Business Idea: Taxi

Business ideas by directions

The idea to engage in private transportation came to the mind of every motorist, and many implement it every day. However, we will talk today about the taxi business idea as the idea of ​​starting your own business.

Creating your own taxi service is not as easy as it might seem at first glance. On the one hand, it is easier for taxi drivers to connect to large network dispatchers, such as Yandex-Taxi or the Unified Taxi Service. The technology in these services has been matured, as large investments have been made in it.
However, the recent strikes by taxi drivers suggest that not everything suits the drivers, especially in terms of income distribution percentages.

When creating a taxi service in your city, you can go in two different ways: either initially become part of a large network, or create your own taxi business from scratch.

The first option allows you to avoid wasting time on technology development. You get ready-made technology and software, but share some of the profits with the parent company. This option is actually an analogue of a trading franchise.

The second option is fraught with many pitfalls, but it allows you to build your business the way you see it, make it recognizable to customers, and win your part of the market.

To select an option for implementing a taxi business idea, it is worth conducting a preliminary marketing research on opening a taxi service.
It should be noted that this type of business is highly dependent on the quality of work of each participant in business processes. Therefore, the formation of a permanent team of drivers and dispatchers is the most important task of the entrepreneur, to which he must devote the lion’s share of his time and effort.

For the client of the taxi service, three components of the service are extremely important:
  • order execution time;
  • reliability of order execution;
  • price.

At the same time, the cost of the trip, as a rule, is in third place in importance. Therefore, it is extremely important to ensure the most efficient processing of the order and its implementation. And for this, there must be not only a good dispatch service and decent software, but also a sufficient number of cars on the line.

And you can organize a reliable team of drivers when you offer drivers the best technology and decent pay.

To start a small taxi service, 10-15 drivers are enough, but you need to be sure that these are people with reliable cars and who know the city well.

However, despite the complexity and cost of implementing a taxi business idea, this type of business brings quick money and fairly high incomes.