If you like working with people and driving, you should consider opening a taxi business. These businesses are expensive to start, but they will be very lucrative in the long-term. If you are unsure, it is best to note that many taxi firms will expand in their first year of operation.
While you might want to open this business, you do have to consider the demand for the service you offer in the area you will operate in. You also need to ensure that you have all the licenses and insurances needed to operate legally. If you are still keen on this business idea, you need to know what steps you have to take.
Research Your Competition And Plan
The first step you need to take is to do some research. You should look at the websites of other local taxi companies and determine which services they offer. You can also get information about the rates they charge.
While doing this, you have to determine the demand for taxis in your area. If you are in a small town, there might not be a lot of demand for your business. If there is demand, you will have to look at how your service will be different to others in the area. You may have reduced rates, airport shuttles or larger vehicles for group transports.
At this point, you also need to determine the routes you are going to be driving. You should also find out where other taxis are making the most money and the time of day this happens. The last point to focus on at this time will be where your office will be. You also need to determine the number of taxis you are going to have and where they will be parked.
Look For Vehicles And Equipment
Searching for vehicles is the best way to find cars that have already been modified to be a taxi. This will save you a lot of time and effort. The best place to start looking is online auction sites and other website sale sites. You will be able to find taxi sales on these sites.
The vehicles you consider should be guaranteed safe, clean and have enough trunk space for luggage. Vans are generally the first choice, but sedans can also be used as taxis. Newer vans with automatic doors are very popular with customers and you need to consider this. The vehicle should also not be too old and worn out. Properly maintained vehicles can be used for miles to come.
If you are going to modify vehicles for use as a taxi, you need to source top light signs, extra-large voltage regulators, taxi meters and radio connections. You will also need to source decals with your company name and all your contact information.
Apply For Licenses And Insurance
At this point, you have to apply for a taxi license. Most places require a fee when you file this application and you will need to wait for a background clearance. This process will take weeks and you have to wait to find out if you have been approved as a taxi owner.
You should also apply for a commercial driver’s license at this time with the local DVLA. All your vehicles have to be registered and you will need to find out about the required inspections. Talk to an insurance agent at this time to determine the taxi insurance policies you need and the amount you should get. It is also a good idea to ask other taxi owners about where to get the best insurance rate.
Hire Other Drivers
If you are going to have a fleet of taxis, you need to hire other drivers. When you interview potential drivers, you will need to ask for copies of their driving records. You also need to get references from the previous companies they have worked with. When hiring drivers, you should only hire people with an excellent record.
Advertise Your Service
The last step is to advertise your taxi service via your website and through local listings. People generally use their phones to find a taxi service and you need to be high on local listings. This will ensure you get enough business.
You should also look at fliers with coupons to get some new customers. All of your service and contact information will need to be on your marketing materials.