How to Start a Taxi Company

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How to Start a Taxi Company

If you enjoy driving and working with people, knowing how to start a taxi company might be something you want to do. Though starting a taxi company might require a relatively large investment, returns can quickly add up and many taxi companies expand within their first year. Starting a taxi company requires good management skills, a smart marketing plan, and compliance with all local legislation, so read the following steps to learn how to start a taxi company.

Steps

  1. Investigate whether there’s a need for a taxi company in your area. In smaller towns, the demand for taxis usually isn’t so high, so considering a different location to start a taxi company might be a wise choice.
  1. Determine your niche. Though most taxi companies cater to all types of customers, there are those that cater to high-end clientele such as politicians, diplomats, and executives. Other taxi companies offer adapted vehicles for the physically impaired, while yet others provide green taxis for environmentally-conscious customers.
  1. Construct a solid business plan that includes your start-up costs, management strategy, marketing plan, and expansion plan. Have an accountant review it for additional advice.
  2. Apply for a loan from your bank or seek funding from private investors to raise the capital you need to start a taxi company.
  3. Apply for a commercial driver’s license at your local DMV.
  4. Register your taxi company with your city to obtain your business license. Also apply for an employer’s identification number or EIN if you plan to hire other drivers.
  5. Purchase at least 1 vehicle that is modified for use as a taxi. Purchase taxi meters and toplight signs.
  6. Register your vehicle or vehicles with the DMV. Unless they are licensed for commercial use, you may not use them as taxis.
  7. Choose a location for your taxi company. Make sure it has easy access to all major routes in your area and enough parking spaces to safely store all your vehicles.
  8. Purchase property, comprehensive, and liability insurance for your taxi company. Insurance will protect your company in the event of damage, theft, accidents, or lawsuits.
  9. Advertise your taxi company on flyers, in local publications, and on the Internet. Add your taxi company to tourist websites, and other informational sites.
  10. Interview and hire drivers who are reliable, polite, and possess their commercial driver’s licenses.
  11. Print business cards to give to customers after their ride.

Reference: http://www.wikihow.com/Start-a-Taxi-Company

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