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.

Here’s Why Most Cabbies are Yellow

If you’ve ever wondered why most cabbies are yellow, you are not alone. Google receives millions of queries on the same. But in all honesty, there is no concrete answer to this question.

The decision may be a result of scientific research or personal preference. Either way, the color seems to work pretty fine.

So we’ve looked long and hard for the real reasons behind yellow cabs, and here is what we found.

John Hertz, the founder of the Yellow Cab Company, was running a car sale business in Chicago in the early 1900s. He realized that some of his trade-ins stayed in the yard for a painfully long time. So he decided to make these cars useful by turning them into cabbies.

The businessman commissioned a local university to find a suitable color that would unify his fleet and still stand out – and Yellow won.

However, there are claims that this was not the first instance of Yellow cabs in American cities. Albert Rockwell, a noble businessman, also had a fleet of yellow cabs long before Hertz launched his company. And his reason for using yellow was to please his wife, Nettie, who preferred the color.

Taxi: A Sneak Peak at This Multi-Billion Business

If you have ever been caught between a looming deadline and car trouble, you probably know how important a taxi service can be. Think of it as hiring a ride for a few minutes to take you from point A to B, like you would in your car.

Of course, there is the public transport option – which is way cheaper. But buses and trains have specific routes which may be several precious minutes away from the actual destination.

So yeah, cabs are an indispensable part of the transport ecosystem. And today, we’re taking a closer look at this multi-billion industry.

History of the Taxi Business

The idea of hiring a ride dates back to 1640 when the world didn’t know a thing about cars. Folks used horse-powered carriages as the primary mode of transport.

Paris and London were the first cities to introduce carriage hire. But it wasn’t long before these two cities became chaotic after so many people tried to get into the business. And that called for regulation. After that, the industry evolved with the automobile sphere to what it is today.

Who Regulates Taxis?

If the taxi business was free-for-all, anybody could pick up disoriented tourists from an airport, charge them exorbitant prices and get away with it, right?

Clearly, there is a pressing need to keep a tight leash on cabs. So most jurisdictions have put in place a set of rules to regulate the industry. As a move aimed at protecting locals and travellers from extortion or even worse experiences.

Are Taxis Safe?

Look, there is no precise answer to this question. Your safety depends on where you are. Some countries have fewer regulations on the Taxi business. And that may attract drivers with criminal records. But other jurisdictions and taxi companies may have stringent controls in place which make them safer.

But overall, taking a taxi is somewhat safe. Drivers are usually experienced, sober and trying to make a living like the rest of us.

Is the Business Profitable?

Running a taxi business is one of the most profitable things you can do in this lifetime. Take Uber for example. They make billions, every year, in profit minus all the stress of owning millions of cars.

Lyft is another big name in the taxi sphere with a similar approach to that of Uber. And they are raking in billions too. That only means one thing – there is a lot of money in the taxi business.

So whether you decide to lease your car to an established cab company or launch a taxi app, you’ll probably make a decent amount or even strike it rich – if you play smart. Still, the business requires substantial start-up capital, a solid strategy and tons of patience.

UK Taxis and Minicabs: Tips and Tricks

London cabs are typically black, but can also be different colours, and often have different ads or banners on them. You can hail a cab by waving, or you can call in advance, whichever you prefer. Taxi drivers in the UK are famous for their knowledge of the streets, and areas, and for their incredible sense of humour, and pleasant demeanour. There is certainly no shortage of taxis, especially in public or high traffic areas, such as theatres and hotels.

Minicabs are different from black cabs or taxis, as they must be prearranged or pre-ordered. They are ideal if you have appointments that you may have booked using https://www.kry.care/ or other services. Minicabs are typically cheaper than taxis, but once again, require adequate planning. These vehicles often look just like other cars, and are usually only able to accommodate up to four people. With no distinct markings, you must keep your eyes peeled, as you wait for your minicab, and ensure that you get in a car with a PCO license in the front or back window; this ensures that it has been licensed with the Public Carriage Office for your own safety.

Booking Your Journey in a Taxi or Minicab

If the ‘for hire’ sign is lit up in a taxi, that typically means there is no passenger inside, and that it is available for you to hail. You can easily find, and access, taxis at train stations, hotels, etc. For larger groups, it is definitely advised to book travel in a minibus or bigger vehicle, as taxis can’t take more than five people legally.

Minicabs need to be reserved or booked in advance, so keep that in mind when you are organising travel. Give yourself enough time to wait for the minicab, and remember that peak times can be busy, and result in longer waiting times for passengers. You can always ask your hotel to prearrange a minicab for future dates, or times, to ensure you have a car ready when you need it.

There are different sites and apps that you can use to locate a taxi or minicab in your area. This helps you see which companies have taxis around, where the taxis are, and even order a taxi from your mobile device app in some cases.

Fares and Tips

Taxis operate on a fare basis which is typically is calculated based on distance. There is a base fare which is relatively standard across most taxis and a charge per km. The fare increases in real time so you know exactly how much your paying at all times.

There are extra charges that are possible, which include if paying by card, costs for Bank Holiday operation or after midnight.

The Taxi Industry is Making Billions Every Year: Here’s Why

Look, this may sound absurd, but there are some trips you just can’t go with your car.

A good example is when catching a plane. Driving to the airport might seem like a great idea at first, but wait till you get to the parking lot only to find all the spots taken. All hell breaks loose.

Of course, you can always reserve a parking space in or around the airport, but those slots fill up fast leaving you with little options.

So taking a taxi remains to be the most sensible option. And here’s why. You won’t need to pay parking fees or risk missing the flight while looking for parking space.

Of course, there are more situations where taxis save the day, but this example stands out. So here is a list of benefits of using cab services.

Taxis are Convenient

Most taxi companies operate for 24hrs every day. And the best part is, the ride comes with a professional driver. These people are typically very knowledgeable about traffic patterns and routes.

So whether you have an emergency, dealing with car trouble or avoiding recurring parking fees, taking a cab is your best bet.

Door-to-door Service

Another great thing about cabs is that they pick clients from their exact location and drop them off at their destinations. Plus, they arrive in a couple of minutes after placing the order – thanks to intelligent applications that automagically match clients to the nearest taxi available. That eliminates all the hustle involved with the public transport system.

<h2>A Taste of Luxury

Everybody wants to live the good life. Own a mansion on the hills and have several luxury cars in the garage. That, however, remains to be a dream to many unless they decide to hire these luxury toys and properties.

A Limo, for example, is perfect for weddings and corporate events. But you won’t enjoy having it as your everyday car. And taxi companies know this. For this reason, they buy limos and other luxury cars to put them up for hire at surprisingly low prices.

Arrive Safely in a Cab

Cab companies are known to have stringent requirements for their drivers. Some consider driving experience while others go further to check if the applicants have criminal records. So overall, you are assured of a safe ride every time you call a cab.

Here’s The Four-Part Recipe to Becoming an Uber Partner

It’s no covert that Uber and Lyft have shaken up the entire taxi industry, as their business model exploits a regulatory loophole. These two multi-billion businesses say they are rideshare services, not taxis. And that exempts them from taxi regulations. Pretty sleek, right?

The good news is, they are continually looking for partners. In fact, it’s now easier, more than ever, to pick up fairs in your city minus all the stress that comes with marketing. Take Uber partnership for example. All need to do is complete this 4 step verification process to turn your ride into a cabbie.

Meeting Uber’s Requirements

For you to become part of the Uber revolution, there are several requirements you need to meet. The first one being car standards. The vehicle should be ten years or newer, pass Uber inspection, and have all the necessary government registrations.

The driver should be over 21 years and have least three years worth of driving experience.

Seek Approval

Signing up is the easy part, just fill out a form on their site. Then attach photos of your car to accompany this personal info. However, Uber reserves the right to schedule an inspection or reject the application.

Meet Service Requirements

This ridesharing company requires you to choose a service plan depending on the type of vehicle and your preferences. Options range from UberLux for high-end cars to UberX as the basic service.

Start Driving

After meeting all the requirements, it is time to create a schedule and start turning As to Bs. Though this might not be a good full-time job, the extra cash will do you good.

Taxis vs. Uber: Who Wins?

Traditionally, investing in a taxi medallion was the most preferred investment for many Americans. Some even put in all they had thinking nothing would ever shake up this multi-billion industry.

But as it turns out, these investors were wrong. Uber, a ridesharing service, is on the verge of bringing down the cabbie business. Their solution can turn any car to a taxi and provide quick, metered and affordable transport for clients.

Traditional taxis, on the other hand, are heavily regulated. The law requires them to be painted yellow, have cameras on the rear-view mirror, display a fare structure, and have a card reader. Uber drivers need a well-maintained car, GPS, and an app – that’s it.

When it comes to pricing, Uber win hands down. They have an 80:20 revenue sharing model where the rider takes 80% and Uber remains with 20%. And that is pretty fair. But the real reason the start-up is so popular is the fact that they charge slightly less than taxis.

Overall, taxis seem to be losing this battle. Uber is only five years old, and they have an estimated net worth of $40 billion. However, some states and countries have stopped the ridesharing service from operating in their cities. But that can’t last for long.

You’ll be Surprised at How Many Legal Battles Uber has Faced

Most young people prefer ridesharing services to traditional taxis – for a good reason. They are convenient, affordable and downright innovative.

However, not everyone shares that sentiment. Some jurisdictions just can’t see sense in crippling an entire industry to please riders or service providers. They prefer replicating the innovation and using it with the cabbies on the ground.

So here are some places where Uber has been banned or has voluntarily walked away after legal battle.

Three US States

Austin – as ironic as it might seem, Uber is facing legal action in over 20 states. The most notable one being Austin, Texas where the company decided to pull out after a juristic disagreement in 2016.

Alaska – this state also had a problem with Uber’s business model, and that lead to a courtroom battle that ended in Uber paying $77,925 in fines. The company later exited the market altogether.

Oregon – this west coast state also slapped a ban on ridesharing services, but with an exception for Portland.

Four Countries in Europe

Bulgaria – Uber has also faced legal issues in Europe, with Bulgaria being the most visible case. The Supreme court of Bulgaria ordered the shutdown of Uber, citing that anyone looking to provide taxi services in that country should take on all the requirements.

Denmark also made taxi meters mandatory for all cabbies operating within her borders. And that saw the exit of Uber from that market.

London – The latest ban on ridesharing services was in London. The court claimed that Uber is not “fit and proper” for their market. But the start-up has vowed to fight back claiming that more than 40,000 Londerners depend on their services.

Newyork Wants to Boot Out Ridesharing Services

Newyork’s current taxi medallion system is failing. Driver-owners can barely meet lease agreements, and the price of medallions is teetering.

The entry of Uber, Lyft and other ridesharing services in Newyork come as a relief to aspiring cab owners and riders. But the city’s taxi industry is taking non of that. They recently engaged this free cabbie market in stormy legal battles.

Of course, the politically affiliated medallion owners got the upper hand. Alluding that everything was okay since 1930 until the ridesharing services arrived. Now, the value of this treasured medallions is plummeting.

There are roughly 13,000 taxi medallions in NewYork, and for a long time, they sold at $1 million and even more. Today, the same medallions are worth less than $200,000. And that has left many owners with steep loans which they cannot afford to service.

This inequity trickles down to riders too and that, in a way, fuels the cycle of debt. However, this problem is not going away soon. The city is tightening taxi regulation again, in an attempt to make a recap after almost running out of business.