Helpful Tips for Starting a Small Taxi Business
Table of Contents
1. Get to know your taxi competitors
2. Get your taxi business paperwork in order
3. Assess your taxi customer base
5. Find the right vehicle for your taxi fleet
Saturday 2nd December marks Small Business Saturday. The annual event was founded in the US in 2010 by American Express who are now Principal Supporter of the UK campaign.
Small Business Saturday celebrates small business success. It encourages people to shop and use services locally, including taxi services.
Read our top five tips on how to start a small taxi business.
Get to know your taxi competitors
It’s important to do some competitor research before starting a small taxi business. You’ll need to understand if there are others already operating, and how much other taxi businesses in the area are charging. This will help you to competitively price your taxi services.
It goes without saying, but the number of other taxi firms in the area will depend on whether your business is in a big city or a smaller suburban area.
Competition will be a lot higher in cities such as London where demand for taxis is higher. But in your local town or village, there may be no existing competition.
Get your taxi business paperwork in order
To operate a taxi or private hire vehicle you’ll need to apply for a licence. Before applying, you’ll need to have held a British or full EU driving licence for at least 12 months.
You’ll need to apply for a licence in the area you plan to operate in and once approved you cannot operate outside of that area. For example, if you are granted a taxi licence in London, you can’t work in areas outside of London.
The cost of a taxi or private hire licence can vary depending on the local authority.
You will also need comprehensive taxi insurance before you can hit the road.
Assess your taxi customer base
To determine what kind of taxi you’ll need for your taxi business you’ll need to assess who your customer base will be. If you regularly pick up tourists or do the airport run, you may need a minibus taxi or a taxi with extra boot space to accommodate luggage.
Will your business be operating in a smaller residential area? If so, you might find that your customers are slightly older and require a wheelchair accessible taxi.
Promote your taxi services
Getting your taxi business noticed is key to picking up new customers. If you are trying to appeal to a younger customer base, you might choose to advertise via social media.
It’s also worth considering a website or dispatch app to allow customers to book online. A lot of younger people are more likely to book online.
But if you are trying to target an older audience you might just rely on word of mouth and taxi rankings, that’s providing you’re a hackney license holder.
When deciding how to promote your taxi business, it’s also important to consider what payment options you will accept.
With the rise of cashless payments in taxis, some customers may be put off if you only take cash.
By providing flexible payment options, you can provide a better experience for your passengers. This in turn will lead to more people choosing your taxi business.
Whatever route you choose, make an impact in the area by offering a first-time discount and ensure people choose you over your competition.
Find the right vehicle for your taxi fleet
One of the most crucial elements of your taxi business – your taxi or taxis. Finding the right taxi is vital to your business outgoings and the wrong one could have you paying over the odds.
At The Taxi Centre, we have a huge range of new taxis for sale. Our experts can help you find the right taxi for your needs, at the right price with our taxi finance options.
Looking for an electric taxi or hybrid taxi? We’ve got you covered with our wide range including LEVC.
Contact us today for advice and for more useful articles visit our newsroom.