The taxi industry is one of the most competitive out there. That being said, there’s always room for competition and if you’re able to set yourself apart and offer an excellent service then there’s no reason you can’t run a very successful business.
Below are some of the most important things to consider when setting up a new taxi firm.
Location
The location of your office is extremely important. The first thing you need to decide is whether the office is going to serve solely as a base for your drivers and a place to take calls; or whether you’re also going to accept walk-in customers.
The reason the location of the office is important is not just because of how easily accessible/visible it is, but also because of the range you’ll have if using two-way radios to communicate with your drivers. A location that’s higher up will have much greater reach than one that’s in a dip.
The best location for an office, especially if you want to attract walk-in customers, is one that’s on reasonably high ground and also in a fairly busy area that’s likely to get a lot of foot traffic in peak times.
Vehicles
Another key decision to make is regarding vehicles. If you decide to use your own vehicles then it will of course require a much larger initial investment. You’ll have to pay for the cost of the vehicles themselves as well as the tax, insurance and licencing plate.
The alternative to this is hiring owner drivers who have their own vehicles. This is a much cheaper option and allows you to expand much more easily. It’s also possible to use a combination of your own vehicles and owner drivers.
You should weigh up the pros and cons of both. Don’t forget that when using your own vehicles, they’ll need to be licenced by the local licensing authority so find out if there are any restrictions as to what type of vehicles can be licenced in your area before buying any cars.
Drivers
When hiring drivers, whether they’re owner drivers or going to driving your vehicles, you should be very selective. Hiring drivers that are unreliable and/or inexperienced can have a very detrimental effect on your business.
Most taxi firms will only hire drivers that are 25 years or older and who have a clean driving licence and little-to-no insurance claims. This will not only ensure that your business runs smoothly but also lower the cost of your insurance.
If you hire owner drivers then you’ll need to be sure that they have the required level of insurance to drive legally. If you have numerous vehicles then you can insure them under a taxi fleet policy to save time and money.
Insurance
Insurance is a must for any taxi firm. You’ll want to ensure that your premises are covered by a good insurance policy for theft and structural damage.
You will also need the correct insurance for private hire use or public hire use.
There are many excellent providers of business insurance, who’ll be able provide cover for your premises and vehicles in a combined policy.
