The transportation industry continues to progress at an astounding pace. And with the emergence and continued success of Uber and its adversaries, the taxi industry is full of opportunities. But, the very reason that entices business owners is the very factor that makes them cautious – the competitiveness of the market. Nevertheless, taxi landscape is worth pursuing and here are four tips to start a successful taxi business and keep it running.
1. Establish the foundation
Let’s start with the basics, shall we? From knowing the state of the current market, your competitors, the challenges your business must tackle, opportunities that are waiting to be explored to your strategy for it all, doing your groundwork is essential.
Learn about your competition
How is the taxi business scope in your locality? Are there any existing providers in the area? What services do they offer? Is there a demand for a specific kind of taxi service, say, paratransit or airport transportation? These are some of the many questions a taxi owner needs to find answers about before getting into the planning process.
Research about your competition and the customer demand to understand the feasibility of your business and set the foundation for your services.
Define your business goal
Based on the research conducted in the previous stage, it’s time to formulate your business strategy. What kind of services will your taxi business provide? Whether it is an airport taxi service, paratransit service, outstation taxi service or an all-in-one business model.
Apart from this, decide how you are looking to generate revenue from your taxi business. Will you be actively involved in the operations by owning your own fleet and drivers or are you seeking to be a silent spectator by just partnering with existing taxi owners?
Set your goal at an earlier stage as this will define every other step that follows from here.
2. Settle legal formalities
Arrange finances
It’s time to raise capital for your taxi business. Most seek for a bank loan or approach private investors while others bring in their own investment. Make sure your finances are set to prepare a fixed budget for your business.
Registration and license
Next, understand the legal formalities to adhere to your region or state. Rules and regulations vary region to region and it is important that your taxi business is compliant. Right from registering your taxi business and company name to obtaining a license, make sure all the legalities are in order. It is advisable to approach a lawyer to avoid any last-minute hiccups.
Insure your business
No business is devoid of any mishaps; accidents may occur, damages may happen at any time. So, it’s always better to take precautions. Plan an insurance for your business, including your fleet and workforce.
3. Gather your fleet
Based on your business strategy, either purchase or hire your line of vehicles. Whatever your approach may be, get your fleet of taxis ready well in advance.
Most taxi businesses are known to offer a variety of vehicle choices, say Hatchback, SUVs and Sedans. So consider having a wide range of vehicles. Also, based on your taxi service, make sure your vehicle is equipped with the necessary accessories, say paratransit facilities, wifi, charging points and more.
4. Leverage technological advancement
Most taxi operators are successful at handling tech-savvy customers and multiple trip requests on a daily basis by adopting a taxi booking and dispatch system. The benefits of a taxi dispatch system are endless. Right from automating the entire dispatching process, providing the ease of booking for customers through a mobile application to using insightful data to make better business decisions, your taxi business can break through the competition with such an innovative technology.
5. Market your business
Social media is one of the most powerful platforms for marketing your business. Plan your strategy, set your message tone and interact with your customers with engaging content to spread the word. Schedule regular promotional activities to garner your audience’s attention and establish a reliable brand.