In this post, you’ll find a large collection of handpicked resources written by various authors, giving you a broad overview of owning and running a taxi service.
Before you reach the resource section further down the page, I’d like to go over a few considerations about this type of service for you to review. You’ll get to the “how-to sections” in the resources. But before, you may want to go over these points to get you thinking about your startup phase.
Background About This Type of Business
Owning and operating a taxi service is an opportunity for those who like to drive, don’t mind traffic, and have good people skills.
As a driver, you always need to be on time.
You need to be able to get through traffic jams by knowing alternative routes during traffic jams. Your cab needs to be spotless, and you have to make sure your passengers feel safe and are comfortable.
Is This What You Want to Do?
One of the important points to consider when looking into a business opportunity is your dedication to the business. The startup phase is usually the toughest; you’ll be more comfortable running your business once you’re up and running.
You also need to consider the issues that may come up, like new competition, new regulations, etc. Once your business is up and running and bringing in revenue, that doesn’t mean your set for life. You need to always be prepared for changes.
When you’re dedicated to the business, you’ll always be ready to take on the new issues that appear.
Once you decide to get started, you need to be dedicated to your business. If you can’t see yourself running this business for the next few years, then what do you see yourself doing, and should you do that instead?
Getting Inside Information
If you want inside information from someone who is experienced running a cab service, you can use a technique to get you the trade secrets from qualified people.
Look for cab businesses that are for sale and interview the owners and pick their brains. This technique has two benefits.
One: You’ll get information from people that are qualified and have experience. You can ask questions and get answers to those issues you’re wondering about.
Two: You may find a good fit that allows you to start your business right away and start earning revenue from the day you take over.
For more on this technique see, An Inside Look Into The Business You’re Considering.
Key Issues to Focus on With This Type of Business
The Competition
With any business you are thinking of getting into, you need to do your research before starting. You must focus on the area where you are planning to start your service. Is there a lot of competition? If there is, you have to consider if it’s worth the time and effort to get into a saturated market.
Ask yourself the following questions:
- How will you compete?
- What can you bring to the market that will make your company stand out?
- Why would people choose your service over the competition?
Competing on price may trigger a price war. An established business may have more leverage to last the battels compared to a newcomer. You need to consider if it’s better to locate your business in another location with less competition.
Another approach when dealing with a saturated market, you may be able to buy one of the businesses that you plan to compete against.
If there is no competition, then you may have discovered an untapped market. Or you may have found an area where there is no demand for what you have to offer. If there is no demand for the service, there is no use to operate in the area.
Can You Afford This Business?
Have you considered if you can afford to start your business? Becoming profitable takes time for a new business. Therefore, it rarely means the revenue coming in can cover your expenses right away just because you start.
In addition to startup costs, you have to consider that the business may not support you initially.
It’s tough for new business owners to get their business to a state of stability and profitability.
You have to keep this in mind, and if you are planning on getting financing for your business, you need to factor in your salary. Otherwise, you’ll end up with a lot of extra stress, trying to make ends meet with your business bills plus your personal bills.
Startup Cost Considerations
Your startup cost will depend on your setup. If you plan to have one cab and do all the work yourself, then your startup costs will be a lot less than starting with a large staff, a fleet of cabs, a commercial location, etc. To determine your startup costs, you need to define what type of setup. You’ll find more about startup costs in the resources further down the page.
Legalization
You want to make sure your business is registered and legal. You can’t just buy a cab and start taking fares. Find out what you need and apply for the permits you need.
Getting a license for a cab in your area may be limited. Be sure to check with local authorities to see if cab licenses are available.
Insurance
It’s very important to get the right insurance for your taxi. Since you are running a business and carrying passengers. You’ll need special coverage. You can’t use your personal insurance. Failing to get the right insurance can be devastating in case of an accident.
I’m a firm believer in getting more coverage than needed. The difference in price for the next level of insurance, in most cases, is affordable.
When you have coverage for any problem that may occur will put your mind at ease. After all, if we knew that no accidents would happen in the future, we wouldn’t need insurance, would we? But you never know what might happen; make sure you are covered.
Buying A Taxi
Before buying a taxi, you need to look at what type of routes you’ll be taking. For example, if you plan to do airport runs, you may want to look at a van to hold luggage and passengers.
If your routes are in a heavily populated city, you need to focus on a vehicle best suited for city driving, with good gas mileage and enough space to make your passengers comfortable.
You also need to focus on repairs and maintenance. You want a vehicle that you can depend on. You don’t want to be driving something with a history of problems. You want a vehicle with a great track record and can take commercial use wear and tear.
You may plan on getting a used vehicle to save money. And when starting out, you may need to do so. I would suggest once your business becomes stable, the first thing you want to upgrade will be your vehicles. You can’t afford to have downtime due to repairs. If a call comes in for a fair, you can’t tell them, I’m getting my cab repaired; it leaves a bad impression.
How Will You Operate?
There are many options and routes to take when starting a business. For example, will you run a one-person operation or hire a large staff and run a fleet of cabs? Will you manage the business? Will you be a driver or dispatcher. Or will you hire a manager and monitor operations.
You need to identify how you will run your business to make the startup process quick and efficient.
I recommend for any business you own or operate, you need a thorough understanding of every job. If your plan is to hire people while you monitor or manage, learn as much as possible about each position to better understand the business’s needs.
Home Business or A Commercial Location?
Will you locate your business from home, or are you planning on a commercial location?
If you have a one-person operation, you could start at home, which will slash your startup cost. Running from home will work if you plan to stay a one-person operation and not plan to expand your operation. You can always start small and expand.
Getting the Word Out and Getting Customers
How will you get the word about your Taxi service?
Use Your Cab as a Billboard
One of the best and low-cost means of advertising is your cab itself. Make sure your phone number and website are easy to see and read on your cab.
If you accept email and Text calls, you want a number and web address that’s easy to remember.
Advertising Ideas
You can also look at low-cost local advertising methods and use online ads such as Google ads and Facebook advertising.
Also, See This Collection of Free Advertising Ideas For Small Business
Discounts
You could give each passenger a business card offering a discount on their next fare.
Point System
You could also start a point system for customers who regularly use your service to give them a free fare for every ten paid fares.
Safe Ride Home
You could drop by local bars and restaurants and give them your contact information for people that may have had too much to drink and need a safe ride home.
In return, you could recommend their business to people that are looking for a restaurant or bar.
Direct Lines From Other Businesses
You could have a direct line in local establishments that require cabs daily. For example, our local Wal-mart has direct lines at the entrance to cabs in the area. If you are a one-person operation, you may not be able to handle the volume because you are dealing with one fare at a time.
Next – To the How To’s and Insights
It’s time for the resources I mentioned at the beginning of this post. Take some time to go over the resource sections. If you spend a few hours sifting through the information, you’ll gain a lot of knowledge and information. You may want to split it up over the next few days so you don’t get overwhelmed.
A Collection of Resources Related to Starting a Taxi Service
How to Start a Taxi Service
How to Start Your Own Taxi Business With Under $15,000
How to Start a Taxi Cab Company | Small Business – Chron.com
7 Tips To Start-Up A Small Taxi Cab Business in 2021
How to Start a One-Man Taxi Business | Bizfluent
4 Things To Know Before Starting A Taxi Business
Points to Consider While Starting a Taxi Business – Taxi Pulse
How to start a Taxi Business – A Step by Step Guide – Infinite Cab
How I Built A $3.5M/Year Taxi Company Competing With Uber & Lyft –
How to Start a Taxi Business With One Car in 21 Steps | ProfitableVenture
Starting a Taxi Service | LoveToKnow
How to Start a Taxi Business like Uber:: Start a Uber Business Cost 2020
How To Start A Taxi Cab Company – Side Car
How to Start a Medical Taxi Business
What to Consider Before You Start
Reasons for Getting Into Your Own Business
The Pros and Cons of Owning Your Own Business
10 Questions You Must Ask Before Starting a Business
Passion – An Important Key You Need to Succeed in Business
Steps and Considerations
Over 21 Steps and Considerations When Starting Your Business
Getting Inside Information
An Inside Look Into The Business You’re Considering
A Simple Guide To Starting A Business
How to Start A Business – Making a Complex Topic Simple
How to Finance Your Business
How to Get a Loan for a Taxi Business: The Top Financing Options
Taxi Financing | Balboa Capital
Compare loans for taxi companies | finder.com
Taxi & Limo Business Loans & Financing | Fast Capital 360
Finance for Taxi Services | Funding for Taxi & Private Car Hire Companies
Everything You Need To Know About Business Loans
How To Register a Business
How to Register Your Business Using These Resources
What Permits are Needed for a Taxi Business? | Small Business – Chron.com
Legal Requirements For Running A Taxi Business
Taxi/Limousine Service License
Taxi Service Name Ideas
Selecting a Good Name for Your Business
350+ Best Taxi Company Names & Ideas – theBrandBoy
100 Great Catchy Taxi Company Names – BrandonGaille.com
233 Taxi Business Names Ideas List Generator – Brandlance
Business Plan
How to Write a Business Plan Using This Unique Collection of Resources
How to Write a Marketing Plan Using These Select Resources
Taxi Business Plan – Executive Summary
Taxi Business Plan [2020 Updated] | OGSCapital.com
A Sample Taxi Cab Business Plan Template | ProfitableVenture
Taxi Service Sample Marketing Plan – Marketing Strategy – Mplans
Trends and Statistics
Ride-Hailing & Taxi – worldwide | Statista Market Forecast
Ridesharing services in the U.S.- statistics & facts | Statista
More Americans are using ride-hailing apps | Pew Research Center
Profitability and Revenue
Estimating the Profitability and Revenue for a New Business
How Do Taxicab Companies Make Money? | Your Business
Making More Money From Driving Your Own Taxi: Is It Possible?
Is a taxi business profitable? – Quora
Startup and Operating Costs
Estimating Startup Costs – Are You Missing Anything?
How Much Does It Cost to Start a Taxi Business? | Small Business – Chron.com
How Much The Cost Requires To Start Up A Taxi Service?
How Much Does It Cost to Start a Taxi Business? – Disease called Debt
How Much Does it Cost to Start a Taxi Service? | OTTIS
How To Buy Your First Cab
Five Things to be Considered While Buying a Car for Taxis
7 MOST RELIABLE USED CARS SUITABLE FOR YOUR TAXI BUSINESS | by cardealer sales | Medium
10 Best cars for taxi drivers – Car Keys
Taxi Vehicles – Types of Taxis – Guide to Becoming a Cab Driver – Cab Direct
The Best Cars for Taxi Drivers | Carzone News
Florida Taxi Driver Option Trader: What is the best car to use for a taxi?
What’s The Best Taxi? – The Truth About Cars
Five Things to be Considered While Buying a Car for Taxis
Equipment
Essential Office Equipment You May Need to Run Your Business
What equipment do I need to start a taxi business?
IT Curves Transportation Management
Taxi-App Company Flywheel Aims to Kill Cabs’ Bulky Equipment | Time
NYC Digital Taxi Tops Buyer’s Guide — Curb Taxi Media
Insurance
Here’s Everything You Need To Know About Business Insurance
Taxi Insurance | Progressive Commercial
Taxi Insurance – Get Cheap Taxi Insurance Online | Freeway Insurance
Independent Agents Have Better Taxi Insurance for You | Trusted Choice
Taxi Insurance | Online Quote Requests | Bankers Insurance
Taxi Insurance, Commercial Auto Insurance For Taxi Cabs, Liability & Physical Coverage
Taxi Cab Auto Insurance – Get Free Quotes and Save
Taxi Insurance for Taxi Services | CoverWallet
Employee Considerations
The Pros and Cons of Running a One-Person Business
How and When to Hire a New Employee
Common Jobs Needed for Running a Business
Hiring an Employee VS Subcontracting
Business Cards
How to Design Business Cards That Draw Attention
Taxi Service Business Cards Templates & Designs | Vistaprint
12+ Taxi Business Card Templates – AI, Pages, Word | Free & Premium Templates
Taxi Business Cards Vector Images (over 1,100)
Latest Image Search Results Related to Taxi Service
Business cards
Logo
How to Create an Impressive Logo
Taxi Logos: the Best Taxi Logo Images | 99designs
Taxi Logo Vector Images (over 4,800)
Taxi Logo Images, Stock Photos & Vectors | Shutterstock
Latest Image Search Results Related to Taxi Service Logos
Software
Taxi Dispatch Software – 2020 Reviews & Pricing
Taxi Booking Software Reviews and Pricing – 2020
Best Taxi & Limousine Software in 2020 | G2
Infinite Cab Reviews: Pricing & Software Features 2020 – Financesonline.com
Business For Sale
Buy A Business or Build one From Scratch?
An Inside Look Into The Business You’re Considering
Businesses For Sale in the US, 104 Available To Buy Now
Taxi and Limousine Businesses for Sale | Buy Taxi and Limousine Businesses at BizQuest
Taxi and Limousine Businesses For Sale, 54 Available in US
Taxi Businesses For Sale | Business For Sale – BuyBusiness.com
Latest Search Results Related to Taxi Service For Sale
Franchise Opportunities
The Ins and Outs of Owning A Franchise
Start a Taxi Mom Franchise, 2020 Costs & Fees
Buy Maxim taxi franchise in your city
Established Taxi Service
Top 10 Best Cab Companies in New York, NY – Last Updated November 2020 – Yelp
THE 10 BEST United States Taxis & Shuttles (with Photos) – Tripadvisor
The Best Taxi and Ride-Hailing Apps Around the World
Marketing Tips
10 Marketing Ideas To Attract More Customers To Your Taxi Business – KeepTaxisAlive.Org
Five Marketing Strategies That Will Work For Your Taxi Business
How to Market and Promote a Taxi Business | LoveToKnow
How to market a taxi business: 5 tips to promote offline
3 easy marketing ideas for a limo or taxi cab company
Taxi Marketing Strategy – Exploring Digital and Traditional Options
High Impact Marketing Tips For Your Taxi Business
Top Tips for Taxi Business Marketing Strategy – Infinite Cab
Top 10 Taxi Booking Marketing Strategy to Increase Business Online
Market Your Taxi Business Online -5 Ideas to Build Business
How to get regular customers for your taxi business
Top 10 places to advertise your taxi business
Article Mix
Illegal taxicab operation – Wikipedia
How Much To Tip a Cab Driver? | USA Today
Secrets Your Taxi Driver Won’t Tell You | Reader’s Digest
10 Safe Driving Tips for Taxi Drivers – KeepTaxisAlive.Org
Three Essential Tips For New Taxi Drivers
How to be the Ultimate Cabbie (Taxi Driver) – cabdriver | Ask MetaFilter
4 Challenges Every On-Demand Taxi Business Face In Pursuit Of Success | by Vibhavsharma | Medium
Top 5 problems faced by taxi fleet owners and how to solve them
Challenges in On-Demand Taxi Booking Business – SpotnRides
Challenges Faced By Taxi Booking Service Providers And Solutions : Taxi App Development
Challenges faced by taxi booking businesses & their solutions
Problems taxi drivers face on a daily basis
Challenges in Taxi Businesses without a Taxi Booking App | GoSpAXI
5 Common Mistakes People Make When Booking a Taxi Service – Denver Airport Limo
Common Mistakes To Avoid When Booking The Taxi Service : taxi
Mistakes to Avoid When Becoming a Taxi Driver | Quote Goat
What gross mistake did you make as a taxi driver? – Quora
Running a Business
How to Run a Business – A Quick Look Into Skills You’ll Need
Publications
Taxi Magazine Magazine – Get your Digital Subscription
Taxi Magazine – Apps on Google Play
Latest Technology Blogs | Taximobility
Recent blog posts – Absolute Taxi Blog
Blog Featured Posts – Taxi Service Transportation | Springfield Yellow Cab
Blog | New Taxicab on the block
Taxi Community Blog – Best Taxi & Cab Driving Blog
BLOG @ INFINITE CAB | News, discussing, review’s of Taxi App’s
Taxi Blogging: 10 Blog Post Ideas for Taxi Companies | Edward Beaman
Blog >> Fast Cab Taxi Services
Terminology
Books
Google Book Search Related to Starting a Taxi Service
The Latest about Starting a Taxi Service
Google Searches
Latest Search Results Related to Starting a Taxi Service
Latest Scholar Search Results Related to Starting a Taxi Service
Latest Image Search Results Related to Starting a Taxi Service
News
Latest News Related to Starting a Taxi Service
Tweets Related to Starting a Taxi Service
YouTube
Videos Related to Starting a Taxi Service