Taxi-Master
26.07.2024

How to open a taxi

Starting a taxi business is a challenging but rewarding process that requires careful preparation and strategic planning. The success of your business depends on many factors, from conducting market research to effectively organizing operational processes. In this article, we'll outline the key steps to help you understand how to open your own taxi.

We will discuss how to open your own taxi fleet, minimizing risks, and maximizing your chances of success. You'll learn where to begin, what resources and tools to use, and how to manage your operations to ensure high-quality customer service and a steady income.
How to open a taxi

Open a taxi business: development plan

A solid action plan before launching your taxi business can be the key to a successful start and growth. Here are the essential steps to consider:

1. Conduct Market Research: Start by assessing the demand for taxi services in your chosen area, identifying your target audience, and analyzing your competitors. Understand which services are in demand, whether it's standard rides, premium services, corporate travel, or specialized services like transportation for passengers with disabilities. This will help you create a unique selling proposition and establish your market niche.

2. Develop a Business Plan: Your business plan should include a detailed description of the business, a marketing strategy, financial projections, and an operational plan. Account for all potential expenses, such as vehicles, licensing, insurance, employee salaries, and marketing. Forecast your revenues and calculate the break-even point to understand when your business will become profitable.

3. Register and License Your Business: Check with local authorities to learn about the requirements for opening a taxi business. Some regions may require special permits for each vehicle and driver licenses for all employees. Ensure you have the necessary insurance policies that cover both passenger liability and potential vehicle damages.

4. Purchase or Lease Vehicles: Choose vehicles based on your target market segment. For premium services, business-class cars are suitable, while economy models are ideal for standard rides. If you plan to offer services for passengers with disabilities, ensure you have the appropriate vehicles. Equip all vehicles with taximeters, GPS trackers, and systems for accepting cashless payments.

5. Hire Staff: Your drivers are the face of your company, and customer satisfaction depends on their professionalism and courtesy. When opening a taxi service and hiring drivers, conduct thorough background checks and verify their qualifications and experience. For dispatchers, create comfortable and well-equipped workstations with modern communication tools and software. Regular training and skill development for all staff are crucial.

6. Marketing and Advertising: Develop an effective marketing strategy to attract and retain customers. Use various promotion channels, from traditional street and media advertising to online advertising and social media. Create social media accounts to interact with customers and share company updates. Implement loyalty programs, offer bonuses for frequent rides, and provide discounts for new customers.

Open a taxi business: development plan
What is needed to open a taxi fleet: equipment
The technical side of the taxi business plays a crucial role in its success, especially when setting up employee workstations. Proper equipment boosts efficiency, improves service quality, and strengthens your company's competitiveness. Here are the key aspects to consider when setting up your taxi fleet:

Dispatcher Equipment: Dispatchers are the backbone of fleet management. Their workstations should have modern computer systems for efficiently processing orders, coordinating drivers, and tracking vehicles. Ensure they have high-speed internet and specialized software for order management and vehicle monitoring. Comfort and safety are essential—provide comfortable chairs, ergonomic desks, and good lighting. Air conditioning and ventilation systems will maintain a comfortable working environment year-round.

Vehicle Equipment: Each vehicle should be equipped with a taximeter, certified and calibrated according to local regulations. The taximeter calculates the trip cost based on the distance traveled and time spent on the road.

GPS Tracker: Every car in your fleet should have a GPS device. For example, Taxi-Master includes integrated satellite monitoring. This allows you to see where cars are located in the city and make adjustments as needed. GPS tracking provides transparency in monitoring drivers, showing how much time they spend on jobs versus personal errands. It also enables tracking of individual vehicles, useful for monitoring unusually long or short trips. If you have hired drivers, this helps reduce idle mileage.

Taxi Software: There are many software options, apps, and services available. Choose reliable, stable software. You can purchase the software outright or subscribe to it. Purchasing gives you full ownership and unlimited use with a one-time payment. Subscriptions provide full functionality with monthly payments. Ensure the software provides the necessary technical functionality and business development tools. Consider creating your own taxi booking app for smartphones. For instance, the Taxi-Master automation program includes modern telephony, a user-friendly driver app, instant SMS notifications for customers, integration with various city maps, instant acceptance of payments from drivers 24/7, an automatic bonus system for passengers, and an order exchange center.

Apps for Customers and Drivers: Ensure reliable communication between dispatchers and drivers. Traditional radios or mobile phones with messaging apps can be used, but a single app with comprehensive functionality is most convenient.

The technical side of the taxi business and proper equipment for employee workstations are critical to the successful operation of a taxi fleet. Modern technologies and well-organized workstations not only improve customer service quality but also significantly enhance the overall efficiency of the business.

What is needed to open a taxi fleet: equipment

How to open a taxi dispatch service without a fleet

Starting a taxi company without owning a fleet is a promising business idea that allows you to create a profitable enterprise with minimal capital investment. In this model, the dispatch service acts as an intermediary between customers and taxi drivers who use their own vehicles. The primary operation involves signing contracts with drivers, who then receive jobs and share a set percentage of the profit from each completed ride.

This business model carries minimal risks: all responsibilities for vehicle inspections and medical check-ups lie with the drivers. Your job is to attract drivers and create conditions that make them prefer working with your company. How can you do this? By providing them with a steady stream of jobs and comfortable working conditions. There are various tools to achieve this, many of which can be implemented through software.

A crucial aspect is attracting drivers. Your dispatch service will work with drivers who own their vehicles. You need to develop attractive cooperation terms and ensure a thorough vetting process, checking drivers' qualifications, experience, and the necessary documents.

Organizing the work of dispatchers requires special attention. Dispatchers should be trained to use the software effectively and possess strong communication skills for interacting with both drivers and customers. It’s also important to provide 24/7 support so customers can book a taxi at any time.
How to open a taxi dispatch service without a fleet

Open your own taxi from scratch: service

Quality service is the best advertisement for your taxi company. Happy customers will tell their friends and acquaintances about you, bringing in new passengers. Quality service includes:

  • Quickly accepted requests: Fast order processing and timely notifications.
  • Clean car arriving on time: The vehicle should be clean and comfortable.
  • Polite driver: Professional and courteous behavior from drivers.
  • Transparent trip costs: Clear and understandable fares.

A modern taxi company should enable customers to reach their destination quickly, affordably, and comfortably. To achieve this, a taxi company must handle several tasks: answering calls, saving passenger numbers, dispatching orders to drivers, notifying the caller about the car's arrival, completing the order, and more.

Starting your own taxi business from scratch requires a strong focus on the quality of service provided. High levels of service, modern apps, and efficient customer support are key factors for success in a competitive environment. Continuously improving your service and adapting to market changes will help make your taxi business successful and profitable.
Open your own taxi from scratch: service
Constantly improving software that is built by the needs of taxi industry
Taxi solutions focused on your brand
Web apps
Manage employee privileges and view reports through a user-friendly web services interface.
Driver app
Automatically matching rides with the closest available drivers to increase earnings.
Branded mobile app
User-friendly mobile app for customers with a familiar interface to all app users.
Control Panel
Manage call operators, drivers, cars, tariffs, clients, view statistics, and more.

Taxi solutions focused on your brand

Constantly improving software that is built by the needs of taxi industry
Control Panel
Manage call operators, drivers, cars, tariffs, clients, view statistics, and more.
Branded mobile app
User-friendly mobile app for customers with a familiar interface to all app users.
Driver app
Automatically matching rides with the closest available drivers to increase earnings.
Web apps
Manage employee privileges and view reports through a user-friendly web services interface.
Taxi-Master software
for your taxi business
Scalable, Customizable, Out-of-the-box
BIT-Master is a Taxi-Master software developer, an international IT company with over 19 years of experience, a leader in the development of taxi software and services. BIT-Master is the creator of the Taxi-Master software, mobile applications for passengers and drivers, as well as dozens of services, thanks to which dispatchers and taxi companies can use the best solutions.
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