Ride-hailing and How Businesses Can Create Their Custom Solutions
In cities where buses run late and public transit misses the mark, riders are choosing convenience on their terms. Here’s the kicker: It’s not just Uber and Lyft cashing in.
Did you know over 36% of U.S. adults already use app-based ride services, and that number’s still climbing?
For fleet managers, this shift offers an exciting opportunity. The demand for flexible, on-demand transportation is growing fast, and building your own branded ride-hailing service could position you as a key player in this expanding market.
So, fleet manager, what’s your move?
This shift is also changing how mobility businesses grow. Companies can now build and run ride-hailing services without building every part from scratch. This blog will cover how ride-hailing works, what makes it unique, and why it’s becoming a go-to model for modern transport services.
What is Ride-hailing?
Ride-hailing refers to requesting a private ride through a mobile application. These services are app-based and allow users to book point-to-point trips with on-demand drivers. Unlike taxis, ride-hailing services rely on software to match passengers with nearby vehicles, calculate pricing, and process payments.
At its core, a ride-hailing platform serves as the middle layer between driver and rider. It handles communication, location tracking, and fare transactions, eliminating the need for direct negotiation or manual dispatching.
For example, a resort operator using a ride-hailing platform can offer guests an on-demand shuttle service across the property. With the app, guests request rides between villas, restaurants, and recreational areas, while the operator manages vehicles, routes, and usage data from a central dashboard. This creates a premium mobility experience without needing additional staff or infrastructure.
5 Must-Have Features of Ride-Hailing
Only in the fourth quarter of 2024, 171 million people in the U.S. used app-based ride services, which is only for Uber. So, you can tell that demand has created new business opportunities, from citywide transport to niche fleet services, backed by reliable systems.
What sets ride-hailing apart is its seamless blend of software, automation, and user-focused design. Below are the five core components that power this model:
- Branded Rider Apps: Passengers interact with a mobile app that reflects the operator’s branding. The app allows users to request rides, access ride history, view nearby vehicles, and make payments, all within a single interface.
- Secure Onboarding: Before accessing the service, users register safely. Most systems require contact details and a valid payment method, helping verify real users and reduce risk.
- Real-Time Accuracy: Built-in GPS technology tracks a user’s location and the incoming driver’s route. This reduces waiting times, supports driver safety, and allows operators to offer live ETAs and route updates.
- Transparent Fare: Riders see the trip’s estimated cost before booking it. This builds trust and helps businesses offer consistent pricing models, without negotiations or surprises.
- Built-In Digital Payment Systems: Cash isn’t part of the transaction. Payments are processed through the app automatically, creating a safer, faster experience for both rider and driver, and simplifying revenue tracking for operators.
- Always Available, Wherever They Are: Riders expect transportation that works across locations and schedules. With your service live 24/7, you’re always there. Unlike traditional taxis, your ride-hailing system can cover remote zones and operate outside business hours, offering true flexibility.
Once you understand how ride-hailing works, you can start your own business in a more structured manner.
How a Ride-Hailing System Works: A Step-by-Step Guide for Mobility Providers
Ride-hailing platforms are designed to make the process of getting from one place to another as simple and efficient as possible. Here’s a breakdown of how the system works:
Step 1: Customer Opens the App and Requests a Ride
What Happens: The rider launches the branded app, enters their destination, and confirms the pickup point (auto-detected via GPS).
For Operators:
- Integrate live location services using APIs like Google Maps or Mapbox.
- Add an intuitive UI that defaults to “current location” but allows manual adjustments.
- Let users save frequent locations (home, office, dorm).
Step 2: Ride Request is Broadcast to Nearby Drivers
What Happens: The system locates nearby drivers and broadcasts the trip request based on proximity, traffic, and driver status.
For Operators:
- Use geofencing and dynamic radius settings to control how far a request is broadcast.
- Integrate with driver availability APIs and push notifications for instant alerts.
Step 3: Driver Receives and Accepts the Ride Request
What Happens: Drivers receive trip alerts with key details, such as pickup location, rider name, and fare estimate. One accepts the ride.
For Operators:
- Offer an easy-to-use driver app with accept/decline buttons and trip previews.
- Allow pre-trip fare estimates and ETA calculations using backend routing engines.
Step 4: Rider and Driver Track the Journey
What Happens: After acceptance, both parties track each other in real time. ETA updates dynamically as the fleet moves.
For Operators:
- Implement live GPS tracking and estimated time recalculations during the approach and trip.
- Enable secure in-app messaging or call features to contact one another.
Step 5: Trip Starts, and the Ride is Underway
What Happens: The trip begins. The system logs route, time, and distance to calculate the final fare automatically.
For Operators:
- Add route-optimization tools and integrate payment gateways like Stripe or Razorpay.
- Allow digital invoices, trip summaries, and in-app ratings once the ride ends.
While ride-hailing services offer a straightforward, on-demand experience, it’s important to distinguish them from ride-sharing services, which operate under a different set of principles and expectations. Let’s explore the key differences.
Want to provide your customers with a complete mobility solution? Explore how EazyRide’s platform’s subscription-based pricing model can help you seamlessly integrate micro-mobility services into your fleet, giving your users the flexibility they need.
8 Key Differences Between Ride-Hailing and Ride-Sharing
While both ride-hailing and ride-sharing offer convenient, app-based transportation services, they are fundamentally different in terms of service model and operational structure. Understanding these distinctions is crucial for anyone looking to enter the shared mobility market. Let’s look at the table to understand the differences clearly:
Features | Ride-hailing | Ride-sharing |
Ride Type | Ride-hailing provides a private ride for the passenger. | Ride-sharing involves sharing a ride with other passengers. |
Booking Process | Booking is done via an app, where passengers can request a ride immediately or schedule it for later. | Booking can also be done via an app, but passengers may have to wait. |
Pricing Structure | Dynamic pricing changes based on demand, time, distance, and weather conditions. | Pricing is generally fixed. |
Payment Method | Payment is usually automated via credit card, debit card, or e-wallet. | Payment is shared among passengers. |
Service Type | Ride-hailing services are to provide a convenient transportation option. | This is often seen as a more affordable option. |
Availability | Availability may fluctuate based on time of day or geographic location. | Availability is more limited than ride-hailing, especially in less urbanized areas. |
Route | The driver takes the most direct route from the pickup to the destination. | Passengers may experience detours as the driver picks up and drops off others. |
With a plethora of advantages, it is easy to feel overwhelmed when choosing which app to launch your business. Let’s look at the next section to get an idea of what to choose.
3 Best Apps for Launching Your Own Ride-hailing Service
Starting a ride-based mobility service used to require heavy tech investment. Today, a few platforms offer ready-made tools to help you go live faster, with complete control. Among them, three stand out for very different reasons:
inDrive
inDrive is a unique ride-hailing platform that stands out for its peer-to-peer pricing model, allowing passengers and drivers to directly negotiate ride conditions, including fare and trip details. This approach offers greater flexibility and transparency compared to traditional ride-hailing apps, making it appealing to both passengers and drivers who seek more control over their ride experience.
Ridecell
Ridecell is built with automation at its core, making it an excellent choice for large enterprises managing fleets of vehicles. This platform offers digital vehicle control, optimizing the logistics of car rentals, shared rides, and fleet management. The system’s integration of real-time tracking, automated fleet management, and predictive analytics ensures a seamless operational flow.
Moovit (MaaS)
Moovit stands out as a leader in the Mobility-as-a-Service (MaaS) space, providing seamless integration of ride-hailing with public transit systems. This platform excels in urban mobility, helping cities and transit agencies integrate various transportation modes, such as buses, trains, and ride-hailing services.
Ride-hailing and micro-mobility services complement each other by offering users flexible transportation options. Integrating both services in one platform enhances user experience, offering a flawless transition between modes of transport. Together, they provide a sustainable, efficient, and eco-friendly solution for urban mobility.
However, finding a white-label solution for creating your own micro-mobility platform is difficult. That’s exactly where EazyRide comes into the picture.
How EazyRide Supports Micro-Mobility Services?
EazyRide offers a perfect platform designed to organize the operation of micro-mobility services such as e-bikes, scooters, and more. With customizable solutions, we help businesses deliver a user-friendly experience while ensuring efficient fleet management and operational control.
Key Features of EazyRide:
- White-Label Rider Applications: Fully customizable apps for Android and iOS, allowing riders to easily locate, unlock, and use vehicles. Features include an integrated wallet, ride history, and mapping tools for a smooth user experience.
- Admin Dashboard: A centralized web-based dashboard to monitor fleet status, adjust pricing, control geo-boundaries, analyze user data, and launch promotional campaigns. It enables seamless management and operational oversight.
- Fleet Operator App: A dedicated app for ground teams to manage vehicle rebalancing, charging, maintenance, and service tasks. Operators can scan QR codes to check vehicle statuses and update logs in real-time.
- Analytics & Heatmaps: Advanced AI-powered insights that help track trip frequency, identify peak zones, monitor idle times, and analyze revenue performance. These tools allow for optimized fleet distribution and improved business performance.
- Geofencing & Zonal Control: Control where vehicles can be used, parked, or restricted through GPS-enabled geofencing tools. Set no-go zones, speed limits, and parking areas to ensure compliance with local regulations.
- Multiple Business Models: EazyRide supports various business models such as docked, dockless, and hybrid rentals. This flexibility makes it ideal for urban transport, tourism rentals, university campuses, or private communities.
EazyRide offers a comprehensive solution that enhances the user experience and optimizes fleet management, setting the foundation for the future of micro-mobility services.
Conclusion
As ride-hailing services grow, businesses can enhance their offerings by integrating micro-mobility options like e-bikes and scooters. This combination allows for a more flexible, efficient, and sustainable transportation solution for customers. With EazyRide’s platform, you can easily manage micro-mobility services, optimizing your fleet and expanding your reach.
Schedule a demo today to learn how we can help you diversify your transportation options. Start optimizing your micro-mobility service now to stay ahead of your competitors.
FAQs
1. What is a ride-hailing app?
A ride-hailing app is a mobile platform that connects passengers with drivers through real-time GPS and payment integration. Apps like Uber and Lyft let users book rides on-demand, track drivers, and pay digitally without needing to hail a taxi from the street.
2. What’s the difference between ride-hailing and ride-sharing?
Ride-hailing means booking a private vehicle for yourself through an app, with no intention to share it with strangers. Ride-sharing, on the other hand, involves sharing a ride with other passengers going the same way, think carpooling. Ride-hailing focuses on convenience and speed, while ride-sharing aims to reduce cost and environmental impact.
3. What does ride-hailing mean?
Ride-hailing refers to the process of digitally requesting a ride from a nearby driver using an app. Unlike traditional taxis, ride-hailing services use private vehicles and rely on dynamic pricing, GPS tracking, and real-time availability through smartphones.
4. What are some examples of ride-hailing services?
Popular ride-hailing services include Uber, Lyft, Bolt, DiDi and Ola. These platforms operate globally or regionally, offering app-based bookings, cashless payments, and options ranging from economy cars to luxury vehicles and bike taxis.