How to Start a Taxi Business?

Taxi service is a very profitable business. While other transportation businesses require many employees to operate, you can start a taxi business with a single operator. And if you enjoy driving and working with people, you might want to consider starting a taxi company. However, starting taxi business may not be as easy as it seems. You must thoroughly understand and follow some ground rules and they are:

  • To start with examine whether there is a need for taxi services in your area. The demand for taxis in smaller towns are usually low compared to bigger cities. Therefore, try and consider starting your business in areas that have high taxi demand.
  • Then you should determine your niche, whether you want to cater to all types of customers, or just high profile clients such as politicians, diplomats or simply corporate clients.
  • Before you start any business, you need a smart marketing plan along with good management skills. You can consult with different marketing agency. The mission statements, financial plan, start up cost, competitor analysis, marketing plan and operating plan should be included in your business plan.
  • After you are done with your planning, you should figure out the costs involved and secure your finances.
  • You need to have a valid license to legally operate. For taxi business you need to obtain a commercial driver’s license at your local DMV. This license varies from state to state. Remember, in order to obtain your business license you need to register your company in your city. Don’t forget to apply for employer’s identification number if you are planning to hire other drivers.
  • Visit other cab companies in other cities. This will help you to know more about the taxi business. You will also be able to find out if you have missed anything along the way.
  • Then purchase or lease at least one vehicle that can be used as a taxi. Register your vehicle with DMV. You will not be able to operate it unless they are licensed for commercial use.
  • Purchase liability and property insurance for your company. Insurance helps you to recover from losses. In case of any accident, theft and liability, you are covered. So, it is best to obtain insurance for your taxi business.

Offer corporate accounts to companies whose employees frequently use your services. And always maintain your vehicles to make sure they perform better. This is very critical in better customer experience. Your company’s name and telephone number should be clearly visible on all of your taxis, and don’t forget your marketing materials such as business cards, flyers, ads etc.


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Google Reviews

Big Daddy
Big Daddy
20:26 13 May 17
Fast, reliable and dependable. Was stuck in Massachusetts and had to be at Albany airport, Chet personally came and had me there quickly. Still can't believe the great prices​. I'll be sure to recommend all my fellow students and friends. Thanks again Chet's airport service
John James
John James
20:41 13 May 17
Thank you for the past 4 years of safe and reliable transportation of my daughter, it's almost graduation time and I wanted to personally thank you for your​ services and next year if my son goes to Skidmore your company is the first and only pick.
Omotoyosi Taiwo
Omotoyosi Taiwo
02:20 29 Nov 16
Chet is always on time, when he's not (very rarely) he's apologetic about it. His prices are consistently the best in the area. Very very accommodating to your needs without charging exhorbitant "waiting fees". Can't recommend him enough.
G Galinski
G Galinski
19:36 29 Nov 16
Showed up on time very courteous competitive price no one else in the area could pick me up at 4 a.m. to go to the airport highly recommend
Dylanger Pittman
Dylanger Pittman
19:54 07 Oct 16
The service is excellent, the drivers are friendly, prices are good, and the cars are clean. I recommend this service highly.
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