How to Start a Taxi Business in California

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A taxi business in California can be a lucrative enterprise. In cities such as Los Angeles or San Francisco, public transportation is very prominent. Many people who do not want to drive their own cars will want to use taxis as a faster and more convenient way to travel about the city. Although starting this kind of business may seem easy at first, the process can actually be somewhat challenging and time-consuming.

Things You'll Need

  • Taxi license for driving a taxi
  • Taxi license for operating a taxi business
  • Insurance
  • Taxis
  • Designated phone line
  • Communication radios
  • Secure a business permit. Contact your local government agency for the documents and permits you will need. In addition, you'll also need a license to drive a taxi. All drivers must have a permit that allows them to drive a taxi. Begin the process of getting one at the Department of Motor Vehicles in California.

  • Check out insurance companies to find affordable insurance. The price for insurance varies from city to city. You may also find more information on insurance requirements and sources at the California Department of Motor Vehicles.

  • Ask insurance companies if you need to own vehicles before you can purchase insurance. You should have at least three vehicles in top running condition in order to start a taxi business.

  • Get communication radios installed in each vehicle. This is to ensure prompt communication between your drivers. Assign a designated phone line for your dispatcher to communicate with the drivers.

  • Start hiring drivers. Make sure a driver has a permit to drive a tax, a clean driving record and has completed background checks and drug testing.

  • Maintain records of taxi business information. This includes the log of each fare and amount paid for each driver, making sure that your insurance is up to date, your taxis have regular oil changes, and that the vehicles are checked for city compliance.

References

  • Photo Credit taxi image by Brett Bouwer from Fotolia.com
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