Over the past few years, the taxi industry has witnessed huge growth in India. More and more people are turning to cab services to get the comfort and ease of travelling. This means, if you have been planning to start your own taxi business, now is the time.
To help you start your journey, here is a short and concise guide on how you can start a taxi business in India. From the business plans and papers to taxi insurance and hiring, we have tried to cover it all to give you an overview. Read on:
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- Research and Make A Plan
Before jumping into any business, it is very important that you must gather insights and relevant data into the current market size and its potential. This will help you decide whether you should start a big taxi business or test the waters first with a few vehicles. This research part also helps you in charting out a taxi business plan and note down the requirements.
Here are some things that should become clear to you during the research and planning process:
- How many taxis should you buy and where should you buy them from?
- What type of business would it be – sole proprietorship, partnership, limited liability partnership or a private limited company?
- What should be the region or route for the business?
- How to gather funds and prepare the paperwork?
- Gather Funds
This is another crucial step you just can’t take lightly when planning to start your taxi business. You need to determine the sources from which your funding will come and how you can get it. While calculating the fund required, make sure you consider all the aspects such as operations, infrastructure, marketing, insurance, and even advertising aspects.
- Find Your Vehicle
To make sure your business booms, invest in cars that have been modified for public taxi service. If you are buying second-hand vehicles, do check their condition, and see if they are clean and comfortable.
You should also check the car documents like taxi insurance, and registration certification (RC) properly. Nowadays, you can also check vehicle RC details online. Once you are sure of the vehicles, apply for transfer of the policy and new RC under your name.
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- Apply For Licence & Insurance:
When you have to start a taxi business, you must apply for a taxi business licence and a commercial license for the drivers. You should also get taxi insurance from a reputed insurance agency.
If you want to make your vehicles “Tourist vehicles”, you also need to get an All India Permit from the Transport Authority by applying with a legal fee. You can run the business only after you have received the proper approvals.
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- Hire People
While hiring drivers, make sure they are experienced. You can also hire commercially licensed cabbies for the work. Other than that, you will also need to hire employees who can help in operating the business efficiently. But before hiring anyone, check all the background details and the original license of the drivers too.
- Promote Your Business:
Promotion is a crucial part of any business’ success. So, advertise as much as you can through various channels. From word-of-mouth marketing and advertising in local newspapers to going online, create a strong marketing strategy to reach your potential audience.
Now that you have the blueprint, start the business plan. Put in your best efforts and the taxi business will offer you impressive returns of investments quickly.
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