The taxi business has undergone several changes over the years, and starting in this business means having to take into consideration that we now live in a highly digital era. The market has seen an increase for on-demand taxi apps and private hire. Regardless, be it the traditional taxi or private hire, entering this business is still worthwhile.
Being hired as an independent contractor gives you the flexibility to choose when, where, and how often you work. To ensure better earning potential, remember that working evenings, nights, and weekends are likely to be the most lucrative. Therefore, be well organized and revise your schedule to include not only the best times to work, but also the prime working spots.
Bear in mind, most of your time will be spent in the car with people from all walks of life passing through, so it is essential to be friendly and comfortable enough to interact with different people.
Find your Niche
As already mentioned, this is an ever-changing market that has become highly competitive. Finding your niche is key if you’re going to stand out. As you can guess, bigger cities are saturated with taxis, while more rural areas need to improve their services. Could this work for you?
Whatever you decide, consider how feasible and convenient it is for you as a driver. But here are some ideas to kick-start your research:
Marketing your services solely for airports or a key transportation route (i.e. train station), could be a good way to go. This would require specific licences and due to constant supply of customers, you may find yourself with a high number of competitors. Also, investing in the right car for these services is vital, as often you will transport people and their belongings. Perhaps a larger car (like a Mercedes M8), tailor-made for professional drivers with plenty of space, would be the most appropriate for this type of service. Companies such as Cab Direct vouch for its quality and dependability – ensuring total comfort for your passengers.
Another niche that is yet to be explored is a female only taxi company. This business is particularly male-centric, so your chances of success are potentially quite high. This service would be ideal for female passengers who feel uneasy travelling in a taxi alone with a male driver.
Rather than starting from scratch, consider acquiring an existing business for sale. Granted there are many things you will need to look into such as: turnover, why is the business up for sale, and will you have enough money to purchase it?
Do your homework and look at where the gaps are in the market. Find ways in which your service will be an improvement and not just another taxi company.