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Taxicab Business Idea

Learning how to start a taxi service is easier said than done. The desire alone isn’t enough. Even if your town is sorely lacking in taxi service, a lot needs to be done before you can start your own enterprise.

Still, the dream is achievable – you just need to make sure that you go about everything the right way. The chief concern when you start a taxi service involves licensing and other regulations. If your taxi business isn’t properly licensed, it’s never going to get off the ground. The following information will give you basic knowledge about how to start a taxi service.

What You’ll Need To Start A Taxi Service

You can’t run a taxi service without having reliable taxicabs, so the first order of business is procuring them. A part of the taxi cab licensing process in many states involves an inspection of the vehicles that you’re going to use as taxis.

Therefore, you’re going to need to invest in quality vehicles. You’re going to need a location for your taxi dispatch headquarters, too, and that’s going to require a considerable amount of money. Before you can get the ball rolling on your taxi service, then, you will need to come up with startup capital. Whether you get it through friends and family – or through business loans – it’s absolutely imperative that you have enough cash to get started.

Special Training and Licensing

You and your taxi drivers will all need to have current and appropriate drivers licenses before you get started. It also helps to be extremely familiar with the areas that you’re going to service. Still, licensing is going to eat up most of your time when you’re getting a taxi company off the ground. One of your first stops should be the DMV office. There, you can find out what’s involved in obtaining a license to drive a taxi.

Taxi licenses are called different things in different states. In New York City, for example, taxi licenses are called TLC licenses. The TLC stands for “Taxi and Limousine Commission.” Once you know what needs to be done about licensing your taxi service, you need to find out who’s responsible for regulating it. City hall is a great place to start, so you’ll want to include a trip there. Most likely, your state will be responsible for regulating and licensing taxi services. Usually, it’s done by the Department of Transportation.

Finding Customers

When you’re learning how to start a taxi service, one of your primary concerns has to be finding customers. Think about how you usually find taxis. In urban areas, you probably just scan the streets looking for them. If your taxi service is in an urban area, make sure that your cabs really stand out and that your business phone number is prominently displayed.

In suburban areas, place billboards and other advertisements around the area. If possible, advertise at local airports, too. Online advertising isn’t a bad idea, since people are more likely than ever to conduct Internet searches for cab service.

Growing Your Taxi Service

Most people who want to learn how to start a taxi service initially plan on doing everything themselves. If things take off, though, they find that they have more work than they can handle. This could be a nice problem to have. If you find yourself growing quickly, you’re going to have to expand your operations. Investing in additional taxis and hiring a few drivers is the best course of action.

You should research other local taxi businesses, too, to get inspiration for expansion ideas. In addition to growing your fleet, you could also specialize in niche transportation services such as limousines, executive transportation, party buses, and other unique taxi services.

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