There are many aspects to be considered and even more things required to start a taxi cab company. In this article, we will get into all the taxi business requirements whether they are legal documents, inventory for the company or any other accessories.
FAQs
- What is required to start a taxi cab business?
- How much does it cost to set up a taxi business?
- How to start an Independent Cab Company?
- How to Get a Taxi Cab Business License?
- How to insure your taxi cars
- What is the cost to build taxi service app
- How to start a taxi and private hire firm?
Inventory
Documentations
IT
Inventory
Vehicle
The first and foremost requirement for running a taxi business is to own at least one car. To buy a new car would cost you around $15,000 or more according to the company and the make and model of the car. A more affordable option is to go for used cars which fit in your budget. You can get a used car for as low as $3000 but buying the cheapest car will always cost you more in maintenance and repairs, sometimes more than a new car would have cost. So it’s advisable to go for a car in the range of $6000 to $10,000 as per your budget.
Taxi Equipments
The car just as itself will not work as a taxi. You need to accessorize it with taxi top lights, taxi meter, paint or decals with your taxi company logo. The goal is to make your taxi visible in traffic so that potential riders can easily spot your vehicle and call for your service. All these accessories will cost you around $1500 if you are going with the decals instead of paint. Choosing paint over decals will increase this cost substantially higher.
Communication System
Every taxi cab car should be installed with communication systems like radio or cell phone so that the admin/operator can contact and instruct all the drivers about the traffic and guide through the quickest routes. There is an alternate solution to this costly taxi business requirement: Taxi cab service app (we will talk about this later)
Documentation
License/Medallion
A business license is a must, regardless of the city or town you have set up your business in. In larger cities like New York, a “medallion” system is in place to regulate the taxis running in the city. Only a certain number of these medallions are issued every year, giving permission only to the holder of this medallion to operate a taxi service. If you can’t wait your turn you can buy a medallion from existing drivers who are willing to sell and this is completely legal.
Digitization
You need to build an app like Uber, Lyft that has 3 separate panels for customers, drivers, and admin. The customer will use this taxi app to book a ride and give their location of pickup and drop off. While the driver will receive the entire ride related information and a ride map which also saves money on radio communication systems. These features make a taxi cab service app an important taxi business requirement that you need to fulfill. If we come to the cost to develop a cab service app then it depends on what type of services you are selecting.
| Aspects | Higher cost | Lower cost |
|---|---|---|
| App building model | Build from scratch | Use Uber-like app clone |
| Features | High-end additional features | Only basic working features |
| Company | In-country development company | Out-sourcing |
| Platform | Native App | Hybrid App |
Conclusion
This article gives you a complete idea about taxi business requirements. All the questions whether about documentation, inventory or IT, all are answered in this article in a simple and self-explanatory manner.
So, you don’t need to rush to Google for any other information as every data given here is self-sustaining. Also, there are additional links given across the article to the topics which you might be interested in further researching.
