Business Idea: How To Set Up A Taxi Firm

Taxi firms are companies that get used by both consumers and other businesses. They offer a 24/7 service that provides more benefits than using public transport. They are also cheaper than hiring chauffeurs to drive you around in your vehicle.

Have you noticed that there are few taxi companies operating in your area? And have you decided to set up a new business in this lucrative market? If so, and you know you can offer a better service than your competitors, this guide is for you!


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Finding a suitable base

The first thing you will need is a base where you can operate your business. In essence, it is the primary “hub” of your taxi firm. Your drivers will often take breaks here until they get called out to a job.

All you need to do is find an office that you can lease that offers plenty of parking spaces outside. You don’t need a big office. Just make sure it has separate areas for the control room and break area. Be sure to offer kitchen and bathroom facilities too.

You’ll need to furnish your offices and provide facilities like a TV and comfortable seating for your rest area. You should also have a reception area with seating for your customers in case you get people that request a taxi from your offices.

Decide what areas you want to service

It’s likely you are reading this blog post because you want to offer a better taxi service in your local area. But you may also want to offer your services in neighboring towns too. Decide how far you wish to reach out.

Be sure to draw a radius on a printed map so that you can refer to it in case someone asks whether you can service their area or not.

Set up your fleet of taxis

Next, you will need to lease some suitable vehicles for your taxi firm. To convey a professional image to your customers, you should ensure that you lease the same make and model of vehicles in your fleet.

You can, of course, rent a few different sized ones. For example, a couple of SUVs are useful for transporting customers that need to go to the airport. But, for the most part, you’ll only need some large and comfortable sedans to carry up to four passengers at a time.

One factor you need to consider is the insurance. Many taxi firms insure their vehicles with companies like Insure Fleet. Why? Because it means that all cars get covered under a single policy.

If you get individual policies, it can cost a lot more. And they will all have different renewal dates. As you can imagine, that can be something of an organizational nightmare!

Offer an Internet booking service

The final tip I’d like to mention is the need to set up a website. But it shouldn’t be just an informational site. It should be one where your customers can make bookings online. And it should get linked to your booking system at your base.

That way, you can assign drivers to future jobs. And your customer doesn’t need to worry about phoning for a taxi at the last minute!