Starting A Taxi Service From Scratch: What Do You Need?

If you are looking to start a taxi service from scratch, what do you need? Besides a few cars, can you operate without an office? Here is how you can start on a shoestring budget and make it work until you have made enough profits to “satellite” your business, buy more cars and hire more drivers.

Any Functional Car Will Do

Right now, there really are no legal limitations on the type of vehicle you can use as public transport or for taxi service. It does help if you have at least one vehicle that can take on passengers with disabilities because your drivers are probably not licensed nurses or certified nursing assistants. However, if all you have to start with are two or three passenger vehicles, you can get by with those for now. Your vehicles will undoubtedly have to pass safety inspections in order to transport passengers, and you will have to carry additional insurance on the vehicles because you are using them for business purposes.

Home Office

You can operate a taxi business out of a home office. You will just need phones and a dispatch system that allows you to talk to all of your drivers and send them to pick up passengers. If you are concerned about customers wanting to know where you are located, you do not have to share that information with them or you can give them the address but not tell them it is a home office. Since it is unlikely that any of your fares will want to know where your office is or not care that your office is in your own home, it is perfectly fine to operate out of your home until you have the money to rent or buy commercial office space. As long as your phones and dispatch equipment all works, nobody is the wiser either (except maybe your drivers!).

Business Licensing

You will have to register your business for an operator’s license. This varies with each city and state, so check with your department of motor vehicles and with your city’s public transit department. If you operate out of your home office, each of your vehicles may need copies of your operator’s license to display in the vehicles, in case passengers or the police ask for proof of your business’s license. All of your drivers also need a commercial driver’s license and private insurance in order to drive for you.

Discover more about taxi services. 

Author: Kim Wilkerson

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