Starting a Taxi Line Business

Starting a Taxi Line Business

Despite the years, taxis are still one of the most used means of transport in cities, something very common that has led not only to the business creation of the sector but also that anyone with their own car can offer this service independently.

However, public insecurity, especially in large cities, leads to less trust in the taxi driver every day since we do not know if he is someone to be trusted.

Thus, in this scenario, people choose to hire taxis from recognized companies, making sure that the service through them is synonymous with tranquility, safety and quality of service. This represents a huge opportunity to create a trusted brand that guarantees you a highly profitable business.

The taxi business can be approached from different angles of which I present the following two:

a) Being an owner and a pilot at the same time
For those who start and want to make the most of their investment, this is a winning formula because, among other things, you save the cost of paying a pilot’s salary in addition to being an owner you make sure to provide the best customer service as well as car care.

b) Rent your vehicle for a third party to drive it and provide the service
If you do not want to leave your job, you do not have the time or you simply do not want to be the taxi driver, then the other figure is to rent your car so that someone else can provide the service as a pilot in exchange for a daily income that you must meet. Under this model the income may be a little less but so is the commitment and the time you need to operate it.

Assemble your own fleet of taxis
If you have money that you can invest, this would be an ideal option, you can start with a small fleet of three taxis or what you can afford with the investment budget could even be one.

The investment will be necessary for the purchase of taxis. The later will come hand in hand, starting the registration procedures and respective authorizations to operate in order to ensure that we comply with all the legal paperwork.

Group with other independent taxi drivers
Finding several taxi drivers who are our friends and each of them is independent and has at least one transport unit will allow us to create a fleet of taxis that would be managed and coordinated by a commission delegated by all partners.

Let’s say that a partnership can be formed between those who choose to include their work unit. This type of work is very recurrent because it does not need a large capital to form the companyWith equal contributions from each partner, it can be established quickly.

Characteristics of a good taxi service
The quality of the service provided is essential for the success of our taxi business, from the cleaning of the unit to the good treatment provided by the taxi driver. Our taxi line service must have at least the following characteristics:

  • Clean, modern and comfortable units; easily identifiable (one color)
  • Satellite tracking technology
  • Control from the central cabin to each of the taxis with route mapping
  • Telephone exchange for receiving requests
  • Constant training of personnel who drive cars especially in defensive driving issues

Some innovative features of the Service

As innovation is the key to success against the competition, we can implement some modern measures to take better advantage and achieve better results, below I list some additional ones that will allow us to offer added value and differentiate ourselves from the classic taxi services:

  • Management of a web page from where you can order taxi online
  • Mobile application to request a taxi from the ease of our smartphone
  • Implementation of non-traditional means of payment to units, trying to go from cash to credit cards or mobile money transfers
  • Implement a small portable television so that passengers can be distracted by watching a movie while traveling, which in turn may represent an entrance for advertising
  • Implement and have at least two daily newspapers or some magazines to offer to passengers while they are on the journey

Always remember that a satisfied client will recommend us to at least ten people while a dissatisfied one sinks us before a million people. Quality and innovation in service is the key.

Some Costs to Consider
Once you have decided that this is the business you want to set up and you have started developing your own business planThese are some of the basic costs that you should consider (for each vehicle):

  • The main and highest of course is that of the car or cars. Compact cars that are economical in fuel consumption are recommended. ; The price ranges around USD 6000
  • Painting and adaptation of the car USD $ 1200
  • Taximeter USD $ 1500
  • Procedures USD $ 2000
  • Others USD $ 2000
  • Approximate initial investment: USD $ 12,700

Remember that these costs may vary in each city and according to the equipment you want to give your vehicle.

Income
Once you have formed your business, the income estimate depends on several factors such as the opening hours, the number of trips made, the established rates, and the daily fees that you request from your pilots. Possible contingencies or failures that must be resolved immediately for the unit to continue operating should also be considered.

Hence, a taxi unit operating efficiently for a week can represent about USD $ 150 or the equivalent of about USD $ 700 per month under the figure of renting the vehicle from a hired pilot.

Important considerations

  • The quality of the personnel to be hired to drive our vehicles. You must ensure that it is staff with good references and free of traffic sanctions as well as people with gifts of customer service.
  • Consider periodic car maintenance. This is a critical factor that can cause the business to stop or keep running.
  • Do not forget the importance that both the driver’s license and the car documents are always in order. This will save you huge wasted time and hassles with the traffic department.
  • Periodically consult the possibility of fines that have been incurred and cancel them to avoid later problems or limitations in circulation.
  • The risk of collisions for these cars is high so hiring some insurance is essential.
  • The control of the times, the routes and the behavior of the pilots is fundamental to maintain the quality of the service.
  • The use of fuel must be optimized to the maximum since the profitability of the business depends directly on it.
  • The control by means of a GPS is also ideal to be able to optimize the use of the vehicle and reduce costs.

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