals to attract qualified drivers efficiently.
2. Availability Toggle: A flexible toggle feature for drivers to set their availability status, ensuring better time management and operational efficiency.
3. Advanced Navigation: Integration with advanced navigation tools to provide accurate directions, real-time traffic updates, and optimize routes to reduce delays.
4. Subscription Offers: Subscription-based plans for drivers, offering tiered benefits like reduced commissions or priority bookings to enhance earnings.
5. Initiate Your Payout: A streamlined payout feature that enables drivers to track earnings and withdraw funds anytime at their convenience.
6. Ratings & Reviews: Driver rating systems for passengers to provide feedback, ensuring mutual accountability and promoting consistent service quality.
1. Profile Management: Centralized management of rider and driver profiles, ensuring accurate data tracking and verification for a secure ecosystem.
2. Vehicle Categories: Ability to add diverse vehicles and categorize them by type, enabling varied fare structures and tailored offerings to different rider preferences.
3. Geo-Fencing: Precisely define and manage operational zones and boundaries with this feature to start services in a new area or discontinue in an existing one.
4. Subscription Order Management: Manage driver subscriptions, enabling automated renewals, payment tracking, and better control over premium services.
5. Fare Management: Dynamic fare control, including different fares for varied vehicle types, peak pricing, discount implementation, and distance-based adjustments for better profitability.
6. Reports & Analytics: Comprehensive dashboard with real-time updates on app performance, completed rides, revenue generated, and user trends to guide decisions.
By incorporating the above-mentioned features into your ride-hailing app, you can build a ride-hailing app in the US that meets modern consumer demands, delivers a seamless user experience, and competes in the competitive US ride-hailing market.
When it comes to building a ride-hailing app, there are two primary approaches, each having distinct advantages and considerations. Understanding these options will help you make an informed decision that aligns with your business objectives and resources.
Custom development involves building an app from the ground up, offering you complete control over design, functionality, and features. This approach allows you to build a ride-hailing app specifically tailored to your target market and unique business needs.
While custom development offers greater control and flexibility, it often comes with significant challenges. The process can be time-consuming, requiring extensive planning, coding, testing, and fine-tuning. Additionally, it demands substantial financial investment and technical expertise, which may extend the timeline for market entry.
Developing a ride-hailing app in the US requires robust features, seamless functionality, and a scalable infrastructure. Utilizing on-demand ride-hailing software solutions offer a faster, more cost-effective alternative to build a ride-hailing app.
Readymade software solutions are pre-integrated with essential features and functionalities required for a cab booking platform, making it easier to launch a ride-hailing app in the US with minimal development time. These solutions allow businesses to focus on growth and market strategies instead of dealing with lengthy development cycles.
Both custom development and readymade software have distinct advantages. However, choosing an on-demand ride-hailing software solution is ideal for businesses looking to reduce time-to-market, cut costs, and gain a competitive edge. By leveraging pre-built solutions, businesses can strategically position themselves in the ride-hailing market while responding to industry trends with agility.
One standout option in this category is VivoCabs, a cutting-edge, ready-to-deploy software solution specifically designed to meet the comprehensive needs of the ride-hailing industry. VivoCabs offers an efficient way to streamline the app development process, allowing businesses to build a ride-hailing app in the US to establish a strong presence in the sector with minimal delays.
The software is engineered with a deep understanding of the needs of both riders and drivers. By choosing VivoCabs, you gain access to a robust, scalable, and secure platform that reduces the complexities of app development.
Why Choose VivoCabs?
With its advanced features, various business APIs, 20+ payment gateways, and customization options, VivoCabs empowers businesses to launch a ride-hailing app quickly, operate efficiently, and scale seamlessly. This makes it an ideal choice for any business looking to capitalize on the growing demand in the ride-hailing industry.
Starting a ride-hailing business in the US presents a wealth of opportunities for businesses willing to navigate its complexities and embrace innovation. Success lies in understanding market dynamics, addressing regulatory challenges, and delivering seamless user experiences. New entrants can identify underserved regions, cater to niche markets, or introduce differentiated solutions that address specific pain points. Utilizing VivoCabs’ customizable and efficient software solution, businesses can launch a ride-hailing app in the US seamlessly, delivering value and growth in this dynamic and opportunity-rich industry.
The future of mobility starts today—take the leap.
Q 1. What are the potential revenue streams to start a ride-hailing business in the US?
Ans. Launching a ride-hailing app opens up multiple revenue opportunities to maximize the profitability of the ride-hailing business. Here are some mentioned below:
Q 2. Can I customize VivoCabs to match my brand and business model?
Ans. Yes. VivoCabs is a highly customizable solution that allows you to tailor your ride-hailing app to fit your specific branding and business needs. The software is designed to be flexible, offering a variety of options to customize the user experience, functionality, workflow, logo, and design according to your preferences. You can customize the app’s logo, color scheme, and UI/UX design to match your business’ identity—ensuring your brand stands out and resonates with your target audience.
Q 3. How much does it cost to build a ride-hailing app in the US?
Ans. The cost to build a ride-hailing app in the US generally varies based on several factors, such as the development approach, the app’s complexity, custom features, scalability, and design requirements. This leads to a significant investment, ranging from $5000 – $500,000.
Whereas, building a ride-hailing app with VivoCabs typically costs around 5x less than the custom development.
However, this cost may vary in case of any customizations required. For more detailed information, kindly refer to our pricing plans.
Q 4: Do ride-hailing apps built with VivoCabs support global expansion?
Ans. Yes, VivoCabs is a highly scalable solution that is designed to support multi-location operations. Thus, making it easy to scale your business across various regions. The software is built to handle growth, allowing you to expand without performance issues, ensuring seamless user and driver experiences across multiple locations. Moreover, VivoCabs can easily handle high traffic volumes, additional drivers, and increasing transaction volumes without any restrictions.
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Tanya is a seasoned business consultant at FATbit Technologies. Keen to explore emerging e-commerce trends and insights, Tanya spurs entrepreneurs and business owners with creative ideas to build strategic marketplaces. Her writings provide practical perspectives on e-commerce industry development, aimed at professionals seeking to navigate the digital landscape. Beyond writing, she loves to travel and refine her skills in content strategy.
