How to start a Cab Service Business?

Cab Service

As we heard about this, we have some common names, like OLA and Uber. No doubt going through vehicles like buses, local trains, and autos in the local area is the old way, but OLA and Uber companies make it a need of daily routine, especially in metro cities these cabs use more than metros' own vehicles.

Some of the interesting statistics about cab service

Almost 18 lakh population of Mumbai use cabs only for their work.
The taxi industry includes about 7000 establishments with nearly $6 billion in combined annual revenue in the United States.
There are around 450,000+ taxis in Europe, the USA has 300,000+ and China has 500,000+.
So no doubt this is one of the most profitable and big businesses nowadays. In this I will focus only on how to start a cab business, if you want to know how to start any business, then please read this article. So keep the following points in your mind to start any cab business.

Research:

First step Research, if there I any requirement for taxis in your area. Check your competition, their growth, their services, and their rates. You can do this online also through their websites. Remember if your area is a small town or village then surely you cannot run a cab service business but in big cities, there is always a demand for cabs. Make a list of services you can provide there are various types of cab services. Kid’s Taxi Services For working parents, you can start this service to drop off and pick up their kids from school. Especially those women who are a housewife and know how to drive can start this type of business. Health Taxi Services You need to tie up with your local doctors, and health professionals to run this type of business. You can drop by and pick up their patients or you can deliver also the medicines. Water Taxi Services If you how to do boating and you have a boat then you can start this business very easily. Car Rental Services As the name describes you can give your cars for rent with some advance on a weekly, or monthly basis. Limousine Services Everyone wants to enjoy expensive cars and a limousine is one of them, but this is true everyone cannot afford it. No doubt the initial investment is really very high but the truth is it’s really a very profitable and long-term investment.
Apart from this, you can offer airport shuttles or group/sharing transportation.

Vehicles.

Next is the main component of your business Vehicles. If you have a small budget you can start with a single vehicle or if you have a plan to start with a big company then purchase vehicles, which are available for resale but in good condition. Choose them very carefully and buy them with all documents. There are so many websites and apps which offered such types of services like

• http://www.auto-m.com/, 
• https://www.carwale.com/, 
•  http://www.euromobiles.com/, 
•  http://www.usedcarscanada.com/, and much more.

While selecting vehicles, check properly that they are clean, guaranteed safe, proper registration papers, and all documents like pollution certificates, and insurance all you need is a check. Some sellers sell including all this and sometimes you need to do all this by yourself. The thing is the main startup cost for this business is the vehicles and buying second-hand vehicles can save you money on the startup expense, but be careful if you choose the wrong vehicle then it can cost you more than the new one. One major thing is if you modify existing vehicles either new or used for taxi use, you need some changes on them like

• You need to paint them. 
• Put your company logo on them. 
• Special number plates. 
• Develop software, apps, or websites according to your requirement. Provide cell phones to keep in touch with your drivers. 
• Provide uniforms for staff. 
• If you have a very big company then a call center for your customers.

Documentation

Prepare the Required Documents, such as the Business plan, Marketing plan, and Expansion plan. Also, apply for a license to register your vehicle with your local department of motor vehicles. Get insurance from reliable insurance companies, for example, United Insurance Company, Salama Islamic Arab Insurance Co, Tata AIG General Insurance Co. Ltd., HDFC ERGO General Insurance Co. Ltd, and Keith Michaels PLC.

Hiring

Now Hiring Staff, Hire drivers, accountants, and other employees.

Location

Choose a location that is accessible to all major routes in your area with enough parking spaces

Advertise

The last step Advertise your taxi service, as much as you can online or offline. Advertise in the phone book, a local newspaper, with full of your services and contact details. You can put your contact details in your taxis also. List your taxi company on tourist websites. Start some loyalty schemes and referral programs. Give some good discounts and make some extra services for your registered users. Set up social media accounts like Facebook, Twitter, and LinkedIn extra.

Except for the above mention way, three are some well establish companies like Uber and Ola that allow you to start your business under their name. Follow the following steps to work with cab companies in India as freelance drivers.

• Connect your current car in good condition. 
• You need to show documents like Id Proof, Police Verification and PAN, UID, Bank Statements, or Driving License to apply for cabs like Uber & Ola. 
• Contact them and open a current account. 
• Apply for Income Tax and Service Tax Number registration as it is required with these cab companies in India. 
• After all these steps are done the company will give you a new smartphone with their app in a couple of days. 
• They will inspect your documents and details and here you are ready to start working with them.

The other famous cab services all over the world are: J21, Ace Cab, Comfort Taxi, Red Cab, AAA Cab, Ascot Taxi service, Lyft, Didi Dache, Top Limo, Asociación Radio Taxi Iluchmajor Arenal, South Kerry Taxi, Belek Transfers, Taxi Alessandro, Air trail
So, as with other business ideas, this also requires a lot of hard work and passion. But according to today's demand, it is surely a profitable business.
So keep the following points in your mind to start any cab business