If you are starting a taxi business, there are many different things to consider. There are many aspects that you spend money on. Many of which, you might not immediately think of, just like the costs of promoting your taxi.
Those things can come later but there are some that you should spend on from the start. Such is the equipment you’d need for your taxi business.
These are things you should spend on because they can help you provide better taxi service to your customers.
The first thing that you’d need to purchase are the cars. Whether you are starting small or going big, you need a car or a fleet of vehicles to provide your taxi business. Nowadays in the ride-sharing era, you can turn just about any car into a taxi.
The car that you choose to purchase for your taxi business will depend on the type of service you want to provide. If you want to provide luxury taxi services then your cars should reflect that. You might want to buy limousines or other fancy vehicles. However, if you’re planning to provide the most affordable taxi service, then you can choose to purchase more affordable vehicles.
Although buying cars is what many taxi business owners do, there is also another option of leasing vehicles. When you purchase cars for your taxi business, you’ll own them and there is potential to resell them. However, buying cars can also eat up all your capital.
Leasing on the other hand helps you have a fleet of vehicles without spending too much and even if the vehicles depreciate in value, you won’t be directly affected. You just have to make sure you don’t go over the annual limit when it comes to the miles that the car has to cover.
Although your drivers can have their own personal phones, not all of them could be compatible with navigation systems. Smartphones help your drivers navigate throughout the area you cover.
Even if the drivers may have some local knowledge about the roads in the area, it is possible that there are still roads or routes that they aren’t aware of. Additionally, you can also use the smartphones to have your taxi booked or even receive payment for cashless transactions.
Wired headsets connected to the smart phones can be used but it would be best to buy Bluetooth wireless ones. This will prevent tangling and would be much more comfortable for the drivers to use.
With this, you can easily connect with the drivers so they can be dispatched easily to clients. Two-way radios can still be used to help with communication but using wireless headsets and the mobile phone is much more convenient.
One of the most important equipment to have are the taximeters – after all, they keep track of the lifeblood of your business – the cost per ride.
Integrated and calibrated into your cab’s drive-train a Taximeter will automatically compute and show how much the customer is being charged as the taxi goes to the destination.
When choosing a taximeter, make sure that it is also compatible with the payment machines that you plan to purchase and use.
Credit Card Reader
Payment machines or credit card readers provide your customers another option to pay you. Although many people still carry cash, there are also many who prefer to pay through their credit cards.
Having a payment machine will make your taxi experience more customer-friendly. Alternatively, you could also have your customer pay through the app, if you partner with one or create one for your taxi business.
It is great that your taxi drivers have a navigation system that guides them so they can take efficient routes. Additionally, your taxi business can also be more efficient when you have a tracking software. This lets you know exactly where your taxis are. It can help anyone in the command center to assign the nearest taxi to pick up the passenger.
These tracking software shows their location at real time so you can also notice if the taxi is moving or not. You would discover if they are just parked somewhere or if they are stuck in a specific area because of too much traffic.
Aside from spending on equipment, there are also other things you should consider spending on. Licenses are essential and you should have them even before you operate your taxi business. Make sure to check your locality about the laws they have for opening and operating a taxi business.
Another thing to consider is taxi fleet insurance. There are different insurance policies available for taxi fleets of different sizes. Make sure to carefully check what each insurance provider has to offer before selecting one that’s best suitable for your taxi business.