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How to Start a Taxi Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on March 3, 2022 Updated on May 8, 2024

Investment range

$3,250 - $7,400

Revenue potential

$47,000 - $275,000 p.a.

Time to build

0 – 3 months

Profit potential

$38,000 - $55,000 p.a.

Industry trend

Think taxis are a thing of the past? Think again! Rideshare services like Uber and Lyft have grabbed a large share of the market, but they have not made taxis obsolete. The US taxi industry is still worth $66 billion, so there’s money to be made. You can start your own taxi business as a solopreneur, and eventually grow into a full-fledged company with a fleet of cars and drivers. All you need is one car and a taxi license to get started. 

First, though, you’ll need to understand the ins and outs of starting and running a business. Luckily, this step-by-step guide will provide all the information and insights necessary to get you on the road to taxi cab entrepreneurship.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

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Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a taxi business has pros and cons to consider before deciding if it’s right for you. 

• Low Startup Costs – One car and you’re off to the races
• Flexibility – Pick your own hours, run the business from home
• Large Market – Demand for taxis is still high, particularly in large cities
• Tough Market – Compete with apps like Uber and Lyft
• Long Hours – To make money, you need to be a workhorse

Taxi industry trends

Industry size and growth.

• Industry size and past growth – The US taxi and limousine market is worth $66.6 billion in 2022 and has grown nearly 3% annually for the last five years.(( https://www.ibisworld.com/industry-statistics/market-size/taxi-limousine-services-united-states/ ))
• Growth forecast –  The global taxi industry is expected to grow an impressive 66% by 2026.(( https://www.mordorintelligence.com/industry-reports/taxi-market ))
• Number of businesses – In 2022, 2,568,140 taxi and limousine businesses were operating in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/taxi-limousine-services-united-states/ ))
• Number of people employed – In 2022, the US taxi and limousine industry employed 2,379,410 people.(( https://www.ibisworld.com/industry-statistics/employment/taxi-limousine-services-united-states/ ))

Trends and challenges

Trends in the taxi industry include:

• Customers are seeking apps to book taxis, so taxi services need to embrace this trend to be successful.
• Eco-friendly hybrid or all-electric taxis are also in demand. This presents a huge opportunity for an eco-friendly taxi business to differentiate itself.

Challenges in the taxi industry include:

• A continuous challenge in the taxi business is finding and keeping good drivers who provide excellent customer service.
• Rising fuel prices are cutting into the profit margins of taxi businesses.

Demand hotspots

• Most popular states – The most popular states for taxi drivers are Rhode Island, Connecticut, and New Hampshire.(( https://www.zippia.com/cab-driver-jobs/best-states/#rhode-island ))
• Least popular states – The least popular states for taxi drivers are Colorado, Utah, and Montana.

What kind of people work in taxi businesses?

• Gender – 23.5% of taxi drivers are female, while 73.3% are male.(( https://www.zippia.com/taxi-cab-driver-jobs/demographics/ ))
• Average level of education – The average taxi driver is high school educated.
• Average age – The average taxi driver in the US is 48 years old.

How much does it cost to start a taxi business?

Startup costs for a taxi business range from $3,200 to $7,400. Costs include a down payment on a vehicle and signage for the vehicle. You’ll also need to get a car for hire license from your city. In some cities, this can be a significant cost. For example, in New York City a taxi medallion costs about $80,000, while in Columbus, Ohio it only costs a few hundred dollars. 

How much can you earn from a taxi business?

Taxi fare rates vary by city but usually include a flat base charge, a charge per mile, and an hourly wait time rate. These calculations will assume that your average fare will be about $15. Your profit margin after fuel and insurance costs should be about 80%.

In your first year or two, you could work as a solopreneur and do 10 trips per day 6 days per week, bringing in $47,000 in annual revenue. This would mean nearly $38,000 in profit, assuming that 80% margin. As your brand gains recognition, you could have five taxis and hire drivers, and sales could climb to 50 trips per day 7 days per week. At this stage, you’d rent a commercial space and hire staff, reducing your profit margin to 20%. With annual revenue of almost $275,000, you’d make a tidy profit of more than $55,000.

What barriers to entry are there?

There are a few barriers to entry for a taxi business. Your biggest challenges will be:

• A clean driving record is required, and you may have to pass an exam
• Competition from other taxis plus apps like Uber and Lyft

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How to Start a Rideshare Company

Step 2: hone your idea.

Now that you know what’s involved in starting a taxi business, it’s a good idea to hone your concept in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research taxi businesses in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a limousine taxi service, or an electric taxi service.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as bike taxis in urban areas.

This could jumpstart your word-of-mouth marketing and attract clients right away.

What? Determine your services

You’ll need to determine what kind of taxi service you want to have. You could have a limousine taxi service, a black car taxi, a minibus taxi service, an eco-friendly taxi cab, a bike taxi, or even a water taxi. You also need to decide if you want to have a taxi booking app.

Who? Identify your target market

When determining the target market for your taxi business, it’s important to recognize that your audience will vary depending on the type of services you offer. For instance, tourists needing transportation from airports or hotels represent a different segment compared to those requiring event transportation or specialized services like taxis for the disabled.

It’s advisable to have a broad target market to cater to a wide range of needs. This approach allows you to maximize your customer base and adapt to various demands in the transportation industry.

Acquire vehicles for your taxi business

Starting a taxi business requires a reliable and efficient fleet of vehicles. Here’s how to make the best choices for your fleet:

1. Assess Your Needs:

• Capacity: Determine the size of the vehicle needed based on the typical number of passengers. Consider sedans for up to 4 passengers or minivans for larger groups.
• Fuel Efficiency: Choose vehicles with good mileage to minimize fuel costs, an important factor in your business’s profitability.
• Comfort: Opt for models that offer a comfortable ride, as this can significantly impact customer satisfaction.

2. New vs. Used Vehicles:

• New Vehicles: Offer the latest features and are less likely to require repairs, but are more expensive.
• Used Vehicles: More cost-effective but may have higher maintenance costs. Opt for certified pre-owned cars for better reliability.

3. Leasing vs. Purchasing:

• Leasing: Provides the option to upgrade vehicles regularly and avoids the depreciation cost, but may come with mileage limitations.
• Purchasing: Results in owning the asset outright, offering more control but requires a larger upfront investment.

4. Maintenance Plans:

• Consider maintenance costs in your budget. Regular maintenance is crucial for safety and prolonging the life of your vehicles.
• Establish relationships with trusted mechanics or consider service contracts with dealerships.

5. Regulatory Compliance:

• Ensure that the vehicles meet all local regulatory requirements, such as emissions standards and safety features.

6. Technology Integration:

• Install necessary technology such as GPS systems, fare meters, and card payment terminals.

How much should you charge for taxi fares?

Your fare rates will be dictated by the rates in your city. When you’re working by yourself, your costs will be limited to fuel and insurance. You should aim for a profit margin of 80%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Where? Choose a location for your vehicles

Selecting the right locations for both storing your taxi fleet and identifying hot spots for operation is crucial for the efficiency and profitability of your taxi business. Here’s how to approach these two aspects:

1. Storing Vehicles When Not Active

Centralized Garage or Parking Facility:

• Proximity: Choose a location central to your service area to minimize the time and fuel costs for vehicles to reach their first customers.
• Cost-Effectiveness: Look for affordable parking options to keep overhead low.
• Security: Ensure the area is secure to prevent theft and vandalism.
• Accessibility: Easy access for drivers, especially during shift changes.
• Maintenance Facilities: Nearby maintenance services are beneficial for quick repairs.

2. Identifying Hot Spots for Active Service

High-Demand Areas:

• Airports and Train Stations: Constant flow of travelers needing transportation.
• Business Districts: High demand during rush hours for commuting professionals.
• Tourist Attractions: Tourists frequently require taxis to explore the city.
• Entertainment and Nightlife Areas: Demand peaks during evenings and weekends.
• Hospitals and Medical Centers: Regular need for transport by patients and visitors.
• Shopping Centers and Malls: Popular destinations, especially during weekends and holidays.
• Residential Areas: Targeting suburbs can capture daily commuters and those without personal vehicles.
• Event Venues: Concerts, sports events, and conventions draw large crowds needing transportation.

Step 3: Brainstorm a Taxi Company Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “taxi” or “taxi service”, boosts SEO
• Name should allow for expansion, for ex: “RapidRide Cabs” over “Airport Cabs”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Taxi Business Plan

Here are the key components of a business plan:

• Executive Summary: Provide a brief overview of your taxi business, highlighting its focus on reliable and efficient transportation services within a specific geographic area.
• Business Overview: Describe your taxi service, including the provision of on-demand transportation for individuals and groups in urban and suburban areas.
• Product and Services: Detail the transportation services offered, such as standard taxi rides, airport transfers, and potentially app-based ride-hailing options.
• Market Analysis: Evaluate the demand for taxi services in your area, taking into account factors like population density, public transportation availability, and peak travel times.
• Competitive Analysis: Compare your service to other local transportation options, focusing on your competitive advantages like quicker response times, customer service, or technological integration.
• Sales and Marketing: Outline your strategy for attracting customers, such as through local advertising, partnerships with businesses, or online platforms.
• Management Team: Highlight the experience and skills of your management team, especially in areas like transportation, logistics, and customer service.
• Operations Plan: Describe the operational process of your taxi service, including vehicle management, driver scheduling, and ride dispatching.
• Financial Plan: Provide an overview of the financial aspects, including start-up costs, pricing strategy, and revenue projections.
• Appendix: Include additional documents like vehicle maintenance records, driver training manuals, or market research data that support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to taxi businesses.

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your taxi business will shape your taxes, personal liability, and business registration requirements, so choose wisely.

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family : Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding : Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal : Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a taxi business. You might also try crowdfunding if you have an innovative concept.

Step 8: Apply for Taxi Business Licenses and Permits

Starting a taxi business requires obtaining a number of licenses and permits from local, state, and federal governments. You’ll need to get a car for hire license or taxi medallion from your city.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your taxi business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability : The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property : Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance : Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation : Provides compensation to employees injured on the job.
• Property : Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto : Protection for your company-owned vehicle.
• Professional liability : Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) : This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

 You may want to use industry-specific software, such as Cab Treasure , EverTransit , or TaxiMobility , to manage your bookings, dispatching, fares, and payments. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Developing a website and a mobile app is essential for a modern taxi business, serving as digital gateways for customers to access your services. A user-friendly website should provide clear information about your services, pricing, and contact details, along with an easy-to-use booking system. Complementing the website, a mobile app offers convenience for on-the-go customers, allowing them to book rides, track their taxi in real-time, and make secure payments. Both platforms should reflect your brand’s identity, be intuitive to navigate, and include features like fare calculators, customer reviews, and support options.

Launching a successful taxi business requires a robust marketing strategy that ensures visibility and customer engagement. Here are effective tactics to consider:

• Optimize for Local SEO: Ensure your website ranks high in local search results by incorporating relevant keywords, location-based content, and maintaining an up-to-date Google My Business profile.
• Get Listed in Local Directories: Register your business on local directories and review sites like Yelp, TripAdvisor, and Yellow Pages to increase your online presence and credibility.
• Leverage Social Media Marketing: Regularly post engaging content on platforms like Facebook, Instagram, and Twitter to connect with your community and offer promotions.
• Engage in Community Events: Participate in local events and sponsor community activities to build brand awareness and goodwill.
• Develop Partnerships: Collaborate with local businesses, hotels, and event organizers for mutual referral programs.
• Offer Promotions and Loyalty Programs: Introduce discounts for first-time users and loyalty rewards for frequent customers to encourage repeat business.
• Utilize Email Marketing: Send out newsletters and promotional offers to keep your audience informed and engaged.
• Invest in Vehicle Branding: Wrap your taxis with your business logo and contact information to serve as mobile billboards.
• Encourage Customer Reviews: Prompt customers to leave reviews online to build trust and attract new clients.
• Advertise in Local Media: Use local newspapers, radio stations, and community bulletin boards for targeted advertising.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your taxi business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your taxi business could be: 

• Eco-friendly taxi service – all-electric cars
• Bike taxis so you can see the sights of the city
• 24-hour limousines to travel in style anytime

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a taxi business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in taxis for years and can offer invaluable insight and industry connections.

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in taxis. You’ll probably generate new customers or find companies with which you could establish a partnership.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a taxi business include:

• Taxi drivers – take fares, customer service
• Dispatcher – take bookings, dispatch drivers
• General Manager – staff management, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Taxi Business – Start Making Money!

A taxi business is probably one of the easiest kinds of businesses to start. You just need a vehicle, some signage, and a taxi license. You can make good money, even just working by yourself with one car, but you can also grow your company until you have a fleet of taxis. 

Taxis are an industry worth over $60 billion, so why not grab a share of that fare? You understand the business side of things now, so go ahead and get on the road to entrepreneurial success! 

• Taxi Business FAQs

Yes! Believe it or not, the taxi industry is still worth over $60 billion in spite of competition from ride-sharing apps. If you market yourself well and provide great customer service, you can definitely make money with a taxi business.

Fares are typically set by the city or municipality where you’re located. Rates include a flat base rate, a rate per mile, and an hourly rate for wait time. Check with your city for your local rates.

For a taxi business, you can use various types of vehicles depending on your target market and local regulations. Common options include sedans, minivans, SUVs, or even specialized vehicles for specific purposes like wheelchair-accessible taxis.

First and foremost, reliability is crucial. Ensuring that taxis are available promptly and operate on time is essential. Excellent customer service, including courteous and knowledgeable drivers, clean and well-maintained vehicles, transparent and fair pricing, and easy booking and payment options, also play a significant role.

To ensure the safety and comfort of passengers in your taxis, prioritize regular maintenance and inspections of your vehicles to ensure they are in good working condition. Implement safety features such as functioning seatbelts, GPS tracking systems, and security cameras. Train your drivers in defensive driving techniques, customer service, and safety protocols. Keep the interior of the taxis clean and comfortable, with adequate legroom and temperature control options.

Utilize online platforms and mobile apps to make booking convenient and accessible for passengers. Offer competitive pricing, promotions, or loyalty programs to incentivize repeat business. Partner with local businesses, hotels, or airports to establish referral networks. 

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Taxi Company Name
• Create a Taxi Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Taxi Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Taxi Business - Start Making Money!

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Starting Taxi Business Plan (PDF)

A taxi is a vehicle that may be hired for single journeys by members of the public. It is also commonly referred to as a cab or taxicab. There has been a notable market disruption emanating from digital solutions. A whole new industry of online taxi services has grown over the years. For instance, in the USA, Uber facilitates over 40 million rides every month. Even as online taxi services continue to grow, traditional taxi services are still relevant. It is still worth it and profitable to start a taxi business. Taxi cabs play a significant role in the transportation industry. People opt for taxis due to a variety of reasons including convenience and exclusiveness. Starting a taxi business is a very profitable venture, which is highly rewarding. This article will outline how to start the taxi cab business, and the taxi business plan – PDF, Word and Excel.

The possible sets of destinations for the various customers make it apparent that the demand is huge. The fact that more and more players are starting taxi businesses speaks to how lucrative the business is. Once properly setup this is one type of business where you will be assured to realise revenue on a daily basis. This article will help in informing you with vital information you need to know on starting your own taxi cab business.

Market Research

Already we have stated that an increasing number of players are entering this space. This spells out ‘competition’ and whenever competition is involved you can’t overlook the importance of market research. Just by taking a look at how existing players conduct their businesses you’ll notice that they serve different target markets. Some solely focus on people commuting to and fro work. Some specifically target airports and termini. Others have strategic spots they operate from in central business districts to cater for wide-ranging customers. So in order for you to ascertain that you’re on course, you must research to find out which markets are available, penetrable and sustainably scalable. It’s a must to take a look at existing players. Essentially this means you must closely study them to draw invaluable insights that’ll help you start strong and even eventually topple your competition. Some of those insights will be on popular services offered, rates charged, types of vehicles and payment methods amongst others. This makes it a must to have a good taxi cab business plan.

Taxi Business Model

The traditional business model for a taxi business is simple. It entails having an area where you operate from and in. You park somewhere and clients can come up to you in need of a taxi ride. You can be an owner-driver or you can have a fleet of taxis you own. You can charge fixed rates for specific routes or you can use the metered approach. The metered approach (i.e. charging per mile) is best because client needs can be so random. Another approach is charge per duration of a trip e.g. per hour.

You could charge per day as you would for a car rental. This can apply for a client who wants to be taken to several locations consecutively in a day. Charging can also be dynamic where you simply negotiate with a client. You could also have a retainer arrangement with wide-ranging clients. The online aspect is somewhat the same. The major difference is that when using an online approach, clients book a ride online. This is doable by developing a mobile app for your taxi business. The fares you charge can differ given the costs elements you would want to offset.

Vehicles and Equipment

The major procurement you must make is vehicles. The vehicles can be imported from other countries where they are cheap or you can buy them locally from your country. The number and type of taxi cabs required will depend on the amount of capital which you have and your target market. You will also have to make a decision of whether to buy brand new vehicles or used taxi cabs. When starting the business with limited capital, you may opt to purchase used cars. The advantage of having new taxi cabs is that you have lower maintenance costs and better reliability on the road.

There are several factors to take into consideration when purchasing the taxi vehicles. Some of the factors include: purchase price, fuel consumption, transmission mode (automatic vs manual), gross vehicle mass, model, new taxi cab vs used taxi cab. If you have limited capital, you can always start your meter taxi business with just one vehicle. Taxi cab business is very profitable and if you reinvest your profits, you will be able to purchase more taxis.

Equipment required for the meter taxi business include garage equipment, taxi meters, taxi partitions, top lights, communication radios (for communication with the dispatch centre). The taxi drivers should always travel with basic repair tools such that if they encounter minor problems along the way, they can always fix the taxis. The taxi business plan should include the costs of purchasing the vehicles and equipment.

Taxi Servicing And Repairs

When running a taxi business you can never compromise and expect to thrive. Customers are most concerned about convenience. This means your taxis must always perform optimally. They must always be fully serviced and devoid of any operational issues. That is why you must always take your taxi(s) for service. It is advisable to have a reputable servicing and repairs provider that you work with. Always keeping your taxi(s) clean and doing daily checks before, during, and after daily operations is key here. If these elements are all kept in check it is rare for your taxi(s) to malfunction. Servicing and repair costs should be accounted for in your taxi business plan.

Taxi Business Insurance and Licences

One of the critical requirements that can potentially have catastrophic consequences for the public as well as the business is insurance. It is advisable to have a comprehensive insurance plan for all the taxi cabs. The costs of such a package are more than offset by the potential losses if you were to have an accident. As a business; the taxi cab company may be liable for very significant punitive damages particularly if there is a loss of life. Without adequate insurance, the taxi cab business could be bankrupted by compensation claims.

The taxi industry is regulated and the specific licences depends with the country. First of all, your drivers must be properly licensed with up to date records including health checks and driver licences.  Your local council will have a list of regulatory requirements which must be diligently followed lest you lose your license to operate the taxi cab business. The taxi cab business plan should include costs for the insurance and licenses.

Staff and Management

Operations staff is a necessity. Operations staff are responsible for handling the operations of the taxi cab business. They include drivers, assistants, logistics personnel, mechanics and operations manager. You will need a taxi driver as the minimum starting employee for the taxi business.

Finance and accounting employees are also required. For a small taxi cab business, the duty can be handled by the owner of the business or a part time accountant. However as the taxi transport business grows, there will be need for full time employees who will be responsible for the finance and accounting needs of the business. Their duties will include usual day to day transaction accounting for business, managing the cash flow of the taxi cab business, and always ensuring the enough funds are available for the day to day needs of the taxi business.

Marketing is essential for you to be successful in the taxi business. To have a stable financial position, your taxis should get sufficient number of trips every day. This is only possible if you are marketing your taxi cab business. Thus your taxi business will also need marketing and sales staff. If you have a dispatch centre then you also need staff so the dispatch centre. Your taxi cab business plan should cater for the wages and salaries of all your staff.

Competitive Analysis

The taxi business is marked by intense competition. For instance, you have to compete with unregulated taxi operators. You also have to compete with ride-sharing brands e.g. Uber. Competitive analysis in a taxi business is to establish differentiators that can make you stand out. Customers when they hire taxis they have certain expectations. How are other taxi operators faring in terms of meeting those expectations? Answers to that can show you how best you can provide superior services.

You must in great detail know about all your direct competitors. Look at their profiles, their target markets, and generally how they conduct business. Look for verified information or conduct observations by trying out competitors’ taxi services. Once you establish all that you can know where and how to strategically place your taxi business. One of the most effective ways to do your competitive analysis is by doing a comprehensive SWOT analysis.

Capital for Starting Taxi Business

The amount of capital required for starting the taxi business depends on the size of the business. It all depends on what you want to achieve and the resources that you have. When starting a taxi cab business, most of the capital goes to acquiring the taxi cabs. You can get a loan from the bank, or funding from investors, to use as capital to start your meter taxi business. If you plan to raise capital from investors and a loan from the bank, you need a good meter taxi business plan. If you don’t have access to investors and bank loan, you can use your personal savings and start small, and grow your taxi business overtime. Taxi business is very profitable, so if you reinvest the profits you get, you can grow over time. Even if you are not planning to get a loan, you should still get a taxi project plan to guide you in starting and operating the business. It is essential for you to have a meter taxi business plan before you venture into the taxi cab business, so that you know all the costs involved and you make an informed decision.

Market for the Taxi Cab Business

The market for taxi cab services is very huge. There are a lot of potential customers for taxi services. Companies may outsource transportation of their employees to taxi cab companies. Parents require taxi cabs to transport their children to and from school. Individuals may need taxi services for routes within a specific location which are not plied by public transport or within the city centre. Some individuals prefer to use taxi cabs even if alternate public transport is available. This is because taxis are more convenient, fast, offer privacy, and exclusiveness. Potential sites to find clients include hospitals, universities, schools, airports, night clubs, city centre, hotels & lodges, shopping centres among others. A proper marketing strategy should be included in your taxi business plan. 

Marketing Plan

Engaging vehicle branding.

There are countless marketing approaches you can employ for your taxi business. The taxi business involves the use of moving vehicles. That makes the actual vehicles a central feature of marketing. Have the vehicles colourfully branded with subliminal marketing content. People merely seeing the taxis passing by will have their subconscious minds conditioned.

Attending Strategic Events

The thrust is to attend events that can strategically generate leads for your taxi business. Examples of such events are trade shows, concerts, conferences, and the like. One way is to actually exhibit and showcase your taxi offerings, if possible. The other way is to simply be in the vicinity of such events. There is most likely always going to be people who will need your services.

Sponsoring Or Supporting Worthy Causes

Running a taxi business offers you easy ways to sponsor or support worthy causes. All it can take is you providing your taxi(s) for free for some event or cause. Your presence during that event or cause will draw so much attention to your taxi brand. You could also materially contribute to causes such as helping the underprivileged. Your association with notable events or causes is a potent marketing strategy. Remember, your taxi(s) being branded will be doing the work for you.

Internet And Social Media Initiatives

This should be at the core of the marketing plan for your taxi business. You must have a website and set up active accounts on social media. Use high definition visuals to draw people in. Regularly do online contests; these are highly effective in building your audience. All your social media initiatives should encourage word of mouth and referrals.

Another faster and more effective strategy is to work with social media influencers. Work especially with macro influencers (between 40000 and 1 million followers) and m icro influencers (between 1000 and 40000 followers). Such influencers are often characterised by highly engaged audiences.

Keys To Taxi Business Profitability

You are supposed to be big on quality in your operations. This refers to aspects such as cleanliness, timeliness, cordialness, and convenience. Customers will always settle for taxi businesses that have these qualities. That is why customers will not hesitate to switch to other taxi operators if you are lacking. Using vehicles with good fuel economy is a vital key to profitability in a taxi business. Regular servicing and using fuel from reputable sources also feeds into good fuel economy. This significantly reduces your operating costs. The first ever taxi service or business was started in 1897. It has been more than a century since then and taxis still continue to proliferate. This is because the market is inexhaustible. You can start your own taxi business today and still make significant money.

Pre-Written Taxi Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the taxi cab business, we encourage you to purchase our well-researched and comprehensive taxi cab business plan. We introduced the business plans after discovering that many were venturing into the taxi transport business without enough knowledge and understanding of how to run the meter taxi business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global taxi transport business plan will make it easier for you to launch and run your meter taxi business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the taxi cab business.

Uses of the Taxi Business Plan (PDF, Word And Excel)

The taxi cab business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your taxi business
• As a taxi business proposal
• Assessing profitability of the meter taxi business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

Contents of the Taxi Cab Business Plan (PDF, Word And Excel)

The meter taxi business plan include, but not limited to:

• Marketing Strategy
• Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
• Risk Analysis
• Industry Analysis
• Market Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Why some people in taxi cab business fail, so that you can avoid their mistakes
• Ways to raise capital to start your meter taxi business

The Pre-written taxi cab business plan package consist of 4 files

• Taxi Cab Business Plan – PDF file (Comprehensive Version – 71 Pages)
• Taxi Business Plan – Editable Word File (Comprehensive Version – 71 Pages)
• Taxi Cab Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 42 pages)
• Taxi Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the number of taxis, pricing rate per KM etc, and all the other financial statements will automatically adjust to reflect the change.

Click below to download the Contents Page of the Taxi Business Plan (PDF)

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Get the Taxi Business Plan (PDF, Word And Excel)

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

We wish you the best in your taxi business! Check out our collection of business plans  , and more business ideas .

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How to Start a Taxi Business in 14 Steps (In-Depth Guide)

Updated:   March 13, 2024

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The global taxi market is growing considerably. In 2021, the market reached $215.35 billion and is projected to reach 464.26 billion by 2030. This means the market could continue to expand at a compound annual growth rate (CAGR) of 9.29% from 2021 to 2030.

As urban populations grow and citizens seek affordable, convenient transportation, starting a taxi service can be a profitable business venture. Taxi companies rely on name recognition and quality service to earn repeat customers. With low startup costs compared to other transportation businesses, the taxi industry remains accessible for aspiring business owners.

This guide will explain how to start a taxi business. Topics include market research, competitive analysis, registering an EIN, obtaining business insurance, and creating an official business entity. Here’s everything you need to know about starting a taxi business.

1. Conduct Taxi Market Research

Market research is an important part of starting your own taxi business. Research provides insight into the best taxi booking app, how to price your taxi cab business and other details for your business model.

Some of the market research you’ll learn about your private taxi company includes:

• The taxi industry consists primarily of three segments: yellow cabs, private sedans, and app-based ride-hailing.
• App-based services like Uber make up the remaining 28%.
• New York City alone sees over 500,000 daily taxi rides.
• The taxi customer base includes both business and leisure travelers looking for quick and easy rides around town.
• Business travelers are especially lucrative, spending an average of $550 per month on taxis.
• Airports also provide steady taxi revenue, with 70% of airport traffic traditionally using cabs for ground transportation.
• While app-based services now dominate airport pickups, taxis are regaining market share by implementing their own apps and electronic booking.
• The taxi industry is a fragmented market with 97% of companies operating ten vehicles or less.
• Ongoing expenses average $150 per day for insurance, gas, maintenance, and licensing.
• To be successful, new taxi companies must focus on customer service and speed.
• Reliability, safety, and cleanliness are top priorities for riders.
• Creative promotions like loyalty programs and referral bonuses also help attract repeat business in competitive markets.

In summary, the growing demand for flexible urban transportation and low barriers to entry create an appealing opportunity for entrepreneurial taxi startups. Niche markets by geography and customer segment provide options to secure market share against app-based and legacy competitors.

2. Analyze the Competition

Understanding the competitive landscape is crucial when launching a new taxi company. Conduct an in-depth analysis of established operators and app-based services in your target market.

Some ways to investigate competitors as a taxi cab service include:

• For traditional taxi competitors, identify the major brands and fleet sizes.
• Visit cab stands and airports to observe how many taxis each company has operating.
• Research their customer reviews and ratings online to evaluate service quality.
• Gauge price points by getting sample fare quotes. Analyze their marketing messages and brand personalities as well.
• App competitors like Uber and Lyft, sign up as a driver to understand their technology and economics.
• Check customer feedback on app stores to assess satisfaction.
• Search media coverage about market share and growth projections.
• Monitor driver forums to learn about reputation and risk areas.
• Online review sites like Yelp provide visibility into customer sentiment across competitors.
• Search engines reveal the SEO strength of each brand based on web page rankings.
• Social media listening can uncover real-time conversations and perceptions.
• Size up potential advantages your startup may have over incumbents. Look for gaps in service quality, technology, or customer experience to exploit.
• Seek niche segments or territories competitors are overlooking.
• Analyzing competitors gives insights that will shape your business and marketing plan.
• Use SWOT analysis to identify market threats to defend against and opportunities to pursue.
• Competitor intelligence informs pricing, service offerings, vehicle types, and geo-targeting.
• Ongoing monitoring lets you keep ahead of industry changes after launch.

Vigilant competitive research ensures your taxi startup is strategically positioned. Target underserved customer needs, emphasize your differentiators and mitigate competitor threats. Entering the ring prepared gives your business the fighting chance it needs to win.

3. Costs to Start a Taxi Business

Starting a taxi company involves both initial investments and ongoing expenses. Carefully projecting costs is crucial for securing financing and operating successfully.

Start-Up Costs

• For an individual cab, plan on $25,000-$35,000 for a new minivan or crossover SUV.
• With a small fleet of 5 cabs, costs can range from $125,000-$175,000.
• Next is licensing and insurance, which varies by state and city regulations. Liability insurance runs $9,000-$15,000 per vehicle annually.
• Administrative fees also add up with new taxi companies. Business licenses and permits average $500-$1,000 depending on location.
• Accounting software like QuickBooks is around $200 for setup. A commercial phone system for dispatching can be $1,000.
• Outfitting cabs with meters, signage, radio equipment, and GPS costs approximately $3,000 per vehicle.
• A basic website for customer bookings would be around $1,500.
• Other startup costs may include an office lease at $1,000-$1,500 monthly.

Total start-up costs for a single taxi generally run $20,000-$25,000. For a small 5-cab fleet, expect around $60,000 in startup costs. Expenses scale higher with larger fleets exceeding 50 vehicles.

Ongoing Costs

Once up and running, taxi companies face a variety of recurring monthly and annual expenses.

• Fuel averages $300-$400 per cab monthly. Maintenance and repairs run approximately $200 per vehicle each month.
• Cab replacement occurs every 3-5 years, incurring another $25k-$35k investment per new vehicle.
• Insurance remains a major necessity, costing $750-$1,250 per cab monthly.
• License renewals typically happen annually at around $300 per taxi.
• Personnel is another primary expense. Dispatchers average $15/hour, costing $2,000-$3,000 monthly. Drivers may be employees or independent contractors.
• Those choosing hourly wages cost around $3,000 per driver based on $15/hour.
• Office rentals, utilities, phone, and Wi-Fi amount to roughly $2,500 per month.
• Accounting and legal services are about $500 monthly.
• Marketing budgets range from $300-$500 monthly for digital ads and promotions.
• Miscellaneous expenses like payroll fees, supplies, fees, and taxes add up to around $1,000 each month.
• For a single taxi, average monthly costs are approximately $5,000 including insurance, licensing, personnel, fuel, repairs, office expenses, advertising, and more.
• Annual costs can reach $60,000-$70,000.
• With a 5 cab fleet, monthly expenses scale to around $25,000 covering the above costs times 5 vehicles.
• Overall annual costs for a 5-taxi operation average $300,000-$350,000.

Carefully estimating both start-up and ongoing costs ensures taxi businesses remain lean and profitable. Update projections as fleet size, staffing, and scope evolve. Financial diligence is fundamental to running a successful transportation company.

4. Form a Legal Business Entity

When starting a taxi company, one of the first legal decisions is choosing a business structure. The four main options each have advantages and drawbacks to consider.

Sole Proprietorship

A sole proprietorship is the simplest as it’s essentially you as an individual operating the business. However, it offers no liability protection as you’re personally responsible for all debts and lawsuits. This high risk makes sole proprietorships inadvisable for taxi businesses exposed to accidents and injuries.

Partnership

Partnerships allow two or more owners to share control and liability. A general partnership still exposes all partners fully while a limited partnership protects silent partners. Overall, partnerships can get complicated with profit/loss allocations and disagreements between partners.

Corporation

A corporation provides limited liability for shareholders but requires formal management and reporting. The tax structure is less advantageous for small businesses as income is taxed at both the corporate and shareholder level. Overall, the formality and regulatory requirements make corporations unrealistic for most taxi startups.

Limited Liability Company (LLC)

An LLC (Limited Liability Company) combines pass-through taxation with liability protection for members. Profits and losses pass directly to each owner’s returns. An LLC shields personal assets from business liabilities and debts. Ownership can be easily transferred with fewer formalities than a corporation.

5. Register Your Business For Taxes

One of the first legal steps when starting a taxi company is obtaining an Employer Identification Number or EIN from the IRS. This unique number identifies your business for tax purposes similar to how your Social Security number identifies you as an individual.

An EIN is required to open a business bank account, apply for licenses, hire employees, and file taxes for your company. Sole proprietors can use their SSN but should still get an EIN to keep personal and business finances separate.

The good news is applying for an EIN is a quick and free process that you can complete online via the IRS website in just minutes.

Simply provide your personal identifying information, business name, address, and taxation details. Choose the type of legal business entity you formed. Specify if you plan to hire employees or operate multiple businesses under the EIN.

Once submitted, your EIN will be provided immediately. This number should be included on all applications, tax documents, and other financial records for your taxi business.

In addition to your federal EIN, you’ll also need to register with your state taxation department for sales tax collection. The application process is similar to the EIN and can also be completed online in most states.

Sales tax registration enables you to legally collect and remit sales tax on taxi services provided in your state. It may also require filing regular sales tax returns. Check your state taxation department website for specifics.

Obtaining an EIN and sales tax registration are simple processes that add legitimacy and compliance to your taxi business. With your official tax numbers established, you can confidently move forward with vendors, licensing, hiring, and daily operations.

Failing to register your business properly may lead to fines, vehicle repos , or full closure, so make sure everything is in order.

6. Setup Your Accounting

Proper accounting is crucial for taxi companies to track finances, comply with taxes, and prove legitimacy if audited. Investing in accounting software, working with an accountant, and separating business and personal finances will set up your company for success.

Accounting Software

Begin by getting small business accounting software like QuickBooks to manage all financial transactions. Quickbooks integrates with bank accounts to automatically import income, expenses, invoices, and payments. It generates reports for profit/loss statements, balance sheets, payroll, and taxes. Quickbooks makes accounting a breeze with automation while giving you control over the numbers.

Hire an Accountant

Consider hiring an accountant to handle bookkeeping, payroll, quarterly taxes, and year-end filings. They can provide consulting on maximizing deductions and setting up ideal accounting workflows specific to taxi businesses. Expect to invest around $200-$500 monthly for full bookkeeping services.

At a minimum, engage an accountant annually to prepare your business tax returns. Rates average $500-$1,500 to file your Schedule C, payroll returns, and other tax documents. Their expertise saves money in the long run by ensuring full compliance and avoiding tax penalties.

Open a Business Bank Account

Be sure to separate all business finances into dedicated accounts. Obtain an Employer ID Number (EIN) from the IRS to open a business bank account. Fund it exclusively with taxi company income and pay for all expenses from there.

Apply for a Business Credit Card

Also, apply for a small business credit card using your EIN. Business cards don’t rely on personal credit scores and have higher limits to handle larger purchases. Make all taxi-related purchases on this card exclusively.

7. Obtain Licenses and Permits

Before operating any taxis, your new company must get approved for all relevant licenses and permits. Obtain federal license information through the U.S. Small Business Administration . The SBA also offers a local search tool for state requirements.

One of the first steps is obtaining a vehicle-for-hire license from your state regulator or local taxi commission. This business license proves you are registered and approved to transport passengers for a fare. Requirements and fees vary but expect to submit your business plan, insurance, vehicle info, background checks, and more.

Vehicle permits or medallions specifically authorize each cab to operate. Major cities like NYC and Chicago have a limited number available for purchase or lease. Expect to pay tens if not hundreds of thousands per medallion. Less restrictive cities still require annual permits per taxi typically costing a few hundred dollars each.

Your local municipal office can provide a general business license to operate within city limits. Fees range from $25 to the hundreds. Some cities may require additional permits related to ground transportation providers.

Commercial auto insurance is mandatory, with minimum liability limits of $100k property damage and $300k bodily injury per incident. Higher 100/300 limits or supplemental policies should be considered given taxi accident risks. Expect $150+ monthly per vehicle.

The FAA requires aircraft radio licenses for two-way dispatch equipment in taxis. The application involves proving you have appropriate frequencies allocated. The license costs around $150 and must be renewed every 10 years.

Taxi drivers themselves will need commercial driver’s licenses (CDL) in most states. Options include a full CDL, taxi limited license, or standard license with a for-hire endorsement. Renewals happen every 4-8 years.

Any independent contractors you use must carry adequate rideshare insurance on their vehicles with state minimum liability coverage. Avoid legal exposure by confirming their active coverage.

8. Get Business Insurance

Operating a taxi business without proper insurance opens you to massive risks that could bankrupt your company. Accidents, lawsuits, property damage, and employee claims could all destroy an uninsured business.

For example, a major car crash by one of your drivers that injures passengers could result in hundreds of thousands in medical bills and legal claims without protection. Or an electrical fire that destroys your garage and vehicles would cost tens of thousands to recover from uninsured. Even a minor slip-and-fall by a passenger in your office could lead to legal action.

The good news is obtaining business insurance coverage can shield your company from these threats. Start with a commercial auto policy that covers liability, collision, uninsured motorists, and passenger medical. General liability insurance protects against third-party claims of injury, property damage, and more.

You may also want commercial property coverage for your office, dispatch equipment, and other assets and business interruption insurance to replace lost income if forced to close. Workers’ comp is required if you have employees. An umbrella policy provides additional liability coverage above your base limits.

Expect to budget $150-$400 per vehicle monthly for a full commercial taxi insurance plan. However, this small ongoing expense can save you from utter financial devastation if the worst happens down the road.

9. Create an Office Space

Having a dedicated office provides legitimacy and gives taxi businesses a central base for dispatching, meetings, and administrative work. The right office setup supports daily operations and customer service.

Home Office

A basic home office is the most affordable option starting around $200 for a desk and supplies. It works for sole owners doing sales and promotion from home. However, home offices lack space for dispatchers and have less professionalism for meetings.

Coworking Office

Coworking spaces like WeWork provide amenities like WiFi, conference rooms, and front desk staff for $300-$500 monthly. The flexible terms and networking can benefit small taxi startups. However, coworking lacks parking for taxis and has noise that could disrupt dispatch calls.

Retail Office

Retail office spaces in shopping plazas start around $1,000 monthly. The street visibility and walk-in traffic aid marketing efforts. Retail offices also give easy access to taxis and customers. The downsides are costs, business hour restrictions, and longer leases.

Commercial Office

Classic commercial office spaces offer the most room with dedicated buildings and ample parking. Expect $1,500-$2,500 monthly for spaces accommodating dispatch stations, taxis, meetings, and parking. However, commercial spaces require long leases and offer few amenities.

10. Source Your Equipment

From cars to meters, new taxi companies need to acquire essential equipment to get up and running. Smart sourcing saves money while meeting operational needs.

For the latest models with full warranties, purchase vehicles, and gear directly from manufacturers and authorized dealers. Expect to pay MSRP or slightly below for sedans like the Toyota Camry, minivans, and light SUVs ideal for taxi use. Meters, signage, radio equipment, and other accessories are also available now.

Buying Used

Save over 50% by buying quality used vehicles with 50k-75k miles from dealers, auctions, or private sellers. Facebook Marketplace , and Craigslist list reliable used taxi models like retired Crown Victorias, Camrys, and Odyssey vans discounted to $5k-$15k. Scour taxi auctions and dealers for used meters, radios, and other gear.

Renting vehicles lets you test models before purchasing a whole fleet. Rental costs range from $300-$500 weekly for common taxi vehicles. Short-term rentals of dispatch equipment, meters, and two-way radios are also available from specialty providers for a few hundred a month.

Multi-year leases allow you to operate new vehicle models for a fixed monthly fee averaging $300-$600 over 2-4 years. Maintenance and roadside assistance are often included. Leasing provides reliability without large upfront purchases. Refurbished meters and hardware can also be leased affordably.

11. Establish Your Brand Assets

Creating a strong brand identity is crucial for taxi companies to stand out from the competition and build recognition. Investing in branding builds customer trust and boosts marketing efforts.

Get a Business Phone Number

Acquire an official business phone number through a service like RingCentral to enable professional communications. Choose a local area code and a dedicated line to convey legitimacy versus using a personal cell. Expect to budget $25-$50 monthly for a hosted business phone with call routing and voicemail services.

Design a Logo

Design a sleek logo and brand identity that instantly identifies your taxis and marketing materials. Consider iconic symbols and color palettes that connect to your location. A bold, minimalist logo works for taxi brands versus overly complicated images. Use a service like Looka to develop concepts digitally for $20-$50 per design.

Print Business Cards

Business cards featuring your logo, phone number, and dispatch info make introductions and referrals seamless. Hand these out at local events and hospitality businesses to aid marketing. Vistaprint offers affordable printing of 500 basic cards for $20.

Buy a Domain Name

Secure a domain name that matches your taxi brand for a professional online presence. Short .com addresses from Namecheap convey expertise. Expect to budget $10-$15 annually for domain registration.

Design a Website

Build a one-page website detailing your services, booking options, and phone number. Use a drag-and-drop site builder like Wix for easy DIY creation or hire a freelancer on Fiverr for $200 to design the site. This digital home solidifies your legitimacy.

12. Join Associations and Groups

Joining local business groups and online communities provides invaluable connections when starting a taxi company. Take advantage of these networking opportunities for insider advice and customer referrals.

Local Associations

Research associations like the Taxicab, and Limousine & Paratransit Association offer national conferences, regulatory advocacy, and fleet insurance programs. On the local level, chambers of commerce and transportation associations facilitate networking events and lobbying efforts.

Local Meetups

Keep up with trends and expand your network by attending regional taxi and ground transportation meetups. Use sites like Meetup to find regular gatherings of fellow business owners, drivers, and vendors.

Facebook Groups

Dozens of Facebook groups connect taxi owners globally. Search for established communities like Global Taxi Driver Group and join relevant local groups like NYC Taxi Cab Enthusiasts & Owners to tap collective insights.

13. How to Market a Taxi Business

Implementing ongoing marketing is essential for gaining new taxi customers and growing your company. Leverage digital campaigns, real-world promotion, and customer referrals to build your brand.

Personal Networking

Start by tapping your inner circle for referrals to friends, family, and colleagues. Offer free or discounted rides to first-time customers sent your way. Satisfied passengers will organically spread the word about your service if treated well.

Digital Marketing

Digital campaigns provide affordable access to local customers. Consider:

• Google Ads geo-targeting local keywords like “taxi near me” and your city name. Expect to budget $100-$300 monthly. Track phone call conversions.
• Facebook and Instagram ads focused on area residents. Target based on location, demographics, and interests. Budget $50-$100 monthly per platform.
• Search engine optimization to rank highly for “taxi/cab + your city” searches. Research tactics or hire an SEO consultant.
• Email collection via your website to send promotions and build loyalty. Offer discounts for email signups. Send regular updates and coupons to subscribers.
• Getting customer reviews on Google, Facebook, and Yelp highlighting your service quality and professionalism.

Traditional Marketing

Traditional approaches also aid visibility:

• Vehicle signage and wraps are seen throughout your region while in service. Gets name recognition.
• Business cards and flyers at hotels, restaurants, and airports to catch potential riders. Focus on concierges.
• Airport carousel ads drive business from travelers. Costs range from $100-$300 per month based on impressions.
• Radio spots on local stations for brand awareness. Expect to budget $500+ monthly depending on frequency.
• Chamber of Commerce networking for corporate accounts. Cater to business travelers.
• Direct mail postcards to households announcing new services or promotions like discounted first rides.

Mix digital, print, networking, and other tactics to attract customers. Track response rates and refine strategies over time. Marketing done properly delivers continual growth.

14. Focus on the Customer

Providing excellent customer service is crucial for taxi companies to earn repeat business and referrals. Given the competition, focusing on rider satisfaction and great experiences builds loyalty.

Some ways to increase customer focus as a profitable taxi business include:

• For example, ensure vehicles are clean and comfortable. Greet passengers warmly and politely confirm their destination.
• Avoid phone calls or conversations with other drivers during the ride. Ask if the temperature or radio station needs adjusting.
• Thank riders as they exit and offer to assist with bags or other cargo.
• Follow up via email with first-time customers to see if their rides met expectations.
• Send the occasional coupon to frequent patrons to show appreciation.
• Train staff and drivers on ideal service standards.
• Empower them to address complaints and remedy issues.
• Monitoring online reviews lets you identify and improve upon friction points.
• Satisfied customers become vocal champions for your brand. They will specifically request your company over competitors for future rides.

With commoditized offerings like rides, customer service stands out. Small gestures like bottles of water, mints, and charging cables surprise and delight. When riders feel genuinely cared for, you earn their loyalty for the long haul.

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March 1, 2024

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• Ride-hailing apps
• Case studies

Starting a taxi business: guide for beginners in 2024

• Growth hacks

What do you need to start a taxi business in 2024?

Entrepreneurship is more than just having a brilliant idea. It’s also about making this idea work for you (and, needless to say, for your customers) sustainably, year after year. Setting up a taxi business is no different.

What do you need to start a taxi business that will change the future of transportation in your region? Here’s the guide on how to start a taxi company in 7 steps. Check all the boxes and make sure you’ve got it all.

Start with your taxi service business plan

Setting up a taxi business begins with a taxi service business plan—and that’s one hard pill to swallow for many aspiring entrepreneurs. We’ve broken the chunky concept of a business plan down to basic questions to make the planning easier for you.

• Who are the customers of your cab business? Why will they use your services? Define the business opportunities of0 your future taxi cab company, the services it will provide, and its target audience.
• What’s the price segment of your taxi business? What will trips cost for different service types, locations, types of bookings, etc.? Knowing this is essential for planning your taxi business’s financial perspectives.
• What’s the market for your services? Market research and analysis are crucial to understanding your competition and defining your cab business’s unique selling proposition.
• How will you promote the company? Knowing who your potential customers are will make it easier for you to find out how to reach out to these people efficiently. Answering this question is a great starting point for the future marketing plan of your cab business.
• What resources (financial and human) do you need to start a taxi service? Financial planning is paramount: it allows you to evaluate various options for funding a private taxi company.
• What are the potential critical risks and challenges? Two years into the pandemic, we know one thing for sure: try to think through even the unthinkable risks—it’s the only way to make your taxi service business plan strong.

Your first step in creating a sound taxi service business plan is to give clear answers to all of these questions. A business plan makes pitching to potential investors, accelerators, and business partners easier and more convincing.

Need more assistance with it? Use this template  to write a taxi service business plan.

Figure out the business model for your taxi cab company

It’s time to think through a well-functioning financial model!

For a cab business, rides are the main source of revenue. Start with calculating the average cost for a ride with your taxi company. In your calculation, include salaries, taxes, rent, and all other fixed and variable costs your taxi business might have. Add initial marketing and promotion expenses, fleet-related investments, and other costs. With this calculation, you can now see how much funds your company will need to launch.

For a taxi business, it’s normal to not be able to cover all the costs in the very beginning. To actually start making money, your cab business needs to grow a bit first. However, try and plan when your business can reach a breakeven. Consider factors like seasonality in your calculations.

Think of the software for your cab business

A plain taxi business is great for many places on Earth that need stable mobility services. However, it’s smart to think of scaling your cab business from the start. One of the best ways to make your taxi cab company scalable from the outset is to power it with a strong technical infrastructure.

So make an inventory of the must-have features for the software that can boost your taxi business. Some of these are:

• Passenger and driver applications for iOS and Android to attract more bookings and make drivers’ work easier.
• Possibility to preorder your services.
• Cashless payments for an impressive turnover on your private taxi company’s bank account.
• Automated business processes such as driver billing.
• Reports and statistics on your taxi business progress.
• Features facilitating business partnerships (Web App, referral programs, custom location names).
• Operation zones feature for easier management of rates and service types.

This isn’t the ultimate list: you decide which features are essential to let your cab business grow. Depending on your business plan, you can choose whether to order custom software development, use a white-label solution , or go for a franchise ride-hailing service.

Get your paperwork done

Now your plans are all ready, time to register your cab business and make it official.

Depending on your local regulations, get your employer papers, required licenses and permits, and all the needed insurance contracts. In some countries, the taxi business is very regulated. Find out what the relevant requirements are to not be stunned with unpleasant surprises later. Do your research as to what papers are required from your employees, too.

This is also the time to check and double-check all the obligations you have towards your business partners, investors, and stakeholders.

Do the fleet and hardware check

Taxi meters, a dispatch system, pieces of equipment such as rooflight—these are just some hardware instances you need to keep in mind to prepare your cab business ready to launch. Some of these hardware pieces can be effectively replaced by good software, such as taxi meters and dispatch installations.

For most new taxi cab companies, fleet is the largest initial investment. Depending on your business planning, you can purchase vehicles based on deferred payment options (paying monthly fees until the total is paid off); look for used vehicles; invest in brand-new electric cars or scooters—the possibilities are endless, really.

Vehicle branding  is important for young taxi cab companies, too: it allows your business to stand out and gain initial recognition. Keep in mind: your fleet should convey your brand message. For instance, selling “luxury rides” requires luxury vehicles, while “affordable rides” give you more freedom as to what vehicles to use and how to brand them. This thought brings us forward to the marketing part of the story.

Market your cab business professionally

To young cab businesses, marketing often seems a money-drainer. Nothing is less true. A marketing plan developed well and tailored to the available budget is the only way for a taxi cab company to survive beyond the launch.

Well-planned marketing campaigns help your private taxi company to get first loyal customers—so that later you can scale the user base with referral marketing, offline and online advertising.

You don’t need a whole team of in-house marketing specialists at the initial stages of starting your taxi business: for the sake of money-saving, you can outsource expertise . For instance, we at Onde offer branding and marketing assistance to our business partners at any stage of business development.

How to plan marketing activities for a new taxi business? First of all, do some customer development and find out what drives your target audience. Think of where you can reach your potential customers and how to get their attention. Then check out our tips for every budget  and pick ones that suit you most.

Dare to learn

As your taxi business develops, your team will learn more and more about the customers, their needs, and the local taxi industry. Gradually, your cab business will become better at responding to customers’ needs. You’ll discover new opportunities and maybe change the business model.

To do so, make sure there’s enough space for your team to learn from what is happening out there in the wild. Listen to the feedback from customers, employees, and business partners. A cab business plan is never cast in stone because growth requires flexibility. Starting a taxi business is more about rethinking the future than looking for a one-size-fits-all solution or trying to become “a local Uber.”

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• Business Plan for Taxi Company

Business plan for taxi service

• how will you stay ahead of your competitors;
• how will you meet the needs of potential customers;
• how you will attract employees.

5 Important steps for developing a taxi business plan

• Define the business concept.
• Do a competitor analysis.
• Calculate the market capacity in your city.
• Calculate the costs of starting a business.
• Calculate the payback period of investments.

Step 1. Define the business concept

Step 2. do a competitor analysis.

• how much the services cost;
• how fast the vehicle is served;
• what vehicle are in the fleet: make, appearance, year of manufacture;
• how professional and polite the drivers are;
• whether the drivers like their working conditions;
• how customers are attracted;
• what channels are used to advertise services.

Step 3. Calculate the market capacity in your city

Step 4. calculate the cost of starting a business, step 5. calculate the expected profit and payback period, taxi business plan sample.

• We have been working in the taxi market for more than 20 years and have become real experts in our field.
• We help companies around the world to start a taxi business.
• We support customers at every stage of the launch.
• We regularly analyze the work of different companies and help them optimize processes.
• We implement technical solutions that allow our customers to automate their work and. successfully compete with major aggregators.

Taxi business plan sample pdf

• Description of the taxi company's business model;
• Calculation of the market capacity;
• Calculation of the initial costs;
• List of the initial expenses;
• Calculation of the return on investment and payback period;
• Information on how to attract customers;
• Information on how to attract drivers;
• Information about the automation of business processes in a start-up company.

Taxi business plan xls

Get a working taxi business plan template from taxi master.

How to write a business plan for a taxi and minicab firm?

Creating a business plan for a taxi and minicab firm is an essential process for any entrepreneur. It serves as a roadmap that outlines the necessary steps to be taken to start or grow the business, the resources required, and the anticipated financial outcomes. It should be crafted with method and confidence.

This guide is designed to provide you with the tools and knowledge necessary for creating a taxi and minicab firm business plan, covering why it is so important both when starting up and running an established business, what should be included in your plan, how it should be structured, what tools should be used to save time and avoid errors, and other helpful tips.

We have a lot to cover, so let's get to it!

In this guide:

Why write a business plan for a taxi and minicab firm?

What information is needed to create a business plan for a taxi and minicab firm.

• What goes in the financial forecast for a taxi and minicab firm?
• What goes in the written part of a taxi and minicab firm business plan?
• What tool can I use to write my taxi and minicab firm business plan?

Being clear on the scope and goals of the document will make it easier to understand its structure and content. So before diving into the actual content of the plan, let's have a quick look at the main reasons why you would want to write a taxi and minicab firm business plan in the first place.

To have a clear roadmap to grow the business

It's rarely business as usual for small businesses. The economy follows cycles where years of growth are followed by recessions, and the business environment is always changing with new technologies, new regulations, new competitors, and new consumer behaviours appearing all the time...

In this context, running a business without a clear roadmap is like driving blindfolded: it's dangerous at best. That's why writing a business plan for a taxi and minicab firm is essential to create successful and sustainable businesses.

To write an effective business plan, you will need to take stock of where you are (if you are already in business) and where you want the business to go in the next three to five years.

Once you know where you want your taxi and minicab firm to be, you'll have to identify:

• what resources (human, equipment, and capital) are needed to get there,
• at what pace the business needs to progress to get there in time,
• and what risks you'll face along the way.

Going through this process regularly is beneficial, both for startups and existing companies, as it helps make informed decisions about how best to allocate resources to ensure the long-term success of the business.

Need a convincing business plan?

The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

To maintain visibility on future cash flows

Businesses can go for years without making a profit, but they go bust as soon as they run out of cash. That's why "cash is king", and maintaining visibility on your taxi and minicab firm's future cash flows is critical.

How do I do that? That's simple: you need an up-to-date financial forecast.

The good news is that your taxi and minicab firm business plan already contains a financial forecast (more on that later in this guide), so all you have to do is to keep it up-to-date.

To do this, you need to regularly compare the actual financial performance of your business to what was planned in your financial forecast, and adjust the forecast based on the current trajectory of your business.

Monitoring your taxi and minicab firm's financial health will enable you to identify potential financial problems (such as an unexpected cash shortfall) early and to put in place corrective measures. It will also allow you to detect and capitalize on potential growth opportunities (higher demand from a given segment of customers for example).

To secure financing

Crafting a comprehensive business plan for your taxi and minicab firm, whether you're starting up or already established, is paramount when you're seeking financing from banks or investors.

Given how fragile small businesses are, financiers will want to ensure that you have a clear roadmap in place as well as command and control of your future cash flows before entertaining the idea of funding you.

For banks, the information in your business plan will be used to assess your borrowing capacity - which is defined as the maximum amount of debt your business can afford alongside your ability to repay the loan. This evaluation helps them decide whether to extend credit to your business and under what terms (interest rate, duration, repayment options, collateral, etc.).

Similarly, investors will thoroughly review your plan to determine if their investment can yield an attractive return. They'll be looking for evidence that your taxi and minicab firm has the potential for healthy growth, profitability, and consistent cash flow generation over time.

Now that you understand the importance of creating a business plan for your taxi and minicab firm, let's delve into the necessary information needed to craft an effective plan.

Writing a taxi and minicab firm business plan requires research so that you can project sales, investments and cost accurately in your financial forecast.

In this section, we cover three key pieces of information you should gather before drafting your business plan!

Carrying out market research for a taxi and minicab firm

Before you begin writing your business plan for a taxi and minicab firm, conducting market research is a critical step in ensuring precise and realistic financial projections.

Market research grants you valuable insights into your target customer base, competitors, pricing strategies, and other crucial factors that can impact the success of your business.

In the course of this research, you may stumble upon trends that could impact your taxi and minicab firm.

You might discover that customers may prefer to book a taxi or mini cab online, rather than by phone. Additionally, market research could potentially reveal that customers might appreciate a loyalty program or rewards for frequent use of your taxi or mini cab services.

Such market trends play a pivotal role in revenue forecasting, as they provide essential data regarding potential customers' spending habits and preferences.

By integrating these findings into your financial projections, you can provide investors with more accurate information, enabling them to make well-informed decisions about investing in your taxi and minicab firm.

Developing the marketing plan for a taxi and minicab firm

Before delving into your taxi and minicab firm business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a taxi and minicab firm

As you embark on starting or expanding your taxi and minicab firm, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

The staffing costs for a taxi and mini cab company could include salaries for drivers, administrative staff, and management. The company may also need to pay for additional training and development for their staff. Equipment costs for a taxi and mini cab company could include the purchase of vehicles, radios, and other technology needed to run the business. The company may also need to pay for fuel, insurance, and maintenance for their vehicles.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

What goes into your taxi and minicab firm's financial forecast?

The objective of the financial forecast of your taxi and minicab firm's business plan is to show the growth, profitability, funding requirements, and cash generation potential of your business over the next 3 to 5 years.

The four key outputs of a financial forecast for a taxi and minicab firm are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

Your taxi and minicab firm forecasted P&L statement enables the reader of your business plan to get an idea of how much revenue and profits your business is expected to make in the near future.

Ideally, your reader will want to see:

• Growth above the inflation level
• Expanding profit margins
• Positive net profit throughout the plan

Expectations for an established taxi and minicab firm will of course be different than for a startup. Existing businesses which have reached their cruising altitude might have slower growth and higher margins than ventures just being started.

The projected balance sheet of your taxi and minicab firm

Your taxi and minicab firm's forecasted balance sheet enables the reader of your plan to assess your financial structure, working capital, and investment policy.

It is composed of three types of elements: assets, liabilities and equity:

• Assets: represent what the business owns and uses to produce cash flows. It includes resources such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: represent funds advanced to the business by lenders and other creditors. It includes items such as accounts payable (money owed to suppliers), taxes due and loans.
• Equity: is the combination of what has been invested by the business owners and the cumulative profits and losses generated by the business to date (which are called retained earnings). Equity is a proxy for the value of the owner's stake in the business.

Your taxi and minicab firm's balance sheet will usually be analyzed in conjunction with the other financial statements included in your forecast.

Two key points of focus will be:

• Your taxi and minicab firm's liquidity: does your business have sufficient cash and short-term assets to pay what it owes over the next 12 months?
• And its solvency: does your business have the capacity to repay its debt over the medium-term?

The cash flow forecast

As we've seen earlier in this guide, monitoring future cash flows is the key to success and the only way of ensuring that your taxi and minicab firm has enough cash to operate.

As you can expect showing future cash flows is the main role of the cash flow forecast in your taxi and minicab firm business plan.

It is best practice to organise the cash flow statement by nature in order to show the cash impact of the following areas:

• Cash flow generated from operations: the operating cash flow shows how much cash is generated or consumed by the business's commercial activities
• Cash flow from investing activities: the investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.) either to maintain the business's equipment or to expand its capabilities
• Cash flow from financing activities: the financing cash flow shows how much cash is raised or distributed to financiers

Looking at the cash flow forecast helps you to make sure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

Your taxi and minicab firm business plan will normally include both yearly and monthly cash flow forecasts so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The initial financing plan, also known as a sources and uses table, is a valuable resource to have in your business plan when starting your taxi and minicab firm as it reveals the origins of the money needed to establish the business (sources) and how it will be allocated (uses).

Having this table helps show what costs are involved in setting up your taxi and minicab firm, how risks are shared between founders, investors and lenders, and what the starting cash position will be. This cash position needs to be sufficient to sustain operations until the business reaches a break-even point.

Now that you have a clear understanding of what goes into the financial forecast of your taxi and minicab firm business plan, let's shift our focus to the written part of the plan.

The written part of a taxi and minicab firm business plan

The written part of a taxi and minicab firm business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Throughout these sections, you will seek to provide the reader with the details and context needed for them to form a view on whether or not your business plan is achievable and your forecast a realistic possibility.

Let's go through the content of each section in more detail!

1. The executive summary

The first section of your taxi and minicab firm's business plan is the executive summary which provides, as its name suggests, an enticing summary of your plan which should hook the reader and make them want to know more about your business.

When writing the executive summary, it is important to provide an overview of the business, the market, the key financials, and what you are asking from the reader.

Start with a brief introduction of the business, its name, concept, location, how long it has been in operation, and what makes it unique. Mention any services or products you plan to offer and who you sell to.

Then you should follow with an overview of the addressable market for your taxi and minicab firm, current trends, and potential growth opportunities.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Finally, you should detail any funding requirements in the ask section.

2. The presentation of the company

In your taxi and minicab firm business plan, the second section should focus on the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide an overview of the business's legal structure, details about the owners, and their respective investments and ownership shares. This clarity is crucial, especially if you're seeking financing, as it helps the reader understand which legal entity will receive the funds and who controls the business.

Moving on to the location part, you'll offer an overview of the company's premises and their surroundings. Explain why this particular location is of interest, highlighting factors like catchment area, accessibility, and nearby amenities.

When describing the location of your taxi and minicab firm to a third party financier, it is important to emphasize the potential of the area. You could highlight the diverse customer base, as well as any local attractions, events, or businesses that may generate increased demand for taxi and mini cab services. Additionally, you could emphasize the ease of access to the area, whether that be through public transportation, airports, or highways. You may also want to talk about the area's growth potential and potential for future development. All of these factors could make the location of your taxi and minicab firm an attractive investment opportunity for the financier.

Finally, you should introduce your management team. Describe each member's role, background, and experience.

Don't forget to emphasize any past successes achieved by the management team and how long they've been working together. Demonstrating their track record and teamwork will help potential lenders or investors gain confidence in their leadership and ability to execute the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of the offerings that your company provides to its customers. 

For example, your taxi and minicab firm might offer services such as 24-hour availability, pick-up and drop-off at any location, and a variety of car sizes to accommodate different types of groups. These services can provide customers with convenience, safety, and flexibility when travelling, as they are able to get to their destination in a timely and efficient manner. Additionally, customers may receive an estimated time of arrival and a receipt for their journey.

When drafting this section, you should be precise about the categories of products or services you sell, the types of customers you are targeting and how customers can buy them.

4. The market analysis

When you present your market analysis in your taxi and minicab firm business plan, it's crucial to include detailed information about customers' demographics and segmentation, target market, competition, barriers to entry, and any relevant regulations.

The main objective of this section is to help the reader understand the size and attractiveness of the market while demonstrating your solid understanding of the industry.

Begin with the demographics and segmentation subsection, providing an overview of the addressable market for your taxi and minicab firm, the key trends in the marketplace, and introducing different customer segments along with their preferences in terms of purchasing habits and budgets.

Next, focus on your target market, zooming in on the specific customer segments your taxi and minicab firm aims to serve and explaining how your products and services fulfil their distinct needs.

For example, your target market might include individuals who are looking for reliable transportation. This could include people who are travelling between airports, within cities, or for special events like weddings or corporate meetings. These customers might be seeking a more comfortable and private transportation experience than what a bus or train offers.

Then proceed to the competition subsection, where you introduce your main competitors and highlight what sets you apart from them.

Finally, conclude your market analysis with an overview of the key regulations applicable to your taxi and minicab firm.

5. The strategy section

When you write the strategy section of your taxi and minicab firm business plan, remember to cover key elements such as your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, elaborate on what makes your company stand out from competitors. This becomes especially important if you're a startup, aiming to carve a place for yourself amidst established players in the marketplace.

The pricing strategy subsection should demonstrate how you plan to maintain profitability while offering competitive prices to attract customers.

Outline your sales & marketing plan, detailing how you'll reach out to new customers and retain existing ones through loyalty programs or special offers.

For the milestones subsection, outline your company's achievements to date and your main objectives for the future, complete with specific dates to set clear expectations for progress.

Lastly, the risks and mitigants subsection should address the main risks that could affect your plan's execution. Explain the measures you've put in place to minimize these risks, assuring potential investors or lenders.

Your taxi and mini cab business could face a variety of risks. For example, you may face a risk of driver liability if the driver is involved in an accident or other incident while on the job. Additionally, you might face a risk of property damage if one of your vehicles is vandalized or stolen. Both of these risks could potentially lead to financial losses, so it is important to have a plan in place to mitigate them.

6. The operations section

The operations of your taxi and minicab firm must be presented in detail in your business plan.

Begin by addressing your staff, specifying the main roles and your recruitment plan to support the anticipated growth. Outline the qualifications and experience needed for each role and discuss your recruitment strategies, which may involve using job boards, referrals, or headhunters.

Next, clearly state your taxi and minicab firm's operating hours, allowing the reader to gauge the adequacy of your staffing levels. Additionally, mention any considerations for varying opening times during peak seasons and your approach to handling customer queries outside regular operating hours.

The key assets and intellectual property (IP) required to run your business should also be highlighted. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, ensure they are well-documented in this section.

You could have two key assets and IP that a taxi and mini cab might have. Firstly, they may have a fleet of cars that they own and manage. This could involve purchasing, leasing or renting vehicles from other companies or individuals. Secondly, they might have access to a booking system that allows customers to book a car online or via an app. This could involve having access to a software or technology platform that helps manage bookings and payments.

Finally, provide a comprehensive list of suppliers you intend to collaborate with, along with a breakdown of their services and main commercial terms, such as price, payment terms, break clauses and contract duration. Investors often seek insight into the reasons behind your supplier choices, which may include a preference for higher-quality products or established relationships from past ventures.

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a taxi and minicab firm business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my taxi and minicab firm's business plan?

In this section, we will be reviewing the two main options for writing a taxi and minicab firm business plan efficiently:

• Using specialized software,
• Outsourcing the drafting to the business plan writer.

Using an online business plan software for your taxi and minicab firm's business plan

The modern and most efficient way to write a taxi and minicab firm business plan is to use business plan software .

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your taxi and minicab firm's business plan

Outsourcing your taxi and minicab firm business plan to a business plan writer can also be a viable option.

Business plan writers are skilled in creating error-free business plans and accurate financial forecasts. Moreover, hiring a consultant can save you valuable time, allowing you to focus on day-to-day business operations.

However, it's essential to be aware that hiring business plan writers will be expensive, as you're not only paying for their time but also the software they use and their profit margin.

Based on experience, you should budget at least £1.5k ($2.0k) excluding tax for a comprehensive business plan, and more if you require changes after initial discussions with lenders or investors.

Also, exercise caution when seeking investment. Investors prefer their funds to be directed towards business growth rather than spent on consulting fees. Therefore, the amount you spend on business plan writing services and other consulting services should be insignificant compared to the amount raised.

Keep in mind that one drawback is that you usually don't own the business plan itself; you only receive the output, while the actual document is saved in the consultant's business planning software. This can make it challenging to update the document without retaining the consultant's services.

For these reasons, carefully consider outsourcing your taxi and minicab firm business plan to a business plan writer, weighing the advantages and disadvantages of seeking outside assistance.

Why not create your taxi and minicab firm's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a taxi and minicab firm business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my taxi and minicab firm business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

• Word processors don't include instructions and examples for each part of your business plan
• Word processors don't update your numbers automatically when they change in your forecast
• Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating a taxi and minicab firm business plan for some entrepreneurs, it is by far not the best or most efficient solution.

• Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
• A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
• A business plan has 2 main parts: a financial forecast outlining the funding requirements of your taxi and minicab firm and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your taxi and minicab firm business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

• How to write a business plan to secure a bank loan?
• How to write the business plan for a grant application?
• Budget vs business plan
• Difference between business case and business plan
• Key steps to write a business plan?
• Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing a taxi and minicab firm? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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How to start a taxi or private hire firm

Written and reviewed by:.

Our independent reviews are funded in part by affiliate commissions, at no extra cost to our readers.

One of the most important first steps if you’re thinking about starting any business is to look at the industry challenges. In the taxi sector, the rapid increase in fuel costs, with petrol prices reaching a record-high of £2 per litre, has sent business overheads spiralling.

Innovations are emerging, however, that can help to fix this problem. Many green taxi companies are emerging that boast a fleet of electric vechicles. Plus, in an industry now defined by the disruptive antics of ride hailing and on-demand taxi apps, fuel-saving tools like vehicle tracking software have helped new companies to succeed where previous firms have failed.

According to the Department for Transport, England was home to 260,700 licensed taxis and private hire vehicles (PHVs) in 2022 – a rise of about 10,000 compared to 2021. If you’re wondering about how to start a taxi company – be that a hackney taxi or a private hire vehicle – then know that this still offers a viable business opportunity for the savvy entrepreneur.

Read on to find out more about the nitty gritty involved with getting started – such as the legislation required, projected costs – as well as tips on branding and marketing. By the end of our guide, you’ll know exactly how to set up a taxi service that can still drive custom in a cost of living crisis.

Traffic, routing and even (occasionally) customers can provide plenty of headaches for a new taxi company. Thankfully, one area which needn’t cause undue stress is creating a website to promote your business. Thanks to modern templates like the one below , you can create one of your owns in under an hour.

At Startups.co.uk, we test and rate website builder tools, and we’ve identified Wix as one of the best you can choose for creating a business site. Wix even has a selection of  custom website templates designed specifically for taxi firms  – you simply drop your own company information, wording and preferred imagery into your chosen template. Better still, it’s completely free to try for yourself.

Read on to find out more:

Become a taxi driver: tests, licensing and regulations, how to write a taxi service business plan, conduct market research for your taxi and private hire firm, financing your taxi or private hire business, pay the right tax for your business, get the right taxi insurance, concept, branding and design, taxi equipment, recruitment, promote your taxi business (and turn a profit), selling your taxi business, useful links.

At Startups.co.uk, we’re here to help small UK businesses to get started, grow and succeed. We have practical resources for helping new businesses get off the ground – you can use the tool below to get started today.

What Does Your Business Need Help With?

Before starting your own taxi company, you yourself must become a fully licenced driver. The process you’ll need to go through depends on where in the country you’ll be operating your business.

Outside of London, you must apply to your local council for a taxi or private hire vehicle licence. In London, TfL handles licences – taxi and private hire licences are processed separately.

To be eligible for a taxi or PHV licence in the UK (outside of London), you must:

• Apply to your local council
• Meet the eligibility criteria, e.g. right to work, driving licence, character checks

TfL handles applications in London . In order to be eligible to apply to drive either a taxi or private hire vehicle in London, you must:

• Be aged 18 or over (though you cannot be licensed until you are 21)
• Hold a full driving licence from the Driver and Vehicle Licensing Agency (DVLA), Northern Ireland, or another European Economic Area state
• Have the right to live and work in the UK
• Undertake an enhanced DBS check
• Depending on if you apply for a taxi or private hire licence, you may need to undergo a medical examination. Learn more about the exemptions for taxi licences and private hire licence
• Complete a topographical skills assessment (for private hire licences)

If driving a taxi in London, you’ll also need to pass the Knowledge of London . In order to pass this test, you must learn and memorise the streets landmarks that are within a six mile radius of Charing Cross – there are thousands of them!

TfL can either grant a licence for the whole of the Greater London area, or for one or more of London’s nine different suburban sectors.

For more information, take a look at our dedicated guide to taxi driver regulations .

Here, we explain the differences between black cabs and private hire vehicles.

Taxi service

Hackney carriages (taxis, black cabs) are able to pick up people off the street without a prior booking. Mostly found in urban areas, black cabs are highly regulated, with fares controlled by local councils and numbers restricted by many local authorities.

Drivers of black cabs are essentially self-employed, and have to go through rigorous checks and tests before they are awarded their license. Although some Hackney carriage drivers form co-operatives and switch their cars to saloons and other models, the majority of these taxi drivers can be found in their black cabs, trawling the streets for customers with their orange light on.

Private hire firm

Private hire vehicles (PHVs), or minicabs, must have a prior booking when picking up passengers. Usually linked by a radio circuit and operating out of similar types of cars that are branded in the same way, minicab owners face stiff penalties if they are found touting their business to random people on the street.

It is possible to mix fleets, with hackney carriages undertaking private hire tasks alongside standard minicabs. >However, remember that while it is possible for black cabs to be used for private hire, doing the same thing in reverse (i.e. using private hire vehicles as hackney carriages) is against the law.

If you’re planning to operate as a self-employed taxi driver, compiling a business plan might not be top of your priority list. However, it’s crucial to work out whether starting a taxi business will actually be a viable – and profitable – option for you.

Your business plan should answer the following questions:

• What type of service (i.e. taxi or private hire) will you be offering?
• What hours can you work?
• What equipment and other outgoings will you need to budget for?
• Will you start with, or work towards, operating a fleet?
• If you plan to operate a fleet, think about the balance between the extra costs and potential for additional income that comes with managing multiple cars

Make sure to draw up a thorough business plan, detailing:

• The market you’re entering
• Expected startup and ongoing costs (e.g. buying a cab, GPS software, radio equipment, and petrol – consider using fuel cards )
• Your potential earnings (how much will you charge for fares to ensure profitability?)

Download our free business plan template to help you get started.

Abi Hussain, transport manager at Cabzilla comments: “ The process of writing a business plan was an arduous one. We had many factors to consider, including our premises – where would we be based? Who would drive for us and where would we find them? 

“We also had to consider licensing costs and insurance, as well as completing a competitor analysis, a market analysis (which was vital in what was already a saturated market) and financial forecasting.”

Need help to keep your business plan on track?

With so many tasks involved with launching a taxi company, it’s important to find an effective way to track your progress. We recommend using project management tools.

If you’re working on your own or with other people, project management software is an excellent way to keep things moving. Assign tasks, create deadlines, outline projects and track progress from one platform.

Find out which project management software we recommend .

The average salary for taxi drivers in England is £496 per week , according to data published by Indeed .

Conducting extensive competitor research in your area will enable you to figure out where there’s a gap in the market for a new taxi service. This could be an under-served area of town, or a niche that has yet to be exploited by other taxi companies.

The internet has also given people a huge platform to air their grievances about however they think they’ve been wronged by a business or organisation. Use this to your advantage – look online at reviews of taxi businesses in your local area to see what complaints customers have, and think about how you could improve upon their service.

In addition, think about the area that you’ll operate in, how much you’ll charge passengers for trips, and the type of service that you’ll run.

Essentially, when researching the market for your taxi or private hire firm, you’re looking for gaps in the market. For example:

• Is there a rural area that’s currently under-served, and that could benefit from a focused service?
• How much competition is present in urban areas with high populations?
• How many rideshare users are in a certain area? Do Uber or other firms operate there?

What area will I operate in?

Where you live will tend to determine where you operate, so use your local knowledge to help identify business opportunities. For example, there could be a certain part of town that provides a steady stream of passengers. You could also identify areas that aren’t well-served by public transport, which could mean people in need of taxis. Similarly, big, out-of-town pubs and clubs could also offer the potential for plenty of customers.

Alternatively, consider setting up a taxi company away from where you live. Use your outsider’s perspective to see where a taxi service could be the most helpful. Be sure to spend time in potential areas, and look out for peak travel times.

How much should I charge passengers?

The amount you can charge passengers will depend on the type of service you offer (i.e. taxi or PHV), as well as your location. Taxi fares are regulated and set by local authorities, whereas PHVs are free to set their own prices.

Taxi fares in London

Below is a rough guide to taxi fares in London. A minimum fare of £3.20 is applicable at all times. 

Source: TfL

At the end of the trip, your passenger must pay the full fare displayed on the meter, unless otherwise agreed. 

As a taxi driver, you are obliged to accept any fare up to 12 miles in distance or one hour in duration, provided the end destination is within Greater London. 

The exception to this is if the passenger is picked up from Heathrow Airport, in which case you must accept a distance of 20 miles. Journeys that start from Heathrow Airport also incur an additional £2.80 charge.

If a passenger soils your taxi to the extent that you have to take it out of service for cleaning, you may charge the passenger up to £60 as a penalty.

For PHVs, fares are usually agreed on before the journey. PHVs are not subject to the same regulation as taxis, and do not need a fare meter or conform to fare tariffs set by the council. 

As a PHV driver, you are required to give an accurate fare estimate before the start of any journey with a passenger, or agree on a fixed fare. Fares are typically based on distance travelled.

What type of service will I offer?

According to data published by the Department for Transport, in its Taxi and Private Hire Vehicle Statistics, England: 2021 statistical release, i n 2021 , there were 58,300 licensed taxis in England and 192,700 PHVs – a 15.9 % decrease from 2020  (mainly due to the pandemic)

As of 2020, the average satisfaction rate for taxi passengers was 66%. However, rural areas experienced the lowest overall satisfaction, at 64%.

As the research shows, this underwhelming level of satisfaction in rural areas could make the case for improving the taxi offering, with a hyper-local taxi service in such locations.

In the end, it comes down to whatever’s convenient for you as a driver. Obviously moving location may not be feasible, but think about the different options below to see what might make the most sense.

Licences, cars, equipment – these are just some of the items you’ll need to budget for when running a taxi service. 

When you think about financing a business, you might consider using your savings, or borrowing money from family members. However, there are a number of alternatives available to you. For instance, you can consider comparing business loans , or using a specialist taxi provider to finance a vehicle. 

When you are up and running, you’ll need to manage your finances. Ideally, you should use a business bank account to manage earnings and outgoings for your business specifically. If you start a limited company, you must have a business bank account.

Certain expenses – like vehicle insurance, repairs, and fuel – can be claimed as allowable business expenses. 

You may be able to claim capital allowance if you buy a vehicle, depending on the type of accounting (i.e. traditional or cash-based) that is used. You may also be eligible to pay VAT.

As well as this, you’ll have to factor in emissions-based vehicle tax. The amount you pay depends on when the car was first registered, and the amount of emissions it creates.

Learn more on our dedicated taxi driver tax page.

As you’ll be spending more time on the road and carrying a procession of passengers, there’s an increased risk, and so you’re legally required to have taxi insurance. Generally, taxi insurance is more expensive than standard car insurance. 

A number of factors can contribute to how much taxi insurance you’ll need to pay. These include:

• Car size and insurance group
• Miles driven in a year
• Security devices
• Accessible features

Read our ‘how to get the right taxi insurance’ guide for more information.

If you’re already working as a taxi driver for another company but want to strike out on your own, use the information and expertise you’ve gained from this experience to create a taxi service that’s truly unique.

If you’re new to the sector, consider talking with experienced drivers and owners to better understand how the business works, and the aspects you’d need to think about when creating your own concept. 

How to name your taxi service

Whilst most self-employed drivers won’t need to be concerned with taxi business names, a private hire firm with multiple vehicles would certainly benefit from creating a strong brand.

If you’re in a small local area, this could be as simple as naming your taxi business after that location, which will also help it to be visible in online searches. Building a strong reputation as a reliable service will rely on consistent and obvious branding across your vehicles, as well as a minicab website so people can discover you online.

How to find your niche

The market is a competitive one – and finding some kind of niche that your service will cater to will be important if you want to stand out. Potential ideas could be:

• City centre 
• Suburban service
• Airport service
• School taxi
• Female-only drivers
• Eco-friendly vehicles

Ensure you meet the requirements for your particular service – for example, if you want to work with children, you’ll need an enhanced DBS check.

Taxi business for sale

Alternatively, if you’re interested in running an entire fleet of vehicles, look out for an existing minicab office that’s for sale, and think about purchasing a ready-made business.

Naturally, you’ll want to look at the business’ turnover and the reason why it is being sold, and make sure you actually have the sufficient capital to buy it. 

When setting up a private hire firm, note that nationally accepted regulations state you must identify an ‘operating centre’. To do this, you must apply for a private hire vehicle operator licence either for inside London or outside London , depending on your business.

If you are able to afford a physical premises for your taxi operating centre, make sure it is close to where your main customer base resides. Your operating centre should be easily accessible to customers who wish to walk in and make bookings, as well as call or book online. 

As trade is often brisk on Friday and Saturday nights, a private hire office in a town centre, close to restaurants, bars, and entertainment venues, will offer a prime location to attract late night revellers – as well as passing customers during the day. 

Have a look at other taxi offices in the area you want to operate in. Premises are usually small retail units, with enough office space for the dispatch/control team. You’re likely to start by renting a space, then once your business is more established, you might consider purchasing a unit.

Here, we take a look at the key pieces of kit you’ll need when starting your own taxi service. While a car is the most obvious thing you’ll need, you’ll also require taximeters for licenced taxis. We’ll also highlight how vehicle tracking solutions can benefit your business.

Card machines

The modern taxi driver can’t just rely on taking cash payments from passengers. As physical money continues to lose ground in the payments space, you’ll risk losing out on all kinds of fares if you don’t accept card payments. 

In fact, from October 2016, it has been a requirement for London taxis to accept card payments and provide printed receipts. So, if you’re planning on operating in the capital, you must install a TfL-approved card payment device in the passenger compartment.

You can learn more and compare your options in our guide to taxi card payment systems. 

Zettle by PayPal, previously known as iZettle, offers TFL-approved card readers and is popular with UK taxi drivers

Fleet management and vehicle tracking devices

There’s a lot to manage when operating a car for a taxi service. This includes how much fuel it’s using, its location, planning the best routes, and ensuring the car is being driven safely. This is true if you’re running one car, or one hundred. 

GPS is an essential part of effective taxi fleet management. A vehicle tracking solution brings a host of benefits for taxi fleets – it enables drivers to log jobs and receive directions, and allows fleet managers to manage vehicles and track driver behaviour including accelerating, braking and engine use. This in turn allows you to: 

• Improve customer response times
• Reduce fuel costs
• Reduce number of accidents
• Get accurate data
• Avoid congestion charges

Basic models include route planning and speed alerts. Meanwhile, more advanced models can provide highly accurate traffic information, intelligent route planning, and compatibility with Siri.

Autocab Taxi tracking

Autocab has more than 25 years of fleet management experience. Its Ghost Cloud Booking and Dispatch software offers the following features:

• Receive and dispatch multiple jobs in real-time
• Pay for the licence fee on a weekly basis
• Scalable system capacity
• Hosted on Microsoft Azure
• Anytime access via an internet connection

Prices are available from the Autocab sales team upon request.

Digital Dispatch

Digital Dispatch provides dispatch, booking, and fleet management software – as well as payments solutions – for small to very large fleets. This software includes the following solutions:

• Hosted, cloud-based system
• Automated features, e.g. regular bookings or future journeys
• Charged monthly
• Process card payments in vehicles
• Use a mobile data terminal or Android mobile device
• Dispatch, map, and track vehicles
• Designed for fleets of 100 to several thousand vehicles
• Cellular Public Data Networks (PDN) and Private Mobile Radio (PMR) are supported
• Ideal for use across multiple companies
• In-vehicle mobile data terminals are available 
• Reporting and statistics 
• Passengers can use self-service to book

MTData Taxi tracking Software

• Self-hosting or cloud-based solutions
• Web booking and call-taking software
• App for smartphone booking available
• Payment system
• Driver portal training
• SnapShot camera
• Taximeter integrates with dispatch and tracking system
• Management dashboard

Envoy Taxi Booking Dispatch & Management Systems

• All-in-one software – book, dispatch, and manage fleets 
• Cloud-hosted
• Pay-as-you-go pricing structure
• SMS confirmation of booking and taxi arrival
• Booking planner
• Auto and manual dispatch
• Reporting, accounting, and management 
• Driver apps available

Offering the ability to record the road in front of (and potentially behind) a vehicle, dashboard cameras are a useful addition to a taxi car. 

Dash cams can offer the following benefits:

• Protect drivers in case of an incident or insurance claim
• Promote careful driving
• Potential for discounted insurance

If you’re thinking about getting a dash cam, be sure to research the laws and rules regarding them. There are certain requirements that may have to be met, both for passengers and drivers. These include:

• All passengers should be informed when a dash cam is in use
• You must be parked and stationary to interact with a dash cam – it’s illegal to do so while driving
• It must be fixed behind the rear-view mirror so as not to obstruct your vision

Buying a black cab

The London Electric Vehicle Company (LEVC) – formerly the London Taxi Company – makes black cabs, which are some of the most recognisable vehicles in the world. As a taxi driver, you can drive a taxi made by the LEVC at its Coventry base. 

2017 saw the introduction of the new electric black cab, the TX, which is capable of driving purely on electric power. As of January 2018, all taxis that are presented for licencing need to have zero emissions. 

There is a rule stating that taxis must be less than 15 years old. This is in an attempt to remove diesel models from London’s roads by 2025.

TX taxi features:

• Available from £183 per week, or £70,473.40 total
• Space for six passengers
• Has a range of 377 miles

There are two types of warranty available: standard and extended.

You can view a full breakdown of costs on the LEVC’s taxi cost calculator page. As well as this, the LEVC offers driving tips for the TX to help ensure that you’re getting the most from the car.

You can also buy or rent a range of approved used taxis from the LEVC, With cars are available from £31,500. Although you can buy a used black cab from elsewhere, buying from LEVC will give you confidence that the vehicle has gone through stringent checks and has all the requisite features.

Paul Poulten, a self-employed black taxi driver, says that when looking for a black cab to buy, you should consider:

• Comfort – you’re going to be spending many hours of the day sitting in that driver’s seat, so make sure it’s a place you like sitting
• Hybrid engine – 2017 saw the introduction of the new electric black cab
• Build quality – give any vehicle a thorough inspection before buying. Check it’s passed its MOT, and enquire about any previous issues or repairs it may have had
• Accessibility for all – every licensed London taxi should be wheelchair accessible, and include:
• A swivel seat
• An intermediate step
• Grab handles
• Floor lighting
• A hearing aid induction loop
• Space for assistance dogs (at no extra charge)

Cars for PHVs

What makes a car a suitable PHV? Unlike a black cab, you could technically use any kind of car, but there are still a number of considerations you should bear in mind to make sure you’ve got the right vehicle for the job. Some boroughs and local councils also require taxis and PHVs to have a certain seat width or engine size.

The car will also obviously have to be deemed safe. Here’s what you should consider before choosing which car to use as your PHV:

• Reliability – choose a car that’s known to run smoothly with little maintenance, and slim chance of a breakdown
• Safety – the sheer amount of time you spend in a car increases your chances of being involved in an accident. Choose a car that’s been rigorously safety tested
• Cost – this depends on how much you have to spend, but it’s probably sensible to start with a pretty affordable car
• Number of seats – do you want to be able to transport eight people, or just three?
• Luggage space – if you’re likely to be picking up passengers with lots of luggage (such as from the airport), then boot space is a critical consideration. You don’t want to miss out on a fare because you don’t have enough space
• Manual or automatic – whilst manuals tend to be more efficient, if you’re going to be stopping and starting in traffic all day, an automatic will offer an easier and smoother experience
• Features – as a PHV driver, you are not required to do the Knowledge. This means that a sat-nav could be a good idea to ensure you can get from A to B in the quickest time possible
• Engine – your main considerations will be CO2 emissions (the lower these are, the less VED tax you’ll pay) and fuel economy

Remember: Under TfL rules, as of April 2019, diesel cars that do not meet the latest emissions standards will face a daily charge of £12.50 to drive in the centre of London, under the 24/7 Ultra-Low Emission Zone.

A taximeter is a crucial piece of kit. Mounted in the driver’s cab but visible to the passenger, it calculates and displays the fare as it increases over the distance travelled. 

TfL has some specifications for taximeters in London taxis, notably that it must:

• Display the units of fare in pounds sterling (£) and pence (p)
• Have display, markings, and instructions in English
• Be stored in a sealed, tamper-proof device

Taxi roof sign

If you want to be easily identified as a taxi, you’ll need to make it obvious with a roof sign, or bright eye-catching lettering (or even both).These roof-mounted units can now be used as digital advertising displays, helping the driver generate additional revenue and attract more attention. 

Verifone’s TfL-approved Digital Tops run ads in HD. They have built-in solar panels to supplement your taxi’s battery power, and the ads are updated using 3G wireless technology.

Depending on the setup of your taxi business, communication between your cars and your base is essential so you can discuss who’s attending to what fare at what time. If your fleet is using a radio system, you’ll need to get a licence from Ofcom . 

The Ofcom licensing centre issues operators with licenses to use radio equipment. You can apply directly to Ofcom either online or via post. 

If you want to find the perfect tracking solution for your business, simply complete our quick and easy quote comparison form . 

If you’re going to be operating a fleet, you’ll need to spend time hiring the right people to drive your vehicles. When hiring, you need to make sure your drivers:

• Have the relevant licences
• Are permitted to work in the UK
• Don’t have a criminal record
• Have completed the relevant medical and DBS checks

Failure to comply could land you or your employees in legal trouble. As with hiring any employee, a thorough background check of their employment history should flag up any potential problems.

Drivers will need to have the relevant driving licences, and to complete ‘The Knowledge’ for driving black taxis in London. Some local councils may require drivers to complete additional training. There are also training providers you could use for your drivers to ensure they drive to a high standard and follow best practice.

With several taxi firms jostling for supremacy in any one area, competition is inevitably high across the industry. New operators will often find themselves subjected to aggressive tactics by other firms, such as price undercutting. 

With hackney carriage price rates set by the council, private hire firms can operate a cheaper service, sometimes leading to a “them and us” animosity between the two sectors. However, there are a number of ways to promote your business, whatever type of service you offer.

Create a taxi business website

A website offers your taxi service a wealth of opportunities. In addition to standard details like contact information, areas covered, and available services, you can use it for customer service and booking trips. If you want to take bookings online, you’ll need a website that supports ecommerce .

Aside from operational functions, you can use a website to showcase your company’s personality, as well as news and customer testimonials. A website is also an ideal place to highlight what makes your service different from competitors!

If you’re unsure of what to do for taxi website design , there are plenty of web hosting services that can help you get started, or you could pay a website designer to do the work for you.

If you want to get a website today, compare web builders here to help you decide on the best one for your business. 

Having a good online presence will help local customers find your taxi website, as will making yourself active on local social media pages. Investing in search engine optimisation (SEO) from the start to ensure you rank highly for taxi searches in your local area will also give you a boost. If you’re new to SEO, you could hire someone to optimise your website.

Word of mouth

That said, it could still be worth forming relationships with local businesses – such as restaurants or bars – that are likely to have a steady supply of customers in need of a lift home. Leave your details with front of house staff, and let them know that you or your drivers are available. If the restaurant or bar is agreeable, you could leave a business card or leaflet on their noticeboard or front desk.

Taxi advertising

Black cabs are able to carry advertising and sponsorship on their cars, while modern taxis provide a wealth of opportunities for making money through advertising. You can wrap your taxi to such an extent that the whole chassis acts as a mobile advert.

As mentioned before, digital taxi top advertising signs can display different adverts on their screens through 3G, whilst in-taxi advertising digital display screens are becoming a common sight. There are many providers in the capital offering advertising services to some of the biggest brands in the world, who will only be too happy to buy up advertising space in your taxi.

Hussain says: “My advice to anyone looking to start up their own taxi business is to find a gap in the market – bring something special to the industry, exploit a niche that is yet to be filled, and always serve your customers well. Don’t commit to jobs you can’t fulfil, employ enough staff so you never have to turn down work, and most importantly – never turn your phone off!” 

Whether you want to start a new, different venture, or retire completely, there could come a time when you want to exit the taxi game and sell your business.

Black taxis

Selling a black cab is not difficult, provided you’ve kept it in good condition. The LEVC offers a safe and regulated portal for selling your old vehicle – it will be put through a stringent 100-point check, and assessed by factory-trained technicians.

There are even online platforms for selling whole PHV operations. You’ll have to provide a number of details for prospective buyers so they can assess whether it’s a good business opportunity, including:

• Asking price
• Number of vehicles
• Reasons for selling
• Years in operation
• Lease terms and rent (if you have property)

Franchising your taxi business

If you’ve built up a considerable reputation as a taxi or private hire service in your local area, with a strong brand name and image, you could spread your business by franchising. 

You allow an interested party to pay for the privilege of using your brand name and image on their fleet, in exchange for your training and support. This way, you can expand into other locations without significant upheaval on your behalf – and with minimal costs, too.

We’ve directed you through the key information to know and steps to follow to help you in your journey to running your own taxi or private hire firm. We’ve detailed the points to include in your business plan, the equipment you’ll need to budget for, and even how to grow your customer base.

The next step is to get going, and accelerate your ideas into reality! For more information, and to compare quotes for vehicle tracking, fill in our quick vehicle tracking form , and we’ll match you to quotes that make sense for your business. 

Here, we offer a helpful list of key sources for reference, both from within the article and from additional sites.

• LEVC black taxis
• TfL taxi driver licence application
• TfL private hire licence application
• Operator licence in London
• Operator licence outside of London
• TfL card payments
• Ofcom business radio
• National Taxi Association

Startups.co.uk is reader-supported. If you make a purchase through the links on our site, we may earn a commission from the retailers of the products we have reviewed. This helps Startups.co.uk to provide free reviews for our readers. It has no additional cost to you, and never affects the editorial independence of our reviews.

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How to Start a Cab Business With Uber & Ola in 2022?

Shruti Jalan

Knowing your potential is not enough unless you act on it. You have always known you could be an entrepreneur but hesitated, doubted your capabilities?. Do not, because India has entered the age of free enterprise, private businesses if you have not already noticed.

World Bank has predicted 11+% GDP growth rate for India in Year 2021-22 far higher than any major world economy. Is it possible without the start-ups/entrepreneurial spirit? No, it is not. So why not dismiss your fears and be a part of India’s growth story.

Have you been dreaming to get into transport/cab business . This write-up covers everything you need to know.

Ola & UBER are two mega multi-national transportation companies of the world that though provide public transport but give the benefits & feel of a private transport to its commuters. That was the main motivation for people to choose their services and they succeeded in meeting their customers basic needs - Quick, cheap, ease & round-the-clock hassle free service that was.

Business Model of Ola and Uber How to Start a Business with Uber? How to Start a Business with Ola? Things to Consider Before Starting business with Ola or Uber

Business Model of Ola and Uber

The fundamental business model of these cab aggregators is simple. That is connecting commuters (customers) seeking on-demand cabs with the company’s driver-partners through a company owned mobile app.

The company earns its revenue by way of commission or fees levied on each ride hailed. (Both these taxi services can be booked through their respective websites too.). So in how many ways can one do business with UBER and Ola. In addition, what is the process from start to finish. Let us find out.

How to Start a Business with Uber?

There are three Ways to Earn With Uber Drive Business:

Driver cum owner

You have a car, are willing to attach it with Uber and you also drive your own car.

Commercial driver under partner

You do not own the car but wish to drive under the Uber platform . You get to drive a vehicle owned by an Uber non-driving partner.

Note: You can even choose to drive a commercial auto-rickshaw or motorbike/scooter if that service is available in your city.

Non-driving partner

You own the car, attach it with the Uber platform without self-driving any but have to manage at least one driver.

There you go. Choose any of the three depending upon your resources and earning needs.

Step-by-Step Process

Step 1. Sign up on the Uber platform through its website, by entering your basic details like name, phone no, email, city.

Step 2. If you choose first or third option from above, you’ll land up on this page

If you choose the second option, you’ll land up on this page

Step 3. Now set up your account as directed i.e. by submitting all of the above document files online. If you do not have them online, click a picture from your mobile or scan it using a cam-scanner app and upload. You can upload all the docs in the same manner. It is much easier & faster than submitting hard copies by queuing up in the office.

Step 4. To Activate your account, Bring your car to a local green light hub. These hubs are locations in a city where you must bring your car for inspection and other things. Requirements vary by city, so sign up to know.

Step 5. Once your account is set up, you can look up all the necessary information you need to know about doing business with Uber. You can even get help by contacting their phone support number.

How to Start a Business with Ola?

Three ways you can do business with Ola:

Partner with a Car

You have a car that you want to attach with Ola platform . You also drive your own car.

Register yourself in less than a minute by entering your name, phone no. and your city. Ola team will get in touch with you within 24 hours. Additionally, be ready with these basic documents.

Benefits of this plan are:

• Choose your own working hours
• Choose from 100 cities to work in
• Daily payments 365 days a year
• Get a booking on your way home
• 24/7 helpline for support

Lease a Car

You know driving and need a car to drive. Ola provides you with a car without you having to worry about maintenance and insurance . Register yourself in less than a minute by entering your name, phone no. and your city. Ola team will get in touch with you within 24 hours.

Following documents are all you require to begin driving independently with Ola.

Other benefits you will derive with this plan:

• Get a car at zero risk
• Free accidental insurance of 2 lakhs
• Zero maintenance cost
• Drive a new car of your choice
• Two paid holidays each month
• 24/7 helpline for your support

Note: If you are an auto driver, you can also attach your auto by submitting the documents, downloading the app and start to drive with Ola.

Become a fleet operator

You own a fleet of cars and you want to attach it with Ola. You just need to track & control your fleet through specialised app.

Register yourself in less than a minute by entering your name, phone no. and your city. Ola team will get in touch with you within 24 hours.

Following basic documents are required. These are also the exact same documents you will need under option one i.e. to become a ‘partner with a car’.

Benefits under this scheme:

• Get detailed reports of total earnings
• Monitor driver logins and other trip details
• Live tracking of all your drivers and cars
• Get alerts like payments, logouts, etc.
• Check your fleet’s performance anytime
• Receive 24/7 phone support

Sure you will have further queries like ‘registration charge, initial payment if any to lease a car or two drivers for a single car’ etc. For this, you just have to visit the Ola Partner Portal.

Note: You can also attach your Rickshaw or Bike with Ola. To know more, visit the above web page & send your enquiry through a quick action tab.

Things to Consider Before Starting business with Ola or Uber

There is no definite answer but there is an answer definitely that can help you decide whether to do business with either/both of them or not. Here are two Factors to consider.

Profitability

You will surely get a ‘fare’ share of the rent but will you also get a ‘fair’ share? Is it profitable to attach car with Ola or Uber? To find an answer to this, you need to know the cost structure of both companies. Here’s the cost break-up if you rent a car:

According to the source site, you have to work 3-4 hours just to break even i.e. to earn enough to not make a loss. Therefore, in order to make any profit, you will need to work more than 3 hours a day.

And what if you attach your own car. You already have all the cost & pricing details, so just pick up a pen-paper and calculate your likely earnings, deducting all the costs.

This is a very crude analysis , which you can take as a starting point. However, it can certainly help you build a business/earning plan that suits your specific requirements.

Ease of operation & technological superiority

These two factors directly add to your job satisfaction. Consider each carefully. App features-wise & its daily payment feature make Ola look superior to Uber. Even though some may contest that Uber is cheaper in general.

However, according to user experiences, Ola & Uber fare differently in different cities. Hence, a ground study & research is the best approach before you decide to choose one of the two.

Both Ola & Uber have ambitious plans for the future. While Uber has a vision of becoming the top urban mobility platform, Ola is striving toward building mobility for a billion people. Whoa! Why dream small, right!

Can I do business with Ola & Uber both?

Yes, you can do Cab business with both Ola and Uber.

Are there fixed work hours or timings for Cab drivers in Ola and Uber?

No, there is no fixed time or hours of business with either Ola or Uber. You can choose when & how much you want to work.

What are future service offerings of Ola & Uber?

For Uber few of the future business offerings could be electric scooters, bike-sharing & autonomous (driver-less) vehicles. Apart from its wide range of cab booking services, Ola plans to launch its own line of electric scooters via its ‘Ola electric mobility’ subsidiary.

Is putting the car in Ola profitable?

You can easily profit over Rs. 15,000 a month by giving car to Ola.

What percentage does Ola/uber take?

Both Ola and Uber take 25–40% of the amount as their commission.

How profitable is Uber business for drivers?

A driver can earn up to 35/40k a week.

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• Business Plans Handbook
• Business Plans - Volume 05
• Taxi Service Business Plan Business Plan

Taxi Service BUSINESS PLAN

LAKEVIEW TAXI

27000 Kingsborough Ave. Toledo, OH 32311

This businsess plan presents a persuasive and innovative system for organizing and running an alternative taxi service. An entrepreneur with a new improvement on a traditional business will find this plan's clear logic instructive. Note the comprehensive overview of industry practices and their shortcomings.

MISSION STATEMENT

Business orientation, marketing plan, attracting customers, company organization, proposed method of financing, revenue and cash flow projections, start-up costs, financial data.

The mission of Lakeview Taxi is twofold. The first mission is to serve the general public in a fair and honest way. The second is to do this from a Christian perspective. While performing these tasks, it is hoped for and expected that a decent profit will be gathered from our efforts. There are many problems with the current taxi organizations in existence and it is hoped that by adding an alterantive to the services out there, the public will really appreciate our efforts.

The business of Lakeview Taxi will be transportation. Not just taxi service, but package delivery and other types of transportation such as Go Bus (a federally sponsored program) and even Ambucab (transportation on for the elderly) type services. The taxi service will be located in Toledo, Ohio in an office located on South Williams avenue.

Demographics

The amount of taxi business in the Toledo area is strong and growing. The population in the greater metropolitan area exceeds 500,000 people and the community is dynamic and getting more vibrant with each passing day. The entire area has a low unemployment rate, a diversified economy, and wonderful year round events which attract tourist dollars and people to the region.

Customer Profile

A taxi comapny attracts two main types of business. The first type is a commercial charge account business, and the second is direct consumer business. The commercial accounts usually have either package delivery or pay for passengers as their main function and are usually charge accounts. The direct consumer accounts are people from throughout the city who need taxi service for various reasons, to run errands, get to work etc. Consumer accounts are usually cub accounts and payable immediately. The customer never comes to the place of business of the taxi service, all taxis are dispatched to the customers place of business and the sole representative view that the customer has of the taxi service is through the cleanliness of the vehicle and the driver, and the promptness of their response. Any value added services just enhance these basic considerations of the customer.

Need for Services

There is a pressing need for reliable public transportation in the Toledo area, Bus service is not a viable option for many people due to the limited scope of operation of bus service in the area. The buses here do not run very long during the day and they are very restricted as to routes and times during the weekend and off-peak times. As a result, public transportation is always needed for those whom the bus cannot serve.

Economic Factors

Not only is there a strong and growing industrial base in the region, the city has been quietly developing the downtown area for quite some time. New projects are being planned and built daily and the entire downtown property is expanding at a very fist rate. In the last ten years, there has been an explosion of new venues which have attracted people to the downtown area. The city has recently seen the implementation of several sports franchises, an auto race, expanded concert venues, hotel construction, and are planning a downtown convention center which should pull in business from the surrounding cities in Ohio and throughout the United States. A state-of-theart cancer research center is also being developed in addition to the world's first mall for children. Toledo is a city of opportunity and that expansion and growth fuels the need for more reliable transportation.

Competition

There are currently three other taxicab companies in the area. Each company is severely flawed and yet still manages to generate incredible amounts of revenue. Only one company, Maumee Taxi, the largest one, could be considered serious competition. This firm is prosperous and quite skillful at handling large numbers of clients. They currently have 56 taxis in their fleetand have most of the prestigious accounts in town. The other two companies still manage to thrive in spite of the fact that they have much smaller income bases and essentially are driving outdated equipment in poor condition. During busy times, none of the companies can keep up with demand and customers have been known to wait for up to four hours. During normal operating scenarios, wait times still range from approximately twenty to thirty minutes. This wait time is unnecessary and quite destructive to customer support. Taxi companies typically do not fail in this area. Other cities have a higher turnover of taxi companies, but they usually have a much larger presence. Metro Columbus has a population base of one million and 14,000 cabs. Toledo has a population base of 500,000 and 150 cabs. That is quite a difference. The reason for such a large spread is that Toledo is an affluent area and taxi service is not as pressing as in the impoverished areas surrounding Columbus. Another reason is that only recently has Toledo developed a significant downtown business. As the downtown continues to develop, taxi service will be required to increase exponentially.

The current image of a taxi driver in Toledo is not a pleasant one. Drivers are looked at as unprofessional and discourteous. One reason that this is true is the nature of the business. Most taxi companies operate in the best and the worst areas of town and drivers have to deal with a wide variety of people. The drivers that are hired are not professional and are given virtually no training before they are sent out to deal with the public. Lakeview Taxi can change that. Training costs can be reduced through an apprenticeship program. Drivers can ride with several drivers and learn all of the necessary skills without incurring a large cost. In addition, training materials can be written down and provided at the start of training and a simple test can be administered to gauge the skills obtained by the driver. Knowledge of the city, command of the English language, and knowledge of charge account operations would go a long way towards improving the basic professionalism of the driver. Uniforms which are both comfortable and easy to maintain would also strive to complete the look that the public deserves and should expect. Of course, cleanliness of the cars is a must. A monthly inspection of vehicles would eliminate a large number of problems associated with operating a fleet and would ensure that the licensing authority would not bother with inspections of their own. We can control the image of Lakeview Taxi and it is possible to do so with a minimum of intrusiveness.

Pricing is fixed by the city using regulated meters. Prices can fluctuate when the city council votes for a meter rate increase. Increases are usually annual and as a result, meter errata are high in the Toledo area and need minimal adjustment. The only meter problem would actually be the problem associated with metered waiting time. A factor that could be adjusted quite easily. Flag drop is currently 1.65 and the rate is then .17 per click every 1/9th of a mile. This rate is quite reasonable and is a good value to the customer as well.

Most taxi companies currently do not offer to take major credit cards. This is a huge mistake and there are a wide range of people who would use taxis more if this simple problem could be eradicated.

Customer Service

Customer service is a priority at Lakeview Taxi. The customer cares most about the promptness of the taxi that he or she is riding in. One way to ensure that customers would be served in a much better fashion would be to implement a zoned taxi dispatch system. A zoned system is essentially a first come/first served system of dispatching that eliminates much of the delay that occurs during ordinary dispatching. There are no real drawbacks to the system except that it would take a short while for drivers to get used to such a system. It is the quickest and easiest way to operate a taxi company. The current system, which relies on the closest cab to an order bidding on the order, means that orders are constantly being held up while the bidding takes place. It also means that orders are much more selective. Selecting a specific order is fine for the the driver, but it is a slow process that inconveniences the customer. If the drivers were switched over to a different system, in the long run, they would actually make more money and the entire system would speed up immensely.

Advertising

Advertising is minimal in the taxi service business, but could be maximized with the use of a little creativity. Currently a yellow page ad listing is the only necessary requirement to generate business. Many customers will immediately try the new taxi company in town to see if it has a faster response time than the other services in the area. Other people will try the new service if favorable word-of-mouth advertising is received. A large pool of customers is always available for a new company to have. In fact, most services that start up actually have a problem keeping up with the large volume of orders that come with just opening the doors to business. That pattern has repeated itself with each new taxi business that has developed within the last ten years.

Customer lncentives

Customers could be lured to try a new company by the use of incentives. It is illegal to charge more than the regulated price on taxi fares. It is not illegal to give a discount for first time riders of the service and it would strongly enhance repeat business to do so. Also, customers could be lured by giving away an occasional free ride or by using coupons distributed in the Advance Newspaper or the Toledo Press. These coupons could also be distributed in the taxis themselves as any driver who had a passenger could pass one out and any driver who did not have a fare could stop at local businesses and pass them out. That technique has been tried before with amazing success. However, as soon as the taxi company gets a steady base, all sales activity seems to stop. The company starts to generate sales so high they cannot handle the volume. In fact, most new companies lose business because they are too successful.

A satisfied customer in the taxi business will stay with that company for a long period of time. Sometimes as long as twenty years. Once a customer is satisfied, it is hard to get them to switch companies. Any measure of reasonable success recognizes that the repeat or "regular" customer is the one we all strive to get and maintain. There are a lot of ideas that have not been implemented simply because the business is so strong in this area. Hotels are constantly asking that cabs service them and hotels need shuttles for their overnight guests. A taxi company that catered to this market would do extremely well.

Additional Sources of Revenue

Even though taxi companies are by and large successful, they could be made even more so by adding additional revenue streams. Taxis can be painted with advertisements and turned into independent marketing venues of their own. Drivers could pass out flyers and could direct customers to certain establishments that had a reciprocal relationship with the company. Value added services could include food deliveries and other types of deliveries that other companies make on a routine basis. The horizon is truly unlimited when it comes to the taxi business. A little creativity would go a long way in furthering that horizon.

OPERATIONS: ADVANTAGES OF TAXI BROKERING

Taxi brokering is a unique concept. It allows drivers to own their own vehicles and operate them in a manner consistent with the company's policies and procedures. The standard practice for most taxi companies is to have each driver be an independent contractor and not an employee. The IRS has upheld this practice as standard in the industry. Many times, however, a taxi company and other companies treat their independent contractors as employees and they expose themselves and their company to massive tax liability if a tax ruling should happen to go against them. This is not wise policy, but it certainly exists in most taxi companies in the United States. There is a way to avoid liability and yet still maintain reasonable control over the drivers through applying the principles of taxi brokering. When a driver owns his or her own vehicle, there is an enormous savings to be had at all levels in the company. The advantages are spelled out below.

Overhead is reduced enormously when the company does not have to own and operate a fleet of vehicles. The savings on maintenance costs alone justifies using this tactic. In addition to direct cost savings, there is an operation personnel cost savings as well. There is no need for mechanics, no need for a scheduler, in fact, office staff can be reduced to a point where it is almost not necessary.

Controlling Turnover

The high turnover rate that plagues the industry is entirely avoided. Brokers are responsible for procuring their own drivers and even if it becomes difficult for them to locate drivers, the broker simply works more time during his shift to make up the difference. Almost allpersonnel problems are avoided when utilizing brokers.

Shifting Ownership Burden

Brokers take care of their own vehicles. There is no hassle associated with keeping vehicles on the road and no responsibility for ensuring cleanliness. That burden is borne entirely by the broker and most brokers in the past have shown that they have a high regard for their vehicles and they have every reason to keep them running and in good condition. In fact, inspecting the fleet becomes much easier for management when they do not have to attend to the myriad of other details that goes into running a company-owned fleet.

Better Drivers Result

Brokers tend to be careful drivers. It is their equipment, so they tend to treat it more carefully and have a better understanding of any drivers that they hire to work under them. As such, insurance rates will eventually go to show that careful drivers translates into lower costs for everyone involved. Further, insurance costs can also be minimized by reducing the collision coverage for vehicles. Part of the operational costs paid for by the brokers could be used to maintain a collision fund to help pay for repairs when needed while greatly reducing insurance costs, which shall be discussed in further detail shortly.

Fees Minimized

Because brokers help so much to reduce costs across-the board, operational fees (the cost charged to the broker on a daily or weekly basis) can be reduced to an absolute minimum. This ensures that most brokers will succeed in their investment and will have an added incentive to add taxis at their earliest opportunity.

Rotating Dispatch System

With brokers acting as owner-operators, another unique opportunity presents itself for use, that of eliminating a paid dispatch system. Since brokers are experienced drivers and have an investment in the company, they can be utilized as dispatchers for the company. Once again, the cost savings are substantial and using brokers as dispatchers is a good way to promote a solid working relationship among the members of the company. Teamwork is a foreign concept to many drivers now working under exploitive conditions. Having brokers dispatch taxis while using a zone system is not only workable, but more equitable to the drivers because it reduces the possibility of corruption and gives them an opportunity to be continuously trained in all facets of the business.

The company shall be organized with the president of the company overseeing total operations and the vice-president or operations director handling administrative duties. There may or may not be office personnel to contend with, but that will all be handled administratively by thevice-president or operations director. There is no need for mechanics, dispatchers (if using rotating dispatch set-up), or schedulers. All of those duties would be eliminated by the change in company structure resulting from using a brokered system..

Conventional bank financing seems likely due to the collateral that can be presented as security for the loan. This loan security should be enough to get the financing necessary to fund the startup. In the unlikely event that it does not, a private stock distribution could provide for optional financing.

Operational Fees and Their Impactand

The revenue from taxi operations is relatively easy to project. All revenue is based on one factor, the operational fee charged to the brokers. The initial figure given for start-up purposes is $250.00 per week per vehicle to be paid on a daily $50.00 basis for five days. This is $90.00 a week less than all of the other companies in town and is highly competitive. Not only that, but since the fleet would be comprised entirely of brokers, this fee could be adjusted downwards from the first day of operation. When brokers in other companies see lower fees at Lakeview, they will be inclined to bring their cars over. Any time fees were further lowered, a ripple effect would be likely to occur and make bringing over brokers from other companies highly likely. Because the competition could not compete with these lower fees due to their much higher cost structure, they would be placed under tremendous pressure just to continue operations. Bringing over brokers would also mean automatically attracting more customers as some drivers bring with them a certain volume of customers. There is no telling how low operational fees could go with enough volume.

Revenue Formula

The revenue formula for Lakeview Taxi is as follows:

$250.00 x number of vehicles x per week = total revenue per week

The competition (one company) is currently running 56 taxis in the Toledo area. Using the above formula, we arrive at a revenue of $14,000.00 per week, or $56,000 per month, or $728,000.00 per year. Even though the start-up number of taxis would be closer to 10 vehicles, there is still a weekly gross profit potential of $2500.00 or $10,000 per month. Given Toledo size and potential development, it could easily support a taxi fleet of 300 or more within five years. The potential is there and growing every day.

Cash flow in a taxi company is good. The revenue is dependable and stable and is affectedby only a couple of problems. One is that some cars have to be given downtime to help with time spent off of the road. Usually only a token amount is collected. This is a minor factor, but worth mentioning from a cash flow standpoint. This factor is mitigated somewhat by the way fees are charged. Because they are due on Friday for the previous five days, weekends are always free for drivers and many would see that time as an ideal opportunity to effect repairs on their vehicle. Of greater concern is the charge account problem. Drivers and brokers alike are used to receiving their money or credit for charges right away while the charge accounts sometimes have a thirty or sixty day turnaround. This problem could be solved or lessened in one of several ways. Those ways are examined below:

Customer Charged

Charge customers could be assessed a fee for the extension of credit by the taxi company. Extending credit is not as necessary as in the taxi business as in some industries; however, a significant portion of package revenue does come in the form of charge accounts, so it is useful to a degree. The fee could be nominal, in the 5% to 10% range for most customers. This money would be placed in a pool to fund payout to brokers and drivers.

Broker Charged

Brokers could be assessed a fee ranging from 10% to 15% of the charge and that money could be used in the same pool as the one described previously, giving the charge pool a combined rate of 15% to 25%. This pool would be self-financing and would soon build up an incredible reserve of equity in the company. Not only that, but interest derived from the pool could be used as an additional revenue stream down the road. Charges would, out of necessity, have to be small at first and build volume as the fund pool grew of its own accord.

Delayed Payment

Charges could be delayed pending payment by the customer. This would be the most unattractive option since the paperwork generated and the broker dissatisfaction would work against this option. A legitimate argument could be made for delaying payment, but this would likely become a contentious issue if presented.

Despite the problems just presented, for the most part, cash flow is easier to manage in this business than in many others, and cash flow at Lakeview Taxi would help get the business launched and running with almost instant revenue at start-up.

Added Revenue

An additional source of revenue at start-up is the down payments brokers must make to place vehicles on the road. Brokers are currently paying $2000.00 per vehicle at the competition to put a car on the road. These down payments are supposed to cover insurance, cost of radios and meters, and miscellaneous expenses. The fact of the matter is that this is an additional source of revenue for the company at start-up because the costs associated with placing a vehicle on theroad are often much less than what is charged to the broker.

The start-up costs for running a taxi company is high for several reasons. These reasons are explained in detail below:

Insurance : This is the highest cost factor involved in running the taxi company and the greatest hindrance in getting started. Taxis are usually insured at a rate high enough to account for a weekly charge. Taxi insurance is hard to obtain and is billed at between $60.00 and $100.00 per week to the company. This type of coverage is not even first class insurance, as the market for this type of insurance is so small. Other companies' careless use of taxi insurance has lead to the high rates. It is a challenge coming up with the premium down payment, which is usually set at around 20% (partially offset by broker down payments) of the total annual policy. Once insurance is obtained, however, the Lakeview Taxi system would eventually drive rates down in regards to our particular company due to the careful screening and other safe driving incentives mentioned earlier. Still, the obstacle is formidable, but not insurmountable.

Licensing : The cost of licensing is roughly $3000.00 per year and is not a problem if all of the taxis are painted and equipped for inspection.

Office Costs : Would be minimal. The customer never sees the office and therefore the primary consideration for space is simply a location with plenty of parking. The cost for space like the type that is being described here would be roughly $1000.00 per month.

Radios : This cost would also be borne by the broker at start-up, and would be minimal for the company.

Tower and Frequency Allocation : Would be minimal due to the fact that all tower operators wish to have their radio equipment purchased and will cut down the cost of tower space for exclusive purchasing of their equipment.

Meters : Are paid for by the brokers and installed by a servicing company. The meters are then set at a rate determined by the city.

Miscellaneous Costs : Will be estimated and broken down separately.

The following financial data is presented as basic information and is not as complete as that following a financial audit by a certified professional. Please bear in mind that the data presented is only an estimate.

Lakeview Taxi is a viable service company that could provide great benefits to the city and generate large profits for the owners. It is completely possible to start this business with a small investment and produce large returns soon after its inception. The writers of this plan urge you to review the following information and if there is any that you feel is incomplete or inexplicable, please bring it to our attention. We can provide for transportation needs of the city not only now, but in years to come. Thank you for taking time to review this plan.

Balance Sheet

Profit and Loss By Month

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LingoTaxi: Your English taxi in Moscow

• Airport Transfers
• Chauffeur Service
• Train Station Transfers

Your personal English-speaking transfer service and taxi in Moscow

LingoTaxi is an English taxi and transfer service in Moscow and other cities, established by expats offering other fellow expats, tourists, business travelers and foreigners to Russia and Ukraine a reliable, English-speaking taxi service. We know your needs, your expectations and fear when getting out into the open into a place where nobody understands your native tongue. We've been there ourselves. LingoTaxi will do its best to maximize your comfort while staying and traveling in Eastern Europe!

Be welcome to drop us a line by e-mail, chat, call us or make an online reservation for our complete, 100% English-speaking taxi service in Moscow, St. Petersburg and 5 other major Russian cities (Kazan, Sochi, Samara, Nizhny Novgorod and Yekaterinburg)!

Economy Class

Airport transfer /.

2990 RUB (~ 30 EUR)

Comfort Class

3500 RUB (~ 35 EUR)

Business Class

4990 RUB (~ 50 EUR)

5400 RUB (~ 54 EUR)

Online Reservation

Main passenger details, lingo taxi moscow, our values for our taxis in moscow.

LingoTaxi offers its customers a secure, tolerant and open-minded service for taxis in Moscow. Our drivers are internally chosen to fit our multicultural, open philosophy. In times of racism, homophobia and cold war lingo in the media, LingoTaxi wants to set an example of peace and friendship and welcomes all people, whatever the background, to Russia and Ukraine. LingoTaxi is the perfect Moscow taxi service you are looking for!

Our English-speaking dispatchers (working 24/7) will assist you anytime you have a question - they all speak fluent English. Besides reserving an airport or train station transfer, they can help you answer your personal questions regarding your visit to Moscow and can assist you with your itinerary. For the solo female travelers among our customers, we also offer female drivers (on request) to make sure you feel comfortable and safe during your first hours on Russian soil.

Additionally, you can choose a trained, skilled driver who can converse in either English, German, Spanish, Portuguese, Armenian, Italian (and other languages) with you - yes, and even Russian if you feel like - to provide you with an exceptional, safe service in Moscow!

Welcome our taxi in Moscow and enjoy Russia!

Latest Customer Review

I have been using Lingo Taxi since 2019 and will not even consider another service for even half the price. The drivers are brilliant, polite... Continue reading...

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Lingo Taxi Moscow is your number 1 choice in Moscow if you are looking for:

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Apart from our taxis in Moscow, we also offer chauffeur and guided tours in Moscow:

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• Private individual guided Moscow tours
• Walking Moscow City Tour
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• Many other tours and excursions available!

Contact us to discover your best taxi service in Moscow!

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Airport transfers, taxi and chauffeur service in Moscow

Traveling to Russia and going to visit Moscow? You are in a right place!

We offer safe, reliable and cost-effective private door-to-door transfers to Moscow from Sheremetyevo International Airport (SVO) , Moscow Domodedovo Airport (DME) , Vnukovo International Airport (VKO) , Zhukovsky International Airport (ZIA) and vice versa, as well as any other transfers from Moscow to any destination within Russia or neighboring countries.

Furthermore, you can book our affordable chauffeur service renting a car with driver for several hours or for the whole day to use it in Moscow.

All our drivers are English-speaking professionals, and some of them speak other foreign languages, too. In any case, our 24/7 English-language customer support by phone or by WhatsApp will be at your disposal after placing your order.

HOW IT WORKS

Our benefits.

English-speaking drivers

Free cancellation

Always fixed fares

Different payment methods

Flight status monitoring

Meet-and-greet service

What our customers say.

Great company

We proudly provided our services to:.

We are the first English-language transportation service in Russia designed especially for foreign tourists, business travelers and expats. For a long time we were the only one in this country.

Airport transfers in Moscow

If you are considering different options, how to get from Moscow to one of its international airports - Sheremetyevo (SVO) , Domodedovo (DME), Vnukovo (VKO) or Zhukovsky (ZIA) - you can choose between public transport and Aeroexpress train, taxi and pre-booked transfer.

Aeroexpress trains depart approximately every 30-40 minutes from Belorussky railway station to Sheremetyevo Airport, from Paveletsky station to Domodedovo Airport, and from Kievsky station to Vnukovo airport. If you know more or less Moscow's urban transportation system and if you are travelling without luggage, it is probably not only the cheapest but even the most convenient option.

Taxi remains one of the most popular options to reach an airport from the city of Moscow. You can choose between a number of taxi (or ridesharing) apps working here, the biggest are Yandex.Taxi and Uber Russia (alas, your original Uber app will not work here). However, first of all you must be aware that your European or American credit card almost for sure will not be linked with neither of these apps, therefore prepare cash rubles before to jump in a cab. Secondly, don't expect that a Moscow cabby will speak even one single English word, they don't. Thirdly, taxi apps will not offer you pre-booking, but only ordering ASAP. And finally, seriously consider the safety issue: most taxi drivers in Moscow are underpaid young immigrants from Central Asian countries, who spend 12, 15 or more hours in their cabs trying to gain some money at the end of shift after paying car rent and fueling the car.

Pre-booked airport transfer. This is the most safe, reliable and convenient option to get from Moscow to Sheremetyevo, Domodedovo, Vnukovo or Zhukovsky airport. There is a number of transfer companies which you can find on Internet. But take in consideration, that WelcomeTaxi is almost the only one offering you an English-speaking driver at very affordable and competitive price. Be it for your business needs or for leasure, get instant quote and book online your hassle-free airport transfer in Moscow!

Railway station transfers in Moscow

Metro remains obviousy the most cost-saving option to get from Leningradsky, Kievsky, Belorussky or any other of ten Moscow railway stations to your Moscow home. It can be also rather convenient option, but only if you travel without luggage and if you perfectly know how to reach your hotel by Moscow's public transport.

As for taxi , you will not find here a queue of cabs waiting for their passengers in front of railway terminals, as you used to see in European cities. Instead, you are supposed to use Yandex.Taxi , Uber Russia or any other taxi app. Taxis in Moscow are really very cheap. However, apart of card payment and safety issues mentioned here above, be aware that finding your cab among many dozens of other cabs near the station can be a challenge, especially taking in consideration that your cabby will not be able to communicate in English and that he is allowed to stay in front of the terminal not more than 5 minutes, otherwise he faces a high money penalty.

Considering the above mentioned issues, you can easily realize: the best way to reach your hotel from Leningradsky or other railway station is to pre-book and pre-pay your railway station transfer . Your driver will meet you with the name tag straight on the exit from the platform (or even at wagon door) and will safely drive you to any destination inside or outside Moscow.

City rides in Moscow

Moscow metro is, no doubt, the quickiest method to move between different points within the city, taking in consideration metro network density and famous Moscow traffic jams - even if not the most comfortable one. In you are in a hurry, if you speak some Russian and if you are not worrying very much about the above mentioned safety issues, than your preferable option may also be taxi .

But if you plan your journey at least one day in advance, if you prefer to move safely and in style, then you should consider pre-booked transfer in the city, too. Although our main speciailzation are airport transfers, we will be glad to drive you between any other locations inside or outside the city of Moscow.

Inter-city transfers

Although Moscow has good railway connection with almost every neighboring city and region, pre-booked inter-city transfer with English-speaking driver may be the most easy, comfortable and safe (especially in the situation of COVID-19 pandemy) option to get from Moscow to Kaluga, Tver, Vladimir, Suzdal, Tula, Ryazan, Yaroslavl, Smolensk, as well as to any other close or distant city in Russia. Moreover, if you plan to spend in that cities only few hours and return to Moscow at the same day, we can offer you an essential discount for your return.