Taxi company business model
Any business model of a taxi company is formed of 3 main components — customers, drivers and competitors. In this business plan, we will consider the minimum necessary set of tools in order to make your future business efficient and profitable from the first days of launch.
Nowadays, taxi company can be represented as a pentagon with stable connections, which demonstrates the viability of this model. Analyze your future business in terms of this model, think about the relationships between components, how they influence one another in your city, district, country.

Before proceeding with business registration or renting a premises, check if you have the answers to the following questions:
— What city or district do you plan to work in?
— What is the population size?
— What type of clients will you work with (economy class, business class, corporate clients, transportation of families with children and pets, cargo delivery etc.)
— What is the budget for starting a taxi business?
Naturally, these are not all the questions you will need to answer in the process of starting the business. But these answers will show you the direction in which you should move.
Further, we will review the main steps on how to create an offer, estimate the current level of service and identify competitive advantages.
Competitor analysis
For the primary research of the taxi market in your city, you need to study and analyze information about competitors. This is important for understanding the current level of taxi companys, as well as their prices.
Learn more about:
- taxi fare;
- characteristics of the dispatch office;
- brands and appearance of cars, their feed rate;
- professionalism and courtesy of drivers, their job satisfaction;
- quality of service in general;
- advertising activity.
Financial performance
Calculation of market capacity in your city
You should estimate the approximate market volume in the city according to the table below. Knowing the population of your city, you can calculate the number of customers that use taxi companys.
Population — Taxi users (on the daily basis)
Up to 100 thousand residents — 8−10%
From 100 to 300 thousand residents — 6−7%
From 300 to 500 thousand residents — 5−6%
Over 1 million residents — 3−5%
Figure out market potential based on estimates of order volume in your city, as well as competitors' order volume. That way, you will know how many orders all taxi companies receive daily, and how many orders you can process…
Are you going to set up a company, but you don’t know where to start?
An off-the-shelf business plan will help you understand the first steps to setting up your own taxi company. It contains all the necessary calculations for launching a startup, recommendations for finding and attracting customers and drivers, and the selection of software for a start-up taxi company.
The business plan contains
- Description of the taxi company business model
- Calculation of market capacity
- Calculation of start-up costs
- List of start-up expenses
- Calculation of investment payback and payback period
- How to attract customers
- How to attract drivers
- Automation of business processes of a start-up company