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How To Start A Taxi Service Using These Tips and Insights

November 16, 2020 303 views

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 Service Business Plan Business Plan – Mission statement, Marketing plan, Attracting customers, Operations, Company organization

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

Most common cars for taxi use

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

Taxidepot

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 Cabs Auto Insurance

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

Taxi Business Card

12+ Taxi Business Card Templates – AI, Pages, Word | Free & Premium Templates

Business cards

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

Cabs for Sale, Limousine Limo Business for Sale & Taxi Business for Sale – Buy Sell Taxi Companies for Sale

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

TLC MAGAZINE ONLINE

Professional Driver Magazine

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 | The Charity Cab Blog

Blog >> Fast Cab Taxi Services

Terminology

Glossary of Terms | dc taxi

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

Twitter

Tweets Related to Starting a Taxi Service

YouTube

Videos Related to Starting a Taxi Service