How can i start a taxi service?

Answer 1

Here are some tips on starting a taxi service. This information may be slightly more biased towards an operator driving his own taxi but a lot of the steps hold true for somebody wishing to start a taxi company, whereby they hire drivers to drive the taxis.

Step 1: Consult local taxi drivers and taxi companies to assess the market for a taxi service in your area. Many taxi drivers get very defensive at the risk of new drivers entering the market place, however, by speaking to a good number of them, you will find some are not so threatened and will freely give information on becoming a taxi driver or starting a taxi service in your area.

Step 2: The first step is to apply and to get a licence to drive a taxi. You can usually start the process at your Local Department of Motor Vehicles, or a visit to your local government authority website to provide you with the information where to apply for a licence. Even if you intend to start a taxi service and hire other drivers, you should still apply for a taxi licence in the event of ever having to deal with issues of being short staffed.

Step 3: Next you will have to find out who in your area regulates taxis and who issues taxi licences. Again, a visit to your local City Hall or a visit to your local government website should provide you with this information. In controlled markets, these licences can some times attract a substantial fee. Usually in these cases it can be possible to rent a licence from an existing licence holder.

Step 4: After you have acquired the necessary licences. You will have to then estimate your start-up costs. You will have to decide, do you want to start a taxi company and have a fleet of vehicles, whereby you will require licensed drivers to drive to taxis or do you wish to drive your own taxi as a sole operator. Either way, you will have to factor in costs such as the cost of the vehicle, the cost of having meters and signage fitted, insurance costs, and also an allowance for the depreciation and the repair of the vehicle as needed. With a well researched business plan, many banks are approachable for offering finance for such a business venture.

Step 5: Nothing left to do but start the business venture. It is worth also remembering that like any new business venture, it will take some time to learn all the ropes and all the possible ways to maximise the earning potential of a new business venture.