Starting a Taxi Business

People started using public transportation in a higher rate because of sky rising gas price, unavoidable traffic congestion and growing environment pollution. Current generation has calculated the time and money spent on everyday transportation and decided to leave their car back home or at nearby railway station while commuting to office or downtown. Hence the utilization of taxi cab service has increased over the time.

A taxi business is a potentially profitable venture that you can invest on particularly if you live in the city and there are plenty of people who need the services of cabs. The taxi business is also a good business idea especially nowadays that people are already acknowledging the advantages of using public transportation over driving their own cars.

taxi business

If you are interested in a taxi business, here are some of the things that you will be interested to know:

The Taxi cab

Taxi cabs are your most important requirement to start a taxi cab business. It will be up to you to decide what car model you will use but it is best to inquire first from your licensing agency because there may be particular types of car that are required for use by taxi businesses. Operators of taxi businesses also have the option in choosing whether they will buy second hand cars or purchase new cars for their taxi business. If you prefer to use new cars for your taxi cab business, it is important that you understand it will require you to have more start up capital. You may, however, check out financing programs that you can avail of when purchasing your taxi business vehicles. Maintenance of taxi cabs will make up a bulk of your taxi business expenses so it will be wise to find a mechanic who can repair and provide maintenance of your taxi cabs on a regular basis.

Other Requirements

You will be required to secure a business permit before you can start the operation of your yellow cab taxi business. Other legal requirements to start a taxi business may vary from one place to another so it is best that you contact your local government agency for the complete list of documents and permits that you need. Operational requirements for a taxi business, however, are the same. You will need a garage for your yellow cab taxi business where you will keep taxi cabs that are not in use. You will also find it helpful to set up a hotline so it will be easier for people to contact your company when they need the services of a taxi cab business. You also need to hire honest and dependable drivers and dispatchers. Make sure that you will be hiring drivers who can take good care of your cars and who have the necessary license to work and drive your taxi cabs. Make sure that you also provide your drivers with the necessary insurance.

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530 Comments

  • khalid alsalmi said on June 13, 2008
    Dear Sir,
    can you provide me with any research on taxi services in the Arabian gulf particular in Oman as the service is very poor even with big demand . khalidalsalmi@hotmail.com
  • elouise said on January 5, 2009
    Need any info in starting a taxi service, where do i go for the meter??South Africa. Thank you
  • Marie said on January 19, 2009
    I want to own a cab company in a small town. I also want to add a service for old people that they can get around to pay their bill. how can i offer both of these services in one. Thank You Marie
  • Ann said on January 21, 2009
    My friend and I want to start a TAXI BUSINESS, in Philippines around Metro Manila. Is it possible to help me what is the probability of having this business feasible and saleable to Filipinos, knowing the availability of other public transportation like MRT and LRT which are a lot cheaper compare to taxi. Thank you in advance
  • jay omila said on February 9, 2009
    please give more information on how to start a taxi business, its pros and cons. thank you
  • Joseph Kyama said on February 12, 2009
    I need a proposal for starting taxi business in Kenya-Nairobi. Bank will be the Financier.
  • rhod coronia said on February 19, 2009
    kindly give me the agency how can i have a permit to operate taxi. thank you & God bless.
  • fatima iguchi said on February 26, 2009
    i want to buy 2nd hand taxi but where?please give information on where to buy. thank you very much
  • Onofurho Obor said on March 17, 2009
    I have longed desired to start a taxi/door 2 door delivery company, in a little state in Nigeria, and i intend to start small and Grow big considering the financial state of the world economy, please can u let me in on the pros and cons. Thanks
  • Serena Lindner said on March 19, 2009
    We have started a taxi business in a small town 10 miles from a large city. We cater to senior citizens, but we need to get a vehicle for handicap customers. Wheelchairs, scooters. etc. Is there money available for this kind of purchase? Are there grants and funding out there and how do we go about finding it?
  • Suzgo Mhango said on March 27, 2009
    I want to start a Taxi business in the capital city, Lusaka, Zambia. I need to come up with a Business proposal for the business to convince my investors for this business. How can my proposal be like.
  • Sam beginner adviser said on April 4, 2009
    Myself (Australian) and another expat (British) have started our own unique taxi company here in Ulaanbaatar, Mongolia. As a developing nation there are many concerns with taking taxis, especially within the expat community eg: overcharging/robberies/dangerous & drunk taxi drivers etc. The community response we have here from both Mongolians and the expats is that we are providing a SAFE taxi service that not only everyone wants but also one that everyone NEEDS. This is the key to our growing success. Now we are looking to sell the idea to others so that they can provide the same unique yet affordable taxi business in their own cities/countries. The overhead costs are small, with the drivers being owner/drivers, which in any developing nation are easy to find - including GOOD drivers, which is what we have here. We will provide the business model, which is then simply adapted to your city. For further information feel free to email me.

    sembawangsam@hotmail.com || Consultant

  • lee said on April 14, 2009
    which would be recommendable a new car or second hand? Would you be able to give me some mechanics in controlling the cab business operation or some common concern/problems starting this kind of biz?
  • GEORGE said on April 28, 2009
    this comment is direct to Sam the Guy in Aussie. I am interested in your note. is there a way i can contact you for the free information on how to own a taxi business.
  • Brandon said on April 28, 2009
    Do i have to use a meter? or can i have set rates from city to city times the number of people? Also what vehicle would you recommend to brand?
  • Aswell Lufuno Alli said on April 29, 2009
    How can i get the charter permit where do i go when i want to apply for it because that thing i want for now so that i can be able to get finance please help me if you can as i'm real dieing to be in this business thank you. Yours Aswell Alli
  • Carol Hill said on April 30, 2009
    I need any info you have on starting cab company also a couple of buses. I don't know much so any help would be appreciated. email chill.37302@yahoo.com
  • ashok reddy thontla said on May 9, 2009
    how to get finance for buying cars and suggest some places to run cabs in Andhrapradesh
  • Olusola Omole said on May 16, 2009
    I am going into a partnership taxi cab business in Manchester and she has no capital to put in and all the capital has to come from me. She seems passionate enough though. What advise can you give me in terms of start up cost (2 cars and 1 van to start), weekly income, profitability and viability. Many thanks
  • anthea said on May 18, 2009
    i need to know what i need to start a taxi service. it will basically be funded by contracts. what do i need and where do i start???
  • Heidie said on May 25, 2009
    I would like to get more details on how to start a cab business and where can a person get assistance.
  • Arnulfo Gonzalez said on June 1, 2009
    I would like any type of information on requirements to start a taxi company in Texas (Dallas).
  • Maria said on June 4, 2009
    I would like to start a taxicab- or limo service in Los Angeles and need to know more details and how to start?
  • joaquim carrilho said on June 5, 2009
    what is needed to start a taxi company in vaal triangle, south africa.
  • refilwe matakule said on June 9, 2009
    please advice on where i can get funds for starting cab business in gaborone, botswana
  • goodman said on June 12, 2009
    I AM DISPRATELY LOOKING FOR A PUBLICATIONS OR DOCUMENTATION FOR TRAINING TAXI DRIVERS AND TAXI AGENCIES ON HOW TO OPERATE A TAXI CAB BUSINESS IN MY COUNTRY {LIBYA} PLEASE HELP..THANKS
  • kencho wangdi said on June 18, 2009
    i want to buy Maruti suzuki wagnoR, is good or not. Some people said C P joint is problem but i don't know, can you solve me this is true or not sir/madam
  • jonathan bangayan said on June 20, 2009
    may i ask how much will i be needing to start up a taxi business. i'm from manila, philippines. i need your expertise to guide me or maybe give me some pointers on how to run a taxi business. thanks so much
  • Robert Stephens said on June 22, 2009
    Can anyone help on starting a taxi business in maryborough Qld, Australia. thank you Rob
  • Erard said on July 2, 2009
    Can you please send me some information on how to start a taxi business in South Africa - Where to register, how to register and also training for Taxi driver and where to resister him. Thanks Erard
  • Maish said on July 3, 2009
    I am establishing a tour company in Kenya and you all guys can play a big role in marketing my company in America, Europe, Australia, Asia and Africa. Kenya is very famous in all these places. We can share profit on every booking you send to my company. Any one interested, My email is tours.safaris@yahoo.com
  • VIJAY GUPTA said on July 3, 2009
    Dear Sir/ Madam, Your assistance is requested. I am interested for Business in Taxi Business Class in Melborn or Brisbon.

    Please let me know about procedure in details and investment involved in Australian Dollar.

    An early response will be appreciated.

    With Kind Regards, For Azzieon Impex Pvt. Ltd. Vijay Gupta, Director. +91-93176-11945, Website: www.azzieon.in
  • Sam beginner adviser said on July 7, 2009
    The Safe Taxi Company, a members-only prepaid taxi service operating in Ulaanbaatar, Mongolia is looking to sell our unique taxi service business plan to any interested parties. Full ongoing support will be provided, and the name Safe Taxi will also be available as part of the package. This business is most suited to developing nations, especially those with large expat communities who have difficulties with regular taxi services. For more information please email me at: sembawangsam@hotmail.com

    sembawangsam@hotmail.com || Consultant

  • Cbehmlander said on July 12, 2009
    Need Information for set up in the state of AZ.
  • ga. said on July 24, 2009
    i will like to be an independent cab driver in Virginia, can you please tell me where to start. thank you.
  • Timo said on July 25, 2009
    Hi, i need taxi information in Georgia (country Georgia, not state) there is a high demand on taxi service... but market research is very hard.
  • Audrey said on July 30, 2009
    Hi, I live in Harrisburg, PA and I am thinking of the taxi business. What if I want to have my own style for a taxi car? Can I pick my own model of car and color? Please email me whatever you can on this subject and whether it is profitable to have a taxi business..thanks
  • proctor said on August 1, 2009
    how much is the license and permits to legally operate a taxi service in Pennsylvania
  • Liam said on August 3, 2009
    Hi there! Could you provide me with information on starting a taxi service / company please.
  • Deb said on August 8, 2009
    I would like to start a taxi service for the railroad. Could you provide me with as much information of how to get started please.
  • AYODELE EMUND said on August 9, 2009
    Can you please send me some information on setting up and starting a taxi service company in London, South East? Cost of license and insurance. Is there any funding?
  • paul said on August 12, 2009
    Bula from fiji[south pacific] can you please inform me of any interested partner who is willing to partly fund my taxi business. I have 2 cars running and another 3 are yet to be purchased. my fleet can increase to 30 cars depending to development in and around where business is now located.
  • BENNY said on August 13, 2009
    I want to start Taxi business in Portharcourt City, Nigeria. can you help me providing information on how best to operate especially since I am going to be using other people to drive the Cars.
  • Eriati said on August 14, 2009
    I need all information on taxi service business as I really want to do the good service to people of My loving country "Kiribati" to serve them to travel from one place to another.
  • Khithi said on August 20, 2009
    Please help, I have just registered a Taxi business, and urgently need finances, I am in Johannesburg, South Africa. Please tell me where do I go for all the legal procedures that I need to follow, to run a legal business in my country.
  • Christine said on August 21, 2009
    i want to start buy a taxi cab and let someone drive it for me. What are the legal procedures?
  • John Crawford said on August 22, 2009
    I would like to start a taxi service, and need to know the legal procedures i need to go through, and what is needed legally in South Carolina. I would be grateful for advice asap. Thank you, John Crawford
  • Thompson beginner adviser said on August 25, 2009
    Hello Everyone, I feel obliged to acknowledge the brilliant ideas and questions stated in this thread "Taxi Business".
    Taxi business is a tricky one for a number of reasons. In developing nations, taxi operators are rebelled as criminals especially those operating at night. The reason being that of self conduct towards customers and general public at large.
    One may ask, how then can we make taxi business to be a business of esteem in developing nations? My only answer to the above question is to invest in people you hire to operate your cabs through education. What type of education? Customer relations is key to any business. When you are hiring the drivers, it is important to let them know of the vision of the business by holding in doors workshops. Provide training in how to handle customers and discussions they may have during the journey while in a cab. This builds a data base for a wide clientele and in turn produce a house hold name which define a brand name.
    Owners of the business have to formulate a good taxi business model that will produce a culture within a company by employees (drivers). For more operational strategies for tax business, please contact me at the e mail below: t.chima@hotmail.com

    T.CHIMA@HOTMAIL.COM || Taxi Business Consultant

  • koko said on August 26, 2009
    I'm looking for a serious minded business person who can partner with me in starting & running a corporate Taxi business in Port Harcourt(oil city)Nigeria. There's large demand for this. Anyone who's interested should contact me through my e-mail or call +2348036490393
  • CHARLOTTE L SANDERS said on September 6, 2009
    I would like to start a taxi service, and need to know the legal procedures i need to go through, and what is needed legally in Goose Creek, South Carolina. I have been driving an 18-wheeler; Owned by my own trucking company. I had to give up my truck because I couldn't afford the monthly note anymore. I have my an mc# already. Do I need to get a new one or do I need one at all? I would be grateful for advice asap. Thank you, Charlotte Sanders
  • Johnny White beginner adviser said on September 8, 2009
    Anyone needing information for starting a taxi franchise in Nashville, Tennessee contact us at 615-742-3030. ask for Johnny, Robert or Brandon

    amctaxi@aol.com || Cab Business Consultant

  • Chris said on September 10, 2009
    I am looking into starting a small town taxi service where I would pick up drunk people from a bar or restaurant and driver their personal car home. I was just wondering if there was any information out there that could help me to get started with this business.
  • Tina said on September 11, 2009
    I am looking at starting a Cab Business here in Mombasa Town. Could you kindly help in providing information on how best to operate this business as i am going to employ a driver. Will really appreciate your help on how to come up with a proposal with a similar venture.
  • Nathan Zillges said on September 16, 2009
    I am looking to starting my own cab business to run in a county where the cab service is horrible. how can i do this and work around the licensing for it. thank you
  • faye said on September 18, 2009
    I want to start a car service business in homestead florida but do not have the first clue where to begin. could someone please help me
  • mr.lombardo said on September 21, 2009
    I currently live in las vegas, nv. I was a limo/limousine supervisor/Dispatcher/Safety officer and have been around the transportation business for over ten years. i am now thinking about purchasing a garage what would it take for me to get a couple cabs on the road. Thank You anything would help..
  • Carmela said on September 24, 2009
    My husband and I have a flourishing taxi service for people who do not drive. We are currently using 2 older vehicles and and we are looking replace them with more reliable vehicles that also can carry 7 passengers and packages etc. Where can we obtain financing if we have poor personal credit.
  • kim marzouk said on October 14, 2009
    i'm a taxi cab driver for a long time just i need to get shift from company or any one need driver
  • Duraie said on October 17, 2009
    Can you please send me some information on setting up and starting a taxi business in Harare, Zimbabwe? The steps to get the permits to start operating, the costs. Registering the 15 seater toyota hiace.
  • Sherry King said on October 17, 2009
    How do you start? Where do you get information, laws, regulations, and license? This is a small town but I feel this is needed. Thanks.
  • Leo beginner adviser said on October 19, 2009
    I have been in the taxi/limo business for the past 5 years. My company located in Dallas tx, i found it very inexpensive and cost effective to hire russian web designers to design and promote websites on the net to generate business for my company. One of my websites is www.FriscoTaxi.com I am open to discuss and share ideas. Also if someone needs help, will be happy to help with ongoing operation support of taxi business. direct your correspondence to Leonid31@gmail.com

    leonid31@gmail.com || Taxi Business Consultant

  • ROBERT LULE said on October 22, 2009
    i want to start up a taxi business in the middle of the city in Uganda. how ever there are so many people doing that line of business in this country, How do i beat the competition and how do i make sure the drivers pay my money in time with out any hustle or cheating
  • peter kadaji said on October 26, 2009
    In rural Kenya motorbikes have edged out cars in the taxi biz. I want to venture in the same industry any ideas are welcome.
  • jamie wilkins said on October 27, 2009
    I would like to start a taxi service in lumberton, nc. however i am not sure as how to calculate cab fairs for this area or any other area for that matter what formula is used to determine how much to charge patrons? thanks !!!!
  • Thomas James-Beltrametti said on November 2, 2009
    Hello everyone, I have a rare opportunity to open a small business through the Veterans Affairs funding (thanks tax payers..seriously). I am interested in finding a small business like a taxi service. I am seeking intelligent and factual information, suggestions, and concerns from you, the entrepreneurs ! Thanks
  • wendell holmes said on November 11, 2009
    i want to start up a small private taxi service I was wondering if it was a small starting business would it cost more and do i have to go through less procedures
  • othmane said on November 13, 2009
    HI ALL I WOULD LIKE TO OPEN A WHEELCHAIR ACCESSIBLE TAXI COMPANY IN MY COUNTRY OVERSEAS( ALGERIA } I NEED A LOT OF LETTER OF SUPPORTS AND SPONSORS AND HELP I USE A WHEELCHAIR FROM 1970 TO TODAY FROM POLIO HWEN I WAS 3 YEARS OLD. THANK YOU ALL FOR YOUR FUTURE HELP AND SUPPORT AND YOUR TIME. OTMAN
  • vannessa said on November 14, 2009
    i have taxi business for sale in a small country town in Australia. If anyone interested please write to me.
  • Thomas said on November 14, 2009
    I would like to attract more customers in my taxi transport business in Mombasa Nyali Estate. The other taxi drivers don't like me at all and I guess it's because of selfishness. How do I survive in this situation? I have a big responsibility and an obligation towards my family and I highly depend on this business. Someone out there "PLEASE HELP"
  • TOM beginner adviser said on November 15, 2009
    UNISAM-ABLE TAXI SERVICE, affordable, reliable, comfortable (door to door non medical non emergency elderly/handicapped service, family day out, airport drop off and pickup, hotel transfer, city tour etc...) CALL THOMAS +254 0721529167

    thomasndurya@hotmail.com || Consultant

  • Onesmus said on November 17, 2009
    I am a Namibian male who is planning on starting my own taxi business, in Windhoek in particular. what are the procedures and costs involved?
  • calvin said on December 3, 2009
    I would like to start a cab service in Fayetteville, north carolina, need info on start up cost, insurance and the steps that need to be taken, thanks.
  • christian said on December 4, 2009
    my sister and i want to invest in a taxi business but we dont know where to start.. can you give me some tips in the taxi business.. what are the pros and cons in this business.. philippines...
  • apollo said on December 9, 2009
    i am apollo from philippines, i'm planning to start a taxi business. i would like to ask the requirements for putting it up and the approximate capital for this. thank you
  • nelisha singh said on December 12, 2009
    I would like more information on starting a taxi business is South Africa. Johannesburg
  • Karen said on December 16, 2009
    St louis Mo. I am going to start my own taxi cab for the handicap... For people in wheelchairs... So can someone help or info on how to do this.. Thank You, Karen
  • Daniel said on December 20, 2009
    Hi, Can you please help me with more information on starting up yellow cab in the city of lusaka Zambia.
  • ashok said on December 21, 2009
    sir, i have a citroen car and has applied for a taxi license in north wales. i would like to start my taxi business eventually. what returns can i expect
  • james elias said on December 22, 2009
    dubois, pa, us. is it mandatory to have wheelchair accessible. do u need a special license and where can u get taxi meters?
  • Ray said on December 26, 2009
    Seeking investor to start up Taxi company in Perth or Brisbane, Australia. (My areas of expertise) Both states currently experiencing growth with mineral resource boom. Genuine interest to zigpay@gmail.com please.
  • Shekhar Shastri said on December 27, 2009
    I am from Nagpur, Maharashtra state, India. Want to know same, how the calculations goes on in taxi business. And how to arrive on profit calculations. And how to fix the per kilometer rate?? Regards, Shastri
  • Harry said on December 28, 2009
    I want to start a taxi transportation business in port-harcourt city, river state, nigeria. Please can you give me the required information while i am still an undergraduate and since i will hire someone to drive the car. Thanks.
  • Future Mogul said on January 4, 2010
    I am from Trinidad and Tobago. I want to start a cab company and want to know what are the usual expenses involved as well as how to calculate profits? and any start up information you may have on this venture can you please email it to me?
  • Casey beginner adviser said on January 5, 2010
    Hi everyone we have a taxi corporation here in Manila Philippines anyone whose interested to know more about our company for possible Joint Venture feel free to email us at clark_jones18@yahoo.com. If you want a PASSIVE INCOME and has a VISION to create a system that will make an impact to our society and be the benchmark of transport service.. Hurry call us at +639222288777

    +639222288777 || clark_jones18@yahoo.com || Taxi Business Consultant

  • neil said on January 5, 2010
    please give me some information on establishing a taxi business in Manila Philippines, thank you very much
  • m orab cab company said on January 6, 2010
    starting cab company with several Medical Card provided people wanting to use me but can not get through to become a provider how do I become providers for insurances when they won't return information? Brown County, Ohio
  • Kenneth Big Dad Cobb said on January 10, 2010
    My name is Kenneth Big Dad Cobb I have been in the taxi cab business for 20 years I know all the pros and cons of the taxi business I am also a member of the taxicab, limousine and paratransit association for a small fee I will answer all your question
  • zuberu said on January 15, 2010
    i'm interested in locating foreign partners who would be willing to provide cars for a taxi cab company in lagos, nigeria. if interested, please contact me on zuberu7@yahoo.com. thank you
  • Joseph Njoroge said on January 16, 2010
    I Have Registered a Taxi Business with a few Customers here in Nairobi and am looking for Finance to Buy at least 3 Toyota Fielder Vehicles for the business. Am also looking for some people with cars that i can be paying at the end of the month. Any foreigner willing to partner with me is most welcome. For more information Call me on +254 721 661 524 and God will bless You Abundantly.
  • jignesh patel said on January 17, 2010
    HI, My self jignesh patel. I want some information regarding becoming a taxi owner in Brisbane Australia, so can you send me some information like
    how much investment ?
    How much yearly income are you reckon?
    and some pros and cons
    can I get 90 % unsecured bank loan ?
    Thank you, jignesh patel
  • benard said on January 18, 2010
    Nairobi, kenya. Hi, i want to start a cab business within nairobi, where can i get a banking institution that can finance the purchasing of the car i need/toyota premio. with low interest rates and flexible loan processing? bernardodhis@yahoo.com
  • Kaycee said on January 21, 2010
    I want you guys to please give some good tips on how to start a good taxi business vip/shuttle thankx.
  • phil said on January 25, 2010
    location is los angeles ca. i want to use my own vehicle to transport people from lax to hotels and vise versa. what do i need to do, or get, in order to operate this business legally? or i can just go and put a sticker that says shuttle on the side of my vehicle and just start picking up clients?
  • dave said on January 25, 2010
    Los Angeles, ca. I've been transporting people from los angeles airport to hotels and other destinations. what do i need to do in order to make it a real business where i can do this legally.
  • Peter said on January 27, 2010
    Hi! Am really impressed by comments in this page. I've been considering going into cab/car-hire business in Nairobi/Thika area of Kenya. I have a car I imported for resale but it is taking a bit long to sell. SO am thinking it is time I start with it. pls need help on how to start. email smart.ride@yahoo.com
  • mechelle said on January 28, 2010
    I would like to start a taxi service for kids in ga. My target is single/working parents. Need to know who to call about permits, insurance, etc. will this be a possible goal? I have a lot of single parents that could use service. the goal is to start off as a small self-operated biz. is this type of service possible?
  • Ken said on January 29, 2010
    Hi my name is Ken my wife and i would like to start a taxi service in the atlanta area and would like for some help from anyone on how we can go about doing this we need some direction on what we need to get started thanks
  • Doug Lee said on January 31, 2010
    Willing to pay for info on how to start a single vehicle taxi service in Florida. Taking elderly to doctors appointments, shopping, etc. Plus airport runs and any other pickup and delivery work.
  • Marc said on February 2, 2010
    Can you get me more information on the government agencies, licenses, & permits needed to start-up an independent cab service in Camden, New Jersey, USA. (including cities: Pennsauken, Cherry Hill.)
  • Chester Jones said on February 4, 2010
    i am interested to start a taxi business in White Cloud MI 49349

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