How to Start a Taxicab Company
- 1). Write a business plan for your company. If you are not comfortable doing this, you can outsource the task to a marketing agency who has experience with business plans. Your plan will include a mission statement, financial plan, competitor analysis, marketing plan and operating plan.
- 2). Visit the department of motor vehicles to find out what type(s) of license you will need to operate in your area. While you are there, ask about access permits for airports so you don't miss out on any of that valuable business. Also, go to city hall and obtain a general business license and register your business.
- 3). Purchase or lease a vehicle. You will either get a vehicle already designed for use as a taxicab, or have to modify the one you buy. It will need a meter system with display for the passengers to see, divider glass, bulletproof barriers, two-way radios and security cameras. The easiest way to find what you need is to talk to other taxicab owners and ask where they recommend you find one.
- 4). Contact your insurance provider and obtain insurance for your business. You will need accident, theft and liability, at the least. Ask about special liability insurance that covers any passenger baggage damage.
- 5). Set up a dispatch system. when you are starting, a mobile phone number will suffice. As you grow and add more cars, you can route that number to a dispatcher who will contact the cabs by two-way radio.
- 6). Advertise your taxicab company. Consider placing ads on bus benches, in the newspaper or in the yellow pages. Have business cards printed and pass them out at bars, grocery stores and anywhere else taxis are used regularly.
