How To Start A Taxi Business

If you want to start a taxi business, there are a few steps that you need to take before you start.  The steps you need to take include researching the taxi industry, determine what your selling point is and where to source everything you need....

How To Start A Taxi Business

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The emergence of Gett Taxi and Uber has changed the way you start a taxi company compared to a decade ago.  While the industry has undergone serious changes due to the digital age, there are still a lot of benefits to starting your own taxi business.  After all, this is a billion-dollar industry.

What Are You Offering?
Before you set up your company, you need to consider the type of taxi service you will offer.  It is recommended that you find a niche that helps you stand out from the crowd. This is an overcrowded and competitive industry and any edge is important.  
You might want to offer a taxi service that operates in the city center.  City center offers you a diverse client base and it is also a very interesting driving environment.  You should also consider being seen as a local taxi company. Your business could also cater to the student market only. 

Another way to stand out will be to specialize in certain trips only such as school taxi services or airport transfers.  An interesting concept you can try is to have only female taxi drivers. This will often make riders feel safer and can cater to different religious needs. 

Naming And Branding Your Company
Naming and establishing a brand is something you may not be interested in as a self-employed taxi driver.  However, if you are going to have multiple vehicles and drivers, there is a benefit to creating a strong company name and brand.  

If you are going to operate in a small area, your name should be inspired by the location.  This will help you become more visible in online searches. It will also make the company more recognizable by the locals. 

The only issue with this will be when you want to branch out into other areas.  If your company name is linked to a location, you are going to have a hard time getting interested customers outside of the area.  This reduces your ability to scale your business.

The Taxi Regulations
If you want to operate in London, you will need to get a Transport for London driver’s license.  This license has to be renewed every 5 years. To get this license, you will need to be over 21 years of age.  If you are not operating in London, you will need to find out the operating license requirements from the local council.  

To get a taxi vehicle license, your vehicle will also need to meet certain standards.  This includes the Euro 6 standards of zero-emissions capability and the design standards for TfL.  Within London, your vehicle needs a meter that meets their specifications and you need to be able to accept contactless and card payments.  You also need to be able to print a receipt for your customers.
The Cars You Have
The cars you have will impact the clients you are able to get, the rates you charge and the overall costs you face.  One of the best cars will be a Toyota Prius because it is energy efficient and does not cost a lot to run. However, if you have a C-Class Mercedes, it will be more expensive overall, but you will get a higher spending customer. 

The Insurance
You also need to consider the insurance your company has to have.  Vehicle insurance is an insurance policy you need to have, but you also need to have employers’ liability if you have any staff.  Public liability insurance is also required if you want to drive customers. 

The best way to save on insurance is to ask each driver to over their own premiums.  If the driver pays their own voluntary excess, they will be more likely to drive safely. You cut costs when you compare taxi insurance.
Telematics can also be used to keep track of mileage.  This is important if you have multiple vehicles and want to get fleet insurance.  Doing this can result in a discount on your premium compared to individual policies. 

A Business Plan
Your business plan has to be created before you start working and will need to set out all your goals and your budget.  Having a business plan before you start working will tell you whether the company is viable and will be profitable. You do not want to start a business that is not going to be profitable.  

The business plan should detail all your marketing and what you expect your start-up to cost.  You also need to plan all your ongoing costs and what you plan to earn.

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