Are you about to start a taxi business and you want to become a successful taxi driver? If YES, here are 10 tips to help boost your business as a taxi driver.
Driving a taxi is a very good business that has the potentials of yielding thousands of dollars in profit annually if done right. Granted, a lot of people do feel that the taxi business is only suitable for people who just lost a job and are down on their last dollar, or people who have no other source of income, but this theory is no longer viable today.
That in fact maybe how the business starts for some people, but the truth remains that the taxi business is a full business on its own that has the ability to do more than pay bills for the driver.
Before you start driving, you have to consider whether there is a demand for a taxi service in your area, or if the area is quite saturated. If it is saturated, you may have to look for another location. You also have to make sure to apply for all necessary driver’s and business licenses and insurance.
With all these in place, you have to find a way to make your taxi business strive amidst the stiff competition provided by other taxi services, especially e-hailing options.
How to Boost your Business as a Taxi Driver and Be Successful
As a taxi driver, it is your sole responsibility to drive your business to profitability, as no one else would do it for you. Of course, can be working under a taxi company that provides you with clients, but you have to know that you are not the only one on their lineup, other drivers have to be considered as well.
Relying solely on company calls may never allow you to make ends meet. To avoid this pitfall, you have to fashion out ways you can boost your business and make it more profitable. Here are a few tips you can apply;
- Offer to help
In a bid to boost one’s taxi business, a taxi driver has to cultivate the habit of helping his or her customers get in or out of the car fast. If your passengers are carrying trunks and boxes they want to be loaded in the car, get down and help out, and if they have a lot of groceries they want to unload when they get to their stop, alight and help take it to their doors.
While this may sound like you are being overly kind, but the help is actually to your advantage as the faster a customer gets out of your car, the faster you can get to another customer. If they waste a lot of time loading their stuff into the car, they are actually killing your time.
- Know the area like the back of your hand
To be successful in the taxi business, you should ensure that you scope out your entire route. You should know where to be at certain times of the day in order to make more profit. Learn to avoid areas with heavy traffic gridlock and only ply such routes at nonrush hours. Even if you have to ply such routes, learn alternative routes that can help you bypass heavy traffic – that is if they exist.
- Be eager to make friends
Another way to be successful in this business is to make friends with everyone. Almost everyone would need a taxi at one point or the other, and if you are able to make friends with a lot of people, you would come first to their minds when they need to get a taxi
Again, you must ensure to make friends with your customers. When you as a cab driver reach the point where the customers are asking for you to come pick them up, then you will have truly begun the process of a much larger clientele base and a bigger paycheck.
- Get your customers in your cab as soon as you arrive your pick up point
This is another tricky point because some clients have a knack for keeping taxis waiting when they arrive. One way to get around this is to call your customer when you are like two minutes away from their destination telling them that you would arrive in the next two minutes, that could they come out and wait for you.
When you arrive, help them load their bags in the car. A good taxi driver never sits in their car watching the customers load their stuff into it. Asides from the obvious fact that it wouldn’t speak well of you, it would still waste your time.
- Always be on the go
Granted, some days are slow, but that should not be an excuse to sit around chatting with other cabbies or spend the whole day surfing the web while sitting in your cab. No, no, you should look for a way to make every minute of your day productive. You are always in competition with other cab drivers, so look for ways to best them at the game. And again, anytime you do not have a passenger in your cab is a time you are losing money, so get creative.
- Do not miss a job for any reason
It is a fact that some taxi drivers pass on some calls because the clients do not tip well, or because the trip would not earn them much. This is a very silly habit that a cab driver who wants to be successful should kick. It reeks of laziness all around.
Know that by just taking that trip you feel is unprofitable, you can end up getting another better trip at the end of that one because you happened to be at the right place at the right time. The goal is to always have a passenger in your cab whenever you are on the move.
- Never use your work hours to take care of personal business
Taxi drivers set their own hours, and as such it is easy to divert from running your routes to doing personal chores. Know that doing this would easily eat into your work time and at the end of the day you would find out that you are going home with little or nothing. You should schedule your time in such a way that nothing would interfere with your business hours. Fix your personal chores during your break or at the end of your workday, except it is something very crucial.
- Do not depend on your company for your daily runs
A smart driver does not depend on any company to line their pocketbook. You should find a way to keep yourself very busy without relying on company calls. One way to do this is to give out your numbers to a lot of people and to position yourself in a place where you can get clients frequently.
It can be in a business district where people are always on the move. The bottom line is that your company cannot give you enough clients to get you to profitability because there are other people and rules to consider too. So get your calls coming in from other sources.
- Use your social networks
Social networks work every time when they are used right. As a taxi driver, this is one way you can boost your business without relying on your parent company. Put your business out on social media and continue reminding your followers that you’re available to take their runs. Set your routes and your fares, and you might even throw in a discount if you can afford it. You would find out that you may be getting more calls than you can handle in a day.
- Use taxi affiliates
Affiliate marketing is well-loved by entrepreneurs, small and big businesses around the world because there is simply no risk involved in it. But do you that you can use affiliates to boost your taxi business?
An affiliate program does take effort and time to build the relationship, but if you get it right, it can serve as your goldmine. This is one-way drivers outsource excess calls instead of losing them. Though the revenue gotten through this method may be shared, it is much better than staying idle.
Frequently Asked Questions
What Does It Take To Be A Successful Taxi Driver?
- Good customer service skills.
- Excellent verbal communication skills.
- Good listening skills.
- The ability to work well with others.
- Patience and the ability to remain calm in stressful situations.
- The ability to accept criticism and work well under pressure.
How Do You Become A Successful Taxi Driver?
- Ensure that you qualify
- Train to be a taxi driver
- Pass any required tests
- Acquire the necessary paperwork
- Pay any required fees and receive your certification or license to drive a taxi
Can You Make Good Money As A Taxi Driver?
Yes. As of Oct 1, 2022, the average hourly pay for a Taxi Driver in the United States is $15.10 an hour. Note that some earn hourly wages as high as $27.88 and some as low as $6.73, however, the majority of Taxi Driver wages currently range between $11.30 to $17.31 across the United States.
Is Driving Taxi A Good Job?
Yes, driving a taxi is a good job, however every job comes with its advantages and disadvantages, and taxi driving is no different. Meeting lots of different and interesting people is, without doubt, the highlight of taxi drivers’ day. Nonetheless, driving for many hours each day may become boring and tiring. You may also realize that ‘small talk’ will involve many repeated discussions about things like the weather.
How Can You Make Your Taxi Business Successful?
- Research Your Industry and Market
- Define Your Goals
- Research Your Competition
- Complete Legal Formalities
- Understand how to Finance your Business
- Leverage the Power of Technology
- Have Technical Details in Place
- Identify Possible Threats.
Can Taxi Drivers Make Good Money?
Yes, the average salary for a taxi driver is $36,706 per year in the United States, and they enjoy certain benefits like Flexible schedule, Food provided, Employee discount, License reimbursement, Commuter assistance, and many more.
What’s The Best Car For Private Hire Taxi?
- Citroen Berlingo Multispace.
- Ford Mondeo.
- Audi A8.
- Toyota Prius.
- Volkswagen Passat.
- Ford Galaxy.
- Mercedes E-Class.
- Mercedes V-Class.
What Advice Would You Give To Someone Who Is Starting Out As A Taxi Driver?
- Ensure to always keep the car clean
- Try not to get too familiar with customers i.e. keep a friendly but professional relationship.
- Turn up on time and if you’re running late, call them to let them know.
- Don’t be put off by the minority of bad-mannered individuals
- Be professional and polite at all times
- Try not to disagree with people’s views, go along with them and avoid conflict; whether you agree or not.
- Know where you are going and engage with your passengers
- Invest in customer service
- Expect to work long hours but don’t overwork yourself, still make personal time for your friends and family
- Don’t work too many hours
- If possible, don’t work nights. Be polite and know your area, go home when you feel tired and drink lots of water.
- Stay professional, discreet and enjoy the journey
- Be honest and reliable, repeat business is the best business
- Drive carefully on the road, don’t use your phone whilst driving, and avoid aggressive passengers where possible
- You will need to be patient, honest, have a vast knowledge of the city/area, be friendly to people and never lose your temper in any circumstances
What Car Makes A Good Taxi?
- Mercedes E-Class
- Honda Civic
- Toyota Prius
- Volkswagen Passat
- Cadillac CT6.
- Mercedes V-Class.
What Type Of Job Is A Taxi Driver?
A taxi driver is a service provider that picks up passengers from a location and then delivers them to their destination safely, via the quickest possible route.
How Much Does It Cost You To Become A Taxi Driver?
Have it in mind that all taxi drivers are expected to have an automobile driver’s license. Driving lessons tend to cost around $50-$80 per hour but might vary exponentially depending on the school you select and the region.
Aside from that, there are no formal educational requirements for taxi drivers but they more or less have to hold a high school diploma or equivalent. A good number of states in the United States mandate taxi drivers to get a taxi license; clean driving records and background checks are sometimes necessary.
How Can You Make More Tips As A Taxi Driver?
- Anticipate your passenger’s needs
- Add a sign
- Open doors, be clean and well groomed
- Ask them what kind of music they like and find another radio channel, CD or let them plug in their phone.
- Small-talk with your clients
- Don’t act entitled
- Be honest and trustworthy
- Always say thank you
What Does The Average Taxi Driver Earn?
According to experts, the average taxi driver salary in the USA is $36,000 per year or $18.46 per hour. Entry level positions start at $24,375 per year while most experienced workers make up to $65,000 per year.
Do Uber Drivers Make More Money Than Taxi Drivers?
Yes, in major U.S. cities, Uber drivers are known to out earn their counterparts driving taxis by considerable margins
What Is A Taxi Driver Called?
How Can You Succeed As Ordinary Taxi Driver?
- Ensure that your car stays clean
- Make sure the passenger enjoys a good trip
- Safety is vital
- Read the passengers mood
- Know your routes
- Offer the passenger extras
- Remind them to leave positive feedback.
How Much Does A Taxi Driver Earn In Singapore?
According to reports, a Taxi Driver in Singapore earns around 2,540 SGD per month. Note that their salaries range from 1,270 SGD (lowest) to 3,940 SGD (highest). This is the average monthly salary including housing, transport, and other benefits. Howbeit, taxi driver’s salaries vary drastically based on experience, skills, gender, or location.
What Degree Do You Need To Be A Taxi Driver?
In the United States, taxi drivers usually don’t need any degree or formal education to become a taxi driver.
How Much Experience Is Needed To Become A Cab Driver?
There is no specific amount of experience needed to become a cab driver. All you need is the license, though the company may require you to take some kind of test to demonstrate your skill.
Why Is A Taxi Driver A Bad Job?
According to industry reports, being a taxi driver can be quite stressful work. Very long hours, lack of (bodily) motion, back issues, traffic, fare evasion, passenger threats, and appallingly small tips can actually tell on a person.
How Long Does It Take To Be A Taxi Driver?
There are no basic requirements to become a taxi driver in the United States, however, you may need anywhere between a few days to a few months of on-the-job training.
How Much Does A Black Taxi Driver Earn?
23. Which Toyota Car Is Good For Taxi?
According to reports, Toyota Prius is very good to use as a taxi. This car has been an industry disruptor and leader in hybrid technology. It is also a fan favorite in terms of taxi fleets, Uber, and Lyft drivers also.
How Do Taxi Companies Make Money?
This will depend on the business model and concept of the company and this can vary across board. Some taxi companies make money by splitting fares with their drivers, while some make money from leasing their vehicles to drivers, whose earnings depend on how many fares they get. However, both business models can be quite profitable to the savvy owner, but the best model for a company depends on the size of the fleet and how involved the owner wants to be.
Is There A Demand For A Taxi Cab Business Locally?
Yes, according to industry reports, there has been an increase in taxi cab demand in the United States and this has led companies to boost the options they have available (such as the introduction of motorcycle/bike taxi) and grow their operations to be available through mobile applications, to retain their respective market shares in a highly competitive market.
How Much Money Does A Taxi Driver Make The UK?
According to reports, the average taxi driver salary in the United Kingdom is £30,000 per year or £15.38 per hour. Have it in mind that entry-level positions start at £20,800 per year while most experienced workers make up to £41,600 per year.
What Are The Disadvantages Of Being A Taxi Driver?
- You owe your passengers a great amount of responsibility
- Not all drivers make much money.
- You don’t have a regular schedule.
- Taxi drivers have to work at night time.
- Some even have to work on weekends and holidays.
- Can cause issues in your family life
Can You Run A Taxi Business From Home?
Yes, you can run a taxi business from your home, and then subsequently move out to your own separate office after you must have gotten substantial capital. However, if you are operating from home, note that you are allowed to use it only as a base station – if drivers will come back to the house in between the jobs, the business will need its own premises – this requires planning permission.
Can A Taxi Driver Get Rich Without Winning The Lotto?
Yes, the combination of the demand and lower fares during peak hours has allowed the taxi industry to still remain profitable even in the face of stiff competition. However, as a taxi driver looking to get rich, you should know those lucrative zones of your city well enough. Pull up your windows if you must, but as long as getting rich from driving a taxi around is concerned, you will have to embrace those hot zones more frequently.
How Much Does It Cost To Start A Taxi Service?
- A new car may cost around $10,000 to $20,000.
- You can acquire a business license from the local clerk’s office for $20 to $75, and it may cost you roughly $3000 a year.
- Depending on a wide range of factors, most taxi cab insurance policies average somewhere between $5,000 and $10,000 per cab per year in the U.S., on average.
- The average cost of a taxi meter can range between $200 and $400.
- Depending on the type of installation and style, top lights may cost around $50 to $150 per cab.
Can You Use Your Taxi For Personal Use?
Yes, if you are a registered taxi driver, you can still use your vehicle for social, domestic, and pleasure purposes in addition to hiring. Nonetheless, regulations might vary depending on your local county, so it is always best to check in advance.
What Dangers Do Taxi Drivers Face, And How To Avoid Them?
- Don’t chase after people if they don’t pay as leaving the taxi can make you even more vulnerable.
- don’t give out any personal information to passengers they could use against you
- Consider getting your taxi fitted with credit or debit card payments to minimize the amount of cash you’re carrying around.
- Always trust your instincts
- Use a plastic partition with a lockable sliding window
- Keep eye contact with the customer
- Try to maintain a non-confrontational manner
- Try not to fight back if you can help it
- Stay with the cab, so you can call for help on the radio if needed
- Workplace Safety also suggests a few extra things you could try:
- Add CCTV to your car
- Use instant messaging to let people know where you are at all times
- Use deadlocks or modify car handles so they can only be opened on the inside
- Consider asking for payment upfront to avoid this situation in the first place.
Health Issues And Tiredness
- Keep up to date with your emergency procedures
- Stay alert and well, making sure you eat and rest at the proper times
Why Do Taxi Drivers Want Cash?
First and foremost, because they have to pay credit card processing fees, which are a flat fee plus a percentage of the total charge. They will also need enough cash at hand to pay for the lease, put fuel into their taxi, and not have to bother about having adequate cash to make change for other customers or have to wait for the cab company to get around to cutting them a check.
Do Taxi Drivers Pay Tax?
Yes, if you are self-employed and your net earnings are $400 or more, you are expected to pay self-employment tax on the income you report on Schedule C. Also, you may have to make estimated payments to blanket the amount of self-employment tax or income tax affiliated with the income you report on Schedule C.
How Much Do Taxi Drivers Make A Day In Nigeria?
According to reports, a Taxi Driver in Nigeria more or less earns around 109,000 NGN per month. Note that salaries range from 58,900 NGN (lowest) to 165,000 NGN (highest). Have it in mind that this is the average monthly salary including housing, transport, and other benefits.
What Should You Avoid Doing As A Taxi Driver?
- Having a dirty or shabby vehicle
- Smoking in your vehicle
- Driving badly
- Looking for a more profitable fare
- Failing to wait
- Making passengers feel uncomfortable or unsafe
- Failing to give passengers change
- Driving without a taxi license
- Not taking passengers all the way to their destination
37. How Does Ola Driver Earn?
Although it will depend on location and the capabilities of the owner, however, here is how Ola drivers earn;
- Fixed Salary: Rs. 18,000 – Rs 20,000 p.m. (P.S driver needs to complete a weekly target of 110/130 trips)
- Commission Based Salary: 25 – 30% (average 26%) of the total earning of four consecutive weeks. This effectively results to around Rs 17,000 – Rs 22,000 depending on the cab owner’s earnings.
- Per Trip Based Salary: Rs 55 – Rs 70/trip (most owners following this model pay Rs 60/trip). Therefore, a driver completing 110 trips a week get to earn Rs 26,400 (in four weeks)