How much does it cost to develop a car rental app like Ekar?

In the digital age, mobile apps that are on demand (Android/iOS) are growing in popularity throughout the world. The ease of booking services and the reliability of delivery apps, such as food delivery apps, car rental apps, taxi booking apps, and apps for package delivery, are getting the spotlight.

Yes. Service delivery apps are becoming widespread across various industries, including car hire. In this post, we’d like to give you a step-by-step overview of how much it will cost to develop an app for car rentals similar to Ekar.

We will guide you through the essential features of an on-demand car rental app development and the variables influencing mobile application development costs.

What is the Ekar Car Rental App?

Ekar is a well-known auto-drive taxi on-demand application in the Middle East. It was created by a self-drive company known as Ekar LLC in Dubai in 2015 to revolutionize the way UAE citizens travel.

With over 500,000 customers nationwide, the app quickly became the leader in the rental car market in the Middle East and the United Arab Emirates.

Through this app, customers can reserve or pay for the taxi rental service and only pay for the amount they’ve used the car. First, the users must determine which vehicles exist in their local area. Then, they can book the auto-driving vehicle based on their requirements and then wait for the delivery at their location or walk in. After that, they can utilize Ekar to access the Ekar app to access the vehicle.

Its pay-as-you-drive business plan offers ease of use and a variety of payment options. Users can pay per minute, day, hour, week, or even by the month. Since Ekar’s services have become available outside Dubai, customers in Riyadh, Abu Dhabi, and Sharjah can book appointments.

Market Stats To Look At!

Check out the market data below:

  • Experts believe that the Car Rental market in the United Arab Emirates is currently estimated at $176.30 million.
  • The market is expected to grow at a pace (CAGR 2024-2029) of 4.02%, producing an estimated market size of $214.70 million in 2029.
  • The number of users is predicted to increase to 0.83m in 2029.
  • The percentage of users is currently estimated at 7.2% in 2024, and it is expected to reach 8.3% in 2029.
  • The average revenue per customer (ARPU) is expected to be $254.60.
  • In addition, by 2029, most revenues from the Car Rental market are forecasted to be derived from online sales.
  • It’s crucial to remember that the United States generated the most revenue, $31,540 million, in 2024 worldwide from car rental.
  • Car rental companies in the United Arab Emirates increasingly offer extravagant and luxurious cars to satisfy the country’s affluent customers.

Essential Features to Have in the Ekar Rental App. Car Rental App like Ekar

The features of mobile applications are the primary pillars determining their success rate. When you begin developing your mobile application, list the most effective features that offer seamless experiences for users and provide excellent value to businesses over time.

The best car rental app development company does extensive research on competitors’ app markets, opportunities for growth, user preferences, and current trends to develop the most efficient car rental app with the most efficient features and functions.

Here are a few essential features you should incorporate into application development for car rental, such as Ekar.

User Panel

  • Personalized Rides

The passengers should be able to alter the settings of their ride. To increase customer satisfaction and loyalty to the company, passengers should be given more choices regarding gender, language, location of pickup and drop-off, and pickup times.

  • Real-Time Ride-Tracking

Every trip should be able to be tracked from the moment of arrival to the end of the journey. It is also necessary to share the information because passengers wish to share the status of their journey with loved ones to ensure safety.

  • Multiple Payment Options

Don’t limit the methods your customers can use to pay. Incorporate as many payment options as possible, including the cash register, application coins, debit cards, UPI, credit cards, and more. Additionally, as time passes, you can learn about your customers’ preferences and choose the best ones to improve the user experience and speed up the checkout process.

  • User-friendly Interface

The effectiveness of any program that rents vehicles heavily depends on the design quality. To ensure efficient reservations, increase client satisfaction, and increase the likelihood of repeat visits, the application should be easy to use, allow users to look over the available vehicles, and allow appointment scheduling quickly, easily, and swiftly.

  • Channels for Communication and Help

Chatbots, messaging in-app, and hotlines for user support are some examples of efficient communication channels that allow users to get answers, seek help, and have their issues addressed quickly. This improves customer confidence and makes it easier to make reservations.

  • Booking and Reservation Management

Users can reserve their reservations ahead of time, select the hours and days of their rentals, select pickup and drop-off locations, and access contract conditions and confirmations directly through the application.

Driver Side Features

  • Driver Registration and Verification

The first feature available for drivers is registration and verification. The drivers have to go through an extensive registration process that includes providing personal details and car details along with relevant documents related to their vehicle, such as insurance and care documents, as well as other necessary documents, to ensure that only qualified drivers are accepted onto the platform.

  • Profile Management

Profile management is another vital aspect of developing car rental apps such as Ekar. It allows drivers to maintain their personal profiles, such as updating their personal information, car information, and payment preferences. You can also see their driving record, along with their earnings and customer scores. The information they collect will help them manage their time effectively.

  • Vehicle Management

Vehicle management is another essential aspect. Drivers require tools to manage their vehicles, which include uploading and updating documents, scheduling maintenance, and reporting problems. This ensures the cars are in good order and comply with the rules.

  • Booking Management

Drivers need an automated system for managing booking requests, which includes renting or refusing to rent, viewing upcoming bookings, and examining the rental history. They require real-time updates regarding cancellations and reservations so that they can be informed and plan other trips accordingly.

  • Vehicle Tracking

GPS technology assists drivers in tracking the exact location of their vehicles and optimizing routes to ensure convenient pick-up and return times. This feature allows for seamless coordination between users and drivers, seamless transactions, and efficient use of vehicles in Ekar.

  • Driver Support

Drivers need access to the support service for help with any issues they may encounter, such as technical issues with the app, issues with customers, or car issues. Support for the app can include in-app assistance hotlines and comprehensive instructions or guides. This will ensure smooth operations and rapid problem resolution.

Benefits of Car Rental Mobile App Development

Investing in developing a car rental app is a smart idea since it holds lots of potential. These are the main advantages of creating a mobile car rental app:

1. Higher Customer Engagement

An online journey improves the customer experience. It’s simpler for the customer to get details, make reservations, and manage their rental according to their own preferences. The rental experience for cars becomes more efficient and easy to access.

2. Better Customer Experience

There will be many variations between the user experience provided by a mobile application and the manual booking of a car. The former will be more pleasant as it is user-friendly and easy to use, increasing customer satisfaction and loyalty.

3. Higher Visibility and Reach

If you’re in the conventional rental industry, you can connect only to the local market, but through a mobile app, your reach and accessibility extend across the entire country and even internationally.

4. Enhanced Brand Recognition

Rental cars are a competitive field, and with a mobile application, you can outsmart your rivals by gaining greater brand recognition. The app will help reinforce your brand’s identity and values and improve the company’s overall reputation.

5. Data Collection and Analysis

The mobile app will help you collect information from users. You can then use this information to provide a more customized experience to your customers. It can collect information about customers’ behavior, patterns of usage, and preferences.

6. Streamlining Operations

Managing the car rental industry using the traditional method takes work. Monitoring everything is essential, and making phone calls manually and in person isn’t a good idea if you’re seeking to increase the size of your business. With a mobile app, you’ll be able to manage everything in one place.

Challenges in the Car Rental Industry and How An On-Demand Car Rental App Can Solve Them

The rental car sector is experiencing significant shifts, and various issues come with them. But, an on-demand car rental app can offer creative solutions to tackle these issues and improve the overall experience for customers. Here are a few problems that face the car rental business and how an on-demand car rental app could solve these issues:

#1: Limited Vehicle Availability

A common problem in the rental car industry is a lack of availability, especially during peak times. On-demand rental apps could solve this problem by connecting renters to an extensive collection of rental companies, resulting in a bigger selection of vehicles.

#2: Time-Consuming Booking Process

Traditional car rental processes typically require lengthy forms and manual verification, which can create a protracted booking experience. On-demand rental apps simplify the booking process by allowing users to browse for vehicles available, pick their preferred option, and complete their reservation in a matter of minutes. This will save both customers and rental businesses time.

#3: Lack of Transparency in Pricing

Uncertain pricing and hidden fees have been a long-standing issue in the car rental industry. The solution to this issue is to ensure upfront transparency on pricing through your rental app on demand. Customers can see the rental prices, additional charges, and any fees applicable prior to booking to ensure transparency and avoid unanticipated costs.

#4: Inefficient Customer Support

Another problem in the rental car business is ineffective customer support. An app for renting on-demand can incorporate a comprehensive support system for customers. This could include features such as chatbots in-app, chatbots within the app, and 24/7 assistance that allows users to receive immediate help and solve any issues or questions they might face.

#5: Limited Flexibility in Rental Durations

Traditional car rental businesses typically offer fixed rental periods that might not meet customers’ specific requirements. Online car rental apps offer customers flexible rental times, allowing them to select hours and daily or weekly rentals according to their preferences. This flexibility increases convenience and gives customers more choices.

#6: Insurance and Liability Concerns

Issues with liability coverage and insurance could complicate the rental process. On-demand rental apps can help by incorporating insurance options and clearly defining the rules and regulations. This will ensure that both customers and rental companies have a clear understanding of the obligations and are appropriately secured.

Step-by-Step Guide to Developing a Successful Car Rental App

Successful car rental apps require meticulous preparation and implementation. Follow this step-by-step procedure to develop a distinctive app for car rentals.

Step #1. Identify the Target Audience and Their Needs

Learn about your audience’s specific needs and preferences. When you are considering renting a vehicle, consider your customers’ demographics, travel habits, and preferences. This will enable you to adapt the app to your customer’s needs and offer relevant functions and options.

Step #2. Define the Essential Features for the Car Rental App

Define the most important features your app should include per your intended audience’s requirements. The selection of a vehicle, reservations and booking management GPS tracker, safe payment choices, user service, and more services could be added. Sort the features by their importance and practicality.

Step #3. Choose the Right Technology Stack for Development

Selecting the appropriate technology stack is essential to the smooth functioning of your car rental app. When choosing the frontend, backend database, and other technologies, consider scalability, security, performance, and compatibility.

Step #4. Design an Intuitive UI/UX for a Seamless User Experience

The User Interface (UI) and the experience for users (UX) are crucial in keeping and attracting users of apps. Develop a simple and appealing user interface that lets users quickly navigate the mobile application for car rentals to search for vehicles or reservations and access other essential features. Make sure to emphasize simplicity, responsiveness, and transparent information exchange.

Step #5. Build a Robust Backend

Create a scalable and secure backend infrastructure that handles applications’ operations like user authentication, data storage, and communications with third-party services. Incorporate secure payment processors to facilitate smooth and secure payments within your application.

Step #6. Test, Launch, and Gather User Feedback

Test the app thoroughly using a variety of operating systems and devices to test its functionality and performance. Before launching the app, make sure that any glitches or bugs are fixed. After launch, be sure to actively review users’ feedback to find areas for improvement, make updates, and add new features as they become available.

Working Models of Car Renting Apps

Selecting the right working model is the first step. Each rental app for cars is specific to the model. For example, Zipcar clients can rent the vehicle they want by renting it out for periods or days, whereas Uber users can arrange rides and pay the appropriate price. Choose the model that you think appeals to you as promising. The most popular models for functional use of rental car applications are listed below.

Local Car Rental

The most well-known model is this. It allows users to book or reserve taxis at any point. It works primarily as a taxi service for locals, but you receive the route along with the driver’s details and payment details prior to the trip on this page. Some rental apps based around this model also offer services for booking in advance, usually just a few days before departure.

A rating and review system is included across the major local rental car apps, allowing passengers and drivers to provide feedback. The most efficient and well-known local vehicle rental applications can be found on Uber and Lyft.

Self-Driven Model

The most popular and well-liked vehicle rental concept is self-driven. In this concept, individuals hire vehicles from rental companies according to their requirements. Anyone with a driving license who does not yet have a car can use this. If the vehicle of a car owner is unavailable, they may utilize it as a temporary substitute.

Peer-To-Peer Car Sharing

The sole difference between this hire model and the above is that the latter lets customers rent cars directly from private owners, not through companies. Peer-to-peer sharing has vibrant auto rental communities in the local area, where customers can pick any car from a carefully selected selection.

Customers enjoy the convenience and luxury of clean cars while hosts earn a little extra. Turo is one of the best examples of peer-to-peer shared sharing.

Outstation Car Rental

Passengers’ car reservations for interstate and intercity travel are handled through outstation car rental. Customers can use rental service under the model for travel within states or cities and pay for their fares according to the duration of their trip.

Travelers often benefit from an outstation vehicle rental option because it allows them to cut back on additional expenses like maintenance and fuel. The driver is the most effective illustration of an outstation rental scheme.

Corporate Rental

Rental models for corporate use are growing as more companies embrace the concepts behind car rental applications. To perform business-related duties, employees receive vehicles in a corporate leasing model. Companies use rental services to deliver and pick up goods.

Furthermore, they can provide private taxis for employees who are in town for a conference. The company pays for the cab and can provide transportation for a day or several days.

Cost of Creating an App like Ekar

The cost of developing an app like Ekar is more complex to determine than it seems. A variety of factors impact the cost of the app, including the platform on which it is built, features, technological stacks, the company’s structure, and overall complexity. Development costs can be further impacted by the varying hourly rates of developers worldwide and changing hourly fees for car rental applications.

With all these variables and nuances impacting the mobile app that calculates rental cars, can you determine the price?

We think that developing an MVP version of an app for car rentals such as Ekar will cost between $20,000 and $100,000. If you opt to include more advanced features and capabilities in your mobile app, your development cost could increase to $300,000 or more.

Factors Affecting the Car Rental App Development Cost

Various factors, such as features, platforms, and the tech stack, influence the development cost. We’ll explore these elements in more detail below.

Tech Stack

An application for car rental must have the most current and cutting-edge technology stack to stand out from competitors.

  • Real-time Analytics: Apple Flink, BigData, Cisco, Spark, Hadoop
  • Database: MailChimp Integration, Postgres, HBase, MongoDB, Cassandra
  • Voice, SMS, & Phone Verification: Twilio, Nexmo
  • Payments: E-Wallets, Stripe, PayPal, Braintree
  • Cloud Environment: Azure, Google, AWS
  • Push Notifications: Push.io, Twilio

Team Structure

To develop a car rental app that will benefit your business, it’s essential to choose a reputable, on-demand mobile application for a car rental app development firm like Fullestop. Fullestop can rely on skilled developers and a team of managers, testers, and designers who employ your product’s most efficient development methods to turn your concept into real-world success.

The team structure necessary to build an efficient car rental app will appear like this:

  • 3-4 Android Developers and iOS developers
  • 1 UI/UX designer
  • One project manager for one project
  • Two experts from QA

Location and Hourly Rates of Developers

The hourly rates of app developers worldwide vary greatly, impacting the cost of developing an app similar to Ekar.

For instance, hiring a developer in the US can cost anything from $150-$250 an hour. In Europe, the cost could be between $120 and $180. Hiring developers in India can cost anywhere between $40 and $82 per hour. Don’t fall for the fact that you can pay a lower cost, which does not necessarily mean inferior quality. The only thing that determines the price is the economics of the nation.

Features Used in the App

Features are among the most essential elements that affect the development price of a mobile application for renting a car. While incorporating basic features could constitute a substantial part of the development budget, incorporating some of the most sophisticated options is vital to being successful in a highly competitive marketplace.

Concluding Notes

Developing a car rental app such as Ekar could be a lucrative endeavor. With a thorough understanding of the industry, incorporating the essential features using software for car rental, ensuring a user-friendly interface while adhering to regulations, effectively marketing by testing thoroughly, and observing user feedback, you can develop an efficient booking and rental app that will meet the demands of the target market. Remember that success in the world of app development usually comes from perseverance and constant advancement.

If you’re looking for car rental app development services that can provide an on-demand app for car rental creation comparable to Ekar, your search is over here. Fullestop is your perfect supplier, offering professional guidance and support throughout development. We are experts in developing custom applications that meet your specific business requirements. With Fullestop, you’re in safe hands, and we’ll join forces in bringing your idea to reality.