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Taxi Business Plan Sample

Published Mar.14, 2017

Updated Apr.24, 2024

By: Jakub Babkins

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Table of Content

Taxi business plan for starting your own business 

Are you looking for how to start taxi service ? If yes, then this taxi service business plan is all you need. The taxi service business can be a great choice if you have a good budget for buying and maintaining vehicles. Starting a taxi services business doesn’t require you to be an expert in the transportation field. The business can be started with just a few cars and drivers. Moreover, it can easily be expanded whenever you want. 

To start a business, it is important to follow a certain procedure. You need to draft a  transport business plan   for your taxi service business as the first step. For that, you can look at associated plans such as  tipper truck company business plan . If you also want to launch a mobile app to let your customers book a taxi online, you should also analyze  mobile apps business plan .

Executive Summary

2.1 about the business.

Grab A Cab will be a taxi service business owned by Benjamin Williams. The business will be based in San Francisco. The main aim of this taxi service business will be to provide trustworthy, well-timed, and safe cabs whenever and wherever someone needs them. Grab A Cab taxi service will provide cab services while integrating the operations with technology to facilitate individuals even more.

2.2 Management of Taxi business

After you have learned how to start a taxi service, it is important to figure out how to manage the taxi business operations successfully. There is no better way to plan out every aspect of your taxi service than developing a  business plan for taxi service pdf . To know how what your business plan should include, you can read the strategic plan provided here. In this taxi business plan example, we will guide you about all the components of a strong business plan so that you can develop your call taxi business plan.

It is better to hire business planning services to get a professional business plan for your startup. However, if you have the business knowledge and you want to create the business plan on your own, you can do so after doing adequate research. In that case, it is recommended to also go through a logistics company business plan .

2.3 Customers of Taxi business

Through our market survey and feasibility studies, we identified those customers that are most likely to benefit from our services. The recurring customers of the taxi service business will be:

• Schools 
• Event planners
• Retirement and care homes
• Hotel and airport transfers

2.4 Business Target

The main goal of our taxi service business is to become the most-liked transportation company in the San Francisco Metro Area within three years. We aim at doing so by continuously evaluating, monitoring, and following up on customer call-ins.

Company Summary

3.1 grab a cab owner.

Benjamin Williams will be the owner of Grab A Cab taxi service business. Williams completed his MBA two years ago. After that, he pursued a position as a manager in a noteworthy company. He was quite fascinated by the cab service in his state. After a few months, he left the post to fulfill his lifelong passion of starting his own taxi service business.  

3.2 Why Grab A Cab is being started

Benjamin Williams noticed that the other cab services businesses around him used traditional and outdated methods to serve their customers. He decided to use the latest technological features to bring innovation to the business domain.

3.3 How Grab A Cab business will be started

Step1: Plan Everything

Good planning is crucial when you are going to start a business. To ensure that you plan well for your startup, you should explore how to open a taxi company in the United States.

A business plan for taxi service can best aid in planning and managing a business. To write your taxi driver business plan, you can take help from this sample taxi business plan. You can also go through other examples like truck driving business plan to get an idea of what to include when planning for a startup.

Step2: Develop a Brand

The next step in starting up a taxi companyis to highlight your business and its unique offerings. This can be achieved by creating a brand around your business idea. This will include everything from your principles to your competitive advantages.

Step3: Establish Your Office 

The next important step is to establish your business. For this purpose, Benjamin Williams decided to buy a large parking space in the main San Francisco commercial area. He made sure that the place was spacious enough to park all his cabs. Moreover, he also got a workshop constructed inside that place to maintain and repair the cabs. In this way, he reduced the expense of sending damaged cabs to other workshops. 

Step4: Establish a Web Presence

Since we are living in the Information Age, it is necessary to establish a web presence to get known. Therefore, Williams decided to develop a website for the business and establish social media presence for marketing to attract a wider audience. 

Step5: Promote and Market

The last step is developing and executing an effective marketing plan to promote your services.

Services of taxi business 

Before setting up a taxi business, you need to decide on your business’s services. You may have a taxi business plan tempelate, but it might not have everything you need for your sample plan. 

You can follow this guide on how to open a taxi service to figure out what the market for the business looks like and what services are ideal to be included in your startup. 

The cost factor is necessary to keep in mind while considering your services, so you can develop a taxi service business plan startup costs pdf to keep an estimate. Since Williams started with various services, this format can be used to develop even a uber taxi business plan or an airport taxi business plan.

• Door-to-Door Taxi Service 

We will provide door-to-door taxi service to our customers as it is more convenient to use. Our capable drivers will pick up customers from their homes and drop them off directly at their destinations. Our customers will be able to book a cab through our mobile app or website.

• Wheelchair Accessible Cabs

Our specialized service will provide wheelchair user passengers with a ramp or a passenger lift to assist them with getting into the vehicle. This approach is used as it is far easier than transferring from a wheelchair to a car seat and dismantling the wheelchair for the journey. 

• Seniors on the Go

We’ll also provide our professional, skilled, and highly patient cab drivers to assist seniors with their chores. Our company will provide senior citizens taxicab coupon booklets to maximize senior citizens’ benefits. We will aim to provide maximum customer satisfaction. 

• Hourly Service

We will offer our clients affordable discounts that pay off in the long run with our hourly packages.

Marketing Analysis of Taxi business

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When starting a taxi service business, you should have an excellent understanding of your target market. You can gain this understanding by doing an extensive market analysis as a part of your taxi business plan sample. 

Your business plan for a taxi business should also analyze the price of similar services in the market. This data should be used to forecast the prices you will set for starting your own taxi business. 

If you don’t know how to open a taxi company, you can take help of this taxi cab business plan. A complete market analysis is necessary for running a taxi business. 

If you want to learn how to setup your own taxi business, then this business plan taxi service will be of great use. 

5.1 Market Trends

Taxi operations provide over 60 billion dollars a year to the general US economy. The industry employs 2,026,478 people. The growth rate of this industry has remained in step with the general growth of the country’s GDP. Management feels that by maintaining a local client base, the company can continue to generate revenues despite the current deleterious economic conditions in the United States.

5.2 Marketing Segmentation

The potential customers of Grab A Cab are divided into the following groups:

Business plan for investors

5.2.1 schools  .

Our primary customers will be the school students. They are expected to avail of our regular services to go to school, travel to sports matches or class trips. 

5.2.2 Event Planners

Our second target customer will be event planners. They need to organize events, and for this purpose, they have to travel to different places. They will utilize our cab service to get maximum comfort. Our cabs will pick them up from their pickup location and drop them at their destination. 

5.2.3 Retirement and Care Homes

This will be our third target group of customers. Our taxi company will provide services to people in retirement and care homes since they may no longer be confident to drive. Our wheelchair-assessable cabs are specially designed for these customers. 

5.2.4 Hotel and Airport Transfers

Lastly, our potential customers include families and individuals on holiday and business travels. These groups don’t typically mind paying a bit more for a solution that takes care of transportation in an all-in-one way. Therefore, we expect to earn a handsome amount from them.

5.3 Business Target

• To become the number one taxi service throughout San Francisco and adjoining areas. 
• The main target of our taxi service business is to pursue an aggressive marketing campaign and penetrate at least 75% of the market share.
• To earn a net profit margin of $50.5k per month by the end of the third year.

5.4 Product Pricing

Our business plan for transportation service ensures that our prices will be economical compared to our competitors. The prices are set at a minimum to get introduced to a wider audience from the very beginning.

Marketing Strategy of Taxi business

To open taxi business, you must develop the best business plan for a taxi business. In addition, before starting up a taxi company, you also need to develop a strong marketing strategy to attract more customers.

In this taxi cab company business plan, we’re providing the sales strategy of Grab A Cab. You can learn a lot from here if you aspire to make a city taxi business plan.

6.1 Competitive Analysis

• We have quick customer care services. We respond to customer queries efficiently and respect their feedback to improve our services.
• We have excellent customer support staff that guides our customers in choosing the best traveling package according to their budget. 
• Through our 24/7 online presence, customers can inquire about our services. 
• We will also implement ideas from roadside assistance business plan to prevent any inconvenience to our customers. 

6.2 Sales Strategy

• We’ll advertise our services through social media platforms like Facebook and Instagram.
• We’ll give a free ride to our first 50 customers
• We’ll offer a 25% discount to school and college students.

6.3 Sales Monthly

6.4 sales yearly, 6.5 sales forecast, personnel plan of taxi business.

There are a lot of taxi services in the world. But only those are popular that make customers happy and satisfied. This taxi service business plan sample has all the details regarding the startup of the taxi service business. 

Understanding the importance of good staff, William included some essential features as a part of employee hiring criteria in the taxi cab advertising business plans. He also formed a list of employees necessary for running his business. This list can be seen in this taxi business plan pdf.

7.1 Company Staff

• 1 Operations Manager
• 1 Customer Support Officer
• 1 Marketing Officer
• 10 Drivers 
• 2 Mechanics
• 1 Web Developer to manage online sites

7.2 Average Salary of Employees

Financial plan of taxi business.

It is essential to manage your operations timely to earn profits. A detailed financial analysis is necessary to ensure that your business is not getting into a loss. To ensure that you make a detailed financial plan, you should include all the components that we have mentioned in this taxi business sample plan pdf.

The  taxi service business plan startup costs are also important for your financial plan. Moreover, in your financial plan, you must identify when and how you’ll cover your investment amount with the earned profits. This approach would also help to analyze your yearly expenses to determine the possibilities of reducing them.

Here we’re providing the detailed financial plan made for Grab A Cab so that you can get an idea of the business finances.

8.1 Important Assumptions

8.2 Break-even Analysis

8.3 Projected Profit and Loss

8.3.1 profit monthly, 8.3.2 profit yearly, 8.3.3 gross margin monthly, 8.3.4 gross margin yearly, 8.4 projected cash flow,   8.5 projected balance sheet, 8.6 business ratios.

• How do I start a taxi business?

To start a taxi business, you need to develop a good sample business plan for taxi service. The above business plan taxi company will detail how to do that.

• How does the taxi business work?

The taxi business works by purchasing some taxis, procuring a large parking area, and hiring staff to run and manage services. In this taxi top advertising business plan we have explained all these three aspects in detail. If you want to set up this business, you can take help from this taxi service business plan. 

• How would you describe a taxi service?

The taxi service provides transportation facilities to people without facing public transport problems. Business plan taxi provides details for setting up taxi business.

Download Taxi Business Plan Sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Back to All Business Ideas

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 14, 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.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

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

Related Business Ideas

How to Start a Limo Business

How to Start a Roadside Assistance Business

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

Powered by GoDaddy.com

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.

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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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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Taxi Business Plan Template

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1. Don't worry about finding an exact match

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Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.

2. Remember it's just an example

Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

Use the information, financials, and formatting for inspiration. It will speed up and guide the plan writing process.

3. Know why you're writing a business plan

To create a plan that fits your needs , you need to know what you intend to do with it.

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But, if you don't plan to share your plan with anyone outside of your business—you likely don't need everything.

More business planning resources

Simple Business Plan Outline

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10 Qualities of a Good Business Plan

How to Write a Business Plan

How to Create a Business Plan Presentation

How to Start a Business With No Money

How to Write a Business Plan for Investors

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Business Plan Template for Taxi Drivers

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Starting or running your own taxi business can be both exciting and challenging. To ensure success, you need a solid plan that outlines your goals, strategies, and financial projections. That's where ClickUp's Business Plan Template for Taxi Drivers comes in!

This comprehensive template is specifically designed for taxi drivers, helping you:

• Clearly define your business objectives and strategies
• Create accurate financial projections to secure funding and attract investors
• Effectively manage your operations, from marketing to fleet management

Whether you're just starting out or looking to grow your taxi business, this template will guide you every step of the way. Get started on ClickUp today and take your taxi business to new heights!

Business Plan Template for Taxi Drivers Benefits

A business plan template for taxi drivers can provide numerous benefits to help them succeed in their business endeavors. Some of the key benefits include:

• A clear roadmap: The template helps taxi drivers outline their goals, strategies, and action plans, providing a clear roadmap for success.
• Financial projections: By using the template, taxi drivers can create detailed financial projections, including revenue forecasts, expenses, and profit margins, which are essential for securing funding and attracting investors.
• Effective operations management: The template helps taxi drivers identify and plan for key operational aspects such as fleet management, marketing strategies, customer acquisition, and service expansion.
• Risk assessment and mitigation: Taxi drivers can assess potential risks and challenges in advance, allowing them to develop contingency plans and strategies to mitigate these risks.
• Professional presentation: Utilizing a business plan template ensures that taxi drivers present their business ideas and strategies in a professional and organized manner, increasing their chances of securing funding and attracting investors.

Main Elements of Taxi Drivers Business Plan Template

ClickUp's Business Plan Template for Taxi Drivers provides all the essential tools to help you create a comprehensive and professional business plan for your taxi business:

• Custom Statuses: Track the progress of different sections of your business plan with statuses like Complete, In Progress, Needs Revision, and To Do, ensuring that you stay organized and know exactly where each section stands.
• Custom Fields: Utilize custom fields like Reference, Approved, and Section to add important details and information to your business plan, making it easy to keep track of references, approvals, and different sections within your plan.
• Custom Views: Access different views such as Topics, Status, Timeline, Business Plan, and Getting Started Guide to gain a comprehensive overview of your business plan, track its status, visualize its timeline, and refer to a step-by-step guide to help you get started.

How To Use Business Plan Template for Taxi Drivers

If you're a taxi driver looking to create a solid business plan, the Business Plan Template for Taxi Drivers in ClickUp can help you get started. Follow these six steps to make sure your business plan sets you up for success:

1. Define your target market

Identify the specific group of people you want to serve as a taxi driver. Consider factors such as location, demographics, and transportation needs. Understanding your target market will help you tailor your services and marketing efforts to attract the right customers.

Use the custom fields feature in ClickUp to create fields for target market demographics, location, and preferences.

2. Analyze the competition

Research and analyze other taxi services in your area to understand their strengths, weaknesses, and pricing strategies. This will help you identify opportunities to differentiate yourself and carve out a niche in the market.

Create tasks in ClickUp to list your competitors and track their key information, such as pricing, services offered, and customer reviews.

3. Determine your pricing strategy

Decide on a pricing structure that balances profitability with competitive rates. Consider factors such as distance, time, additional services, and any peak or off-peak pricing. Your pricing strategy should align with your target market's expectations and the value you provide.

Use the custom fields feature in ClickUp to track different pricing options and compare them against industry standards.

4. Develop a marketing plan

Outline your marketing strategies and tactics to attract and retain customers. Consider online and offline channels, such as social media, local advertising, partnerships, and referrals. Your marketing plan should be tailored to reach your target market effectively.

Create tasks in ClickUp to list your marketing activities, assign responsible team members, and set deadlines for implementation.

5. Set financial goals and projections

Define your financial goals and create projections for revenue, expenses, and profit margins. Consider factors such as fuel costs, maintenance expenses, licensing fees, and insurance. Having clear financial goals and projections will help you track the financial health of your taxi business.

Use the Goals feature in ClickUp to set financial targets and track your progress towards achieving them.

6. Review and update regularly

Regularly review and update your business plan as your taxi business evolves. Take into account changes in the market, industry trends, and customer feedback. By keeping your business plan up-to-date, you can make informed decisions and adapt your strategies to stay competitive.

Set recurring tasks in ClickUp to review and update your business plan on a regular basis, ensuring that it remains relevant and aligned with your goals.

Get Started with ClickUp’s Business Plan Template for Taxi Drivers

Taxi drivers who are starting or running their own business can use the Business Plan Template for Taxi Drivers in ClickUp to create a comprehensive plan that outlines their goals, strategies, and financial projections. This template is designed to help taxi drivers secure funding, attract investors, and effectively manage their operations.

To get started, follow these steps:

Hit “Add Template” to sign up for ClickUp and add the Business Plan Template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating on your business plan.

Now you can take advantage of the full potential of this template to create a solid business plan:

• Use the Topics View to outline the different sections of your business plan, such as Executive Summary, Market Analysis, Marketing Strategy, Financial Projections, and more.
• The Status View will help you track the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do.
• The Timeline View will allow you to set deadlines and milestones for each section of your business plan.
• The Business Plan View provides a comprehensive overview of your entire plan, allowing you to see how all the sections fit together.
• The Getting Started Guide View will provide you with step-by-step instructions and tips on how to use the template effectively.
• Customize the template to fit your specific needs by adding custom fields like Reference, Approved, and Section. These fields will help you keep track of important information and ensure that your business plan is accurate and up to date.

By following these steps and utilizing the different views and custom fields in the ClickUp Business Plan Template for Taxi Drivers, you can create a professional and comprehensive plan that will help you succeed in the taxi industry.

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How to Start and Run a Successful Taxi Business

Understanding the market, creating a solid taxi business plan, securing financing for your taxi business, how to run a successful taxi business, leveraging technology in your taxi business, get started.

Are you intrigued by the prospect of starting your own taxi business? The transportation industry, especially the taxi sector, offers ample opportunities for aspiring entrepreneurs. With the advent of technology and evolving consumer preferences, there are innovative ways to establish and manage a successful taxi business. However, the journey from inception to profitability requires careful planning, efficient execution, and adaptability to changing market dynamics.

Before delving into the logistics of starting a taxi business, it’s crucial to conduct comprehensive market research. Assess the demand for taxi services in your target area. Identify the competitors, their strengths, weaknesses, and the gaps you can fill. Analyzing consumer preferences and understanding the demographics of potential customers will lay a strong foundation for your business strategy.

A well-crafted taxi business plan acts as a roadmap, guiding you through various stages of establishment and growth. Define your business objectives, target market, marketing strategies, operational structure, and financial projections. Incorporate innovative ideas to differentiate your services and attract customers. Your plan should be adaptable yet robust enough to navigate unforeseen challenges.

Financing is a critical aspect of starting any business, including a taxi service. Depending on the scale of operations, you might need funds for vehicle acquisition, insurance, licensing, marketing, and technology integration. Consider exploring various financing options like business loans, investors, or crowdfunding platforms. A well-defined financial plan will not only aid in starting the business but also in sustaining and expanding it.

Efficiently managing a taxi business involves more than just owning a fleet of vehicles. Exceptional customer service, leveraging technology for bookings and dispatch, regular vehicle maintenance, and managing drivers effectively are essential components. Implementing feedback mechanisms and adapting to market trends are also crucial for sustained success.

In today’s digital age, technology plays a pivotal role in the success of any business. Integrate user-friendly mobile applications for seamless bookings, GPS navigation systems for efficient routing, and data analytics for informed decision-making. Embracing technology not only enhances customer experience but also streamlines operations and improves overall efficiency.

Starting and managing a successful taxi business requires meticulous planning, a customer-centric approach, adaptability, and a willingness to embrace innovation. By understanding the market, crafting a robust business plan, securing adequate financing, and effectively managing operations through technology integration, you can position your taxi business for long-term success.

Remember, the key to sustaining a profitable taxi business lies in continuous evaluation, adaptation, and a commitment to delivering exceptional service to your customers.

In summary, understanding how to start a taxi business, creating a sound taxi business plan, managing finances effectively, and knowing how to run a successful taxi business are crucial elements for any entrepreneur venturing into this industry. By incorporating these strategies, you can steer your taxi business towards profitability and long-term growth.

If you’re considering entering the transportation industry, the insights shared here will serve as a valuable guide on your entrepreneurial journey.

Are you ready to embark on the exciting yet challenging road of starting and managing your taxi business?

Starting a Taxi Business: Key Takeaways

• Market Research: Understand the demand, competition, and customer preferences.
• Business Plan: Create a comprehensive plan outlining objectives and strategies.
• Financing: Secure adequate funds for operations and growth.
• Efficient Management: Implement efficient operations and exceptional customer service.
• Technology Integration: Leverage technology for streamlined operations and improved service delivery.

By implementing these key elements, aspiring entrepreneurs can establish and manage a thriving taxi business successfully.

Taxi Butler

A complete suite of taxi booking tools that powers taxi bookings from venues.

• 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.

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)

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How to start a taxi or private hire firm

Written and reviewed by:.

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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

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How to Start a Transportation Business: The Ultimate Guide

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The transportation business touches far more of our lives than we notice. When you think of transportation businesses, you might think specifically about taxi companies or car rentals, but there are so many other options that you might not be considering. Any time you’ve rented a car, bike, or limousine you’ve interacted with a transportation business. There are also other businesses like shipping, transportation services for seniors, taxi services, and more.

If you’re wondering how to start a transportation business, first consider all of the possibilities. Our guide to starting a transportation business can help you define what a transportation business is and will go over everything you need to start a transportation business of your own. It takes a lot of planning, but you can successfully start a business if you’re ready to dedicate time to it.

How to start a transportation business in 8 steps

A transportation business is basically any business that has a hand in transporting people or goods. It can also have to do with providing transportation for other business owners who need help linking their product to their actual business.

These possibilities lead right into step one of how to start a transportation business: choosing the type of transportation business you want to start.

1. Choose the type of transportation business to start

As we mentioned above there are so many kinds of transportation businesses out there for you to choose from to start. You might consider what vehicles you already have at your disposal or what the market you plan to operate in is currently lacking.

Your options for transportation businesses to start include, but are not limited to:

Taxi company.

Senior transportation.

Limousine rentals.

Car rentals.

Bike rentals.

Moving van rental or moving company.

Medical transportation.

These are the basic types, but there are also emerging markets for things like scooter rentals, along with more traditional ones like school bus companies. You might already have an idea of which type of transportation business you want to start.

If not, though, a key part in your journey to starting a transportation business will be doing some research into which transportation type is most in-demand in your area. You can do this research by conducting a market survey, examining possible competition, or checking in with locals in the area you want to start your transportation business in. This will come in handy when it’s time to write up a business plan for your company.

2. Choose a name and entity for your transportation business

The entity you choose might influence your business name, so you might want to choose the entity first. For a transportation business, some entities might make more sense than others. A limited liability company or a limited liability partnership might be good due to the fact that it would shield the partners from personal liability.

Your options for business entities include:

Sole proprietorship : This is an unincorporated business that is owned by one person or owned by a married couple. This is the most common type of business entity in the United States, but it does leave you open to personal liability when it comes to debts and lawsuits, so it might not be best for a transportation business. If you choose to open your transportation business as a sole proprietorship, then the business will have your name as the business name, unless you file a DBA, or "doing business as."

Limited liability partnership: This partnership is an entity that protects the partners involved from personal liability and the debts and obligations of the business. They’re also shielded from the actions of other partners in the business. Limited liability partnerships differ from a general partnership where the partners manage the business equally and take on those liabilities and obligations equally as well.

Limited liability company: On the other hand, an LLC is a business entity that means owners aren’t personally liable for the business’s debts or obligations. They are a bit more flexible than the LLP option and the LLC can choose to be taxed as a corporation or not.

Once you choose your business entity, you also need to choose a business name when starting a transportation business. If you decide to start your business as a sole proprietorship you may need to get a DBA. This is a name your business uses when it operates under a name other than your own, or the name that the business is legally registered as.

In most states, you can look up businesses that are already in existence there, and see if the name you want for your business is available for you to use. Usually, the Secretary of State’s office will have a registry you can search. You can also check the U.S. Patent and Trademark Office. You’ll want to see if the domain name for your desired business name is also available before finalizing your name.

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3. Write a business plan

This step involves some of the heaviest legwork and the most research, but it’s how you’ll get a very clear vision of your new business. There’s a lot that goes into writing a business plan, but it will be well worth it once you’ve finished. A lot of the puzzle pieces surrounding how to start a transportation business will come together in this stage. The research you do for your business plan will help you prepare your transportation business for success, plus you can use it later on when you approach banks or investors about possible loans or investments into the business.

You can either come up with your business plan on your own or you can use a business plan template. No matter what you use to make your business plan, make sure it includes:

An overview of the business.

Market analysis.

Pricing plan.

Marketing plan.

Financial plan and projections.

Remember what we said about research? If you’re starting a transportation business, you need to make sure that there’s actually a demand for it before you start operations. If there’s no demand your business will not make it very long.

This research into demand is part of strong market analysis, along with research into what other businesses in the area are doing similar work and providing similar services. Through market analysis, you can identify pain points with competitors or gaps in the market, jumpstarting your success.

4. Register your transportation business and get an EIN

Now that you have the name chosen for your business, you have to register the business with that name so that it’s reserved. This is also when you’ll trademark the name if you need to, which can be done with the United States Patent and Trademark Office.

To register your transportation business, you’ll likely have to visit the website for the Secretary of State’s office in the state you plan to operate your business from. That site should lead you to the business bureau or the business agency in your state, where you’ll find information on the specific paperwork you’ll need to submit to them. While some states allow businesses to register online, not all do, so be sure to check whether your state requires you file paper documents with them.

Some of the documents you’re required to file may vary depending on the business entity you chose. Typically, you’ll need to submit a form for your business entity, pay a fee, and — in some cases — publish a notice in the local paper. You may also have to file paperwork with the town or county you wish to operate out of as well.

You’ll use your newly registered business name to apply for an employer identification number or EIN. This is one of the easier processes you’ll have to go through when starting a transportation business. There are many benefits to getting an EIN, like making it easier to file taxes, identity theft prevention and it can help you establish your business credit.

Applying online for an EIN is quick and simple. Usually, within a few minutes, you can get your EIN right from the IRS free of charge and then use that EIN to register to pay your federal and state taxes.

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5. Get licenses and permits

When starting a transportation business, there are bound to be more business licenses and permits required than if you were opening something like a boutique or a coffee shop. When you open a transportation business you’re taking on responsibility for people or for the items you're transporting and the regulations around that can be more in-depth than they are for other things.

The SBA has a list of the issuing agencies for certain businesses that transport things via plane, ocean and more. For state licenses and permits, you have to check with your specific state and municipality. The registration requirements are highly dependent on the county your business will be operating in and its activities, according to the SBA.

For example, if you’ll be driving tractor trailers or other large vehicles, you’ll need a commercial driver’s license, as will any drivers you employee who will drive such vehicles, along with a commercial vehicle registration. These must be obtained through your home state. But there might be unforeseen registrations. The Department of Revenue in Kansas, for instance, has their own resource page for trucking companies , where they discuss requirements like a liquid-fuel carrier’s license, the International Fuel Tax Agreement and trip permits.

You might want to consult a lawyer in your specific industry to make sure you’re following all rules and regulations, that you’re completing the proper registrations, and that you’re getting the right licenses. They vary by state and by specific industry, so you want to be sure you’ve covered all your bases.

6. Open a business checking account and get a business credit card

A business checking account and a business credit card are the next step when it comes to how to start a transportation business. You want to have both of these things to help keep your business’s cash and credit completely separate from your personal finances.

Getting a business credit card can also act as a form of funding early on if you’re having a hard time getting a loan. Paying off your credit card on time — or early if you’re able to — can help boost your business credit and make you a better candidate for a loan when the time comes. Sometimes they even come with perks that can help your business. For example, there are some business credit cards, known as fuel cards, that are especially useful for truckers.

Having a business checking account as well can help you keep your finances separate and help you establish your credit further. Keeping your business money in and out of one account, that isn’t linked with your personal account, can be very helpful when it comes to things like filing taxes, applying for loans, or figuring out your monthly overhead, costs, and revenue.

The best checking account for your business will vary depending on your specific business needs and the type of transportation business you’re starting. For example, the best banks for truckers, who need a lot of flexibility, won’t necessarily be the best bank for a school bus operation that stays relatively local.

Some accounts, like the Chase business checking accounts, offer you a bonus when you sign up, and the ability to waive the monthly service fee. Other banks offer a high number of transactions per month if your business has a high volume of transactions or offer integrations with accounting software. Choosing the right one comes down to what your business needs and what type and how many transactions you’re processing.

7. Get any funding you need

Starting a transportation business isn’t a cheap venture. You’ll likely need to be investing in equipment, aka vehicles, for the business which can cost a lot up front, even if you decide to rent. These costs are inevitable and you’ll have to spend some money to start making money.

So you’ll probably be needing some financing as well. There are plenty of financing options luckily. As a small business that’s new, you might have a hard time finding lenders but that doesn’t mean you shouldn’t try.

There are grants, loans, funding and more available as startup funding to new business owners. You might even decide that your new business credit card can help you get started depending on your credit limit. Your other options for startup business loans include SBA microloans, small-business grants , family and friends, personal loans and crowdfunding.

8. Hire any employees you need

You’re probably going to need employees if you’re planning on transporting anything on any sort of scale other than small one-time trips that you can handle yourself. If so, you’ll have to find those employees and make sure they’re the right fit for your new business.

Some signs that it’s the right time to hire your first employee include having to turn down work because you can’t do it all on your own, never being able to take a break, and needing someone with skills that you don’t already have.

Once you know you definitely need to hire an employee, make sure you’ve got an EIN and your taxes are in order. Then you can move on to the part of hiring your first employee that involves writing the job description and interviewing and hiring candidates.

You should make sure your candidates have the training and the licenses they need to work for your business. You might also want to check their references to make sure they’re reliable and good employees and will be a valuable addition to your new business.

Don’t rush into hiring. If you don’t need any employees, don’t hire just because you think your business should be more than one person. You’ll be able to tell when the time is right and should take some time to vet candidates and make sure they have the correct skills before offering them a position.

Keep in mind that when you hire someone, you’ll also have to provide benefits, deal with payroll taxes, adjust your budget to reflect salaries and more.

On a similar note...

Setting up a Taxi Business

All you need to know about starting and running your business.

In this article

What is a Taxi Business?

Since 2005, the number of registered taxis and private hire vehicles (PHVs) in the UK has increased by nearly 90%. There are currently more than 250,000 taxis operating in England, with more than 95,000 operating in London alone. Taxis are increasingly considered to be a convenient and reliable mode of transport and with the increased safety and security measures that taxi firms across the country have implemented, many people now consider taxis to be safe and trustworthy.

We are also now living in a digital society, with technology constantly on the rise. There has been a significant increase in ride-hailing apps, such as Uber and Grab, and many local taxi companies now have mobile apps and online booking options. This has made taxis more popular with the younger generation and those who are looking for easy and convenient ways to book a taxi. Taxi apps also give passengers the opportunity to track their driver and their journey, which is not only convenient but also provides an extra element of safety.

Fewer people are hailing taxis on the street and paying in cash. Instead, more people are booking their taxis using apps and paying by card. Although taxi businesses that utilise modern technology are becoming increasingly popular, there is still a market for local businesses that have a phone service for people to call and book or that allows customers to hail them on the street. Some taxi customers (particularly the older generation) prefer to use local businesses that still allow cash payments.

A taxi is a vehicle that is licensed to transport passengers for a fare or payment. Taxis are vehicles for hire for a single passenger or a small group of passengers.

There are two main types of taxis:

• A public hire taxi: This is a taxi which doesn’t need to be booked in advance by the passenger. This type of taxi is frequently called a hackney carriage and may look like a black cab, although they can also be standard cars. Private hire drivers are licensed to pick up passengers who have not pre-booked, e.g. those who flag them down in the street, and also frequently wait in taxi ranks in city centre locations or outside train stations, bus stations, airports and other popular locations.
• A private hire taxi: This type of taxi must be pre-booked, either via a taxi booking office, an online website or a mobile app. The most common private hire taxis are from local taxi companies that you need to call to book or ride-hailing apps, such as Uber. Private hire taxis cannot accept passengers who have not pre-booked and, therefore, cannot wait at taxi ranks or pick up passengers who hail them.

When setting up your taxi business, you must decide whether you want to operate a public hire or private hire business. A taxi business operates one or more vehicles for hire. You can choose to operate your business independently or hire additional drivers.

There are many different tasks associated with running a taxi business. The day-to-day responsibilities can vary, depending on the type of taxi business you set up.

Some of the tasks you could expect include:

• Picking up and dropping off passengers.
• Accepting bookings and planning routes and journeys.
• Taking the fastest and safest available routes.
• Helping to load and unload the vehicle.
• Calculating the correct fares (e.g. starting and stopping the taximeter at the appropriate time), accepting payments, giving change and providing receipts.
• Regularly cleaning your vehicle.
• Maintaining your vehicle and ensuring it is in good working condition.
• Adhering to all road regulations.
• Ensuring the safety of your passengers.

You could choose to operate a taxi business in a specific area or a specific route, for example, to and from your local airport. Alternatively, you could operate a taxi business that provides driving services to another business or establishment, for example, transporting students with disabilities to a local specialist school or working as a taxi service for a local hospital.

To become a taxi driver in the UK, there are some requirements you must fulfil, including:

• A valid UK, NI or EU driving licence that you have held for at least 12 months.
• You must be at least 18 or 21 years of age (depending on the area you will be operating).
• You must undergo background checks, a skills test and a medical check.

Some other qualities that can be beneficial are strong driving skills and plenty of experience driving (particularly in your chosen area of operation). Good interpersonal skills, strong organisational and time management skills and a willingness to work shifts or during peak hours can be beneficial. If you enjoy driving or would like to run a business where you are in charge of other taxi drivers, running a taxi business could be a great career choice for you.

Types of Customers

There are several factors that could influence your typical customer base:

The type of taxi business you run

Whether you set up a private hire or public hire taxi business will be a significant factor in determining your typical customer base. For example, a public hire taxi may be more likely to attract passengers in city centre locations or travellers from train stations or airports.

Whether you offer online booking or a ride-hailing app

Much of the younger generation, particularly those in their 20s and 30s, primarily use taxis that they can book online or on an app. This could be for safety reasons or because they find it more convenient. The older generation often prefers using a local taxi business that they can call to book their journey or discuss their requirements. Decide on whether you plan to offer online or app booking when considering your typical customer base.

Your location

The location of your business will also be a major factor in determining your typical customer base. People tend to use a taxi company that is local to them and primarily operates in their area. This is because they are likely to get a faster pick-up time and lower prices. If you are located in a residential zone, your typical customer base is likely to be local residents. If you operate near a major landmark or establishment, such as a hospital, your customer base is likely to be made up of visitors to that establishment.

Your pricing strategy

Different taxi businesses operate different pricing structures. For example, you may charge by the meter or provide a pre-journey price. Some taxi firms also charge higher prices for peak times or popular journeys. Your pricing structure could affect your typical customer base, particularly if you have a lot of local competition or popular taxi businesses, such as Uber and Grab, already operating in your area.

The size of your vehicle

The number of passengers your vehicle can accommodate, and the size of your boot could affect your typical customer base. This is because a larger vehicle will be chosen by larger groups of people or families and vehicles with larger boots will be more beneficial for people requiring more space, such as when travelling from the airport or on the way home from a shopping trip.

Whether you offer baby or child seats

Some taxis provide a baby or child seat to allow families with young children to use their vehicle. You would need to ensure these seats are safe to use and correctly installed if you decide to offer this service. Some taxis that offer this service charge higher prices.

Whether your vehicle is specially adapted for wheelchairs

A wheelchair-friendly taxi has a ramp or passenger lift to assist the passengers with getting in and out of the vehicle. These vehicles usually accommodate both manual and powered wheelchairs. They may also have lowered floors and additional space. Because there are fewer wheelchair-accessible taxis, these taxis are often in high demand.

Equipment You Will Need

Equipment is an essential purchase for your taxi business. Compared to other businesses, a taxi business has relatively few equipment requirements. It may also be possible to use some equipment you already own. However, it is essential that this equipment is safe, well-maintained and in good physical condition.

The amount of equipment you require can vary depending on the size of your business. If you hire other taxi drivers, you may supply them with all the equipment they require or ask them to provide it themselves.

Below is a list of equipment typically required by taxi businesses.

This is the main piece of equipment you will need to operate your business. Any car can be turned into a taxi, as long as it is new or has passed all MOTs and services, is safe and in good working condition and is well-maintained and physically presentable.

The most popular cars used for taxis in the UK are:

• Hyundai Ioniq
• Toyota Prius
• Skoda Octavia
• Mercedes C-Class
• Ford Mondeo
• Seat Alhambra
• Citroen Berlingo

To maximise your profits, you will also want to ensure your cars are fuel-efficient and/or hybrid. This can reduce the amount of money you are spending on fuel. You may opt to supply cars to all of your drivers or allow them to use their own cars. When purchasing your vehicles, you may opt to buy new or used cars or lease your vehicles.

Adhesive door and body panels

This can help your business gain exposure and can help to identify your cars as taxis. These panels can be kept on at all times to provide constant exposure to your business. The panels should include your taxi business’s name and a contact number.

Satellite navigation system

Satellite navigation may be installed in your cars or may be an independent piece of equipment. Alternatively, you could choose to use your mobile phone’s navigation system. A navigation system is essential, as it ensures you always follow the best possible route and avoid any traffic or road incidents that could cause unnecessary delays.

A mobile phone mount

If you use your phone for navigation, you will need a mobile phone mount. This could either be a windscreen mount or a dashboard mount. This gives you hands-free access to your phone and allows you to view your maps and navigation without touching your phone. If you take taxi bookings on a mobile phone app, a phone mount will allow you to easily accept journeys.

A taxi meter

Many taxi businesses use a taxi meter to price their journeys. The meter is activated when the journey starts (or when the driver is waiting for the passengers to arrive) and ended when the journey concludes. The meter will then automatically provide a price. The driver can also choose to add a surcharge, for example if it is rush hour or after hours. However, this surcharge must be clearly displayed, and passengers should be aware of any additional costs.

Bluetooth headsets

If you accept bookings by telephone, Bluetooth headsets allow you to communicate with customers or with your booking operator. You could also use the headset to communicate with other drivers in your business, for example, to give them information about their next booking. Bluetooth headsets are completely legal in the UK, as long as using one doesn’t interfere with your driving.

Payment machines

A portable card machine allows you to take payments via debit or credit card. Many people no longer carry cash and, particularly following the Covid-19 pandemic, prefer to use their bank cards. Failing to have a card machine in your taxi could result in you losing custom. Ensure you choose a card machine that is reliable and easy to connect.

Fleet tracking software

If you have a number of drivers working for you, fleet tracking software allows you to see the location and progress of your taxis. This allows you to determine who is best located to accept the next journey, reducing customers’ wait time and your fuel costs.

A phone system

Some customers still prefer to speak to a phone operator, rather than booking a taxi through an app. Your operator should be contactable at all times during the hours your business is operating. A quality phone system can ensure your business appears professional.

Your phone system could include:

• An automatic greeting message.
• Call queueing.
• Despatch integration.

A booking system

A booking system allows you to create journey bookings, which is particularly beneficial for customers who book their taxis in advance.

Your booking system could include features, such as:

• Making and managing bookings.
• Adding bookings to the calendar.
• Storing customer details.
• Taking payments or sending customers a quote.
• Saving any customer requests, e.g. a larger vehicle.

Dashboard cameras

Dash cams document your driving and are the strongest and most efficient way of defending yourself in the event of an accident or incident on the road. Dash cams can also help to deter theft and lower your car insurance premiums, helping to protect your business and maximise your profits. Dash cams can be installed on the front and back of your vehicles.

CCTV cameras

Installing CCTV cameras in taxis is on the rise. Cameras can help to protect your drivers from abuse or harm, can prevent the occurrence of crime and can assist the police and your insurance company in the event an incident does occur. If you choose to utilise CCTV in your business, ensure you follow any guidelines. You may choose to install cameras in all of your vehicles or only some of them.

Business cards

Business cards are an important marketing tool and can be given to new or existing customers. Your business cards should include your business name, contact information and location. The cost of 500 business cards can be as little as £20.

Cleaning equipment

To protect the health and safety of you and your passengers and to uphold the high standards of your business, you will need to clean your taxis regularly. You may choose to supply each taxi with individual cleaning equipment or have one set of equipment that all of your drivers share. Some cleaning equipment you could purchase includes a hoover, sponges, cloths, window cleaner, a bucket, a wheel brush, car shampoo and cleaning spray.

Personal Protective Equipment (PPE)

PPE has become more popular with taxi drivers following the Covid-19 pandemic. PPE, such as facemasks and protective gloves, can help to protect you from germs and illness.

Typical Costs

When you are creating a business plan for your taxi business, you will need to calculate the approximate costs associated with setting up and running this type of business. Calculating your typical costs allows you to estimate your initial investment requirements, any monthly and annual costs, your pricing strategy, your profit goals and your acceptable profit margins.

There are multiple costs associated with setting up and running a taxi business. Some of these costs will be one-off initial costs that you will need to pay when you are setting up your business. Other costs will be ongoing costs you will need to pay regularly – usually weekly, monthly, quarterly or annually.

The typical costs will vary, depending on the size of your business, whether you operate your business alone and whether you provide equipment, such as the cars, for your drivers or whether they use their own cars.

Some of the costs you can expect to be responsible for include:

Your vehicles

Your vehicles are the most essential components of your taxi business. You may choose to purchase new or used vehicles or lease your vehicles on a monthly basis. The costs can vary considerably, depending on the number of vehicles you require. You can expect to pay between £10,000 and £60,000 per car, depending on the age, make and specification.

Other equipment

Your equipment is an important purchase as it can help you to run your business more successfully. The cost of equipment can vary based on how much equipment you require. You may choose to purchase less equipment initially and expand your equipment as your business grows. Equipment for your taxi business can cost between £2,000 and £20,000.

You may choose to operate your taxi business from a commercial location. This is more common with larger taxi businesses that offer telephone bookings and require a taxi operating centre. Your commercial premises may also provide parking spaces for your taxis to be kept overnight and when not completing bookings. You will need to rent your premises on a monthly or annual basis. Rental prices can vary significantly, depending on the location and the size of the premises. City centre locations and newly built premises usually have the highest rental costs. Rental costs are often calculated per square metre. They can range significantly, from £500 to £15,000 per square metre annually. Because rental costs are expensive, commercial location is only recommended for larger taxi companies with many drivers.

Maintaining, repairing and replacing your vehicles and other equipment

Repairs, maintenance and replacements are ongoing costs you will need to factor into your budget. This includes the cost of your MOTs, services, refreshing your oil and brake fluid and replacing your tyres. You may also need to maintain, repair or replace other equipment, such as your phones and satellite navigation systems. Correctly using, cleaning and maintaining your cars and other equipment can extend their life, but potential repairs and replacements should still be factored into your budget.

This is an ongoing cost you will need to factor into your budget. Although the price of fuel for the journeys should be reflected in customer pricing, rising fuel costs can still have a significant impact on your profits. When calculating your average fuel costs, consider whether your cars are petrol, diesel, hybrid or electric. On average, it costs between £80 and £110 to fill up a petrol tank (although this can vary depending on current fuel costs). A full tank of fuel typically covers between 200 and 400 miles.

Running costs

These are the day-to-day costs associated with running your business. Some running costs are paid monthly, and others are paid quarterly or annually. Your running costs could include tax, insurance, phone plans, licences and website and app fees. If you operate a commercial location, you will also have to account for utility costs, such as electricity, gas and water.

You may opt to hire staff, such as drivers and call operators. There are several ways you could opt to pay your staff:

• Hire them as permanent employees and pay them at least the national minimum wage of £9.50 per hour. You may also be responsible for expenses such as holiday pay, sick pay and maternity/paternity pay.
• Hire drivers on a self-employed basis and charge them a set fee to work for your business.
• Hire drivers on a self-employed basis and take a percentage of their earnings.

There are multiple licences you will need to apply for to operate as a taxi driver. The types of licences you must apply for can vary depending on where in the UK you are based.

Some licence fees you can expect to be responsible for include:

• Enhanced DBS check.
• Taxi licence and renewal.
• Knowledge test.
• Knowledge of London written exam and face-to-face interview (if applicable).
• Medical assessments.

Although prices can vary, you can expect to pay between £150 and £1,000 for your licences (depending on the types of licences you require).

When creating your brand, consider the type of taxi business you are setting up and how you want your brand to be perceived by potential customers. Branding could include creating your business name and logo, designing your adhesive door panels, creating your business’s visual identity and your business website and app. You could hire a professional to help you with branding or do some or all of the work yourself. Branding can cost between £500 and £10,000, depending on the level of work required.

Advertising and marketing

To ensure your taxi business attracts customers and creates maximum profits, you will need to spend money on advertising and marketing. It is recommended that you spend between 1%-3% of your annual turnover on marketing. For example, if your annual turnover (or your desired annual turnover) is £80,000, you should spend between £800 and £2,400 on advertising and marketing. You may need to invest more money when you initially set up your business or when you are trying to grow your business. To reduce your costs, capitalise on free marketing strategies, such as on social media or in your local community.

Business insurance

There are multiple coverage options available for taxi drivers. Some types of coverage will be mandatory, and others are optional. Your coverage options include:

• Private Hire Taxi Insurance (for private hire taxis).
• Public Hire Taxi Insurance (for taxis that pick up non-pre-booked passengers).
• Public Liability Insurance.
• Employer’s Liability Insurance (if relevant).
• Unlimited Mileage Cover.
• Breakdown Cover.
• Legal Cover.

Insurance costs can vary, depending on your insurance provider, the level of coverage you require and your driving history. Prices typically start from £40 per month for one vehicle. You may receive a discount if you are insuring multiple vehicles.

Typical Pricing for Customers

The cost of hiring a taxi can vary depending on multiple factors, including:

• The area the taxi is operating in: Bigger cities, such as London and Edinburgh typically charge higher prices.
• Your location or destination: You may charge a surcharge if you are at a location such as an airport.
• The time of day: Taxis typically charge a surcharge at peak times and at night.
• The demand: The higher the demand, the higher the cost will be.
• Local competition: The more taxi businesses that are operating in the area, the lower the price may be.

There are multiple ways taxi companies determine their pricing. The most common ways are:

• An initial charge, followed by a set charge for every mile (e.g. £3 per mile).
• An initial charge, followed by a time-determined meter charge (e.g. the meter goes up for every minute you are in the taxi).
• A set fee for the journey that is pre-agreed by the driver and passenger.

Safely Running a Taxi Business

Safe practices in your taxi business can help to protect the health, safety and well-being of you, your drivers, your passengers and other road users.

Some ways you can safely run your taxi business include:

Ensure you have the relevant knowledge and experience to drive a taxi

Driving a taxi is very different to driving a personal car. Because you are responsible for the safety of yourself, your passengers, other drivers and pedestrians, you must ensure that you have extremely strong knowledge of road safety laws. Knowledge and awareness of the roads in your area of operation and knowledge of local landmarks, as well as popular routes, are also recommended.

Protect you and your drivers from abuse or violence

Taxi drivers are in a vulnerable position as they are in a confined space with others and are often facing away from their passengers. Consider ways you can protect yourself and your drivers from abuse or assault, for example:

• Install CCTV in your vehicles.
• Have an emergency plan in place.
• Refuse a passenger if you have any doubts about your safety.
• Carry a minimal amount of cash with you at one time and keep any cash hidden in a secure box.
• Make sure your location can also be tracked, for example, via the radio, a lone worker device or a tracking app.
• Install screens to protect yourself from passengers sitting in the back of your car.
• Record any incidents of abuse, assault or crime and report these to the police.
• Don’t fight back if you are threatened.
• Do not volunteer any personal information to your passengers.

Be aware of potential child exploitation (CE) and report any concerns to the police

Taxi drivers play a pivotal role in identifying the sexual and criminal exploitation of children as these children are often transported in taxis. Look for any unusual or concerning behaviour or signs that exploitation may be taking place, make notes about your concerns (including descriptions of those involved, locations and names) and report it to the police as quickly as you can.

Manage safety on the road

You are responsible for managing road safety hazards. You must ensure safe driving at all times, for example:

• Always adhere to speed limits.
• Anticipate any hazards and be prepared for how to deal with them.
• Don’t use your mobile phone while driving.
• Don’t drive distracted.
• Take the appropriate number of breaks.
• Approach zebra crossings correctly.
• Respect cyclists.

Conduct risk assessments

Although not a legal requirement for businesses with fewer than five employees, risk assessments can help to eliminate risks and ensure safe practices in your business.

As part of your risk assessments, you should:

• Identify hazards.
• Determine who could be at risk.
• Evaluate any potential risks.
• Implement relevant safety measures.
• Record the results of the risk assessment.
• Review the risk assessment regularly.

You should keep physical records of your risk assessments as evidence of your commitment to safe practices.

Ensure your vehicle is well-maintained and safe to drive

An unsafe vehicle can be a danger on the road. You should perform regular checks on your vehicle, including checking the tyre pressures, oil level and brakes. You should also ensure your car undergoes regular services and MOTs. If you have any concerns about your vehicle, do not accept any passengers.

Properly maintain and set up equipment

Any equipment you use must be properly maintained, correctly set up and safe to use. You must protect yourself, your staff and your customers from accidents or injuries caused by equipment. You should also perform regular equipment inspections to ensure your equipment’s safety and help extend the lifespan of your equipment. Maintenance includes regularly checking for faults, regular cleaning and ensuring it is functioning correctly.

Implement cleaning policies and procedures

Strict cleaning procedures must be in place in your vehicles. This includes cleaning, disinfecting and sanitising all surfaces. You should clean regularly throughout the day and conduct a deep clean if your vehicle becomes spoiled, for example, if a passenger vomits inside your vehicle.

Implement emergency procedures

Having emergency procedures is important to ensure the safety of everyone involved. Being aware of what to do in the event of an accident or an emergency is a great way to protect your passengers and other road users.

Legal Requirements

Complying with legal requirements is essential when setting up and running a taxi business.

The legal guidelines you must comply with depend on several factors, such as:

• Whether you operate a public hire or private hire taxi business.
• How you make your bookings.
• Whether you hire employees.
• Whether you have a commercial location.

Some of the legal requirements you need to be aware of include:

Ensure you comply with eligibility requirements

There are several eligibility requirements you will need to comply with before operating as a taxi driver.

These can include:

• You must be legally eligible to live and work in the UK.
• You must hold a full GB, NI or EU driving licence and have had the licence for a minimum of 12 months (or three years in London). Your licence must be registered to your current address.
• You must be a ‘fit and proper person’.
• You may have to undergo medical examinations, e.g. an eyesight test.
• You may have to undergo a knowledge test.
• You may have to take an additional driving test.

Contact your local council to determine the exact eligibility requirements you must comply with.

Apply for a licence to drive a taxi

You must apply for a specific licence to drive a taxi in the UK. Guidance changes depending on where in the UK you are located:

• Outside London: You must apply to your local council for a licence to drive a taxi or private hire vehicle (PHV).
• Inside London: You must apply to Transport for London (TfL) to drive a taxi or private hire vehicle (PHV).
• Northern Ireland: Apply for a taxi operator licence from the Driver and Vehicle Agency (DVA) NI.

It can take up to 16 weeks for your licence to be approved so ensure you apply for your licence before you begin operating as a taxi driver. If you hire other divers, you must ensure they are fully licensed before they begin working for your business. You will have to renew your licence every 12 months or every three years.

Obtain a criminal record check

To demonstrate that you are a ‘fit and proper person’, your local council will require a criminal record check. Without a DBS check, you will not be eligible for a taxi driver’s licence.

The type of check you require depends on the country you live in:

• England: Disclosure and Barring Service (DBS).
• Wales: Disclosure and Barring Service (DBS).
• Scotland: Protecting Vulnerable Groups (PVG) Scheme.
• Northern Ireland: AccessNI.

Comply with the Information Commissioner’s (ICO) guidance on CCTV

The ICO guidelines state that in the majority of circumstances, continuously recording CCTV in a taxi is unlawful. However, it is acceptable to record whilst you are on a job, i.e. whilst you are completing a journey with passengers in your taxi. You should make it clear that CCTV cameras are in use in your taxi, for example, by displaying signs.

Ask your GP to complete a group 2 medical form

When you apply for your taxi driving licence, you must declare any health conditions that could affect your suitability or safety when driving. A group 2 medical form can be requested from the DVLA and should be completed by your doctor. This form is valid for five years if you are under 65 and one year if you are over 65. If you develop any health conditions that could affect your driving within this time frame, you must notify the DVLA immediately.

Only collect non-pre-booked passengers if you are licensed to do so

Not all taxi drivers are licensed to collect passengers that haven’t pre-booked, for example, those who hail a taxi down on the street or wait at a taxi rank. Ensure you check what your licence allows you to do before collecting any passengers.

Comply with guidance on declining a fare

There are three main reasons why a taxi driver can decline a fare:

• Your light is off, which indicates you are not accepting passengers.
• The fare would be outside your terms of licence, for example, it is out of the area you are allowed to work or you are not licensed to collect certain passengers.
• You believe the fare would put you at risk in some way.

Comply with the Equality Act (2010)

The Equality Act states that taxis must be accessible to people with disabilities. For example:

• Wheelchair users must be carried at the same cost as non-wheelchair users.
• You must give mobility assistance to wheelchair users, as is reasonably required.
• If a wheelchair passenger chooses to sit in the passenger seat, the driver must also carry the wheelchair.
• You cannot refuse to transport an accredited service dog and no additional cost can be charged for transporting a service dog.

You can apply for an exemption certificate from these duties on medical grounds or if a physical condition makes it unreasonably difficult for you to comply with these duties.

Provide receipts on request

Receipts must always be made available to passengers if they request one. Receipts should include:

• The driver’s name and ID.
• The taxi company’s name and number.
• The date and time.
• The destination or the distance.
• The price per mile and total fare charged.

Comply with regulations when carrying children

The laws on children travelling in cars are different in taxis, compared to private cars.

• If a child (aged above three years old) does not have a child seat, they must travel in the rear of the vehicle and wear an adult seatbelt.
• Children below three years old must sit in their own seat next to an adult, not on an adult’s lap.

Comply with regulations regarding luggage

As a taxi driver, you must carry a reasonable amount of luggage (i.e. luggage that fits safely within the vehicle) and should assist with loading and unloading the luggage, where possible.

Comply with the General Data Protection Regulations (GDPR) and the Data Protection Act (DPA)

You must comply with both pieces of legislation when storing or sharing personal information, such as your customers’ personal information, contact details and banking information. You must also apply for a Notification to Process Personal Data Licence. If you process or store personal information such as personal details and banking information, you will need to apply for a licence with the Information Commissioner’s Office and renew your registration every year.

Comply with the Provision and Use of Work Equipment Regulations (PUWER) 1998

These regulations apply to you and any employees you hire. You must ensure any equipment, including your cars, is fit for purpose and is maintained and inspected regularly. You must also ensure that health and safety risks are minimised to an acceptable level, that you have the correct knowledge and training to use the equipment, and that protective measures are put into place. You must also ensure the equipment is used under appropriate conditions.

Comply with employment legislation

If you employ any staff on a permanent basis, you must ensure you follow employment legislation, including the Employment Rights Act (1996 ) and the National Minimum Wage Act (1998) . You must also comply with legislation relating to recruitment, working hours, sickness, discrimination, dismissals, and maternity or paternity pay.

Comply with the Manual Handling Operations Regulations (1992)

Manual handling regulations can help to protect you and your employees from sustaining an injury or illness as a result of manual handling tasks. The regulations apply to the lifting or moving of any objects (such as luggage) and repetitive movements, such as when driving.

Comply with the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR) 2013

RIDDOR states that you must report all injuries, diseases and dangerous events that occur in your business. Reports must be made to the Health and Safety Executive (HSE) using an appropriate recording document. These regulations apply to any incidents that involve you, your staff or your customers.

Appoint a competent person and prepare a health and safety policy

The law states that every business in the UK must have a specific policy for managing health and safety. Your policy should state exactly how you will manage health and safety in your business and state who is responsible for specific tasks and how and when these tasks are completed. Follow the recommended tips from the Health and Safety Executive on how to write a health and safety policy.

Comply with the Health and Safety at Work etc Act (1974)

The Health and Safety at Work etc Act lays out the duties of all employers in the UK regarding ensuring the health, safety and welfare of everyone in your business. As you are the business owner, you will be responsible for protecting the health and safety of your employees and any clients or visitors to your business.

Register your business

You must register your business with HMRC before you begin operating. You can register as a sole trader or as a limited company. You will need to register your business name and any other relevant information.

Register for self-assessment tax

This allows you to calculate and pay your own taxes each year. You will need to track your finances every month and submit any expenses as part of your tax assessment.

Positives of Owning a Taxi Business

Starting up a taxi business can be rewarding in many ways.

Some of the main benefits of this type of business are:

Flexible working hours

Taxis are in demand at all hours of the day and night. You can choose your own working hours and operate your taxi at the times that suit you. You can work around your family life and personal life or only work at peak times when fares are likely to be higher and you’re likely to get more business. You can also work as much or as little as you want, with some taxi drivers only working part-time.

Low entry barrier

It is relatively easy to become a taxi driver and set up a taxi business. You won’t need any formal qualifications, with the minimum requirement being a UK driving licence. Compared to other careers that can take years to train in, it only takes a few short weeks to begin working as a taxi driver and setting up a taxi business.

Engage with people

Working as a taxi driver can be extremely interesting work. You will meet people from all walks of life and have the opportunity to speak to them. Many people chat with their taxi drivers, and you may even find yourself picking up the same customers multiple times. Driving a taxi can be extremely interesting and very enjoyable for people who are outgoing and enjoy talking to others.

Option to work for yourself or work with a taxi company

You will have the flexibility of exactly how you want to run your business. You can choose to operate as a completely independent taxi and work exactly when you want to. You could also opt to work on a freelance basis for a taxi company or set up a business and hire other drivers. Alternatively, you could choose to work for a well-known taxi firm in your area or a large company such as Uber or Grab. You can make this decision based on what is best for you and your business.

It can be profitable

Working as a taxi driver can be extremely profitable. If you set up a taxi business whereby you hire other taxi drivers, this could result in high profits, as you will likely take a significant cut of their earnings or charge them a set fee. Owning a taxi business has high-income potential.

Driving for a living

Many people working in this industry love driving. If you find driving relaxing or enjoyable, this could be a great career option for you. You can listen to your favourite music, chat with your passengers and drive all around your city and the countryside. Enjoying what you do can make it feel less like work.

Opportunity for growth

There is high opportunity for growth in this industry. You could start small, by working as a self-employed taxi driver, and then grow your business by setting up your own firm and hiring several taxi drivers to work for you. You could then expand your taxi business to other areas, increasing your profits even further.

Customer loyalty and recommendations

If you operate in the same area or consistently do the same journey (e.g. airport transfers) you will likely see repeat business from the same customers. They may book your service in advance or book you for regular, repeat journeys, such as driving them to work each day or the hospital twice a week, which provides you with guaranteed and predictable income. Loyal customers are also likely to recommend your taxi business to other people, which can help you to grow your business and increase your profits.

Constant demand

There is a constant demand for taxis and the potential for new taxi businesses to succeed. Because your services will always be in demand, there is less risk of your business failing and more chance of you achieving your desired income. Constant demand makes it easier for you to get your business off the ground and for you to maintain and grow your business.

Be your own boss

You can make all key decisions yourself and steer your business in whichever direction you choose. You can choose how involved you want to be, the type of taxi business you want to set up, the areas and routes you work and whether you hire other drivers. You can make the best decisions for you and your business.

Low start-up costs

Starting your own taxi business is a relatively low-investment venture. You will have very few equipment requirements, and if you already own a reliable car that is in good condition, you can use this to operate your business. Depending on the type of taxi business you set up, you may also not have any premises costs. Low initial investment requirements will mean you won’t require any outside investment and can begin turning a profit earlier.

Work in your local community

You will likely operate your business in your local area or close to your home. Not only is this convenient for you, but it also allows you to make personal and professional connections in your area.

Pick and choose your customers

If you receive a request for a taxi and you have had a previous negative experience with that customer, you can decline to drive them in the future. You can also decline to work in certain areas, for example, if you feel unsafe or don’t want to travel to that area for another reason. As the business owner, you have complete control of your clientele.

Negatives of Owning a Taxi Business

Although running a taxi business can be rewarding in many ways, there are some potential negatives you should be aware of.

The registration process can be difficult

Some people think it is quick and easy to become a taxi driver. In reality, it takes between 12 and 16 weeks on average to register with your local authority. You will also need to undergo background checks, a skills test and a medical test.

Odd working hours

Although you can choose your own working hours, taxis are most in demand at night time, in the early hours of the morning when people are on their way home from a night out and at the weekend. To maximise your profits, you will need to work at peak times, which could have a negative impact on your family life and personal life.

Customer abuse

Working as a taxi driver can put you in a vulnerable position. You will be alone in your car with your passengers and this could result in potentially dangerous situations, particularly if you work at night time and are regularly driving customers who are drunk. You may be a victim of abuse or violence, and this can be harmful to your mental and physical health.

Potential for non-payments

There is always a risk of your customers not paying, i.e. if they jump out of your taxi and run away without paying. This can have a detrimental effect on your income, particularly if this happens frequently or occurs following a long or high-priced journey.

Vehicle maintenance

Maintaining your vehicle can be expensive but is an essential part of your business. Your vehicle will need to run safely and smoothly, be fully maintained and undergo regular MOTs and services. You will also need to make sure your vehicle is cleaned regularly, and that you maintain hygiene standards. Maintaining your vehicle can be costly and time-consuming.

Unfulfilled or fake bookings

This can be a regular issue for taxi drivers and can result in a loss of earnings. This can occur if a customer makes a booking and then doesn’t turn up, or if someone makes a fake booking that they never intended to complete. This can affect your income as it prevents you from accepting journeys from true customers and driving to the destination and waiting for a customer that never shows can also be a waste of fuel and time.

Impacts on your health

Many people think driving a taxi is easy, as you are sitting down for much of the day. However, there are some health concerns related to driving for much of the day, such as:

• Back pain and strain.
• Reduced cardiovascular fitness
• Muscle strain and joint stiffness.
• Eye strain.
• A rise in blood sugar.
• A rise in cholesterol.
• A rise in blood pressure.

Business can be inconsistent

There will be certain days of the week and times of the year when there is less demand for your services and business is slow. It can be difficult to plan your finances, predict your profits and decide your working hours when your business is inconsistent. There could be times when your service is less busy, and this can have a significant impact on your profits.

Motivation of employees

If you hire other taxi drivers or call operators to work for your business, they may be less motivated than you to ensure your business is always represented highly. You could hire a staff member who is unmotivated, disinterested or doesn’t operate to your standards. This can result in bad reviews or the loss of custom which can have a detrimental effect on your business.

It can be stressful

Being responsible for the success of your taxi business can be stressful. Gaining clients, growing your business, ensuring health and safety, making a profit and being responsible for the day-to-day running of your business and all business and administrative tasks can be stress-inducing. Running your own business can be particularly stressful in your business’s first year of operation.

High liability

As a taxi driver, you are responsible for the safety of everyone in your vehicle. More than 120,000 road traffic accidents occur in the UK every year and you could be held responsible if an accident occurs while passengers are in your vehicle. Some of your passengers may not wear their seatbelts, something you may not always be aware of, and this could result in more serious injuries.

It can be competitive

You will be competing with other taxi businesses in your area and with popular taxi apps, such as Uber and Grab. Having lots of competition, particularly already established, well-known competitors, can make it more difficult for your business to grow and succeed.

No benefits

As you are self-employed, you won’t receive benefits such as pension contributions. You will also be responsible for doing your own taxes and organising your National Insurance contributions. You will also have a lack of job security.

Your business could fail

Starting up your own business can be risky. Many new businesses fail which could result in you losing money or getting into debt. Your business could fail for several reasons, such as high local competition, an ineffective business plan or if the UK encounters another recession or a period of financial difficulty.

Planning Your Taxi Business

An effective and well-designed business plan is essential to the success of your taxi business. A business plan can help you to focus on the specific steps that will help your business succeed, plan your short-term and long-term goals, determine your financial needs and help your business to grow.

When creating your business plan, ensure it contains information such as:

• Your company information.
• Your company description.
• The services you will provide.
• Your branding, marketing and advertising plan.
• The structure of your business.
• The operational plan for your business.
• The financial plan for your business.

Some of the factors you will need to consider when creating your business plan are:

Your business summary

Your business plan should include a detailed overview of your business, including your location, the size of your business, the type of taxi business you set up, your licensing, your equipment requirements and your business goals.

Whether you will operate private hire or public hire taxis

You must choose whether to operate as a public hire or a private hire taxi business. You cannot operate as both public and private hire, as they both have different licensing requirements and require different types of insurance. Consider your local competition, which one is likely to be the most profitable and the way you would like to operate your business when making a decision.

How you want to accept bookings

If you set up a private hire taxi business, this is an important consideration. You must decide whether you want to offer telephone bookings or online/mobile app bookings. This will be a major factor in determining the types of customers your business is likely to attract.

Whether you are going to hire drivers and your strategy for pay

This is a key consideration when setting up your business. Hiring other drivers allows you to collect more passengers and operate more hours; however, it can also increase your running costs. You may choose to operate your taxi business by yourself initially and then hire other drivers as your business and profits grow. If you do choose to hire other drivers, consider whether you plan to hire them on a permanent or self-employed basis and how you plan to pay your drivers.

Your hours of operation

Your operation hours will depend on whether you are the sole driver in your business or whether your hire other drivers. If you are the sole driver, you may choose to operate set hours every day, so that your customers know when you are available and so you can maximise your profits. If you are a public hire taxi driver, you may opt to work flexible hours. If you hire other drivers, consider whether you want to operate a 24-hour taxi business or only operate set hours. You can also decide whether you want to allow your drivers to choose their own hours.

Your local competition

Being aware of other taxi companies operating in your area can help you decide what type of business to run. It can also help you determine the local demand and make sure that there is a need for your services. When analysing your local competition, look at what they do well and features of their business that could be benefiting them (e.g. they get a lot of bookings on their app). You could also look at what they could improve and implement these strategies in your own business.

Your equipment requirements

Consult the list above to determine your equipment requirements. The equipment you require will depend on the type of taxi business you set up and how big your business is. Once you have determined your equipment requirements, you can then calculate the initial costs of purchasing the equipment and your likely equipment maintenance costs (e.g. MOTs, car tax and services).

Your start-up costs and running costs

Consult the list above to help you calculate the approximate costs of setting up and running your business. Determine what equipment you need and the amount of equipment required to help you determine your start-up costs and what your initial investment requirements will be. You can then calculate whether you can finance your business yourself or whether you need to source outside investment. Determining your start-up costs and running costs can also help you to create a budget and predict when you will begin to turn a profit.

Financing your business

Consult the list of start-up costs and running costs above to determine what capital you will require. Can you finance the business yourself or will you need to source outside investment? You will also need to calculate when you are likely to begin turning a profit. If you require outside investment, you could consider a bank or other financial institution, a business loan or an investment partner.

Consider how you plan to price your journeys, e.g. will you price by distance or by time? Will you offer set prices for specific journeys (e.g. to an airport)? Consider which pricing strategy is likely to be the most profitable and ensure you consider your drivers’ time and the cost of fuel. Your pricing strategy can impact how popular your business is and the types of customers you are likely to attract.

Your sales forecast

Your sales forecast will depend on your working hours and how many drivers you have. Consider how many journeys you can realistically do each day and whether you will be working during peak hours. Your sales forecast may change as your business grows.

Creating your brand is a key way to ensure you stand out from your local competition. Branding can help you to focus on your target customers, attract clients and concentrate your marketing and advertising strategies. Some ways you can create your brand are by focusing on your business’s visual identity and creating a brand story.

Your advertising and marketing strategies

Your marketing and advertising plan should detail what your brand is and how you plan to promote your business. As part of your marketing strategy, consider the most effective way to reach your target audience and attract potential customers. Create an advertising plan that is specific to the type of business you are going to run and how you plan to operate. There are many ways you could choose to advertise your business, including posters and signs, leaflets and business cards, using your adhesive door panels, using paid online, TV and radio ads, and by partnering with other businesses.

Your business objectives

Your business objectives are crucial for creating a successful business plan. Your business objectives highlight the targets and goals of your taxi business and help you to create a one-year, three-year and five-year business plan to help you grow your business.

Your business objectives should be SMART:

• S = Specific
• M = Measurable
• A = Achievable
• R = Realistic
• T = Time-bound

Have you complied with all legal requirements?

Consult the list of legal requirements above to check you have complied with all requirements and regulations and that all your paperwork is accurate. Failure to comply with legal requirements could have a detrimental effect on your business or could result in a fine, the forced closure of your business or, in serious cases, prosecution.

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How to Write a Taxi Business Plan [Sample Template]

By: Author Tony Martins Ajaero

If you live in South Africa, or if you have ever visited South Africa, you will agree that the taxi cab line of business is an avenue to make good money. This is because if you don’t own an automobile, transporting yourself from one part of town to another can be challenging especially if you like comfort.

So, as an investor who is looking for a business to do in South Africa, one of your best options is to start a taxi cab business. It is important to note that starting a standard taxi cab business with over a handful of taxis and drivers needs significant investment capital, solid planning, and attention to details in order to keep your business profitable.

The truth is that if you are serious about starting a standard taxi cab company in any part of the world, you are expected to have done your feasibility studies and market survey before committing your capital in the business. Above all, you would need a workable business plan if indeed you want to build a profitable taxi cab company. The taxi cab company business plan template below will help you to draft your business plan with little effort on your part.

A Sample Taxi Business Plan Template

1. industry overview.

A taxi cab company provides comfortable and private transportation via automobiles for passengers. Taxi services are not operated on regular schedules or routes like buses that usually pick several passengers along the road. A report released by SA National Taxi Council (Santaco), shows that there are more than 200,000 minibus taxis in South Africa and they generate on the average more than R90 billion every year. The exact figure cannot be clearly stated because the industry in South Africa is largely unregulated, with no set fare among taxis and routes.

On their part, Reuters puts the annual revenue in the industry at closer to R50 billion. Based on the former figure, each taxi makes an annual revenue of approximately R450,000. Assuming that the taxi is in operation every day of the year, bar Christmas, the average income stream for a taxi in SA is around R1,236 per day, or R37,500 per month.

A recent report released by SATaxi a to taxi finance company shows that the average taxi travels 6,500 kilometers per month, while the South African National Taxi council says that the taxi industry employs more than 600,000 people and transports 15 million commuters on a daily basis.

SATaxi also says that each taxi creates seven jobs related to the industry, but reports show that taxi owners lose between 35 percent and 50 percent of fares that are pocketed by drivers through the cash based system.

The Taxi Services industry has experienced remarkable growth in South Africa. The growth of the SA economy has directly benefited the industry as business expense accounts have grown and clients have been more willing to spend on small luxuries such as taxi rides. In addition, increased demand from corporate travelers, tourists and private households is expected to result in steady growth for this industry.

When it comes to advertising your taxi services company in South Africa, there shouldn’t be any limit to how far you can go. You could start with handbills and distribute them in cooperate organizations and public places. If you have cash you can place advert spots on Newspapers, TV and Radio, and if you don’t have enough cash, you can start with the worldwide web. As a matter of fact, the internet has become one of the cheapest and most potent advertising platforms.

Over and above, taxi cab services businesses all over the world are still enjoying good patronage particularly if they have comfortable taxis, professional drivers, if they are well positioned and if they know how to reach out to their target market.

2. Executive Summary

Robert Xhosa® Taxi Cab, Inc. is a standard taxi cab company that is registered under the Companies and Intellectual Property Registration Office (CIPRO), the Department of Labor and the Department of Transport in South Africa.

Our company will be based in Johannesburg – South Africa and we will cover cities like Pretoria with Sandton, Vereeniging, Vanderbijlpark, Germiston, Roodepoort, Centurion, Krugersdorp and Kempton Park, and Tambo International Airport and some of the other major cities within the metropolis. We chose to operate in these cities because we know that our services will be in high demand due to the demographic composition of Johannesburg.

We are equipped with some of the finest cab drivers and comfortable cars to service our clients irrespective of their social and financial status. Our services will involve taxi services, taxi leasing, luxury and corporate sedan services, stretch limousines and buses etc. Although our intention of starting Robert Xhosa® Taxi Cab, Inc. is to offer only the above stated services, but we will not close our doors to diversification as long as it does not affect our core services.

We at Robert Xhosa® Taxi Cab, Inc. are in the pursuit of excellence and financial success with uncompromising services which is why we decided to start our taxi cab business. We are quite optimistic that our values and quality of service offering will help us drive Robert Xhosa® Taxi Cab, Inc. to enviable heights and also help us attract the number of clients that will make the business highly profitable.

We will be dedicated to establishing good business relationships with our clients by giving them value for their money and reasons for them to hire our services again.

We are quite aware that in order to become the number one choice in our city, we must continue to deliver quality and highly reliable services and that is exactly what we will do. We are open to the use of latest technology in the taxi cab services line of business.

No doubt, our excellent customer service and the quality of services we offer will position us to always welcome repeated customers and handle massive deals from both government and corporate organizations.

Our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Robert Xhosa® Taxi Cab, Inc. is owned and managed by Robert Xhosa and his immediate family members. He studied Geography and Urban Planning from the University of Johannesburg, he is a member of South African National Taxi Council and he is well – equipped with the required qualifications and experience to position Robert Xhosa® Taxi Cab, Inc. to favorable compete with leading taxicab brands in South Africa.

3. Our Products and Services

Robert Xhosa® Taxi Cab, Inc. is a standard taxi cab company that is positioned to make profit and favorable compete with leaders in the industry and we are going to do all that is permitted by the law of South Africa to achieve our business aims and ambition.

Our services offering are listed below;

• Taxi pick up services
• Providing limousine services
• Providing luxury sedan services
• Providing chauffeur and personal driver services

4. Our Mission and Vision Statement

• Our vision is to become the go – to taxi cab company in the whole of Johannesburg with active presence in key cities all around South Africa.
• Our mission as a standard taxi cab company is to develop a highly successful business that provides quality automobile transportation services in our city and to become a standard for the ideal taxi cab business not only in Johannesburg but throughout South Africa.

Our Business Structure

We are quite aware that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our taxi cab services company on the right business foundation.

We want to build a business of dedicated workforce that will go all the way to ensure that our customers are satisfied and they get value for their money. We are aware that it takes a business with the right employees and structure to achieve all what we have set to achieve, which is why we will be putting structures and processes in place that will help us deliver excellent services and run the business on auto pilot. The success of our taxi cab services company will be anchored on the team not on any individual.

With the wide range of our service offerings, we are only expected to employ more than is required to run a conventional taxi cab services business. Definitely, we will have various employees to man the various services offering of Robert Xhosa® Taxi Cab, Inc. .

Robert Xhosa® Taxi Cab, Inc. will employ professionals and highly skilled people to occupy the following position;

• Chief Executive Officer

IT Specialist

Admin and HR Manager

Marketing and Sales Executive

• Professional Drivers
• Customer Care Executive/Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions
• Creates, communicates and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Accountable for installation, repair and maintenance of GPS car tracking device for the organization
• Responsible for managing the e – ticketing aspect of the business
• In charge of choosing the GPC car tracker components and software to be used and specifying the requirements for the project
• Monitors all our taxi that are plying different routes
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Designs job descriptions with KPI to drive performance management for clients
• Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of relevant projects.
• Writes winning proposal documents, negotiate fees and rates in line with company policy
• Responsible for handling business research, marker surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluate new plans for expanding sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• creates reports from the information concerning the financial transactions recorded by the bookkeeper
• Prepares the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Professional Drivers 

• Drives taxi cabs et al as assigned by the management
• Maintains a logbook of their driving activities to ensure compliance with federal regulations governing rest and work periods for operators.
• Keeps a record of vehicle inspections and make sure the cab is equipped with safety equipment
• Inspects vehicles for mechanical and safety issues and perform preventative maintenance
• Complies with taxi driving rules and regulations as well as with company policies and procedures
• Reports defects, accidents or violations

Client Services Executive/Front Desk Officer

• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s services, promotional campaigns etc. to ensure accurate information is supplied to clients
• Receives parcels/documents for the company
• Distribute mails in the organization
• Handles any other duties as assigned by the line manager

6. SWOT Analysis

A close study shows that taxi cab business is one of the many businesses that can easily generate sales with little stress as long as they are well positioned and equipped to carry out their services. We are building a standard taxi cab business with the intention of selling our franchise all across Africa which is why we have decided to subject our business to SWOT Analysis.

Ordinarily, we can successfully run a taxi cab service without the stress of writing a detailed business plan, but because we intend becoming leaders in this line of business, we don’t have any option other than to follow due process.

We hired the services of Mrs. Jacinta Zuma, a Business consultant with bias in startups to help us conduct SWOT analysis for our company and she did a pretty job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Robert Xhosa® Taxi Cab, Inc. .;

The strategic locations we intend covering, the Business model we will be operating on, ease of payment (e-Ticketing options), wide range of comfortable cars, highly trained and courteous drivers and of course our excellent customer service culture will definitely count as a strong strength for Robert Xhosa® Taxi Cab, Inc.

So also, we have a qualified team that can go all the way to give our clients value for their money; a team that are trained and equipped to pay attention to details.

A major weakness that may count against us is that we are a new taxi company and we don’t have the financial capacity to compete with multi – million dollar taxi cab companies that are already influencing the direction of the industry.

• Opportunities:

The fact that we are launching out in the heart of Johannesburg which is the largest city in South Africa, and is one of the 50 largest urban areas in the world, provides us with unlimited opportunities to market our services to a large number of corporate organizations, travel and tours agencies, hotels, government organizations and households.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they patronize our services; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power especially for luxury services like taxi cabs. Another threat that may likely confront us is the arrival of a new taxi cab company within same locations where we operate. Government policies can also pose a major threat to businesses such as ours.

7. MARKET ANALYSIS

• Market Trends

If you are conversant with the trends in the taxi industry in South Africa, you will notice the embrace of e-ticketing. The truth is that the taxi industry in South Africa has begun adopting e-ticket fare collection system, which will make commuters lives easier by not having to carry cash or worry about taxi drivers not having enough change for them. The e-ticketing project is expected to be expanded to other taxi routes, with the aim of completing a national rollout within five years.

In South Africa, the taxi e-ticketing system is owned and managed by FairPay and TaxiChoice – and the commercial arm of Santaco is currently the sole shareholder, with Curve Group Holdings as the primary technology partner. Chairman of TaxiChoice, Jothan Msibi, said the first phase – which is the JPM route – will enable commuters to load their FairPay cards via point of sale (POS) devices and kiosks at taxi ranks, though eventually these services will also be available in selected retail stores.

Aside from being able to process card payments, the equipment installed in taxis also contains a GPS device, and can act as a Wi-Fi hotspot, providing commuters with internet connectivity while they travel.

Technology has indeed played a major role in this industry; especially in cutting cost and enforcing safety and monitoring measures. There is hardly any taxi cab company that does not have GPS car tracker installed on all their cabs. It helps them in monitoring their fleets and also in planning and budgeting.

8. Our Target Market

Prior to choosing a location to launch our taxi company, we conducted our feasibility studies and market survey and we were able to identify those that will benefit greatly from our service offerings.

Those who will benefit from our service offering are households, corporate organizations, travel and tour agencies, hotels and government agencies. Below is a list of the people and organizations that our taxi cab services are designed for;

• Celebrities and public figures
• Even planners (limousine rental services for wedding and social functions)
• Travel and Tour Agencies
• Corporate Executives
• Business People

Our Competitive Advantage

The taxi cab business is easy to set up especially if you have the finance to acquire comfortable cars and the ability to run and manage a business. It means that the possibility of taxi cab business springing up in the location where our company is located is high. We are aware of this that is why we decided to come up with a business concept that will position us to become the leader in Johannesburg – South Africa.

We can confidently say that the strategic locations we intend covering, the Business model we will be operating on, ease of payment (e-ticketing options), free Wi-Fi services in all our taxis, wide range of highly reliable and comfortable cars, limousines and SUVs, highly trained and courteous drivers and of course our excellent customer service culture will definitely serve as competitive advantage for Robert Xhosa® Taxi Cab, Inc.

So also we have a qualified team that can go all the way to give our clients value for their money;. For the time being, Robert Xhosa® Taxi Cab, Inc. has no real competitors that can match the quality of services we offer and our business offerings. Our customer service will be customized to meet the needs of all our customers.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Robert Xhosa® Taxi Cab, Inc. is established with the aim of maximizing profits in the taxi cab services industry and we are going to go all the way to ensure that we do all it takes to attract clients on a regular basis.

We will ensure that we leverage on our strength and the opportunities available to us in South Africa market to generate enough income that will help us drive the business to stability. We will go all the way to explore every available sources of income in the Taxi cab services industry.

Below are the sources we intend exploring to generate income for Robert Xhosa® Taxi Cab, Inc. .;

10. Sales Forecast

One thing is certain, there would always be corporate organization and individual clients who would need the services of taxi cab companies.

We are well positioned to take on the available market in Johannesburg and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operation and grow our taxi cab services business and our clientele base.

We have been able to examine the taxi cab services market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Johannesburg – South Africa.

• First Fiscal Year: R200,000
• Second Fiscal Year: R550,000
• Third Fiscal Year: R950,000

N.B : This projection was done based on what is obtainable in the taxi cab industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within the same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

The marketing strategy for Robert Xhosa® Taxi Cab, Inc. is going to be driven by excellent customer service, honesty and quality service delivery. We will ensure that we build a loyal customer base. We want to drive sales via the output of our jobs and via referrals from our satisfied customers. We are quite aware of how satisfied customers drive business growth especially businesses like taxi cab services.

Robert Xhosa® Taxi Cab, Inc. is strategically located and we are going to maximize the opportunities that are available which is why we spent more to locate the business in a location that will be visible and enable us to access our target market.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to meet their targets and the overall goal of Robert Xhosa® Taxi Cab, Inc. Robert Xhosa® Taxi Cab, Inc. is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our taxi cab services business by sending introductory letters alongside our brochure to corporate organizations, travel and tour agencies, hotels, event planners, households and key stake holders all across Johannesburg, Pretoria with Sandton, Vereeniging, Vanderbijlpark, Germiston, Roodepoort, Centurion, Krugersdorp and Kempton Park, and Tambo International Airport and some of the other major cities within the metropolis
• Print out fliers and business cards and strategically drop them in offices, car parks, libraries, public facilities and train stations et al.
• Use friends and family to spread word about our business
• Post information about our company and the services we offer on bulletin boards in places like car parks, schools, libraries, and local coffee shops et al
• Place a small or classified advertisement in the newspaper, or local publication about our company and the services we offer
• Leverage on referral networks such as agencies that will attract clients who would need our services
• Advertise our taxi cab services company in relevant magazines, newspapers, TV, and radio stations.
• Attend relevant automobile expos, seminars, and business fairs et al to market our services
• Engage in direct marketing approach
• Encourage the use of Word of mouth marketing from loyal and satisfied clients
• Join local chambers of commerce and industry to market our product and services

11. Publicity and Advertising Strategy

Robert Xhosa® Taxi Cab, Inc. is set to establish a standard for Taxi cab businesses in Johannesburg and throughout South Africa which is why we will go all the way to adopt and apply best practices to promote our business. Good enough there is no hard and fast rules on how to advertise or promote a taxi cab business.

The challenge is that most small taxi cab companies do not have the required money to pump into publicity and advertising. The cash they have are usually reserved to take care of overhead and operational cost. Here are the platforms we intend leveraging on to promote and advertise Robert Xhosa® Taxi Cab, Inc;

• Encourage our loyal customers to help us use Word of Mouth mode of advertisement (referrals)
• Advertise our business in relevant magazines, local newspaper, local TV and radio stations
• Promote our business online via our official website
• List our business on local directories (yellow pages)
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like Instagram, Facebook, twitter, et al to promote our brand
• Install our billboards in strategic locations in and around Johannesburg
• Direct coupon mailing approach
• Engage in roadshows from time to time in target communities in and around Johannesburg
• Distribute our fliers and handbills in target areas in and around Johannesburg
• Advertise our company in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members and drivers wear our branded shirts and all our taxi are branded with our company logo

12. Our Pricing Strategy

Our pricing system is going to be based on what is obtainable in the taxi cab services line of business in Johannesburg – South Africa, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering.

Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us or when they pay in advance for upward of 3 months. The prices of our services will be same as what is obtainable in the open market and it will be based on miles covered and time.

• Payment Options

The payment policy adopted by Robert Xhosa® Taxi Cab, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of South Africa.

Here are the payment options that Robert Xhosa® Taxi Cab, Inc. will make available to her clients;

• Payment with cash
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer

In view of the above, we have chosen banking platforms that will enable our clients make payments for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our services.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget on achieving our aim of establishing a standard taxi cab company in Johannesburg – South Africa and here are the key areas where we will spend our startup capital;

• The total fee for incorporating the business in South Africa – Name reservation application costs R50 and company registration R125
• The budget for permits and license – R1,000
• The cost for hiring Consultant – R2,500.
• The cost for computer software apps (Accounting Software, Payroll Software, CRM Software, Microsoft Office) – R7,000
• The budget for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – R5,400.
• Cost for payment of rent for a suitable Office facility for 12 months at R1.76 per square feet in the total amount of – R65,600.
• The cost for Start-up inventory (fueling, car tracking devices and accessories) – R50,000
• The cost for office remodeling (construction of racks and shelves) – R7,000.
• The total cost for financing the acquisition of the first set of cars and limousines – R200,000
• The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – R15,000
• Other start-up expenses including stationery ( R500 ) and phone and utility deposits ( R2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – R30,000
• The cost of launching our official website – R600
• The cost for our grand opening party: R15,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – R5,000

Going by the report from the market research and feasibility studies conducted, we will need over three hundred and fifty thousand ( R350,000 ) South African Rand to successfully set up a small scale but standard taxi cab company in Johannesburg – South Africa.

Generating Startup Capital for Robert Xhosa® Taxi Cab, Inc. .

Robert Xhosa® Taxi Cab, Inc. is a business that will be owned and managed by Robert Xhosa and his immediate family members. They are the sole financiers of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings and sale of stocks
• Generate part of the startup capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank

N.B: We have been able to generate about R100,000 ( Personal savings R80,000 and soft loan from family members R20,000 ) and we are at the final stages of obtaining a loan facility of R250,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.

One of our major goals of starting Robert Xhosa® Taxi Cab, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our taxi services a little bit cheaper than what is obtainable in the open market. We are prepared to survive on low profit margins for a short time.

Robert Xhosa® Taxi Cab, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Acquiring facility with enough parking lots and remodeling the facility: In Progress
• Acquiring of cars and limousines: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed car tracker, e – ticketing devices, Wi – Fi devices, electronic appliances, office appliances etc: In progress
• Creating Official Website for the Company: Completed
• Creating Awareness for the business both online and in the neighborhood: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party/launching party planning: In Progress
• Establishing business relationship with key stakeholders in the industry: In Progress

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• 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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Ottawa loses taxi class-action lawsuit over lack of enforcement against Uber

Protest signs lean against a fence with a Canadian flag stuck in the top during a taxi driver rally protesting against the ride sharing service Uber in February, 2016 on Parliament Hill in Ottawa. Adrian Wyld/The Canadian Press

An Ontario Superior Court judge sided with taxi drivers in their class-action lawsuit against the City of Ottawa, finding that the municipality failed to prepare for the arrival of Uber or to stand up to the company as it operated illegally a decade ago.

Justice Marc Smith was scathing in his assessment of Uber Technologies Inc.’s UBER-N tactics, which he described as scofflaw and predatory. But he blamed the city for not preventing the company’s intrusion.

“Uber bullied its way into the Ottawa market, and for two years, ignored regulations and operated freely and illegally, without any serious restrictions,” he wrote in a decision released Monday.

“The City’s arguments can be summarized as follows: defeat was inevitable. Uber’s operations in Ottawa could not have been prevented. I disagree. Defeat is almost assured when one believes that defeat is inevitable. There are examples where Uber was defeated.”

The lawsuit is seeking $215-million. The judge accepted that the arrival of Uber did serious financial harm to Ottawa cabbies, but did not rule on damages. The plaintiffs – who represent 768 people with nearly 1,200 taxi plates – will have to return to court to establish what losses they suffered.

One of the plaintiffs suggested the group was open to settling with the city.

“We have a new mayor, we have new councillors,” said Marc André Way, president of the Canadian Taxi Association. He is also chief executive officer of Coventry Connections, which in 2022 had 63 taxi plates, according to the decision, and he had 99 himself.

“We want to work with them and see if there’s some way that we can get this resolved. I think it’s time for the industry and the city to find a way to collaborate and then correct some of the mistakes that have been done, and we’re very open to that.”

The City of Ottawa forwarded a written statement, attributed to city solicitor Stuart Huxley, saying that staff “will be carefully reviewing the court’s decision before determining next steps.”

Uber’s spokespeople did not respond to requests for comment in time for publication.

The suit was filed in 2016 and certified two years later. The trial itself happened early in 2023, after both sides agreed to dismiss the part of the suit dealing with whether the bylaw Ottawa passed in 2016 allowing Uber to operate legally in the city was itself unlawful.

Although Uber is now a widely established and well-used transportation provider, the lawsuit deals with the period from 2014 to 2016. A decade ago, Uber was still an upstart pushing into cities worldwide, ignoring bylaws and sparking huge protests from the taxi industry.

Ottawa was among the cities that had for years capped the number of taxi plates, which had the effect of inflating their value. When Uber arrived, cabbies who had banked on selling their plate and retiring on the proceeds were suddenly holding a much less valuable commodity. This would have a particularly devastating effect on those people owning multiple plates.

Asked to protect this asset, many city governments took the position that Uber could not be stopped.

This was Ottawa’s approach. However, Justice Smith noted that the city had previously cracked down on illegal taxi drivers and brokers, and could have done so again under the bylaw in place at the time.

“Uber was a bandit taxicab company, and the city knew, by experience, that failure to enforce against a bandit company would have a devastating impact on the licensed taxi industry,” he wrote.

“Therefore, I have no difficulty in finding that the city knew or ought to have known that failure to enforce the 2012 by-law against Uber resulted in reasonably foreseeable harm to the plaintiffs.”

Abdalla Barqawi, a lawyer for the plaintiffs, said the ruling was a message to municipalities to act prudently when creating regulatory structures that attract investment.

“Both in our specific case for the individuals being affected and more broadly, the case is very significant,” he said.

The judge did not find that the city’s negligence in enforcing the taxi bylaw contravened the Charter of Rights and Freedoms or Human Rights Code, even though the consequences were borne by a racialized group of plate-owners.

Lawsuits related to Uber have had limited success. Justice Smith noted that, in Toronto, a judge refused to certify a class-action lawsuit against Uber for alleged negligence because the city’s duty of care was to the public as a whole.

However, suits continue to be filed. Earlier this month, the BBC reported that London cab drivers had filed a £250-million ($429-million) lawsuit against Uber, alleging the company acted deceptively to secure a licence to operate in the British capital.

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MTA reveals new details about nation's 1st congestion pricing plan in New York City

NEW YORK (WABC) -- The MTA unveiled the details of New York City's congestion pricing plan and supporters say it will mean less traffic, safer streets, cleaner air and better transit.

Taxis will only be charged once a day to enter Manhattan's commercial district, and overnight drivers will get at least a 50% discount, as the MTA starts planning the implementation of nation's first congestion pricing plan.

The first details of the plan were made public Friday morning.

"We all know the yellow cab industry has been struggling, that in combination with some other variables, led us to say we are going to charge the taxis and the FHVs once a day, even if they are going in and out of the congestion zone," said MTA Chair and CEO Janno Lieber. "So that is an additional mitigation along with a special provision for making it much much cheaper on the overnight. We want trucks to come in and do their deliveries in the middle of the night so they are not creating more congestion during the day."

The MTA plans a discount of at least 50% in tolls on vehicles driving in the zone between midnight and 4 a.m., specifically to encourage trucks to make deliveries during the overnight hours.

The city's shrinking fleet of yellow cabs and for-hire vehicle drivers has raised concerns that the program would put an additional financial burden on their already struggling, heavily immigrant industry, or hurt business if drivers were forced to pass costs to passengers.

The MTA says they will only be tolled once a day, regardless of how many times they enter the zone.

Low income drivers will get a 25% toll discount after the first 10 trips in each calendar month, excluding the overnight period.

Lieber said very few low income New Yorkers actually drive into the area south of 60th Street.

"There are only a very very small percentage of people who actually drive to the central business district," Lieber said. "There are only 16,000 people, in a region of 28 million. Only 16,000 people who are low income, as defined by $50,000 or less, who would be impacted by this, it's a very small percentage but we are going to give them a special discount to make sure that things are kept fair."

The Federal Highway Administration last week tentatively approved the MTA's congestion pricing plan, triggering a 30-day public review. Final federal approval would follow.

The MTA estimates that under the current timeline, the tolling program could begin as early as April 2024. But before that happens, the MTA, the city and state must figure out how much to charge drivers, including any discounts, exemptions and other allowances.

There is discussion that the price would range between $9 to $23.

Money raised through the toll plan will help build more accessible subway stations and provide more mass transit.

Critics to the congestion pricing plan say it could amplify air pollution in some areas since drivers would have to find alternate routes.

Taxi advocate Fernando Mateo said, "Taxi drivers should be exonerated from all this! They are taxed every time someone enters their car. We have become the cash cow for NYC and that must stop! The riding public will shirk if this continues! Drivers will earn less and small business like restaurants will suffer into bankruptcy."

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