Are you about starting a taxi business? If YES, here is a complete sample taxi cab business plan template & feasibility report you can use for FREE. As regard starting a business in the transportation sector especially a business like taxi Cab Company could be fun, profitable and interesting for someone with business sense, perseverance and smartness.

With comfortable taxis, the right location, top-notch service and good marketing, you can serve large customers who require the services of taxi Cab Company to be able to move from one location to another for an affordable price.

It is important to note that starting a standard taxi cab business with over a handful of taxis and drivers also needs a significant investment capital, solid planning, and concentration to detail in order to keep your business profitable. The truth is that, if you are serious about starting a standard taxi cab company in any part of the world, you are expected to have done your feasibility studies and market survey before committing your capital in the business.

Above all you would need a detailed and workable business plan if indeed you want to build a successful and profitable taxi cab company from the scratch. The taxi cab company business plan template below will guide towards drafting your business plan with little or no stress.

A Sample Taxi Cab Business Plan Template

1. Industry Overview

A taxi cab cum limousine Services Company provides comfortable and private transportation via automobiles (usually sedans / cars) for passengers. Taxi services are not operated on regular schedules or routes like the usually buses or car that pick several passengers along the road. So also, limousine services are rented or hired with a driver.

The Taxi and Limousine Services industry has experienced remarkable growth over the years in the united states. The growth of the US economy has indeed directly benefited the industry as business expense accounts have grown and clients have been more willing to spend on small luxuries such as taxi and limousine rides. In addition, increased demand from corporate travelers, tourists and private households is expected to result in steady growth for this industry.

The Taxi and Limousine Services industry is indeed a very thriving industry in most countries of the world. It is a major sector of the economy of the United States and it generates a whooping sum of well over $20 billion annually from more than 338,882 registered and licensed Taxi and Limousine services companies scattered all around the United States of America.

The industry is responsible for the employment of well over 413,046 people (drivers and administrative staff members). Experts project the supermarket and grocery industry to grow at a 6.7 percent annual rate. There is no establishment in this industry that has a dominant market share in the United States.

A research conducted by IBISWORLD shows that the Taxi and Limousine Services industry is in the mature stage of its life cycle. Industry value added (IVA), which measures the industry’s contribution to GDP, is also expected to grow at an average annual rate of 5.3 percent within the next 10 years.

Within that same period, GDP is estimated to increase by 2.1 percent per year on average. Basically, the industry demand is usually influenced by disposable income levels corporate profit and domestic trips by US residents.

When it comes to advertising your taxi cab cum limousine services company, there shouldn’t be any limit to how far you can go. You could start with handbills and distribute them in cooperate organizations and public places. If you have cash you can place advert spots on Newspapers, TV and Radio, and if you don’t have enough cash you can start with the worldwide web. As a matter of fact the internet has become one of the cheapest and most potent advertising platforms.

Over and above, taxi cab cum limousine services businesses all over the world are still enjoying good patronage particularly if they have comfortable taxis, professional drivers and if they are well positioned and if they know how to reach out to their target market (corporate organizations, hotels, travels and tours companies, government and household et al).

2. Executive Summary

Metro 24 – 7 Taxi®, Inc. is a standard, licensed and registered Taxi cab cum Limousine Services Company that will based in Miami Beach, Florida – United States of America and we will have active presence in other cities such as Green acres City, Miami, Jacksonville, Clearwater, Tampa, Fort Lauderdale, North Miami, West Palm Beach, Palm Harbor, Deltona, Orlando, Palm Bay and Panama City et al. We chose to operate in these cities because we know that our services will be in high demand due to the demographic composition of Florida.

We are well trained and equipped with some of the finest taxi cab drivers and comfortable cars to service our clients irrespective of their social and financial status. Our services will involve taxi services, taxi leasing and other car services, luxury and corporate sedan services, stretch limousines and buses, SUVs and large vans rental services et al. Although our intention of starting Metro 24 – 7 Taxi®, Inc. is to offer only the above stated services, but we will not close our doors to diversification (additional services) as long as it does not affect our core services.

At Metro 24 – 7 Taxi®, Inc. we are passionate in the pursuit of excellence and financial success with uncompromising services and integrity which is why we have decided to start our own taxi cab and limousine service business; we are in the industry to make a positive mark.

We are quite optimistic that our values and quality of service offering will help us drive Metro 24 – 7 Taxi®, Inc. to enviable heights and also help us attract the numbers of clients that will make the business highly profitable. We are a company that will be dedicated to establishing good business relationship with our clients giving them value for their money and reasons for them to hire our services over and over again.

We are quite aware that in order to become the number one choice in our city, we must continue to deliver quality and highly reliable services and that is exactly what we will do. We are open to the use of latest technology in the taxi cab cum limousine services line of business.

No doubt our excellent customer service and the quality of services we offer will position us to always welcome repeated customers and handle massive deals from both government agencies, and corporate organizations.

Our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our clients.

Metro 24 – 7 Taxi®, Inc. is owned and managed by Kennedy Williams and his friend and business partner for many years Henry Sean. They both graduated from University of California and they are well – equipped with the required qualifications and experience to grow Metro 24 – 7 Taxi®, Inc. to favorable compete with leaders in the Taxi and Limousine Services industry both in the United States of America and in the world at large.

3. Our Products and Services

Metro 24 – 7 Taxi®, Inc. is a standard and well – equipped taxi cab and limousine services company that is positioned to make profit and favorable compete with leaders in the industry and we are going to do all that is permitted by the law of the United States of America to achieve our business aims and ambition. Our services offering are listed below;

  • Providing limousine services
  • Providing luxury sedan services
  • Providing chauffer and personal driver services
  • Taxi services, taxi leasing and other car services
  • Stretch limousines and buses
  • SUVs and large vans
  • Providing corporate sedan services

4. Our Mission and Vision Statement

  • Our vision is to become the number one taxi cab and limousine services company in the whole of Florida with active presence in key cities all around the State of Florida.
  • Our mission as a standard taxi and limousine services company is to develop a highly successful, profitable business which provides quality automobile transportation services in our city and to become a standard for an ideal taxi and limousine services business not only in the State of Florida but also throughout the United States of America and Canada where we intend launching our business and selling our franchise.

Our Business Structure

We are quite aware that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our taxi cab cum limousine Services Company on the right business foundation.

As a matter of fact, we are set out to build a taxi and limousine Services Company that will be a standard for an ideal taxi and limousine services industry in the United States of America and Canada. We want to build a business of dedicated workforce who will go all the way to ensure that our customers are satisfied and they get value for their money.

In other to achieve this, we aware that it takes a business with the right employees and structure to achieve all what we have set to achieve, which is why we will be putting structures and processes in place that will help us deliver excellent services and run the business on auto pilot. The success of our taxi and limousine services company will be anchored on the team not on any individual – drivers and back office staff members inclusive.

With the wide range of our service offerings, we are only expected to employ more than it is required to run a conventional taxi and limousine services business. Definitely, we will have various employees (full – time and contract staff) to man the various services offering of Metro 24 – 7 Taxi®, Inc. Metro 24 – 7 Taxi®, Inc. will employ professionals and highly skilled people to occupy the following position;

  • Chief Executive Officer
  • IT Specialist
  • Admin and HR Manager
  • Marketing and Sales Executive
  • Accountant
  • Professional Drivers (Taxi and Limousine Drivers)
  • Customer Care Executive/Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization

IT Specialist

  • Responsible for installation, repair and maintenance of GPS car tracking device for the organization
  • Responsible for writing and presenting reports, proposals, applications and contracts
  • In charge of choosing the GPC car tracker components and software to be used and specifying the requirements for the project
  • Adapts plans according to circumstances and resolving any problems that may arise during GPS car tracker installation and monitoring
  • Monitors all our taxi that are plying different routes

Admin and HR Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Designs job descriptions with KPI to drive performance management for clients
  • Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Defines job positions for recruitment and managing interviewing process
  • Carries out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
  • Oversee the smooth running of the daily office activities.

Marketing and Sales Executive

  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of relevant projects.
  • Writing winning proposal documents, negotiate fees and rates in line with company policy
  • Responsible for handling business research, marker surveys and feasibility studies for clients
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develops, executes and evaluates new plans for expanding increase sales
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps to increase sales and growth for the company

Accountant

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • creates reports from the information concerning the financial transactions recorded by the bookkeeper
  • Prepares the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the company
  • Serves as internal auditor for the company

Professional Drivers (Taxi Cab and Limousine Drivers)

  • Serves as a professional driver for the organization by driving sedan and limousine et al as assigned by the management
  • Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
  • Keeps a record of vehicle inspections and make sure the cab is equipped with safety equipment
  • Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
  • Complies with taxi driving rules and regulations as well as with company policies and procedures
  • Reports defects, accidents or violations

Client Service Executive/Front Desk Officer

  • Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the manager in an effective and timely manner
  • Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
  • Receives parcels / documents for the company
  • Distributes mails in the organization
  • Handles any other duties as assigned my the line manager

6. SWOT Analysis

Taxi cab cum limousine services business is one of the many businesses that can easily generate sales with little stress as long as they are well positioned and equipped to carry out their services. We are building a standard taxi cab cum limousine services business with the plans to sell our franchise all across the United States of America and Canada which is why we have decided to subject our business idea (company) to SWOT Analysis.

Ordinarily we can successfully run a normal taxi and limousine services business without the stress of going through the required protocol of setting up a new business including writing a detailed business plan, but because of the fact that we intend becoming of the leaders in this line of business we want to establish, we don’t have any option other than to follow due process.

We hired the services of Mrs. Lillian Jacobs, an HR and Business consultant with bias in startups to help us conduct SWOT analysis for our company and she did a pretty job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Metro 24 – 7 Taxi®, Inc.;

  • Strength:

The strategic locations we intend covering, the Business model we will be operating on, ease of payment, wide range of highly reliable and comfortable cars, limousines and SUVs, highly trained and courteous drivers and of course our excellent customer service culture will definitely count as a strong strength for Metro 24 – 7 Taxi®, Inc.

So also we have a well – experienced and qualified team that can go all the way to give our clients value for their money; a team that are trained and equipped to pay attention to details.

  • Weakness:

A major weakness that may count against us is the fact that we are a new taxi cum limousine services company and we don’t have the financial capacity for now to compete with multi – million dollars taxi and limousine services companies that are already influencing the direction of the industry.

  • Opportunities:

The fact that we are launching out in the heart of Miami – Florida, provides us with unlimited opportunities to market our services to a large number of corporate organizations, travel and tours agencies, hotels, government organizations and households et al.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they patronize our services; we are well positioned to take on the opportunities that will come our way.

  • Threat:

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power especially for luxury services like taxi can and limousine services. Another threat that may likely confront us is the arrival of a new taxi cab and limousine services company with same locations where we operate. Government policies can also pose a major threat to businesses such as ours.

7. MARKET ANALYSIS

  • Market Trends

The market for luxury services such as taxi and limousine services is driven by the growth in the economy and the increase in consumers’ spending – in essence, as the general economy of a country grows, more people will have enough financial resources to patronize luxury services such as making use of taxi can or hiring limousine as against making use of public buses, and trains et al.

Besides, revenue generated by taxi and limousine services company is driven by business and leisure travel. No doubt, the profitability of operators in this industry depends on good marketing and networking. As a matter of fact, small taxi cab companies can effectively compete with large ones because there are few economies of scale in this line of business. Research shows that the taxi cab and limousine services industry in the US is fragmented: the top 50 companies account for less than 35 percent of the total revenue generated in the industry.

Lastly, technology has indeed played a major role in this industry; especially in cutting cost and enforcing safety and monitoring measure. GPS car tracking device readily comes to mind. There is hardly any taxi cab and limousine services company that does not have GOS car tracker installed on all their cabs. It helps them in monitoring their fleets and also in planning and budgeting et al.

8. Our Target Market

Before choosing a location to launch our taxi cab and limousine services company, we conducted our feasibility studies and market survey and we were able to identify those who will benefit greatly from our service offerings. Basically those who will benefit from our service offering are households, corporate organizations, travels and tours agencies, hotels and government agencies.

Below is a list of the people and organizations that our taxi cab and limousine services are designed for;

  • Celebrities and public figures
  • Even planners (limousine rental services for wedding and social functions)
  • Travels and Tours Agencies
  • Hotels
  • The public sector; government ministries, agencies and parastatals.
  • Organized private sector
  • Households
  • Corporate Executives
  • Business People
  • Government
  • Household

Our competitive advantage

Taxi cab and limousine services business is an easy to set up business especially if you have the finance to acquire comfortable cars and the ability to run and manage a business. It means that the possibility of taxi cab and limousine services business springing up in the location where our company is located is high. We are aware of this that is why we decided to come up with a business concept that will position us to become the leader in Miami – Florida.

Our competitive edge is that we are a standard and well equipped taxi cab and limousine services company that is positioned to handle both corporate clients and individual clients.

We can confidently say that the strategic locations we intend covering, the Business model we will be operating on, ease of payment, wide range of highly reliable and comfortable cars, limousines and SUVs, highly trained and courteous drivers and of course our excellent customer service culture will definitely serve as competitive advantage for Metro 24 – 7 Taxi®, Inc.

So also we have a well – experienced and qualified team that can go all the way to give our clients value for their money; a team that are trained and equipped to pay attention to details.

For the time being, Metro 24 – 7 Taxi®, Inc. has no real competitors that can match compete with the quality of services we offer and our business offerings et al. Our customer service will be customized to meet the needs of all our customers.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups taxi cab and limousine services businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Metro 24 – 7 Taxi®, Inc. is established with the aim of maximizing profits in the taxi cab and limousine rental services industry and we are going to go all the way out to ensure that we do all it takes to attract both individual clients and corporate clients on a regular basis.

We will ensure that we leverage on our strength and the opportunities available to us in the U.S. market to generate enough income that will help us drive the business to stability. We will go all the way to explore every available sources of income in the Taxi cab and Limousine rental services industry. Below are the sources we intend exploring to generate income for Metro 24 – 7 Taxi®, Inc.;

  • Providing limousine services
  • Providing luxury sedan services
  • Providing chauffer and personal driver services
  • Taxi services, taxi leasing and other car services
  • Stretch limousines and buses rental services
  • SUVs and large vans rental services
  • Providing corporate sedan services

10. Sales Forecast

One thing is certain, there would always be corporate organization and individual clients who would need the services of taxi cab and limousine rental services companies.

We are well positioned to take on the available market in Miami – Florida and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our taxi cab and limousine rental services business and our clientele base.

We have been able to critically examine the taxi cab and limousine rental services market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Miami – Florida.

Below are the sales projections for Metro 24 – 7 Taxi®, Inc. it is based on the location of our business and of course the wide range of related services that we will be offering;

  • First Fiscal Year-: $240,000
  • Second Fiscal Year-: $450,000
  • Third Fiscal Year-: $950,000

N.B: This projection is done based on what is obtainable in the taxi cab and limousine rental services industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same additional services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

The marketing strategy for Metro 24 – 7 Taxi®, Inc. is going to be driven basically by excellent customer service, honesty and quality service delivery. We will ensure that we build a loyal customer base. We want to drive sales via the output of our jobs and via referral from our satisfied customers. We are quite aware of how satisfied customers drive business growth especially businesses like taxi cab and limousine rental services.

Metro 24 – 7 Taxi®, Inc. is a business that is strategically located and we are going to maximize the opportunities that is available which is why we spend more to locate the business in a location that will be visible and enable us to access our target market.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of Metro 24 – 7 Taxi®, Inc.

Our goal is to grow Metro 24 – 7 Taxi®, Inc.  to become the leading taxi cab and limousine rental services company in Miami – Florida which is why we have mapped out strategy that will help us take advantage of the available market and grow to become a major force to reckon with in the Taxi cab and Limousine rental services industry. Metro 24 – 7 Taxi®, Inc. is set to make use of the following marketing and sales strategies to attract clients;

  • Introduce our taxi and limousine rental services business by sending introductory letters alongside our brochure to corporate organizations, travels and tours agencies, hotels, event planners, households and key stake holders in all across Miami, Green acres City, Miami, Jacksonville, Clearwater, Tampa, Fort Lauderdale, North Miami, West Palm Beach, Palm Harbor, Deltona, Orlando, Palm Bay and Panama City et al
  • Print out fliers and business cards and strategically drop them in offices, car parks, libraries, public facilities and train stations et al.
  • Use friends and family to spread word about our business
  • Post information about our company and the services we offer on bulletin boards in places like car parks, schools, libraries, and local coffee shops et al
  • Placing a small or classified advertisement in the newspaper, or local publication about our company and the services we offer
  • Leverage on referral networks such as agencies that will attract clients who would need our customized services
  • Advertise our taxi cab and limousine rental services company in relevant magazines, newspapers, TV stations, and radio station.
  • Attend relevant automobile expos, seminars, and business fairs et al to market our services
  • Engage in direct marketing approach
  • Encourage the use of Word of mouth marketing from loyal and satisfied clients
  • Join local chambers of commerce and industry to market our product and services.

11. Publicity and Advertising Strategy

Metro 24 – 7 Taxi®, Inc. is set to establish a standard for Taxi cab and Limousine rental services business in Miami – Florida and throughout the United States which is why we will go all the way to adopt and apply best practices to promote our business. Good enough there is no hard and fast rule on how to advertise or promote a taxi cab and limousine rental services business.

The challenge is that most small and startups taxi cab and limousine services companies do not have the required money to pump into publicity and advertising. The cash they have will be reserved to take care of overhead and operational cost.

We will ensure that we leverage on all conventional and non – conventional publicity and advertising technique to promote our taxi cab and limousine rental services business. Here are the platforms we intend leveraging on to promote and advertise Metro 24 – 7 Taxi®, Inc.;

  • Encourage our loyal customers to help us use Word of Mouth mode of advertisement (referrals)
  • Advertise our business in relevant magazines, local newspaper, local TV stations and local radio station
  • Promote our business online via our official website
  • List our business on local directories (yellow pages)
  • Sponsor relevant community programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
  • Install our Bill Boards on strategic locations in and around Florida
  • Direct coupon mailing approach
  • Engage in road show from time to time in target communities in and around Florida
  • Distribute our fliers and handbills in target areas in and around Miami – Florida.
  • Advertise our company in our official website and employ strategies that will help us pull traffic to the site.
  • Ensure that all our staff members and drivers wear our branded shirts and all our taxi are well branded with our company logo et al.

12. Our Pricing Strategy

Our pricing system is going to be based on what is obtainable in the taxi cab and limousine rental services line of business, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering in the United States of America.

Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us or when they pay in advance for upward of 3 months. The prices of our services will be same as what is obtainable in the open market and it will be based on miles covered and time.

  • Payment Options

The payment policy adopted by Metro 24 – 7 Taxi®, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America. Here are the payment options that Metro 24 – 7 Taxi®, Inc. will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our services.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a taxi cab and limousine rental services business; it might differ in other countries due to the value of their money. However, this is what it would cost us to set up Metro 24 – 7 Taxi®, Inc. in the United of America;

  • The Total Fee for Registering the Business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits – $1,500.
  • Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • Cost for hiring Business Consultant – $2,000.
  • Insurance (general liability, car insurance, workers’ compensation and property casualty) coverage at a total premium – $30,800.
  • The cost of accounting software, CRM software and Payroll Software – $3,000
  • The cost for leasing standard office facility with enough parking- $100,000.
  • The cost for facility remodeling – $10,000.
  • Other start-up expenses including stationery – $1000
  • Amount needed for phone and utility deposits – $3,500
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
  • The cost for Start-up inventory (fueling, car tracking devices and accessories) – $50,000
  • The total cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Credit card machine, POS, tables and chairs et al): $4,000.
  • The cost of Launching a Website: $600
  • The total cost for financing the acquisition of the first set of cars and limousines – $500,000
  • The cost for our grand opening party: $15,000
  • Miscellaneous: $10,000

We would need an estimate of $750,000 to successfully launch our taxi cab and limousine rental services business in Miami – Florida.

Generating Funds/Startup Capital for Metro 24 – 7 Taxi®, Inc.

Metro 24 – 7 Taxi®, Inc. is a business that will be owned and managed by Kennedy Williams and his friend and business partner for many years Henry Sean. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources. These are the areas we intend generating our start – up capital;

  • Generate part of the start – up capital from personal savings and sale of his stocks
  • Generate part of the start – up capital from friends and other extended family members
  • Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $550,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have and the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Metro 24 – 7 Taxi®, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our services a little bit cheaper than what is obtainable in the open market. We are well prepared to survive on a low level profits margin for a short period of time.

Metro 24 – 7 Taxi®, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of ten years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

  • Business Name Availability Check: Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Acquiring facility with enough parking lots and remodeling the facility: In Progress
  • Acquiring of cars and limousines: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of the Needed pressure washing machines and industrial cleaning equipment, electronic appliances, office appliances and bar accessories: In progress
  • Creating Official Website for the Company: Completed
  • Creating Awareness for the business both online and in the neighborhood: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Opening party / launching party planning: In Progress
  • Establishing business relationship with key stakeholders in the industry et al: In Progress

Frequently Asked Questions

  1. How Can You Start A Taxi Business?
  • Establish the business plans
  • Establish tariffs and route plans
  • Plan for vehicle acquisition and driver hiring
  • Establish the funding
  • Acquire office space
  • Register the business
  • Get Insurance.
2. What Licenses And Permissions Do You Need To Start A Taxi Company?
  • Operator’s license
  • A ‘private hire’ license, which allows you to carry only pre-booked jobs.
  • A ‘hackney’ license, which allows you to pick up customers off the street as well.
3. What Are The Requirements To Start A Cab Business?

The requirements business owners must meet to operate a taxi service varies widely based on the laws and regulations specific to each location. But the general requirements include;

  • Licenses or Medallions
  • Taxes
  • Equipment
  • Start-Up Capital
  • Initial Overhead Costs Of Gas
  • Maintenance Cost
  • Garage
4. What Things Should I Consider Before Hiring A Taxi Service?
  • Transportation Fare
  • Background Check on Drivers
  • License
  • Vehicle Inspection
  • Reviews
5. How Does Taxi Business Work?
  • Get the license. Generally, it’s not about the car, it’s about the medallion – the license to operate as a taxi. This medallion goes for several hundred thousand dollars.
  • Get your car – you can drive yourself or rent it out.
  • Pay the fees – If a driver does not own a medallion, s/he rents it from the owner and pays a fee
  • Credit card processing
  • Register for taxes
6. What Qualifications Do You Need To Be A Taxi Driver?

No formal degree or secondary education is required to become a taxi driver. Driver’s license requirements may differ from state to state, but in many cases, taxi drivers must obtain a chauffeur license or a license with passenger endorsement. Special license classifications such as A, B, C or E may also be needed.

7. Can You Be Your Own Taxi Driver?

Yes, you can

8. How Do You Become A Self Employed Taxi Driver?
  • Hold a full driver’s license for at least 12 months
  • Be aged 21 or older
  • Provide evidence that you have the right to live and work in the area
  • Pass a DBS and CRB check
  • Pass an in-depth medical exam
  • Pass a specialized taxi driving text
9. Can You Run A Taxi Business From Your Home?

Yes, you can start a business from your home, and then subsequently move out to an office location.

10. How Do Someone Start A Taxi Business In A Rural Area?
  • Find Equipments and Vehicle
  • Get License and Insurance
  • Engage Drivers and Employees
  • Promote your service
11. How Do You Start A Taxi Business Online?

Some of your requirements include;

  • Get a significant admin panel
  • Install GPS based implementation of Maps and locations
  • Set up credit card information for hassle-free bookings
  • Install one integrated app for all the users
  • Keep solving the server problem
  • Get an integrated payment system
12. What Makes A Good Taxi Driver?

Nice Communication

Taxi drivers should communicate with their customers properly, to create a good rapport with the passengers. Without it, things can go berserk. Moreover, a driver should know what their passengers prefer, either a peaceful ride or a chatty ride.

13. How Long Does It Take To Be A Taxi Driver?

Taxi drivers must take a 6 hour defensive driving course and complete either a 24 or 80 hour taxi school course.

14. How Much Do Hackney Taxi Drivers Earn?

Right now, the majority of Hackney drivers are taking £40-£50 a shift, which doesn’t leave much at all after you have taken the money fuel out. The maximum they make is £25,000 per year – and that’s working an 11-hour shift each day minimum.

15. Is There A Demand For A Taxi Cab Business Locally?

There is a good demand for taxicab businesses because people will always need to get from point A to B. But taxi cab companies are complaining that uber and other e-hailing businesses are taking over most of the demand.

16. How Do Taxi Owners Make Money?

If you own your own taxi, you get to keep the entire fare, minus expenses. If you lease, you must pay a daily rate out of your incoming fares, plus the cost of gas.

Other ways taxi owners make money is through

  • Fare Percentage
  • Taxi Rental
  • Median Income
17. How Do You Start A Taxi Like Uber?
  • Start with market research
  • Choose the niche
  • Select the business and revenue model
  • Create your app
  • Take care of legal matters
  • Add MVP features
  • Create a promotional plan
18. How Can You Start A Successful Online Taxi Business?
  • Find out pros and cons of an online taxi business
  • Define your niche
  • Conduct a marketing analysis
  • Choose the business model
  • Get a reputable app building company
  • Find the appropriate monetization way
  • Mind to settle required legal issues
  • Add MVP to your online taxi app
19. How Many Taxi And Private Hire Businesses Are Already Operating In The US?

The Authority in the United States regulates 16 cab companies, over 3,000 taxicabs, over 10,000 taxicab drivers with a ridership of approximately 60,000,000 passengers per year.

20. What Do You Need To Start A Taxi Business In Your City?
  • Get a Hire Plate
  • Choose the Right Vehicle
  • Insurance
  • Business Plan
21. How Much Does It Cost To Buy Taxi Related Accessories?

Taxi top light, Taxi meter, taxi paint or decals on the car, etc. are taxi accessories that are needed to transform your car into a taxi. An average taxi cab meter can cost you around $150 per piece. While the taxi top and decals will cost you very less, at around $80.

But if you go for paint instead of decals for your car the cost would rise significantly. You would also need to install a radio or cell phone communications system in each cab to keep in contact with your drivers. For everything, you can budget around $500.

22. Why Should A Taxi Business Integrate Efficient Mobility Solutions?

Efficient mobility solutions are generally apps that help you run your taxi business. The taxi app solution is a concept that has changed the way we travel, making it far more secure and more reliable than it used to be.

The maps-based and GPS-based tech solution ensures that finding the way or locating routes would be as easy as thinking a thought. It also provides a lot of power to the customer which ultimately drives up the overall user experience.

23. How Do You Get More Taxi Customers?
  • Do Online Promotions
  • Have strong social networks
  • Make available online booking 24/7
  • Carry out a well-cordinated PR and Media Outreach
  • Carry out Targeted Advertising
  • Use Google AdWords
  • Exclusives Influencer Marketing
  • Offer Customers A Real Value
24. If I Want To Start Taxi Service In A Small City, Is There Need To Get Permission From Government?

Yes. No matter where you set up your taxi business, you will need to get it registered. You also need to register with the IRS to pay taxes.

25. Do Taxi Owners Pay Tax?

Yes. Taxi owners are mandated to pay a couple of taxes to the government.

26. Is A Taxi Business Profitable?

In many respects, a taxi business is like any other business. It’s as profitable as you want it to be if there is a latent demand for your service.

27. How Can A Radio Taxi Solution Improve Your Taxi Business?

Your customers can book their cabs using the app and get an estimated pickup time and an estimated fare. Your drivers can also locate the customer on their GPS map and use the app to accept or decline requests. You can transform your radio taxi business and make it profitable by getting your own mobile taxi app solution.

28. Is Driving Taxi A Good Job?

It’s a very social job and rewarding when you can help people. You can make good money if you are prepared to work hard and put hours in.

29. Would There Be Demand If I Started An Air Taxi Service, And Can You Start Small?

Yes of course, there will be demand. You must have commercial pilot license for each pilot, along with instrument ratings. You must operate under a part 135 license for the operation. Getting this from the FAA is an expensive and time consuming process. Your operation must be fairly large in order to afford the overhead of all the regulatory compliance.

You can also start the business small. You will need at least two aircrafts because it is likely that one will be needing maintenance. Trying to keep a single aircraft in a highly available posture is very difficult.

30. Why Should You Integrate Wallet System Into Your Taxi Booking App?

Mobile wallet system makes the payment transfer process in a taxi booking app really easy and quick. Thus there is no chance of delay in payment transfer and dispute between drivers and passengers. With a wallet system, your drivers and customers can share wallet balance with their friends and family.

31. What Is The Best Site Solution For A Start Up Taxi Business?

TaxiHertz is the best site solution for you to start a taxi business and run it successfully.

32. How Much Money Does A Taxi Driver Make In New York City?

The average Taxi Driver salary in New York, NY is $43,730 as of March 29, 2022, but the range typically falls between $36,323 and $53,372.

33. Can You Start Your Own Uber Business?

You can actually start your very own ride-hailing app business. If you’re driving for yourself, the cut you’d normally give to Uber would now go to you.

34. Do You Need A Special License In Pennsylvania To Be A Taxi Driver?

Pennsylvania law requires taxicab drivers to obtain a special license through the Department of Motor Vehicles. Drivers must also fill out an application for taxi driver’s certification and have a criminal background check completed through the Pennsylvania State Police within 60 days of applying.

35. What Are Some Skills And Experiences That Will Help You Build A Successful Medical Taxi Business?
  • Good communication and interpersonal skills
  • A warm, approachable manner
  • Competent driving skills and a good knowledge of the road and traffic systems
  • Good geographical knowledge
  • Sensitivity and the ability to deal with customers from various backgrounds
36. Why Is Limo App Necessary And How It Ensures Business Growth For Limousine Companies?

The limo booking app helps you derive thoughtful insights about your prospective customers, which will open up newer options to generate profit. You can collect reviews and feedbacks after each ride about the luxury vehicle, driver, ride, comfort factor, driving experience, amenities, etc.

37. How Much Is A 4 Mile Uber Ride?

The cost of an average Uber and Lyft trip is about the same. On average, the cost per mile is $2, with trips starting at $1 base rates and ranging between $1 and $2 per mile. This then adds up to between $6 and $8 per mile.

38. How Much Does It Costs To Start Up A Taxi Business Like Uber?

Apart from taxi app development, there are certain expenses that add to the cost of starting uber like taxi business. They include;

  • App Development Cost- From $5000 to $65,000
  • Licensing-$800
  • Insurance-$300
  • Gas and other incidents- $700
  • Vehicles-$15,000
  • Equipment such as Top Lights, Meters, etc.-$700
  • Calibration and Installation- $500
39. What Are The Costs Involved In Opening A Taxi Business?
  • Vehicle(s) and Equipment: One high-quality, used vehicle with all the equipment and upgrades might cost around $15k, while a new one would probably cost $20k or more.
  • Taxi Cab Insurance: 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.
  • Licensing and Registration: Licensing for your taxi business will typically cost a couple of hundred dollars or so, depending on your local licensing requirements.
  • Business Marketing Expenses: The cost of marketing and advertising will vary depending on your marketing strategies.

All things considered, the total cost of starting a taxi cab business could be as little as $20k, or it can run into millions, depending on the scale you want to start with.

40. Why Is Taxi Insurance So Expensive?

Private hire taxi insurance is more expensive than conventional cover because taxi drivers complete more miles than other motorists, and often do so in congested conditions.

41. What Are The Ongoing Expenses For A Taxi Business?

You typical ongoing expenses for a taxi business will include;

  • Gas
  • Maintenance
  • Salary
  • Tax
  • Utility bills
42. What Is The Growth Potential For A Taxi Business?

The taxi market was valued at USD 159.6 billion in 2020. The market is estimated to reach USD 327.54 billion by 2026, at a CAGR of 8.95% over the forecast period (2022-2026). Thus, the growth potential of the taxi industry is strong.

43. What Are Some Insider Tips For Jump Starting A Taxi Business?
  • See Who’s Out There
  • Figure Out the Ride
  • Get Your Papers in Order
  • Plan for Office Space
  • Line Up Your Team
  • Spread the Word
  • Observe, Make Mistakes, Learn
Ajaero Tony Martins