Business Idea

Start A Taxi Cab Company

About

Starting a taxi cab company requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell taxi cab, or selling taxi cab online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a taxi cab company ➜

Key stats

market size
$260B
revenue (monthly)
$250K
starting costs
$193K
gross margin
88%
avg product price
$10
time to build
11 months

About

Starting a taxi cab company requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell taxi cab, or selling taxi cab online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a taxi cab company ➜

Key stats

market size
$260B
revenue (monthly)
$250K
starting costs
$193K

 

gross margin
88%
avg product price
$10
time to build
11 months

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $35 $3,250
Employee & Freelancer Expenses $0 $5,500
Equipment & Supply Expenses $525 $5,500
Website Costs $232 $6,500
Business Formation Fees $600 $4,700
Vehicle Expenses $50 $10,500
Other Expenses $0 $2,300
Software Expenses $150 $3,044
Advertising & Marketing Costs $0 $2,800
Total Startup Costs $1,592 $44,094

Successful Businesses

Business URL Rank
Taxicab Authority taxi.nv.gov #6,427
Ola Cabs olacabs.com #24,988
404 Not Found atspace.cc #219,669
The new mytaxi: FREE NOW free-now.com #220,673
TaxiFareFinder taxifarefinder.com #281,679
Taximobility taximobility.com #295,982
Smart Car Tech smart-car.tech #424,993
Zeald zeald.com #579,439
Curb Mobility gocurb.com #634,642
Talixo talixo.com #647,293
13cabs 13cabs.com.au #690,899

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Meaningful business connections You never know who you will meet as a taxi cab company. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Pick & choose the clients you work with Taxi Cab Companyes have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!
Control of workload With starting a taxi cab company, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.
Gain exposure and experience This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Low margins The gross margins for your taxi cab company are typically around 88%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the taxi cab company, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
High overhead expenses With starting a taxi cab company, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.
Churn In this business, customers can cancel their membership or subscription for your services - which can make revenue forecasting challenging and unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.
Time commitment With starting a taxi cab company, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.

Marketing Ideas

  • 1

    Affiliate program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Word of mouth

    The most tried and true way to grow a taxi cab company is through word of mouth - some entrepreneurs would say it's more important than all social media.

  • 3

    Advertising on social media

    Social media advertising is one of the leading ways to get the word out when it comes to taxi cab company.

    There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

    Learn more about advertising on social media ➜