Young Upstarts

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10 Top Tips For Starting A Taxi Business

Do you like the idea of being your own boss? Could you see yourself driving for a living? One option for you is to start your own taxi business.

If this sounds like a good idea and you’d like to know more, keep reading for 10 top tips.

1. Check Out the Competition.

Before you go too far along the taxi business road, you should check out the competition. This advice applies whatever business you intend to start. Your research should include the type of services being offered and their rates. A good place to start is with an online search, looking at your competitor’s websites, social media accounts and any ads you might find.

2. What Type of Taxi Service are You Going to Offer?

There are a wealth of different services you can offer if you want to run your own taxi business. If you can decide on some kind of niche market to concentrate your efforts on it’ll make you stand out from the competition. Consider offering a city center or local taxi service. Would you like to provide an airport transfer service, school taxi or offer club runs? Another niche worth mentioning is becoming a female taxi driver which could attract female passengers.

3. Organize Your Paperwork.

A certain amount of paperwork is required if you want to run a taxi business. A permit is required in order to operate legally. Your vehicles also need to be registered and insured. Acorn Insurance is able to provide details of taxi insurance cost.

4. Look for Office Space.

The ideal location for your taxi business is somewhere there is space for your vehicles as well as the space for your office. It should also be close to the area you’re going to be offering your service.

5. Hire Your Drivers.

You’re going to need a few office staff and reliable drivers for your team. The drivers you hire should be licensed professional drivers, and you need to ask for references from previous employers. Background checks are also important, especially when you’re looking to provide a school taxi service.

6. Get Your Name Out There.

Let potential customers know about your service by placing ads in local newspapers, getting listed in your local phone directory, printing and distributing leaflets and having a presence online.

7. Review Your Progress.

Nobody is ever going to tell you that running a business is easy. In fact, it’s really hard. In the beginning, you’re going to make mistakes, but it’s vital you recognize and learn from them.

8. Taxi or Private Hire?

A taxi service picks people up from the street, and there’s no need for any prior booking. They tend to be found in urban areas, and fares are often controlled by local authorities.  A private hire firm only picks passengers up when there has been a prior booking. It’s a more personal choice as to which you choose.

9. Financing Your New Taxi Business.

You’re going to need to buy a fleet of vehicles, all of which need to be legal and roadworthy. There is also office and garage space that needs to be acquired. All of which is going to cost money. Therefore, you need to work out how you’re going to finance your new enterprise.

10. Payment Systems.

Cash is no longer the preferred method of payment in a wide range of industries, and even in the taxi business people prefer to pay by card. If you don’t accept card payments, you’ll be narrowing your target audience.

These are just ten tips to get you started. Once you’ve followed through on these, the hard work starts, and it’s all down to you.

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Young Upstarts is a business and technology blog that champions new ideas, innovation and entrepreneurship. It focuses on highlighting young people and small businesses, celebrating their vision and role in changing the world with their ideas, products and services.

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