What to Know Before Venturing into a Taxi Business

Taxi businesses are one of the most thriving service industries today. It is one of the main reasons why most entrepreneurs are starting them. This, however, does not mean that everything in the taxi industry is a piece of cake because there are a lot of challenges that you will encounter. Before you invest your money in a taxi business, here are a few things worth knowing.

You’ll Need to Do Some Paperwork

There is paperwork that you will be required to do before you begin operating your new taxi business, so brace yourself. It includes applying for business permits and licenses as well as insurance. There are various insurance policies for taxi businesses. When doing your paperwork, consult an experienced taxi operator to know everything that is required of you. If you need accessories for your taxi, get in touch with Work System to know your options.

You’ll Have to Understand the Taxi System

Just as with any other type of business, taxi operators have an efficient system that enables them to run all their operations smoothly. You’ll have to understand it before you get started. It involves the resources required to provide reliable transport services, the technology used, as well as the information needed to meet the demands of different clients.

Final Thoughts

Take the time to research all you need to run a taxi business and prepare yourself for massive success.

How to Make Money Driving Traditional Taxi

When taxi-hailing apps such as Uber, Lyft, and Zimride became popular, there was a fear among traditional taxi drivers that their businesses would die within a few years. Granted, the number of customers has reduced, and more people now turn to their smartphones whenever they need taxi services. However, all is not lost for traditional taxi drivers. If you want to keep making money as a driver, some of the tips that you can use are:

Go to High Traffic Areas

It goes without saying that you are likely to get more customers in places where there is high traffic. Think of supermarkets, hospitals, city centre and other entertainment facilities where many people are looking for transport. It also helps to work during peak hours when the rideshare taxis have a surge and are charging more.

Print Business Cards

One of the mistakes that most traditional taxi drivers make is not having business cards to give to clients who use their services. Print cards and when the customer alights, politely hand them your business card telling them that you are available for their next trip. Feel free to ask them if they will be needing taxi services and let them know that you are flexible enough to take up assignments.

Be Courteous

What can set you apart from other taxi drivers is courtesy. Every customer wants to feel important when using your services. Never underestimate the value of simple things such as opening for them the door, respecting their space by not yapping too much; unless they indicate that they want to chat and other details like helping them with their luggage. If you are courteous, the chances are that you will get repeat customers.

Be Patient

It can be tempting to keep driving around aimlessly in an attempt to get a customer. This will only lead to frustrations and irritability. If you are on a traditional taxi, it helps to have a designated pick up point where your customers can easily find you. During off-peak, you should consider engaging in fun activities such as catching up with your favourite game. You can buy a cheap refurbished ipad that you carry with you everywhere you go. You should also explore different options, such as doing long-distance drives with your taxi. It might mean getting a license that allows you to cross borders, but you can be sure of making good money.

Join a Taxi Association

Check if there are taxi associations around you that you can join. These unions always have opportunities for their members. You will also learn from other members of the association on how to make more money as a taxi driver. Most of the associations also have programmes where you can access cheap loans to expand your business.

The 4-Part Recipe to Recovering from Rideshare’s Impact on the Taxi Industry

Ridesharing might have taken over the taxi industry. But it’s not too late for traditional taxis to recoup their market share.

The entire industry is valued at $108 billion right now, and it is expected to reach a whopping $285 billion by 2030. In all honesty, this money is enough to go round, unless you are willing to let ridesharing companies take it all.

To remain competitive, you need to learn from Uber’s business model and use your vast experience as a secret weapon.

Be Flexible with Fares

It’s no secret that ridesharing apps are winning over clients because of their fair pricing. And that’s what the rest of the industry should replicate. The rates don’t have to go as low as Uber’s, but finding a balance between value for money and decent profits would be a great start.

Safety

Though the police do not record taxi-related attacks, ridesharing comes with its fair share of issues. Some rogue drivers pick riders and drop them off before arriving at their destinations without a valid reason. And others go ahead to assault passengers sexually.

So if you offer quality, reliable and professional services, you might stand a chance.

Ask Regulators to Level the Playing Field

Some regulators have stepped in to save their local taxi companies from drowning after ridesharing happened. The most recent case being EU’s ban on Uber services. However, they intend to build apps and use them with regulated cabbies.

Look for an Alternative to the Medallion System

A medallion costs anywhere between $150, 000 and $250,000. And yeah, that means that taxi operators need to pay upfront before getting into the business. If you add that to as car purchase, insurance, license, maintenance, and fuel, it’s clear that this system seems to be causing most of the industry’s problems.

Top 6 Ridesharing Apps of 2018

The taxi industry has clearly come a long way. From hailing horse driven carriages to taping a smartphone and riding self-driving cars, things can’t get any better.

Ridesharing apps are perhaps the most significant innovation since the card readers. The business model exploits a loophole in taxi regulation that exempts cabbie operators from meeting all those stipulations that seem to weigh the industry down.

Whether you are looking to start a cabbie business or looking for a convenient way to hail cabs, this piece will point you in the right direction.

Uber

The honor goes to this innovative start-up that has shaken up the entire taxi industry. In as little as five years, this team has become a household name in most major cities and towns. The app simplifies the process of hailing a cab, paying and tipping drivers, splitting fares and requesting a ride for someone else.

Lyft

Lyft is also a big name in the rideshare industry, but they only operate in several U.S cities. They share the same business model and prices with Uber. But they also add a fun and professional twist to their services. Their app enables users to view a real-time map of their current location, set pick up points, and review fares upfront.

Wingz

Wingz targets clients moving to and from the airport. And users get to schedule rides, know prices upfront and even choose favorite drivers. They operate in Houston, Dallas, Los Angeles, San Francisco, Seattle, Phoenix, and Sacramento.

Zimride

Zimride seems to have an emphasis on the driver. Riders get to schedule trips and pay through Paypal, but the driver has 24 hours to accept or decline the request. The drivers can also view passenger data such as interests, musical preferences, and feedback.

Juno

This rideshare service takes customer satisfaction very seriously. They try to keep the waiting time on the bare minimum, offer quality services and extend promotions from time to time. They also take slightly less commission from drivers.

Tree for Cars

This team aims at reducing the number of CO2 emitting cars on the roads by matching riders to eco-friendly cabbies. The founder, Leo Grand, was a homeless man until he acquired free coding superpowers and created this ridesharing solution.

A Decisive Look at London’s Black Cabbies

When it comes to cabbies, London stands out from the herd. The city’s taxis are uniquely built and feature a generous siting space and an impressive performance to match.

Most of these autos are private property, and they cost anywhere around £28,000. However, you can also lease one of these diesel powered autos and make somewhere between £18,000 and £40,000 annually.

The reason why London cabbies are black is not clear-cut. But it is mostly a cost issue. Since black cabbies come at a standard price, while other colors are considered as extras. So most people in the taxi business stick with black for uniformity and to save on cost.

London cab drivers have an equivalent knowledge to a master’s degree in driving. The city has well over 200 streets, and the black cab drivers spend a whopping four years learning this and many other things about the industry.

At the end of the training, the drivers are tested and rewarded with licenses. A green badge, for example, is like a first-class honor. It gives the driver a permit to ferry passengers anywhere within the city. Yellow badge drivers, on the other hand, are limited to a specific areas.

Newyork Taxi and Limousine Commission Cracks the Whip on Michael Cohen

After Michael Cohen pleaded guilty of hiding $4 million worth of income from authorities, the Newyork Taxi and Limousine Commission has ordered him to divest his ten medallions in less than two weeks.

The regulator threatens to revoke the medallions if Cohen does not meet this deadline. They also added that regulations are clear on this issue – people with criminal records can not own medallions.

Cohen bought the medallions in the 1990s for an undisclosed price according to TLC. At the time, they were selling at an estimated cost of $5,000 – give or take. However, the price hit $1.2 million in 2011. And that saw a good number of medallions change hands.

After ridesharing entered the scene in 2009, medallion prices have been declining at an alarming rate. People are now selling them for less than $200,000, attributed by the surge in Uber operators. For a long time, there were roughly 13,000 taxis in Newyork streets. Now, Uber has introduced more than triple that number and Cohen and other investors have to deal with that.

It’s not clear how Cohen dealt with this situation, but it’s definitely a big blow on his investment portfolio.

What is Drowning the Taxi Industry?

The traditional taxi business is plummeting, and it’s not because of ridesharing.

Uber, Lyft and other ridesharing apps are enjoying what some would call “overnight success” for a good reason. They’ve found a way to avoid those burdensome taxi regulations to make the industry nicer for everyone.

Investors can now get into the business without having to take another line of credit to pay for medallions and cars. A medallion costs more than $200,000, and a brand new vehicle goes for anywhere between $10,000 and $20,000. That explains why taxi companies own most yellow cabs.

The industry has also placed many requirements around the taxi business. Besides the paint job, you also have to install a panic button, taxi meter, card reader and a radio. When you add that to licenses, insurance, maintenance, and other sundry expenses, it’s clear that running a traditional taxi business is not cheap.

Joining Uber, on the other hand, is as simple as passing an inspection and downloading an app. And that makes it extremely hard for traditional taxis to compete with the free market. Therefore, it safe to say the taxi industry is drowning itself with regulations.

Gear For Motorcycle Taxis

Motorcycle taxis can be a highly profitable way for people to make a living. It is a form of public transport that appears to be growing in popularity. This is likely due to the speed and manoeuvrability of these vehicles.

However, those who want to be motorcycle taxi providers should be aware of what gear they will need. Having the correct clothing and accessories will help prevent injury and may even save lives in the event of a crash. Bike riders are not encased in metal walls such as in a car. Instead, their protection from scrapes and impacts must be worn on their person.

Clothing

There are undoubtedly many options to choose from when it comes to protective clothing. However, they can easily be divided into two types; one-piece and two-piece. Traditionally bike clothing has been made from a very thick form of leather. It is strong enough to prevent scratches and has enough flexibility not to restrict the rider’s movements.

In recent years there have been advanced forms of armour that give additional shielding to the joints and back. This type of clothing contains padding that absorbs dangerous hits when the rider falls on the ground. Bike armour tends to be made from materials such as polymers, titanium and carbon fibre.

Boots

The feet of bike riders are particularly vulnerable to many dangers when the vehicle is in motion. It is essential that good quality motorcycle boots are worn while out on the road. They should be made from a resistant and robust material. Furthermore, these boots need to be purchased from a reliable supplier.

Helmet

If a crash occurs, then the head is the most vulnerable part of the body. Many lives have been saved thanks to wearing a decent motorcycle helmet. Common road ones have visors that give riders vision while also protecting their face. However, some older forms of helmet do not cover the face at all. In many countries, it is an offence not to wear a helmet while driving a motorbike. This is even more important if the bike is being used to taxi passengers.

Gloves

The hands can be overlooked when it comes to motorbike safety. The fact is, that when a rider is falling, they tend to cushion the impact with their hands. Therefore thick gloves need to be worn so that the risk of breaking finger and wrist bones is minimised.

Goggles

As previously stated some helmets do not cover the face. If this is the case, then riders should wear goggles to protect their eyes. These will stop dust and other debris from obscuring their vision. In this regard, they are beneficial for preventing crashes.

How to Lift a London Taxi Business off the Ground

Ridesharing services have been taking an irregular share of the £9 billion taxi industry over the past few years. They are almost driving traditional cabbies out of business with their low fare prices and shrunken start-up costs.

For this reason, their unfair trade practices have earned them a ban in several countries such as the UK, Bulgaria, China, and Denmark.

The innovation behind this taxi apps is pretty impressive. But if allowing these start-ups to operate in cities puts the entire taxi industry at the risk of collapsing, then slapping them with restrictions seems fair enough.

That said, it is worth noting that there’s no better time to start a cabbie business in London than right now. You get to choose your working hours, make a decent living and enjoy protection from unfair business practices.

So whether you intend to start a taxi business as a side hustle or looking to switch careers, this piece has got you covered.

Get a Taxi License

Once you’ve made up your mind to change careers, the first place to start the journey is licensing. The cost of these certifications varies depending on your location, but it’s usually affordable. However, you need a medical report, a clean criminal record and to pass a language test before taking the famous knowledge exam.

Choose between Leasing and Buying a Car

The car amounts to almost 80% of the total start-up cost needed to lift a cabbie business off the ground. So you need to evaluate your options. The first choice is buying a brand new auto; the second one is settling for a used one.

If neither of these possibilities seem to fit in your budget, consider leasing or taking a car loan. However, these options may prove to be more expensive in the long run.

Additional Costs to Consider

Now that you have the car, there are a few other things you need to look at before picking up fairs in London. Insurance, for example, starts at £1,600 per year. You can pay 20% upfront and finish the rest in equal installments. But the idea is to stay clear from claims – as they affect the overall cost of insurance.

Another thing worth evaluation is advertising. You might want out hand out flyers or sign up to taxi apps like MyTaxi. And that costs money too. There’s also service charges, fuel, and repair costs. This expenses may seem negligible at first, but they do add up pretty quick.

Work Hard

With freedom, comes responsibility. So you need to put in maximum effort into growing the business. That includes working long hours and grinding on weekends and holidays.

A Few Quick Tips to Help You Get a Taxi Business off the Ground

If you’re looking for an additional line of income that guarantees daily profits – you are in the right spot.

It’s no secret that the taxi industry has been making billions every year, especially now that Uber and Lyft have arrived at the scene. Though it is not easy money, by any chance, some people started out with only one car and now own a fleet of taxis.

Today, we’re going to draft a business plan for a taxi company.

Know Your Target Market

As with any other business, you need to study the potential market and know what it prefers. Is it looking for better prices, more luxury or convenience? While you are at it, also consider if the market favors traditional cabbies or they’ve moved on to rideshare services.

With this valuable insights, you can decide if the taxi business is still a good fit for you or not.

Familiarize with Regulations

Whether you choose to invest in a medallion or Uber, there is a set of rules and regulations to consider. Traditional taxis, for example, have to be painted yellow, fitted with a camera and a card reader. Uber, on the other hand, have a ten year age limit on cars. Plus, you have to go through a rigorous inspection to get clearance.

Buy that Car

Now, this is where the numbers start to add up. You need to buy a car that combines looks, performance, and luxury to make it in this highly competitive industry. And the cost of a brand new vehicle is anywhere between $10,000 to $20,000.

Alternatively, you can decide to roll up the sleeves and go hunting for a well-maintained used car. But keep in mind that a newer car is more forgiving compared to a used car, as it needs less in maintenance fees.

Get all the Legal Certifications

Typically, acquiring a license for taxi business is pretty straightforward. All you have to do is meet all the requirements such as paint jobs and fit necessary components – and you’ll be good to go. The cost of this certifications may vary from state to state, but a taxi license costs anywhere between $20 and $75.

Don’t Forget Insurance

Every car needs a proper insurance cover. And most insurance companies charge cabbies double that of regular autos. Most cities and towns, however, let taxi and rideshare services make the rules on this one.

Expect to pay 20% of the annual insurance fee upfront. The rest can be paid in weekly installments of anywhere between $60 and $100 depending on the preferred plan. The insurance cost might go even higher if you decide to cover the driver. But it is in your best interest to purchase a plan that goes beyond the bare minimum.