Is a Taxi Cab Startup a Lucrative Business Opportunity

If Uber and Lyft have taught the world anything it’s that ridesharing, taxing, and chauffeuring are a goldmine of opportunity. People need to get where they are going, and with more people in cities unable to have cars of their own the need for taxis has only increased.

That being said working as a private driver is not a slam-dunk way to make millions. As in any industry to make that kind of money you need to work your way up to a company that you own. You can start by driving a cab that you own, and then go on to own a fleet, then have multiple fleets in the big cities.

In every situation, however, you will want to work out ways to reduce your operating costs as much as possible and increase your bookings. With these tips you can make your taxi business far more lucrative.

Opt for Hybrid or Electric

Taxing people can bring in a great wage, even if you operate independently. Where there may be trouble, however, is in your operating costs. If you are driving an old model that has terrible mileage, then your costs will eat right through to your profits and income. If the cost of fuel has been severely affecting your bottom line, then it’s time to upgrade. The Cab Direct taxis for sale are direct from the factory, so even with electric or hybrid models you can save on purpose-built taxis.

When it costs very little to run your vehicle, more of each fare will go into your pocket. This also applies if you manage a fleet and drivers for private hire. When your drivers get to take home more, the chances of you keeping the quality professionals that make your business great increases. Not only that, but hybrids and electric vehicles typically offer a smoother ride, which is something many passengers enjoy.

The More Lucrative Runs

There are a few different runs or routes that will typically earn you more. Nights will earn you more, particularly during the weekends when people are trying to get home after a night out. Not only is there a lot of business to be had, but you can usually charge a higher rate.

Another example of a lucrative run is to take people to and from the airport. You can charge set rates to appeal to customers and encourage more to book you direct. If you plan accordingly, you could ferry people to and from the airport all day and earn a good hourly rate while you are at it.

If you want to take on short runs, consider operating in dense city centers, particularly around the tourist and financial districts.

Have an App

If you work as a private chauffer and have multiple clients that you work exclusively for, then create an app or use an existing solution. You want your customers to be able to book trips and schedule them in just a few clicks without having to call you (unless they want to).

The same applies if you manage a fleet. In this case letting passengers book through your app gives them peace of mind, additional safety features, and more payment options.

Overall, an app will make it easier for you to be booked directly, and for you to offer a higher quality service overall.