meter taxi business plan pdf

Starting Taxi Business Plan (PDF)

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

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

Market Research

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

Taxi Business Model

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

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

Vehicles and Equipment

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

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

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

Taxi Servicing And Repairs

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

Taxi Business Insurance and Licences

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

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

Staff and Management

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

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

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

Competitive Analysis

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

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

Capital for Starting Taxi Business

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

Market for the Taxi Cab Business

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

Marketing Plan

Engaging vehicle branding.

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

Attending Strategic Events

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

Sponsoring Or Supporting Worthy Causes

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

Internet And Social Media Initiatives

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

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

Keys To Taxi Business Profitability

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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• 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

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We have over 550 sample business plan templates . So, make sure the plan is a close match, but don't get hung up on the details.

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.

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

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• Ride-hailing apps
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Starting a taxi business: guide for beginners in 2024

• Growth hacks

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

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

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

Start with your taxi service business plan

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

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

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

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

Figure out the business model for your taxi cab company

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

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

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

Think of the software for your cab business

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

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

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

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

Get your paperwork done

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

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

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

Do the fleet and hardware check

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

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

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

Market your cab business professionally

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

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

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

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

Dare to learn

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

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

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5 best youtube channels for entrepreneurs to binge on holidays, how to start a taxi business: initial costs, electric vehicle changing ride-hailing business: future is here, get started with onde today.

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Taxi Business Plan Sample

Mar.14, 2017

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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

Excellent work.

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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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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 [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Transportation Industry » Taxi

Are you about starting a taxi business ? If YES, here is a complete sample taxi business plan template & feasibility report you can use for FREE .

As regard starting a business in the transportation sector especially a business like taxi Company could be fun, profitable and interesting for someone with business sense, perseverance and smartness. With comfortable taxis, the right location, top-notch service and good marketing, you can serve large customers who require the services of taxi Cab Company to be able to move from one location to another for an affordable price.

It is important to note that starting a standard taxi cab business with over a handful of taxis and drivers also needs a significant investment capital, solid planning, and concentration to detail in order to keep your business profitable.

The truth is that, if you are serious about starting a standard taxi 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 detailed and workable business plan if indeed you want to build a successful and profitable taxi cab company from the scratch.

The taxi company business plan template below will guide towards drafting your business plan with little or no stress.

A Sample Taxi Business Plan Template

1. industry overview.

A taxi cab cum limousine Services Company provides comfortable and private transportation via automobiles (usually sedans / cars) for passengers. Taxi services are not operated on regular schedules or routes like the usually buses or car that pick several passengers along the road. So also, limousine services are rented or hired with a driver.

The Taxi and Limousine Services industry has experienced remarkable growth over the years in the united states. The growth of the US economy has indeed directly benefited the industry as business expense accounts have grown and clients have been more willing to spend on small luxuries such as taxi and limousine rides.

In addition, increased demand from corporate travelers, tourists and private households is expected to result in steady growth for this industry.

The Taxi and Limousine Services industry is indeed a very thriving industry in most countries of the world. It is a major sector of the economy of the United States and it generates a whooping sum of well over $20 billion annually from more than 338,882 registered and licensed Taxi and Limousine services companies scattered all around the United States of America.

The industry is responsible for the employment of well over 413,046 people (drivers and administrative staff members). Experts project the supermarket and grocery industry to grow at a 6.7 percent annual rate. There is no establishment in this industry that has a dominant market share in the United States.

A research conducted by IBISWORLD shows that the Taxi and Limousine Services industry is in the mature stage of its life cycle.

Industry value added (IVA), which measures the industry’s contribution to GDP, is also expected to grow at an average annual rate of 5.3 percent within the next 10 years. Within that same period, GDP is estimated to increase by 2.1 percent per year on average.

Basically, the industry demand is usually influenced by disposable income levels corporate profit and domestic trips by US residents. When it comes to advertising your taxi cab cum limousine services company, there shouldn’t be any limit to how far you can go.

You could start with handbills and distribute them in corporate 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 cum limousine services businesses all over the world are still enjoying good patronage particularly if they have comfortable taxis, professional drivers and if they are well positioned and if they know how to reach out to their target market (corporate organizations, hotels, travels and tours companies, government and household et al).

2. Executive Summary

Metro 24 – 7 Taxi®, Inc. is a standard, licensed and registered Taxi cab cum Limousine Services Company that will based in Miami Beach, Florida – United States of America and we will have active presence in other cities such as Green acres City, Miami, Jacksonville, Clearwater, Tampa, Fort Lauderdale, North Miami, West Palm Beach, Palm Harbor, Deltona, Orlando, Palm Bay and Panama City et al.

We chose to operate in these cities because we know that our services will be in high demand due to the demographic composition of Florida.

We are well trained and equipped with some of the finest taxi cab drivers and comfortable cars to service our clients irrespective of their social and financial status. Our services will involve taxi services, taxi leasing and other car services, luxury and corporate sedan services, stretch limousines and buses, SUVs and large vans rental services et al.

Although our intention of starting Metro 24 – 7 Taxi®, Inc. is to offer only the above stated services, but we will not close our doors to diversification (additional services) as long as it does not affect our core services.

At Metro 24 – 7 Taxi®, Inc. we are passionate in the pursuit of excellence and financial success with uncompromising services and integrity which is why we have decided to start our own taxi cab and limousine service business; we are in the industry to make a positive mark.

We are quite optimistic that our values and quality of service offering will help us drive Metro 24 – 7 Taxi®, Inc. to enviable heights and also help us attract the numbers of clients that will make the business highly profitable. We are a company that will be dedicated to establishing good business relationship with our clients giving them value for their money and reasons for them to hire our services over and over 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 cum limousine 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 agencies, 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.

We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients. Metro 24 – 7 Taxi®, Inc. is owned and managed by Kennedy Williams and his friend and business partner for many years Henry Sean.

They both graduated from University of California and they are well – equipped with the required qualifications and experience to grow Metro 24 – 7 Taxi®, Inc. to favorable compete with leaders in the Taxi and Limousine Services industry both in the United States of America and in the world at large.

3. Our Products and Services

Metro 24 – 7 Taxi®, Inc. is a standard and well – equipped taxi cab and limousine services 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 the United States of America to achieve our business aims and ambition. Our services offering are listed below;

• Providing limousine services
• Providing luxury sedan services
• Providing chauffer and personal driver services
• Taxi services, taxi leasing and other car services
• Stretch limousines and buses
• SUVs and large vans
• Providing corporate sedan services

4. Our Mission and Vision Statement

• Our vision is to become the number one taxi cab and limousine services company in the whole of Florida with active presence in key cities all around the State of Florida.
• Our mission as a standard taxi and limousine services company is to develop a highly successful, profitable business which provides quality automobile transportation services in our city and to become a standard for an ideal taxi and limousine services business not only in the State of Florida but also throughout the United States of America and Canada where we intend launching our business and selling our franchise.

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 cum limousine Services Company on the right business foundation.

As a matter of fact, we are set out to build a taxi and limousine Services Company that will be a standard for an ideal taxi and limousine services industry in the United States of America and Canada. We want to build a business of dedicated workforce who will go all the way to ensure that our customers are satisfied and they get value for their money.

In other to achieve this, we 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 autopilot.

The success of our taxi and limousine services company will be anchored on the team not on any individual – drivers and back office staff members inclusive. With the wide range of our service offerings, we are only expected to employ more than it is required to run a conventional taxi and limousine services business.

Definitely, we will have various employees (full – time and contract staff) to man the various services offering of Metro 24 – 7 Taxi®, Inc. Metro 24 – 7 Taxi®, 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 (Taxi and Limousine 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; providing educational opportunities.
• 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
• Responsible for installation, repair and maintenance of GPS car tracking device for the organization
• Responsible for writing and presenting reports, proposals, applications and contracts
• In charge of choosing the GPC car tracker components and software to be used and specifying the requirements for the project
• Adapts plans according to circumstances and resolving any problems that may arise during GPS car tracker installation and monitoring
• 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 staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Oversee 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.
• Writing 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 evaluates new plans for expanding increase 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
• Ensures compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Professional Drivers (Taxi Cab and Limousine Drivers)

• Serves as a professional driver for the organization by driving sedan and limousine et al as assigned by the management
• Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the 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 items 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 Service 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 products and 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 products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
• Receives parcels / documents for the company
• Distributes mails in the organization
• Handles any other duties as assigned my the line manager

6. SWOT Analysis

Taxi cab cum limousine services 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 cum limousine services business with the plans to sell our franchise all across the United States of America and Canada which is why we have decided to subject our business idea (company) to SWOT Analysis.

Ordinarily we can successfully run a normal taxi and limousine services business without the stress of going through the required protocol of setting up a new business including writing a detailed business plan, but because of the fact that we intend becoming of the leaders in this line of business we want to establish, we don’t have any option other than to follow due process.

We hired the services of Mrs. Lillian Jacobs, an HR and 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 Metro 24 – 7 Taxi®, Inc.;

The strategic locations we intend covering, the Business model we will be operating on, ease of payment, 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 count as a strong strength for Metro 24 – 7 Taxi®, Inc.

So also we have a well – experienced and 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 the fact that we are a new taxi cum limousine services company and we don’t have the financial capacity for now to compete with multi – million dollars taxi and limousine services companies that are already influencing the direction of the industry.

• Opportunities:

The fact that we are launching out in the heart of Miami – Florida, 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 et al.

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 can and limousine services.

Another threat that may likely confront us is the arrival of a new taxi cab and limousine services company with same locations where we operate. Government policies can also pose a major threat to businesses such as ours.

7. MARKET ANALYSIS

• Market Trends

The market for luxury services such as taxi and limousine services is driven by the growth in the economy and the increase in consumers’ spending – in essence, as the general economy of a country grows, more people will have enough financial resources to patronize luxury services such as making use of taxi can or hiring limousine as against making use of public buses, and trains et al.

Besides, revenue generated by taxi and limousine services company is driven by business and leisure travel. No doubt, the profitability of operators in this industry depends on good marketing and networking.

As a matter of fact, small taxi cab companies can effectively compete with large ones because there are few economies of scale in this line of business. Research shows that the taxi cab and limousine services industry in the US is fragmented: the top 50 companies account for less than 35 percent of the total revenue generated in the industry.

Lastly, technology has indeed played a major role in this industry; especially in cutting cost and enforcing safety and monitoring measure.

GPS car tracking device readily comes to mind. There is hardly any taxi cab and limousine services company that does not have GOS car tracker installed on all their cabs. It helps them in monitoring their fleets and also in planning and budgeting et al.

8. Our Target Market

Before choosing a location to launch our taxi cab and limousine services company, we conducted our feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offerings.

Basically those who will benefit from our service offering are households, corporate organizations, travels and tours agencies, hotels and government agencies. Below is a list of the people and organizations that our taxi and limousine services are designed for;

• Celebrities and public figures
• Even planners (limousine rental services for wedding and social functions)
• Travels and Tours Agencies
• The public sector; government ministries, agencies and parastatals.
• Organized private sector
• Corporate Executives
• Business People

Our Competitive Advantage

Taxi cab and limousine services business is an easy to set up business 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 and limousine services 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 Miami – Florida.

Our competitive edge is that we are a standard and well equipped taxi cab and limousine services company that is positioned to handle both corporate clients and individual clients.

We can confidently say that the strategic locations we intend covering, the Business model we will be operating on, ease of payment, 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 Metro 24 – 7 Taxi®, Inc.

For the time being, Metro 24 – 7 Taxi®, Inc. has no real competitors that can match compete with the quality of services we offer and our business offerings et al. 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 (startups taxi cab and limousine services businesses in the United States) 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 business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Metro 24 – 7 Taxi®, Inc. is established with the aim of maximizing profits in the taxi cab and limousine rental services industry and we are going to go all the way out to ensure that we do all it takes to attract both individual clients and corporate clients on a regular basis.

We will ensure that we leverage on our strength and the opportunities available to us in the U.S. 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 and Limousine rental services industry. Below are the sources we intend exploring to generate income for Metro 24 – 7 Taxi®, Inc.;

• Stretch limousines and buses rental services
• SUVs and large vans rental services

10. Sales Forecast

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

We are well positioned to take on the available market in Miami – Florida and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our taxi cab and limousine rental services business and our clientele base.

We have been able to critically examine the taxi cab and limousine rental services market and 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 Miami – Florida.

Below are the sales projections for Metro 24 – 7 Taxi®, Inc. it is based on the location of our business and of course the wide range of related services that we will be offering;

• First Fiscal Year-: $240,000
• Second Fiscal Year-: $450,000
• Third Fiscal Year-: $950,000

N.B : This projection is done based on what is obtainable in the taxi cab and limousine rental services industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same additional services as we do within 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 Metro 24 – 7 Taxi®, Inc. is going to be driven basically 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 referral from our satisfied customers.

We are quite aware of how satisfied customers drive business growth especially businesses like taxi cab and limousine rental services.

Metro 24 – 7 Taxi®, Inc. is a business that is strategically located and we are going to maximize the opportunities that is available which is why we spend 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 be well equipped to meet their targets and the overall goal of Metro 24 – 7 Taxi®, Inc.

Our goal is to grow Metro 24 – 7 Taxi®, Inc.  to become the leading taxi cab and limousine rental services company in Miami – Florida which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with in the Taxi cab and Limousine rental services industry. Metro 24 – 7 Taxi®, Inc. is set to make use of the following marketing and sales strategies to attract clients;

• Introduce our taxi and limousine rental services business by sending introductory letters alongside our brochure to corporate organizations, travels and tours agencies, hotels, event planners, households and key stake holders in all across Miami, Green acres City, Miami, Jacksonville, Clearwater, Tampa, Fort Lauderdale, North Miami, West Palm Beach, Palm Harbor, Deltona, Orlando, Palm Bay and Panama City et al
• 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
• Placing 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 customized services
• Advertise our taxi cab and limousine rental services company in relevant magazines, newspapers, TV stations, and radio station.
• 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

Metro 24 – 7 Taxi®, Inc. is set to establish a standard for Taxi cab and Limousine rental services business in Miami – Florida and throughout the United States 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 rule on how to advertise or promote a taxi cab and limousine rental services business.

The challenge is that most small and startups taxi cab and limousine services companies do not have the required money to pump into publicity and advertising. The cash they have will be reserved to take care of overhead and operational cost .

We will ensure that we leverage on all conventional and non – conventional publicity and advertising technique to promote our taxi cab and limousine rental services business. Here are the platforms we intend leveraging on to promote and advertise Metro 24 – 7 Taxi®, 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 stations and local radio station
• 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 Bill Boards on strategic locations in and around Florida
• Direct coupon mailing approach
• Engage in road show from time to time in target communities in and around Florida
• Distribute our fliers and handbills in target areas in and around Miami – Florida.
• 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 well branded with our company logo et al.

12. Our Pricing Strategy

Our pricing system is going to be based on what is obtainable in the taxi cab and limousine rental services line of business, 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 in the United States of America.

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 Metro 24 – 7 Taxi®, 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 the United States of America. Here are the payment options that Metro 24 – 7 Taxi®, Inc. will make available to her clients;

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

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase 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)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a taxi cab and limousine rental services business; it might differ in other countries due to the value of their money. However, this is what it would cost us to set up Metro 24 – 7 Taxi®, Inc. in the United of America;

• The Total Fee for Registering the Business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits – $1,500.
• Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• Cost for hiring Business Consultant – $2,000.
• Insurance (general liability, car insurance, workers’ compensation and property casualty) coverage at a total premium – $30,800.
• The cost of accounting software , CRM software and Payroll Software – $3,000
• The cost for leasing standard office facility with enough parking- $100,000.
• The cost for facility remodeling – $10,000.
• Other start-up expenses including stationery – $1000
• Amount needed for phone and utility deposits – $3,500
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
• The cost for Start-up inventory (fueling, car tracking devices and accessories) – $50,000
• The total cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Credit card machine, POS, tables and chairs et al): $4,000.
• The cost of Launching a Website: $600
• The total cost for financing the acquisition of the first set of cars and limousines – $500,000
• The cost for our grand opening party: $15,000
• Miscellaneous: $10,000

We would need an estimate of $750,000 to successfully launch our taxi cab and limousine rental services business in Miami – Florida.

Generating Funds/Startup Capital for Metro 24 – 7 Taxi®, Inc.

Metro 24 – 7 Taxi®, Inc. is a business that will be owned and managed by Kennedy Williams and his friend and business partner for many years Henry Sean. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources. These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $550,000 from our bank. All the papers and document has 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 numbers of loyal customers that they have and the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Metro 24 – 7 Taxi®, Inc. is to build a business that will survive off its own cash flow without the need for 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 services a little bit cheaper than what is obtainable in the open market.

We are well prepared to survive on a low level profits margin for a short period of time. Metro 24 – 7 Taxi®, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are 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.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of ten years or more. 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
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed pressure washing machines and industrial cleaning equipment, electronic appliances, office appliances and bar accessories: 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 et al: In Progress

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• How to Start a Shared Taxi Business Like Uber
• How to Boost your Business as a Taxi Driver and Be Successful
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• How Much Does It Cost to Start a Taxi Business?

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How do I start a private metered taxi business?

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How do i start a security company in south africa, how do i start a transport or logistics business, how to start a farming business.

Unlike other countries, South Africa metered taxis don’t generally patrol the streets searching for fares. You have to phone a taxi company to get a ride, or find an area where they park. The sedan based, metered taxi industry only accounts for about 10% of the taxi transport market in South Africa.

How the meter taxi system operates in South Africa

In South Africa’s major cities such as Durban, Johannesburg and Cape Town the metered taxi companies negotiate “ranking” facilities at the hotels, airports (via ACSA) and with large retailers and at shopping malls such as the Waterfront in Cape Town and Sandton City in Johannesburg. But the majority of their business is obtained by telephone bookings.

Who grants licences to operate?

The Provincial Taxi Council grants licences to private operators or drivers after consultation with local government and existing operators. The system is demand-driven, responding to requests from the private sector, rather than supply-driven, whereby licences are offered to those who qualify.

The grading system

Metered taxis are graded in South Africa. There are three grades.

• Grade A: Vehicles not more than five years old as determined by their first date of registration. They have air conditioning, advanced braking systems, electric windows and other attributes determined by the grading board.
• Grade B: Vehicles not more than eight years old as determined by their first date of registration, with air conditioning and other attributes as stated by the grading board.
• Grade C: These are smaller and or older vehicles of types, standards and attributes determined by the grading board.

Regulations for metered taxis

The conventional non-shared taxi metered taxi has to follow certain regulations. No meter may be used or installed unless it has been tested and sealed by an accredited laboratory) or another institution approved by the SABS.

Meters must be designed so that they cannot be adjusted after being sealed. The seals are not allowed to be broken or tampered with. They must be fitted so the fare is visible to the passengers.

Operators of metered taxi vehicles must ensure that the driver keeps a logbook containing the following:

• Date and time passengers picked up and dropped off for each journey
• List the number of passengers carried
• The origin and destination of each passenger conveyed
• The fare charged and the number of kilometres travelled between point of origin and destination
• The holder must maintain all the logbook records for a period of five years

In Johannesburg, Safe Cab charges R7.50 per km and R1.70 standing time. Most companies charge between R7.50 and R10 per km, but, as of yet, there is no standardised tariff system in place. However, this is expected to change before the 2010 FIFA World Cup™.

Legal requirements

Other legal requirements to start a taxi business will vary from one area to another so it is best that you contact your local municipality for the complete list of documents and permits that you need. You will also have to register your company, prepare a business plan and register with SARS.

A Few Other Basics

Insuring your vehicles is essential. It’s unlikely that you would have the cash reserves to replace stolen or damaged vehicles or to deal with the serious insurance issues that come with transporting the public.

Maintenance

Many meter taxi companies do not run a fleet of cars. They work on the system that the taxi driver must own his/her car and as the owner are liable for maintenance of the car.

Reputable companies that operate in this manner have a safety officer to inspect the cars that represent the company. If you have your own fleet, maintenance is for your account and must not be neglected as your business depends on reliable and safe transport.

Where to find meters

Many local metered taxis are fitted with “Tel-A-Fare” which is a locally designed and assembled meter. It uses the latest technology and components. The meter offers a choice of two separate fares and a built-in memory which records all accumulated trips and takings. They retail at R1600 including installation. Cell phones and radios work well as forms of communication with drivers. Two way radios can be installed in vehicles from around R750.

Where to get a Taxi Permit

Any person wanting to start a taxi service must apply to the National Transportation Commission or a local road transportation board for a permit to operate a taxi. Other laws that will affect road transportation are:

• Cross-Border Road Transport Amendment Bill: Draft (Gazette 29190, Notice 1297)
• Cross-Border Road Transport Act (No. 4 of 1998)
• National Land Transport Transition Amendment Act (No. 26 of 2006)
• National Road Traffic Amendment Act (No. 20 of 2003)
• National Road Traffic Act (No. 23 of 1996)
• National Roads Amendment Act (No. 24 of 1996)
• Road Traffic Laws Rationalisation Act (No. 47 of 1998)

For more information

Department of Transport website on http://nasp.dot.gov.za

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How to Start a Successful and Profitable Taxi Business in South Africa?

Taxis are in high demand in South Africa. People nowadays don't want to deal with the inconveniences of public transportation, such as noise and delays. Therefore, to help you out, we will look at how to start a taxi company in South Africa.

Initially, you can start your taxi business with a small number of cars and drivers. Once you start making money, you can gradually expand your business. Before launching a Uber-like taxi business, it is critical to understand the industry. You must conduct market research on your competitors, the area you will target initially, and people's needs. So, for those interested in doing this business, here is a step-by-step guide to starting a taxi business in South Africa.

Here’s a sneak peek:

Why South Africa for Your Taxi Business?

What is the current state of the south african taxi market, is starting a taxi business profitable in south africa, steps to start a successful and profitable taxi business in south africa, what is the cost of developing an uber-like taxi booking app, the final notes.

Without further ado, let’s get started!

Are you looking for growth opportunities? - Look no further. With burgeoning entrepreneurship and plenty of opportunities for simple business solutions, the African continent is on the verge of transformation. South Africa is the second largest economy (Source: Statista ) on the continent despite having more than three times the population. South Africa has undergone rapid change over the last decade and is now ranked as an "upper middle-income country" by the World Bank. The country has a well-developed infrastructure and a world-class financial system to support business activities.

South Africa is well-known for its many inspiring and successful start-up businesses and entrepreneurs. The transport industry is one of South Africa's most profitable sectors. Specifically, the industry benefits from the participation of privately owned-taxis and government-owned buses. However, a sizable portion of the nation's road transportation is under the control of taxi associations. South Africa's taxi association plays a vital role in the day-to-day operation of transportation activities. According to studies, approximately 75% of people who travel by road use public transport.

Starting a taxi business has many potential benefits, but for some, the journey ends because - they feel that launching a taxi business in South Africa seems challenging or complicated. It is, however, manageable with the proper guidance and support, and you can give your business the best chance of success.

Before you start your taxi business in South Africa, you should first learn about the market. Gain knowledge about the number of people who require taxi services, competition, routes to take, profitability, and how taxi associations operate. Get to know the difficulties that the taxi industry faces. Also, you can speak with someone who has experience in the industry.

In 2025, the African taxi industry will generate around $5641 million.

South Africa's primary mode of transportation is the minibus taxi.

People in Southern Africa prefer public transportation (minibus taxis) because it is less expensive. If you plan to offer exclusive services at an affordable rate , people might try you out.

In South Africa, taxi services account for 75% of public transportation.

In this article, you'll learn about the factors that enable entrepreneurs to enter the South African market with an Uber-like taxi service.

Next, we will discuss why starting an Uber-like business in South Africa is the best option.

South Africa is a developed country with a growing number of visitors, which makes the taxi business profitable. The profitability depends on distance. Taxis that travel long distances make more money than those that travel short distances.

Nothing beats catching a taxi in a busy city. It's a better option than taking the bus or driving everywhere. So, getting into the taxi business can be a wise decision. The following are some obvious benefits of starting a taxi business:

Starting a taxi company allows you to spend your time where you are most comfortable. If you like to work on weekends, you can take advantage of people traveling out of town or tourists getting around the city.

Using technology is another advantage of getting into the taxi business. A taxi booking app can help you attract more passengers. People can also use a cashless system. It’ll keep people safe because they can pay electronically using their smart devices.

Another reason to start a taxi company is that it will keep you busy. It's also better for your health because you're not stuck in an office all day.

And, of course, simply starting a taxi company does not guarantee success. To make the investment worthwhile, you'll need to plan carefully and be strategic, especially given the high level of competition from rideshare apps like Uber and Lyft in recent years.

Are You Planning to Automate and Modernize Your On-Demand Taxi Business?

Step 1: Create a Taxi Business Plan

A business plan is a crucial part that depicts an organization's future and current goals and the ways to achieve them.

Your business plan should be concise and detailed. Some main points to include in your taxi business plan are as follows:

• Business description
• Goals of your taxi business
• Market demand and supply
• Financial analysis, etc.

After successfully creating your taxi business plan, you must now proceed to the next step in officially launching your taxi business.

Step 2: Register Your Taxi Business

To start a taxi business in any country, you must first register it with one of the legal entities of that country. You must register your company name, type of business, and other information.

Following a successful registration, you can start building your fleet gradually.

Step 3: Build Your Fleet

To start a taxi business, you don't need hundreds or thousands of vehicles in your fleet. You can begin with what you have and gradually scale it up with your taxi business profits.

There are numerous used cars for sale. You can buy them and modify them to suit your needs. Also, remember to register your vehicles.

Step 4: Get Your Vehicles Insured

After building your fleet, the next step is to insure it for protection. Before choosing a service, consider the company's reputation, coverages, financial strength, and service quality.

Step 5: Plan Your Pricing

Affordability is one of the primary reasons behind the success of Uber-like taxi booking apps. As a result, you can set reasonable prices for your taxi service to compete in the market.

Step 6: Develop a Taxi App

Developing a taxi booking app is the most critical step in growing your business. A taxi app can help customers book a ride anytime, anywhere.

Smartphones and other digital devices are becoming increasingly popular in the African market. Therefore, providing a custom-built taxi booking app can help your business grow.

So, how to develop taxi booking software for your business?

For Taxi Booking App Development, you can hire an app developer to help you create your taxi booking app or buy a ready-made Uber clone script to enter the market faster. However, compared to developing the app from scratch, the ready-to-launch UberClone app saves money and time. UnicoTaxi, armed with a team of experienced Uber app developers or taxi app developers, can develop an on-demand taxi app similar to Uber that includes a dedicated driver app , a rider app, and an admin panel.

Why Wait? Connect Us to Know How We Can Help You Build 100% Customizable Taxi Booking Software for Your Taxi Business

After gaining knowledge about the hefty earnings of Uber , Lyft, Grab, and other taxi companies, you may fearfully wonder, "How much money do I need to start a business like Uber?"

Believe it or not, you don't need a million dollars to develop an Uber-like taxi app. You have two options when creating a taxi app for your company. You can create an app from scratch or buy a customizable Uber Clone Script solution that meets your unique business needs. However, the main advantage of using an Uber clone application is that you can easily add and remove features as needed.

The cost of Uber Clone App Development depends on several factors, including:

1. Are you building your taxi app from scratch or using Uber app clone scripts? 2. Do you need only the basic features or want more advanced features? 3. Do you hire a local mobile app development company or outsource your project?

And considerably more.

Furthermore, maintaining a taxi business is more challenging than starting one. Integrating Taxi Dispatch Software, however, will make your business easier to manage and generate more profits. A specialized mobile app development company can help develop custom-built taxi dispatch software for you.

Want a Taxi Dispatch System to Run a More Efficient Fleet, Provide Better Service, and Increase Profits?

South Africa's scenic elegance, gorgeous outdoors, sunny environment, cultural diversity, beautiful scenery, and reputation for value for money have made it one of the world's - and industry's - fastest-growing travel destinations. So, it's no surprise that South Africa is becoming an ideal venue for taxi businesses.

All in all, starting a taxi business in South Africa is no easy task. It requires meticulous planning and continuous efforts to get it off the ground, and these tips can help you achieve your business goal.

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The ins and outs of starting a taxi business in south africa.

The taxi industry in South Africa has been given a bad reputation over the last few years, but what very few realise is that it’s a very lucrative business opportunity for taxi owners. There will always be commuters; hence there will always be a business opportunities available for taxi operators – learn the ins and outs of starting a taxi business in South Africa

Who to register with

As with any other business, owning a fleet of taxis requires planning. Planning that involves fleet management and acquiring the necessary paperwork to operate in a certain vicinity. After the business plan and funding has been obtained, the taxi owner must register his business with the appropriate South African agencies, including the Companies and Intellectual Property Registration Office (CIPRO), the Department of Labour and the Department of Transport. Thereafter the licensed taxi driver is free to operate and can be hired for business.

What you need to get started

The most important certificate for a taxi operator to have is a route license. The taxi association will upload the driver and vehicle details on a database, which will then in turn show if the route is profitable or not. If there are too many taxi’s on the same route, then the likelihood of the driver making a profit will be reduced.

The routes are also allocated and controlled by local governments, but the taxi association’s task is to be very careful in making sure that there aren’t too many drivers running the same route. They basically make sure that the routes are viable. This will also ensure that no conflict will arise between drivers, even if it may seem like the inevitable –given the stigma of South Africa’s taxi operators.

Start up capital

Commonly used vehicles are Toyota or Nissan taxies. These are called the premium vehicles in the taxi industry because of their reliability. These taxies retail from about R100 000 to about R340 000, but for the overall cost that would include paying your license and taxi association fees, the total cost can amount up to R350 000 to start a taxi business.

Every industry has its flaws, and every business comes with financial gains and financial losses. It’s up to the taxi operator to ensure that his business runs smoothly. Although minibus taxis are a familiar sight on South Africa’s roads, the inner workings of the business are not generally well-known. That is why before venturing bull-headedly into this industry, it’s best to do the necessary research.

Speak to someone in the know

Another great way to find insight into the world of taxi operators is to speak to a driver about the ins and outs of the business. You will be able to get a better feel for it and even learn a few tricks of the trade amongst the rest of the drivers. People are always willing to share if you are willing to ask.

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A Guide on How to Start A Taxi Business in South Africa

Updated on 22 November 2019

The department of transport says on its website that the taxi industry is an over R40-billion per annum industry, with about 200 000 taxis, that employ approximately 300 000 direct and indirect job opportunities, which includes driver, taxi marshals and administrative support.

According to Profitable Venture , there are niches within the taxi industry which include children’s taxi services, health taxi, water taxi service, a car rental, a limousine service and a minibus taxi.

Maroba Maduma, communications executive at SA Taxi , shares the ins and outs of starting a taxi business in South Africa.

Industry overview

According to Maroba Maduma, communications executive at SA Taxi Foundation, the minibus taxis are the dominant mode of public transport.

“While rail and bus networks serve as a trunk service in parallel with minibus taxis, minibus taxis are a key feeder into these services – transporting passengers their first and last mile.

“The mini-bus taxi operators are under quite a lot of financial strain with the increasing costs of operating their businesses,” says Maduma. SA Taxi is an independent financer of minibus taxis and a developmental credit provider. Their areas of focus include developing the taxi industry and ensuring its sustainability.

“The current lack of a government subsidy has been mentioned in a Competition Commission report and it would seem that the relevant ministries will be putting in the work to help this critical industry to thrive.”

Initiatives by the government include the Taxi Recapitalisation Programme. Last year Minister of Transport Fikile Mbalula announced that the government has reintroduced the programme that will see old and unroadworthy taxis being scrapped at sites across the nine provinces over five years.

According to the South African Government News Agency , the Taxi Recapitalisation Programme allows taxi owners to be compensated with R124 000 for each taxi demolished through the programme, an increase from the previous R91 100. The programme caters for taxis manufactured before 2007, with government aiming eliminate 135 894 such vehicles.

On its website, the department of transport says it will be reviewing the Taxi Recapitalisation model to improve its effectiveness and affordability. Expenditure on the review is projected at R188.5 million over the medium term (2015/16 to 2017/18).

Maduma says that SANTACO has shown a willingness to have more tech introduced into the industry. “There has been businesses that have tried Wi-Fi in the ranks and in the taxis, some are still doing it.

“There are also talks around electronic payment, with a successful proof of concept having been done in the Gauteng area as soon as last year.”

Maduma also says that advertising on and in the taxi is something that has also been tried in various forms. “Other pilot projects are being run to see the commercial viability, the logistical capability from a national roll-out perspective as well as the experience for the commuter.”

We’ve also seen the launch of Apps like AftaRobot, a transport management technology platform.

Opportunities

In a previous interview with SME South Africa , Maduma said they have a skills certification for taxi rank technicians, Project Refentse, which “upskills young mechanics by giving them formal theoretical and practical training, but also by providing them with tools for carrying out their trade when they are done with the course”.

SA Taxi have also previously provided incubation support services to meter taxi owner-drivers, and supported local emerging artists and designers through the SA Taxi Foundation.

Maduma also said that young people who are eager should take advantage of opportunities within the industry, from mobile payments and access to information for customers to fleet management and revenue tracking and safety.

He added: “In addition to the need for trainers, accountants, and management specialists, there is enormous scope for IT, marketing, business development, and business innovation professionals who can grow the industry into the future.”

Maduma also said that with the world growing into a globalised, self-service, on demand, data driven and customer experience dominated environment, there will also be a need for daring, business minded people who can design management tools for taxi fleet owners, human resource strategies specific to this fluid industry, route management technology etc.

Getting started

According to Maduma, to start a taxi business, taxi operators must first be a part of an association in order to gain access to a route and operating licence. “Taxi operators pay a fee to join an association which enables the operator to apply for an operating licence.

“Taxi associations self-regulate the servicing of routes to ensure routes are not over supplied and that minibus taxis can operate profitably. There are currently about 1 200 taxi associations in South Africa.”

Maduma also says that associations are awarded the right to operate a route by the provincial regulating entity (PRE) through a registration process. “Route allocations are managed by the Registrar’s Administration System (RAS).

“The RAS system registers taxi operators, taxi associations and details of their operations, including routes. The PRE determines the number of operating licences to be issued per route based on an integrated transport plan which considers the spread of scheduled and unscheduled services required across various transport modes.”

According to Maduma, operating licences, issued by the Operating License Administration System (OLAS), authorise an operator and vehicle to provide a specified transport service.

To apply, prospective operators must provide the following:

• Association motivation
• Route description details
• Driver’s license
• Vehicle registration certificate
• Tax registration number

Law and regulations

Maduma says the taxi industry is a self-regulated industry. “Licences (mentioned above) are tied to an operator, vehicle and route and expire after seven years, but can be renewed based on roadworthiness, compliance and a review of the route.

“Operating licences can be transferred between operators and are therefore tradable. However, the licences do not hold significant value and are not commonly traded.”

Setup costs

Buying the vehicle.

In order to purchase a mini-bus, an aspiring operator will need to have money for a deposit, says Maduma. “The amount ranges dependent on the customers risk profile and the value of the vehicle being purchased.

“The deposits can range from a zero deposit (in rare cases) all the way to R150 000 if the asset is quite expensive.”

According to Profitable Venture , you can apply for financing at a commercial bank, the Industrial Development Corporation and the Khula Enterprise Finance by Sefa.

Monthly running costs

A taxi operator has to pay for fuel and oil, service of the asset, changing of tires and other asset maintenance related costs.

There are also association fees that must be paid on a monthly basis.

According to Maduma, location is very important for taxis. “It has to be easily accessible, central, close to essential amenities and businesses.

“There are some routes that are more profitable than others, meaning competition to get onto those routes is quite high. One however cannot simply choose to start operating on a brand-new route as expressed in the answer above on how these are regulated.”

Maduma suggests that you enquire about your preferred route from the local association. “However, your ability to get onto a route depends on the availability of routes in that area and the willingness of the association in that area to take on new operators. This is regulated by the relevant association.”

Route description detail

There are short distance and long-distance routes. “Each of these have a starting point and an end point (example used for short distance is a 23km route from Soweto to Johannesburg),” explains Maduma.

“Depending on the route, there will be different associations, different executives that are responsible for that route and give permission to operate on the route, different association costs to that route etc.”

Sales and marketing

Depending on the routes, the average profit that a mini-bus taxi operator who does short distance can make per month is R25,000 and for long distance the average profit is R37,000 per month.

Maduma says SA Taxi predominately uses direct marketing to reach their customers.

“Flyer drops at the ranks and at taxi associations have so far been very effective way of getting customers to know more about our products.

“There is also online marketing which works for us, as well as the biggest draw card, word of mouth,” he says.

“A lot of our business comes from repeat customers that are happy with our service and offerings, so normally they come back to us whenever they want to grow or maintain their businesses.”

Maduma says when the economy shrinks and less people have a need to get from place to place, the industry suffers. “The rising operating costs such as increases in fuel prices and cost of parts, puts a lot of stress on the earnings of the operators.

“To survive some of these challenges, some operators have deals with private sector companies and act as staff transporters for them, they also use their vehicles as mobile billboards and allow brands to advertise on them.”

Maduma says SA Taxi, through its rewards program has partnerships with fuel companies helping the operators get fuel rebates, as well our partnership with Bridgestone which makes an OEM (original equipment manufacturer) grade tire specifically for the taxi industry at a much more affordable price.

“These types of initiatives and others not mentioned here are efforts by us and the operators to keep the businesses sustainable,” says Maduma.

COVID-19-related challenges

According the South African Government News Agency, during the lockdown period, public transport vehicles must reduce the number of maximum passengers to 70% of the licensed capacity, with no masks.

Alternatively, all minibus and midi-bus taxi vehicles are permitted to load their maximum 100% passenger loading capacity as provided for in their operating licenses, provided that all passengers are wearing masks. The masks must be either surgical masks or N95 respiratory masks.

South Africa’s 21-day lockdown started on 27 March 2020 and it was extended until end of April 2020.

In light of COVID-19 and the lockdown’s challenges, Maduma says that in adhering to the measure set by the Minister of Transport, taxi operators that are operating during this period are limited to 70% capacity in their vehicles and restricted working hours.

“They are doing this whilst keeping the cost per seat the same, which means that they make less per trip at the same cost per trip as they would have made at full load,” explains Maduma.

“Their expenses haven’t gone down as significantly as their ability to earn has during this period.”

In regards making sure the passengers are wearing masks, Maduma says it is not clear who will be supplying the masks for the passengers. “SA Taxi has donated R3million towards the purchase of masks and sanitizers in an effort to help the commuters and taxi drivers to keep safe during this time.

“SA Taxi will also be providing our employees with masks during this period and we call on other employers of essential service workers to contribute towards the masks to protect their own employees from infection while traveling to work.”

Training and support

According to Maduma, an aspiring taxi operator would have to approach the association for assistance and guidance. “The most important part of this business is understanding how the industry is structured and operates; this information resides within the associations themselves.

“Then there is a need to acquire the asset and for that, one then needs to have a deposit. SA Taxi funds the operators in the form of vehicle finance for the minibus, however the deposit is something that the operator will have to come up with themselves.

“The majority of new operators in the industry are former drivers who understand and have worked in the industry for a while,” Maduma explains.

Organisations to follow

• Department of Transport is responsible for the regulation and coordination of transportation in South Africa.
• South African National Taxi Council (SANTACO) is the governing structure of the taxi industry.
• National Taxi Alliance (NTA) is an alliance of independent taxi associations.
• The South African Transport Allied Workers Union represents the labour force and its activities vary from province to province.
• Transport Education Training Authority provide an innovative Quality Assurance and Skills Development Framework in a cost-effective manner to exceed stakeholder/government Service Level Agreement (SLA) and requirements.
• Arrive Alive is a road safety campaign.

Startup advice

Here is Maduma’s advice for those who want to start a taxi business in South Africa:

1. Get advice from those who have successfully been in the industry for many years.

2. Save money for the deposit to purchase the minibus taxi.

3. Choose your vehicle wisely, some brands do not have the tenacity to put up with the gruelling demands of the taxi industry.

4. Approach a financier that sees you as a businessman – this is to ensure that you have the required business support.

5. Choose your route wisely.

6. Be prepared to spend many hours working, this is how any entrepreneur makes a success of themselves – put in the hours in order to grow.

See also: Creating Entrepreneurs in The Taxi Industry

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Starting Minibus Taxi Business In South Africa – Business Plan (PDF, Word & Excel)

Posted by BizBolts | All Articles , Business Ideas , Business Plans , Transport Industry

Starting a minibus taxi business in South Africa is a rewarding venture. South Africa’s minibus taxi industry plays a crucial role in the country’s public transportation system, providing millions of people with a convenient and affordable way to get around. Minibus taxis in South Africa are the most available and most affordable form of public transportation used by the majority of people. Despite some people owning their own vehicles there are still innumerable numbers of people needing public transport. According to the South African National Taxi Council, the minibus taxi industry transports more than 16 million per day. This article will outline how to start the minibus taxi transport business in South Africa and the minibus taxi business plan – PDF, Word and Excel.

Market Research

The public transportation sector is extremely broad and is also characterised by fierce competition. So before you set out to start your minibus public transportation business in South Africa, you have to do some extensive market research to get a grip of the industry. You must appreciate that minibus taxis are different from other public service vehicles including regarding seating capacity. This means you cannot just service any route you want and thus you will have to research about that.

There are many ways in which you can package your services e.g. catering for a particular route doing pick and drops. You could do airport pickups or ferry school kids to and fro school. You could specifically niche by focusing on corporate clients where you ferry them to and fro work daily. These are just some of the possible services one could offer.

So the point is you must do market research and decide which type of services you want to offer, and for which routes. Ensure that you study existing players’ business structures, strategies, marketing approaches and pricing regimes plus so much more. Be very thorough in your pursuit to gather as much information so that you make informed decisions in building your business. That’s why it is essential for you to have a detailed minibus taxi business plan before you start this business.

Premises, Vehicles And Equipment

You will need minibuses since they will be the major component of your business. The number of minibuses will depend on your intended scale of business operations and also the amount of capital which you have. You will have to get the minibus taxis branded (if needs be; it depends on your marketing approaches). You will need to get equipment for the minibuses that are mandatory with respect to regulations. We are talking about things like fire extinguishers, emergency warning triangles, jacks and so on – basically things that are mandatory by law and are necessary for preparedness to deal with any incidentals. When it comes to fleet management you can choose to have your own garage/workshop or you can outsource services as and when you need them. Depending on the number of minibus taxis you will be operating you might need a base of operations for communication purposes (a dispatch centre of sorts). That essentially would bring us back to the issue of having your own garage or workshop which could also play that role all in one.

The other important decision to make is whether to purchase brand new minibus taxis or second hand vehicles. Ideally it will be better to purchase brand new minibus taxi vehicles as they are more reliable and efficient with low repair and maintenance costs. However, if you have limited capital, then you may start the minibus taxi business with used vehicles which are cheaper. You have also to consider the seating capacity of the minibus taxis. This will depend on your operational strategy and the routes which you want to service. The most common modern model for minibus taxis in South Africa is the Toyota Quantum. The other modern models used in South Africa include the Nissan NV350 and Mercedes-Benz Sprinter. The costs of purchasing the minibus taxis and equipment should be included in your minibus taxi business plan.

Maintenance & Repairs

In the realm of South African minibus taxi operations, the importance of maintenance and efficient repairs cannot be overstated. It’s a linchpin of ensuring the safety of passengers and the sustainability of your business. Preventative maintenance takes center stage, involving regular checks of critical components like the engine, brakes, tires, lights, and more. These proactive measures not only enhance passenger safety but also extend the lifespan of your fleet, ultimately reducing the long-term costs associated with repairs. A well-maintained fleet not only instills confidence in passengers but also translates to fewer service interruptions, contributing to higher customer satisfaction and loyalty.

The expertise of skilled technicians is equally essential. Minibus taxis endure considerable wear and tear from daily operations, making the competence of your mechanics and technicians paramount. It’s crucial to have access to professionals who can diagnose and address issues promptly, minimizing downtime. Moreover, forging strong partnerships with reputable repair shops and spare parts suppliers can streamline the repair process, ensuring that your vehicles spend less time off the road.

Budgetary considerations play a pivotal role in this equation. Creating a dedicated budget for maintenance and repairs is essential to ensure that these expenses are accounted for without negatively impacting your financial stability. While cost-cutting measures may be tempting, investing in quality maintenance and repairs ultimately pays dividends by reducing unforeseen repair expenses and maintaining a fleet that passengers can rely on. Exploring strategies such as bulk purchasing of spare parts and negotiating maintenance contracts with trusted service providers can help optimize your budget, ensuring that your minibus taxi business remains both safe and financially viable.

Minibus Taxi Services

There are many possible services to offer in this is type of business including the usual pick and drops, ferrying school kids, airport pick ups and private hires. One of the key factors in choosing the type of services to offer is the distance to be covered. For instance, if you plan on servicing a long distance route, for instance 150 kilometres that would mean you can do pick and drops along the way.

Alternatively you could use a booking system to ensure you only ferry people travelling the whole distance. You could also offer hiring services for a broad range of customers. If it is intra-city you can also follow the same approaches i.e. pick and drops, ferrying full-distance passengers or offering hiring services. If you are enterprising enough and always have an eye out you can notice many other services that you can offer.

Routes are the lifeblood of any minibus taxi business in South Africa. When embarking on this entrepreneurial journey, it’s essential to strategize your routes effectively to ensure the success of your venture. The first route category to consider is connecting the bustling City Centre (CBD) to and from nearby residential areas. These routes cater to the daily commuting needs of residents, providing a convenient and reliable means of transportation to work, shopping, and other activities in the city center. Efficiency and timeliness are key in meeting the demands of this busy crowd.

Expanding your reach, consider establishing routes that connect different residential areas within a city. Passengers often rely on minibus taxis for social visits, events, or errands within their city. By providing comfortable and efficient transportation options, you can tap into the steady demand for intra-city travel.

To broaden your revenue potential, explore inter-city routes that connect major cities in South Africa. People travel between cities for business, leisure, and family visits, presenting an opportunity for your minibus taxi business to thrive. Additionally, consider routes that bridge the gap between urban centers and rural areas, catering to the transportation needs of residents who rely on these services for access to essential facilities. Operating in rural areas requires careful planning and a commitment to serving these communities.

Minibus Taxi Licences and Insurance

To operate a minibus taxi business in South Africa, there are some legal requirements you have to adhere to. All your vehicles should be registered and have a valid vehicle licence which is renewed annually. Any person that transports passengers in South Africa must obtain a public operating licence, this applies also to minibus taxi drivers. A  public operating licence is a permit or document giving drivers permission to transport people for public gain. All your drivers should also have drivers license. The minibus taxi drivers should also have have a professional driving permit for driving passenger vehicles.  It’s important that you adhere to all the regulation otherwise you risk getting fined and losing your operating license.

When operating a minibus taxi business in South Africa, it is important to protect all of the assets of your business. Appropriate and adequate insurance coverage is an important part of protecting your taxi business. It is better to take out comprehensive insurance policies for all your vehicles. This is the most extensive form of insurance and covers you in the event of theft, hijacking, loss and/or damage caused by an accident, fire and natural disasters, and claims made against you by third parties where you are responsible for the damage to their vehicle. The costs of insurance and licences should be catered for in your minibus taxi business plan.

Minibus Taxi Business Model

The Minibus Taxi Business Model is a straightforward yet critical component of operating a successful minibus taxi business in South Africa. It begins with the purchase of vehicles, followed by the hiring of drivers who will operate these vehicles on specific routes. These routes are carefully chosen to cater to the transportation needs of commuters. Minibus taxis are typically stationed at taxi ranks, where passengers board until the vehicle is full, and they pay a fixed fare for the journey. This model relies on efficiency and passenger capacity to maximize revenue while serving the transportation needs of the community.

The major expenses that minibus taxi businesses encounter include fuel, driver salaries, vehicle repairs and maintenance and the necessary licenses and insurance. Profitability hinges on the number of trips the minibus taxis can complete each day. A higher volume of trips translates to increased revenue, which should ideally cover the substantial expenses, primarily fuel and other operational costs. With careful management and strategic planning, a profitable minibus taxi business can even generate enough revenue to expand by purchasing additional vehicles, thus further contributing to its growth and success in meeting the demands of South African commuters.

Staff And Management

This is informed by your scale of operations. The most elementary scale of operations is by being an owner-driver. If this is your level then you can do all that has to be done without hiring anyone. It becomes a different story when you have several minibuses in operation. You would need more hands on deck to run and manage the day to day business activities.

One of the key things to be on top of is close monitoring of how drivers are conducting their trips. Having to ensure that daily revenue targets are being adhered to by the drivers, responsible vehicle handling and many other things will require some full-time staff. Management can always effectively be done by the owner if the business is relatively small to medium scale. When the business grows to huge proportions you might end up needing to have supervisors, managers and even a workshop or garage. Necessary staff for a medium to large scale business include marketing staff, operations staff, finance and accounting staff. Operations staff includes drivers, conductors, mechanics, supervisors and operations managers. Your minibus taxi business plan should include costs for the wages and salaries of all your staff.

Minibus Taxis

Market for Minibus Taxi Business

Despite the competition, the market for minibus taxis is vast and inexhaustible. According to the South African National Taxi Council, the minibus taxi industry transports more than 15 million per day. This show that the demand for minibus taxis is high in South Africa. The majority of these public transport commuters are low income earning individuals. Minibus taxis are the preferred mode of transport for over 50% of the South African population who earn R3 000 or less per month and can’t afford private transport. A proper marketing strategy should be included in your minibus public transport business. 

Keys to Profitability

In the dynamic landscape of the minibus taxi business in South Africa, achieving and maintaining profitability requires a strategic approach and an acute understanding of the market. First and foremost, route optimization is a fundamental aspect. Carefully selecting and fine-tuning your routes is crucial to attracting a consistent flow of passengers. Routes connecting urban centers, residential areas, and transportation hubs tend to yield higher passenger demand. Regularly assessing and adapting to changing commuter patterns ensures that your minibus taxis remain a preferred choice for travelers.

Efficiency in vehicle maintenance is paramount. Regular servicing and maintenance not only reduce repair costs but also instill passenger confidence in the safety and reliability of your fleet. A well-maintained fleet is less likely to experience disruptions due to breakdowns, ensuring a steady stream of revenue. Managing operational costs effectively is another key element. This includes vigilant monitoring of expenses such as fuel, driver salaries, vehicle repairs, and marketing efforts. Implementing cost-saving measures, such as fuel-efficient driving techniques and bulk purchasing of essential supplies, contributes to overall profitability.

Moreover, setting an optimal pricing strategy is essential. Competitive yet fair pricing that takes into account the distance traveled and local market rates strikes a balance between attracting passengers and covering costs with a reasonable profit margin. Maximizing vehicle utilization by ensuring minibuses operate at full capacity during each trip is vital. Offering incentives during off-peak hours can attract additional passengers, while efficient scheduling and reliable service help retain customer loyalty. Building a reputation for excellent customer service and investing in marketing and branding efforts to raise awareness can set your minibus taxi business apart in a crowded market. Compliance with regulations, meticulous financial management, and a commitment to continuous improvement complete the formula for achieving and sustaining profitability in the South African minibus taxi industry.

Advantages of Minibus Taxi Business in South Africa

Embarking on a minibus taxi business in South Africa presents a range of compelling advantages that make it an appealing entrepreneurial pursuit. Firstly, the country’s significant population and urbanization have fostered a robust demand for public transportation. Minibus taxis are instrumental in meeting this demand, serving as a vital mode of mobility for millions of daily commuters. This substantial customer base ensures a consistent flow of passengers, offering a strong foundation for business growth and profitability.

One of the standout features of the minibus taxi business is its inherent flexibility. Entrepreneurs have the liberty to tailor their services according to specific routes, schedules, or even special events. This adaptability allows for a diverse range of business models, from short intra-city trips to long-distance journeys between cities and rural areas, accommodating a wide spectrum of customer needs. With effective route optimization, reliable scheduling, and prudent cost management, the potential for achieving healthy profit margins is significant.

Moreover, beyond its financial benefits, the minibus taxi industry plays a vital role in job creation, offering employment opportunities for drivers, mechanics, administrative personnel, and support staff. Entrepreneurs who venture into this sector contribute to the overall economic development of their communities by providing essential transportation services that enable access to employment, education, healthcare, and social activities. The industry’s relatively low entry barriers further democratize entrepreneurship, making it accessible to a diverse group of individuals interested in participating in South Africa’s transportation landscape. In sum, the minibus taxi business presents a compelling blend of economic potential, adaptability, and community impact, making it an enticing choice for aspiring entrepreneurs in South Africa.

PRE-WRITTEN MINIBUS 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 minibus taxi business in South Africa, purchase our minibus taxi public transport business plan. We decided to introduce the business plans after noting that many South Africans were venturing into the minibus public transport business without a full understanding of the industry, market, how to run the business, the risks involved, profitability of the business and the costs involved, leading to a high failure rate of their businesses.

Our business plan will make it easier for you to launch and run a minibus taxi transport 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 the minibus business plan will lay out all the costs involved in setting up and running the minibus taxi business. The business plan is designed specifically for the South African market.

USES OF THE MINIBUS TAXI BUSINESS PLAN (PDF, WORD AND EXCEL)

The minibus public transport 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 minibus taxi business
• As a minibus taxi project proposal
• Assessing profitability of the minibus transport 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 MINIBUS TAXI TRANSPORT BUSINESS PLAN (PDF, WORD AND EXCEL)

The business plan includes, but not limited to:

• Market Analysis
• Industry Analysis
• 5 Year Automated Financial Statements [ Income statements, cash flow statements, balance sheets, monthly cash flow projections (3 years monthly cash flow projections, the remaining two years annually),break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortisation]
• Marketing Strategy
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Why some South Africans in the minibus taxi business fail, so that you can avoid their mistakes
• Ways to raise capital to start your minibus taxi public transport business in South Africa

The Minibus Taxi Business Plan package consist of 4 files

• Minibus Taxi Business Plan – PDF file (Comprehensive – 73 pages)
• Minibus Taxi Transport Business Plan – Editable Word File (Comprehensive – 73 pages)
• Minibus Taxi Business Plan Funding Version – Editable Word File (Short version for applying for a loan – 44 pages)
• Minibus Taxi Business Plan Automated Financial Statements – (Editable Excel file)

Testimonial 3

The business plan has a highly professional look and feel. The research really helps me look deep into the market that I am targeting, it’s well suited for the South African market. The business plan clearly outlined everything I need to start the business and the costs. It’s now easier to budget and plan. Thank you very much.

Testimonial 6

It is with excitement and pleasure to inform you that I have been successful in securing a loan from my bank. This would not have been possible if not for the BizBolts Business Plan. Thank you for your help, my dreams are now coming true.

Testimonial 4

The business plan was very helpful, you did a great job of taking ideas and putting them into words as well as pointing out other aspects of the business plan I wouldn’t have thought of. I got funding using your business plan and it’s now 4 months since I started my poultry business, and everything is going well.

Testimonial 1

Many thanks to the BizBolts team for putting together a fantastic business plan, I could not have done this business plan on my own. I managed to get funding from investors to start my butchery business using your business plan.

Testimonial 2

I am extremely pleased with the business plan and financial statements. The business plan is very detailed & it meets my requirements. I feel better equipped with tools that can help me secure funding.  I would have no hesitation of recommending your business plans to other people.

Testimonial 7

Thank you BizBolts for the business plan. I received the business plan immediately after payment, it was money well spent ! I was able to easily edit the business plan. After using the BizBolts business plan, I can wholeheartedly recommend their products and skills.

Testimonial 5

The BizBolts poultry business plan led us down the path from start to finish. Contact details of suppliers of key requirements were included in the business plan. It helped us crystallize our strategy, and the business plan was well received by the bank.

GET THE MINIBUS TAXI BUSINESS PLAN (PDF, WORD AND EXCEL) - R500 Only.

We decided to make the business plan affordable to anyone who would want to start the business, and the price for the pre-written business plan is only 500 Rand.

We have several payment methods which you can use.

Payment Method 1 (Visa card, Mastercard, Credit card, Debit Card)

Click  Buy Now  below to purchase. After you have purchased, you will instantly see the download link for the business plan package on the screen. We will also email you the download link. Get instant access to the business plan now!

If you want to purchase multiple business plans at once using Visa Card/MasterCard then  click here: Business Plans Store

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

Payment Method 2 (Instant EFT - FNB, Absa, Standard Bank, Nedbank, CapitecBank, Investec, TymeBank and African Bank. )

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

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Call/Whatsapp us on +27606334830 for the other payment methods. (Whatsapp us by clicking the link https://wa.me/27606334830 ). Email: [email protected] .

About The Author

BizBolts (Pty) Ltd is a business research company based in Johannesburg, South Africa. We sell prewritten business plans for various industries including livestock production, crop farming and retail businesses. BizBolts also publishes articles on business ideas, business news, business tips, personal finance, and entrepreneur profiles.

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