How to Run a Taxi Business
With an increasing number of people relying on public transportation, a taxi business can be a highly profitable enterprise. Study the market to determine how similar businesses are faring. Research what customers seek in a taxi service and build a distinctive identity. Start-ups can be challenging, but potential profits are obtainable if you follow sound business practices.
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Things You'll Need
- Computer
- Internet connectivity
- Taxi Vehicle
- Vehicle License
- Business License
- Vehicle Insurance
- Business insurance
- Driver
- Driving history
- Driving license
- Business premises
- Office furniture
- Stationery
- Telephone
Instructions
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Gather information from local government regarding business licenses. Compile the documentation required to apply. Investigate which governmental authority has to inspect and approve your vehicles, and comply with regulatory requirements regarding insurance. Contact various insurance companies to obtain the best rates.
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Purchase either a new or used vehicle. Decide which model you are going to purchase by considering your customer comfort. Approach various automobile dealers, compare prices and select a model.
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Modify the vehicle with the help of a professional taxi fitter. Fit your vehicle with the top-light sign and fare meter. Modify the upholstery if required. Have the necessary communications radio equipment installed. Have your meter certified by the department of weights and measures.
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Register your vehicle. Complete the application form prescribed by the department of motor vehicles to register your vehicle. Apply for a vehicle license and an owner's permit. Purchase an insurance policy to cover your taxi.
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Fill out the application form to apply for the license to operate your taxi business. Provide details of the vehicle you're going to use as the taxi. Attach the documents specified in the application form. Complete and submit the form and wait for your taxi operator permit. Make payments towards the business insurance premium and obtain the policy document.
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Recruit a driver. Advertise for drivers for your taxi service. Conduct an interview. List prospective employees and pick a driver after verifying his driving history from the department of motor vehicles.
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Rent premises for your taxi business. Set up a telephone connection. Decide on your operating hours. Purchase necessary furniture and stationery. Prepare a log to note down details of the calls you receive, the orders you execute, the mileage and the fare collected. Retain a log in the taxi for the driver to fill with journey details.
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Tips & Warnings
Decide upon a secure place to keep your taxi when not in use.
Some bigger cities, like New York, have a medallion system that can prove to be highly advantageous if you decide to sell your business. Find out how you can qualify for this system.
You should thoroughly check the background of each driver you hire to ensure that you are employing an appropriate individual.
References
- Photo Credit Jupiterimages/Photos.com/Getty Images
