As more and more airports, malls and other outer-city destinations pop up around the country, the transport industry, including taxi cab services, continues to grow. In fact, in this year alone, the market size of the taxi service industry is expected to increase by 4.4%. There are many reasons to start a taxi cab cab company, but it’s not as simple as it may seem. This article will help you navigate the process and outline what you’ll need to get started.
What Do You Need to Start a Taxi Cab Company?
Obviously, the first thing you’ll need to start a taxi cab company is a vehicle. Fortunately, the classic yellow taxi cab is no longer a requirement in most cities across the U.S., which makes this step easier and more affordable. You’ll also need to apply for a commercial driver’s license at your local DMV.
Perhaps the two most important things you’ll need to start a taxi cab company are proper licensing and high-quality, comprehensive taxi cab insurance. Specific regulations vary greatly from state to state – with some states (including Maryland, Florida and Virginia) even further regulated at the county level – so it’s crucial that you do your research locally. No matter where you are, you are likely required to register your vehicle(s) with the DMV, register your business and obtain a business license. Additionally, most states have minimum insurance requirements specific to taxi cab companies. It is best not to skimp on this, and rather purchase comprehensive, property and liability insurance for your taxi cab company, so that you will be protected in the event of damage, theft, accidents, or lawsuits.
Keys to Success for Taxi Cab Companies
Beyond the above-mentioned necessities, below are a few tips to position your taxi cab company for success:
- Choose your business location wisely and analyze the competition. Is there a demand for a taxi cab business locally? What are the standard local fares?
- Make a detailed business plan, including start-up costs, a plan for marketing and promotion, and a plan for future growth.
- Determine your niche. Many taxi cab companies choose to market to a specific clientele, such as the elite, the visually impaired, the elderly, etc.
- Consider loyalty schemes or rewards for your regular customers to keep them coming back.
- Consider using your vehicle for advertising purposes, whether that be for your own business or other local businesses.
- Because it’s so important, we’ll say it again: invest in quality insurance to avoid problems down the line. The taxi cab industry comes with a fair share of risks – accidents, theft, assault, etc. – so it’s essential that you safeguard your business, your driver(s), your vehicle(s) and your passengers.
Benefits of Starting a Cab Company
Don’t let these requirements scare you away, there are so many benefits to starting your own taxi cab company! As mentioned above, there is projected growth in the transport industry, so there will be more and more business opportunities to capitalize on. Furthermore, as a business owner, you will be your own boss and have a more flexible schedule. Technological advancements make managing your drivers, mapping your routes, and marketing your business easier than ever. With effective marketing, you can bring in a steady flow of cash throughout the year. Finally, having a taxi cab business can result in great returns on a monthly basis.
Start Your Cab Business and Reap the Rewards!
Are you ready to take advantage of all that the taxi cab industry has to offer? If so, protecting your business, assets and customers with the proper insurance should be one of your top priorities. At Oswald Taxi & Transportation Insurance Services, we specialize in taxi cab insurance for drivers and companies in Oregon, Washington and California. To get started, request your free quote today!