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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..