Career Testing
Career Testing
Career Testing
ENTREPRENEURSHIP / AUG. 27, 2014
version 4, draft 4

7 Things to Consider Before you buy a Taxi Business

Have you ever dreamed of owning your own taxi business? Imagine your employees driving down a tree-lined avenue with the windows opened on a sunny day, a warm rush of air streaming through passengers’ hair... OK, let’s take a break right here. Before you start planning a route to the nearest taxi shop, you might want to learn about some very important and valuable things you should consider before buying a taxi. Reading these tips might save you a lot of money, stress and headaches later on.

The process of buying a taxi - first-time purchase or not - can seem like an incredibly hard task. You’ve probably seen your share of taxi commercials on television and remember hearing a lot of unknown phrases like "down payment" and "APR." Even though some of this terminology may seem very confusing, once you figure it out, buying a taxi is a pretty straightforward process.

There is certainly a lot of info you have to understand before you start running to the nearest dealership. But once you learn what those acronyms mean and how taxi insurance works, you’ll be ready to make the best purchase you can. We have compiled a list of 7 tips that will come in handy when you are looking to buy a taxi.

1. Research the Competition

Make a list of taxi companies in your area and research their rates and services. Does your area really need another taxi company? Think about how you can set yourself apart from the competition.

2. Apply for Licenses

You should apply for a commercial driver’s license at the local department of motor vehicles. Register your vehicles and ask questions about any required inspections.

3. Organise Taxi Insurance

Choosing a suitable plan of insurance is probably the most important step when starting a taxi business. Decide how much cover you need: There are a few different types of cover for taxis, ranging from basic to comprehensive. Cheapest plans will only cover situations such as accidents in which the driver’s vehicle is damaged. However, comprehensive cover includes other situations such as theft, vandalism, fire, and many others. The type of cover that you should choose depends on which one would best suit your company’s needs – Covercab Taxi Insurance advice. Ideally, you should choose comprehensive cover, since it provides more protection for your company. However, more protection has a higher price tag-which is a crucial issue to consider.

4. Location

A good location is very important in taxi business. The location you choose should have enough space to storage vehicles and an office. If you are planning to serve an entire city, centrally located sites are the best.

5. Advertisements

Advertise your service. Good marketing brings more customers and more money. Newspaper ads, coupons, online banners, commercials on local TV channels – all of these things help you to establish your business.

6. Hiring Employees

It’s best to choose drivers who have driven taxis before and already have a Commercial Driver’s License. Asking for references from previous companies they have worked for is always a good idea.

7. Vehicles and equipment

Purchasing cars that have already been modified to be used as taxis could save a lot of effort and time. Check out online auctions that sell cabs. Select vehicles that are safe, clean and not very old.

Taxi driving is a rewarding job certainly, but you do have to enter into the area with an open mind and a particular mindset.

 

 

Sourced image: Taxi Sign

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