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Stepping into the taxi industry isn’t simple. From understanding the multiple legal requirements to establish a company to identifying marketing strategies that can help your drivers gain more customers, there’s a lot to figure out. Find everything you need to know about the taxi business, all from one place.
As a plan to start off a taxi business, it is important to segment your service type, whether it is a taxi, NEMT, corporate shuttle, or limousine, and define your target audience to which set of people you are going to provide on-demand service.
Before kick-starting, you have to study the respective market whether the targeted area is in need of such services and analyze the market scope so that you can be ready to face the hardships with all the deliverables when you go live.
While defining your target customers, you have to study the other possibilities to target different sect of people who have the potential that they can turn to be your passengers or you can provide unique service to them in near future.
As a business operator, you have to register your company and obtain operator license from the respective city to deploy taxi service for which you have to meet all the legal compliances that prompt a hassle-free dispatching.
Whether you own/lease vehicles for your taxi business, the vehicles must be color-plated (prescribed by the local authority), licensed (commercial), and insured with a secure and applicable policy before plying on roads.
You (if you are driving) and your connected drivers have to be licensed to act as a commercial driver or to drive any intended vehicles. It is mandatory as business or vehicle license do not entitle anyone to drive any vehicle.
You have to obtain commercial insurance for your company to keep your business running smoothly in any situation. In addition, your vehicles, partnered ones, and drivers must also be insured with secure policies.
In case of vehicle leasing, an agreement has to be signed and documented before you connect any cab with your company. It has to clearly describe the usage of vehicle: permissions/restrictions and leasing fee and duration.
For driver partners, you should have a contract signed by the drivers as a proof of his acceptance to drive for your company that should specify the designated service duration with the expected level of quality, behavior, and etiquette..
Buying/connecting cabs in good mechanical condition to your service is necessary for taxi business operations. Such commercial vehicles must comply with all the requirements of the rules and regulations of the respective regions.
Drivers are going to represent you in the market front. So, you need to set quality criteria for driver partnership. When it comes to e-hailing, drivers are expected to be well-mannered, skilled, professional, and polite toward customers.
Non-driving partners are those who do not drive but connect only their vehicles or connect both drivers and vehicles and manage them. Such partnering firms can be added to your organization to provide seamless taxi services.
In the technologically advanced era, a solid digital presence is necessary for businesses, especially for the highly competitive taxi business. So, build a website for your brand and acquire a taxi management software.
Social platforms such as Facebook, Twitter, etc. can be used to promote your business online. You can also do it offline by displaying the brand details, QR code to download the taxi-booking app, etc. on your commercial vehicles.
A word-of-mouth marketing would be the first-ever tool that even the giants of taxi industry had used to attract their first 1000 customers. Besides, you can also let your incoming customers speak for you through feedback and reviews.
In the prevailing scenario, taxis cannot be dispatched manually. As a business operator, you need to adhere to a taxi technology to connect your drivers and passengers, dispatch cabs effortlessly, and track sales in real-time.
The recent revolution in taxi industry makes the taxi-booking application the basic requirement for running a taxi business. It can act as a medium for the passengers to book cabs on the go and avail your service in a few taps.
To aggregate on-demand services, you have to adopt a taxi software that is packed with rich features (street pick-up, split fare, panic button for safety, fare estimate, ride sharing, etc.) as has the big players in the market.
You can have tie-ups with the local agencies such as malls, theatres, hospitals, hotels, educational institutions, and corporate offices to keep your booking portal at their facilities for the convenience of their customers to book cabs.
You can also consider connecting the other on-demand service providers in the locality where you target more business opportunity. By doing so, you can make money through commission for every ride they get through your portal.
Exclusive shuttle services to the airport, railway stations, mofussil bus stands, tourist spots, and IT park will make your business more operative. You can also add on auto services, bus charter, and more into your services.
Once you hit the market with your taxi service, you have to strategize your business in a way to stay ahead of your competitors. So, make your service a unique one for the relevant audience with required solutions.
Taxi industry has strong rivals; therefore, the newbies are in an urge to implement all facilities and convenience that their competitors offer. Step into the market with special and unique features that can overhaul your competitors.
When it comes to on-demand transportation, the service has to be highly reliable and friction-free for the passengers. As a business operator, you should be well-equipped with necessary tools to meet your customer expectation.
You have to put your drivers first. Consider getting their feedback and listen to their concerns for a smooth business flow. Besides, they have to be engaged with enough trips that can fill their day, expectation, and financial needs.
Taxi becomes a need rather than a comfort. Don’t restrict your service timing and make yours available all the time for your customer convenience. Round-the-clock service will get you more business and will be the most preferable.
Starting a taxi business may be to earn money. But, you have to provide your customers the most affordable solution. Provide offers for new users, loyalty coupons for existing customers, and flat discounts to re-engage your old ones.
Once you gain credibility in the stepped-in market, you have to consider adding other types of on-demand transportation. With taxi management software, such expansion is no matter. You can get it done easily with a few strategies.
To take a step ahead, you can have tie-ups with hotels and resorts. So that you can help your passengers book hotel rooms for a discounted business. Thereby, you can make extra revenue.
To make it more reliable, you have to provide a hassle-free service. It is possible only if you have enough resources and vehicles to handle the queue. Connect other similar service providers to yours and get benefited in all the ways.
The next step in the taxi ladder would be to expand your service boundaries. Before stepping into the new geography, you have to study the market as you did when you start the company. If you find it potential, then go ahead.
Risk analysis would be the first step for service area expansion. Even the potential areas may be highly vulnerable for new taxi operators to enter. So, analyze risks and be ready with precautionary measures while you land there.
Whatever your service type or area may be, you must have a central management system to keep things under control. Ride-hailing software allows you to manage all processes from a central system and let you stay on track.
It is important to let your drivers know that you care about their welfare. Prompt them with facilities such as flexible shift timing, educate them to use the new technologies, and whatever that can make them trust you for a better carrier.
Feedback from your taxi customer helps you to identify the best performing drivers. With that, you can categorize, recognize, and reward them with bonuses. You can even display them as the top-rated drivers to get preferred often.
Your taxi management system must have referral programs for both drivers and passengers to get benefited whenever they refer a customer or driver for your service. This will bring more customers in and brings you more business.
Connecting cabs (whether you own or lease) to your service is the critical part of taxi business operations.
A vehicle can be used for a business purpose if it holds yellow (vary for different regions) number plate with black text on it.
The vehicles must comply with all the requirements of the rules and regulations set by the respective regions with effect.
Taxi must be roomy and comfortable, and in good mechanical condition, and has to be equipped with a fire extinguisher.
It is mandatory for any taxi vehicle to be registered and insured with a secure policy before plying on roads.
The taxi driver should possess a private (India) driving license to drive a taxi (no separate endorsement is needed for commercial purpose).
Chauffeurs are expected to be well mannered and polite toward customers especially when it comes to e-hailing business.
In the prevailing situation, taxi drivers need to be equipped with certain skills and high-level attributes to handle any situation.
It is a primary duty and an obligation of the taxi driver to put customers at ease and deliver a service in a highly professional manner.
To start a taxi business, you need to register your company with the respective city to obtain a business license and deploy taxi service.
The business operator has to get an operator license (that does not entitle anyone to drive any vehicle) for running a taxi business.
The taxi startup has to comply with all the rules and regulations specified by the respective city/region for a smooth business process.
Drivers holding driving license are authorized to drive any specified vehicle. Likewise, getting license for the vehicle he owns is equally important.
Certificate of good conduct from the local police station is essential for taxi drivers to ensure that they have no case filed against them.
Taxicabs have to be registered and should get the Vehicle Registration Certificate as a proof to ply on road as a commercial one.
Cars used for a business purpose must be insured that has to cover vehicles against damage, theft, and any claims brought by passengers.
Taxi will be issued with relevant permit to be operated as a commercial one in any permitted region(s).
Driving license, an authorized document, is mandatory for drivers who want to connect themselves with taxi service providers/aggregators.
The drivers must get a certificate of good conduct from the local police station to ensure that they have no case filed against them.
A vehicle lease agreement has to be signed before you connect any cab with your company if you are leasing it from any third party.
The leased taxi has to be an insured one with a policy that should cover vehicles against damage, theft, and any claims brought by passengers.
Taxis have to be registered and should get the Vehicle Registration Certificate as a proof to ply on road as a commercial cab.
As per taxi regulations, the leased taxi must have a valid permit to be operated as a commercial one in any permitted state(s).
Here are some specific locations where your drivers are guaranteed to receive more ride requests.