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.
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.