Many people view starting a taxi service as the ultimate business, whereby they can dictate their old hours, work in a boss-less environment, and generally go as they come and please.
However, operating a taxi service can be demanding in a number of ways. It can be mentally demanding, having to concentrate whilst driving for a long period of time. It can be physically demanding, with the risk of unprovoked attacks and dealing with passengers who are under the influence of alcohol. It can also be financially demanding, as often the running costs of the vehicle can be quite substantial, and in the event of a major malfunction of the car can result in the car being out of commission and therefore not providing the facility to earn money.
So if drunken louts, and avoiding dangerous drivers on the road, possibly other taxi drivers, hasn’t deterred you. Here are some tips on how to start a taxi service.
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 license 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 license. Even if you intend to start a taxi service and hire other drivers, you should still apply for a taxi license 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 licenses. 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 licenses can some times attract a substantial fee. Usually in these cases it can be possible to rent a license from an existing license holder.
Step 4: After you have acquired the necessary licenses. 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.