Starting Taxi Business Plan (PDF)
A taxi is a vehicle that may be hired for single journeys by members of the public. It is also commonly referred to as a cab or taxicab. There has been a notable market disruption emanating from digital solutions. A whole new industry of online taxi services has grown over the years. For instance, in the USA, Uber facilitates over 40 million rides every month. Even as online taxi services continue to grow, traditional taxi services are still relevant. It is still worth it and profitable to start a taxi business. Taxi cabs play a significant role in the transportation industry. People opt for taxis due to a variety of reasons including convenience and exclusiveness. Starting a taxi business is a very profitable venture, which is highly rewarding. This article will outline how to start the taxi cab business, and the taxi business plan – PDF, Word and Excel.
The possible sets of destinations for the various customers make it apparent that the demand is huge. The fact that more and more players are starting taxi businesses speaks to how lucrative the business is. Once properly setup this is one type of business where you will be assured to realise revenue on a daily basis. This article will help in informing you with vital information you need to know on starting your own taxi cab business.
Already we have stated that an increasing number of players are entering this space. This spells out ‘competition’ and whenever competition is involved you can’t overlook the importance of market research. Just by taking a look at how existing players conduct their businesses you’ll notice that they serve different target markets. Some solely focus on people commuting to and fro work. Some specifically target airports and termini. Others have strategic spots they operate from in central business districts to cater for wide-ranging customers. So in order for you to ascertain that you’re on course, you must research to find out which markets are available, penetrable and sustainably scalable. It’s a must to take a look at existing players. Essentially this means you must closely study them to draw invaluable insights that’ll help you start strong and even eventually topple your competition. Some of those insights will be on popular services offered, rates charged, types of vehicles and payment methods amongst others. This makes it a must to have a good taxi cab business plan.
Taxi Business Model
The traditional business model for a taxi business is simple. It entails having an area where you operate from and in. You park somewhere and clients can come up to you in need of a taxi ride. You can be an owner-driver or you can have a fleet of taxis you own. You can charge fixed rates for specific routes or you can use the metered approach. The metered approach (i.e. charging per mile) is best because client needs can be so random. Another approach is charge per duration of a trip e.g. per hour.
You could charge per day as you would for a car rental. This can apply for a client who wants to be taken to several locations consecutively in a day. Charging can also be dynamic where you simply negotiate with a client. You could also have a retainer arrangement with wide-ranging clients. The online aspect is somewhat the same. The major difference is that when using an online approach, clients book a ride online. This is doable by developing a mobile app for your taxi business. The fares you charge can differ given the costs elements you would want to offset.
Vehicles and Equipment
The major procurement you must make is vehicles. The vehicles can be imported from other countries where they are cheap or you can buy them locally from your country. The number and type of taxi cabs required will depend on the amount of capital which you have and your target market. You will also have to make a decision of whether to buy brand new vehicles or used taxi cabs. When starting the business with limited capital, you may opt to purchase used cars. The advantage of having new taxi cabs is that you have lower maintenance costs and better reliability on the road.
There are several factors to take into consideration when purchasing the taxi vehicles. Some of the factors include: purchase price, fuel consumption, transmission mode (automatic vs manual), gross vehicle mass, model, new taxi cab vs used taxi cab. If you have limited capital, you can always start your meter taxi business with just one vehicle. Taxi cab business is very profitable and if you reinvest your profits, you will be able to purchase more taxis.
Equipment required for the meter taxi business include garage equipment, taxi meters, taxi partitions, top lights, communication radios (for communication with the dispatch centre). The taxi drivers should always travel with basic repair tools such that if they encounter minor problems along the way, they can always fix the taxis. The taxi business plan should include the costs of purchasing the vehicles and equipment.
Taxi Servicing And Repairs
When running a taxi business you can never compromise and expect to thrive. Customers are most concerned about convenience. This means your taxis must always perform optimally. They must always be fully serviced and devoid of any operational issues. That is why you must always take your taxi(s) for service. It is advisable to have a reputable servicing and repairs provider that you work with. Always keeping your taxi(s) clean and doing daily checks before, during, and after daily operations is key here. If these elements are all kept in check it is rare for your taxi(s) to malfunction. Servicing and repair costs should be accounted for in your taxi business plan.
Taxi Business Insurance and Licences
One of the critical requirements that can potentially have catastrophic consequences for the public as well as the business is insurance. It is advisable to have a comprehensive insurance plan for all the taxi cabs. The costs of such a package are more than offset by the potential losses if you were to have an accident. As a business; the taxi cab company may be liable for very significant punitive damages particularly if there is a loss of life. Without adequate insurance, the taxi cab business could be bankrupted by compensation claims.
The taxi industry is regulated and the specific licences depends with the country. First of all, your drivers must be properly licensed with up to date records including health checks and driver licences. Your local council will have a list of regulatory requirements which must be diligently followed lest you lose your license to operate the taxi cab business. The taxi cab business plan should include costs for the insurance and licenses.
Staff and Management
Operations staff is a necessity. Operations staff are responsible for handling the operations of the taxi cab business. They include drivers, assistants, logistics personnel, mechanics and operations manager. You will need a taxi driver as the minimum starting employee for the taxi business.
Finance and accounting employees are also required. For a small taxi cab business, the duty can be handled by the owner of the business or a part time accountant. However as the taxi transport business grows, there will be need for full time employees who will be responsible for the finance and accounting needs of the business. Their duties will include usual day to day transaction accounting for business, managing the cash flow of the taxi cab business, and always ensuring the enough funds are available for the day to day needs of the taxi business.
Marketing is essential for you to be successful in the taxi business. To have a stable financial position, your taxis should get sufficient number of trips every day. This is only possible if you are marketing your taxi cab business. Thus your taxi business will also need marketing and sales staff. If you have a dispatch centre then you also need staff so the dispatch centre. Your taxi cab business plan should cater for the wages and salaries of all your staff.
The taxi business is marked by intense competition. For instance, you have to compete with unregulated taxi operators. You also have to compete with ride-sharing brands e.g. Uber. Competitive analysis in a taxi business is to establish differentiators that can make you stand out. Customers when they hire taxis they have certain expectations. How are other taxi operators faring in terms of meeting those expectations? Answers to that can show you how best you can provide superior services.
You must in great detail know about all your direct competitors. Look at their profiles, their target markets, and generally how they conduct business. Look for verified information or conduct observations by trying out competitors’ taxi services. Once you establish all that you can know where and how to strategically place your taxi business. One of the most effective ways to do your competitive analysis is by doing a comprehensive SWOT analysis.
Capital for Starting Taxi Business
The amount of capital required for starting the taxi business depends on the size of the business. It all depends on what you want to achieve and the resources that you have. When starting a taxi cab business, most of the capital goes to acquiring the taxi cabs. You can get a loan from the bank, or funding from investors, to use as capital to start your meter taxi business. If you plan to raise capital from investors and a loan from the bank, you need a good meter taxi business plan. If you don’t have access to investors and bank loan, you can use your personal savings and start small, and grow your taxi business overtime. Taxi business is very profitable, so if you reinvest the profits you get, you can grow over time. Even if you are not planning to get a loan, you should still get a taxi project plan to guide you in starting and operating the business. It is essential for you to have a meter taxi business plan before you venture into the taxi cab business, so that you know all the costs involved and you make an informed decision.
Market for the Taxi Cab Business
The market for taxi cab services is very huge. There are a lot of potential customers for taxi services. Companies may outsource transportation of their employees to taxi cab companies. Parents require taxi cabs to transport their children to and from school. Individuals may need taxi services for routes within a specific location which are not plied by public transport or within the city centre. Some individuals prefer to use taxi cabs even if alternate public transport is available. This is because taxis are more convenient, fast, offer privacy, and exclusiveness. Potential sites to find clients include hospitals, universities, schools, airports, night clubs, city centre, hotels & lodges, shopping centres among others. A proper marketing strategy should be included in your taxi business plan.
Engaging vehicle branding.
There are countless marketing approaches you can employ for your taxi business. The taxi business involves the use of moving vehicles. That makes the actual vehicles a central feature of marketing. Have the vehicles colourfully branded with subliminal marketing content. People merely seeing the taxis passing by will have their subconscious minds conditioned.
Attending Strategic Events
The thrust is to attend events that can strategically generate leads for your taxi business. Examples of such events are trade shows, concerts, conferences, and the like. One way is to actually exhibit and showcase your taxi offerings, if possible. The other way is to simply be in the vicinity of such events. There is most likely always going to be people who will need your services.
Sponsoring Or Supporting Worthy Causes
Running a taxi business offers you easy ways to sponsor or support worthy causes. All it can take is you providing your taxi(s) for free for some event or cause. Your presence during that event or cause will draw so much attention to your taxi brand. You could also materially contribute to causes such as helping the underprivileged. Your association with notable events or causes is a potent marketing strategy. Remember, your taxi(s) being branded will be doing the work for you.
Internet And Social Media Initiatives
This should be at the core of the marketing plan for your taxi business. You must have a website and set up active accounts on social media. Use high definition visuals to draw people in. Regularly do online contests; these are highly effective in building your audience. All your social media initiatives should encourage word of mouth and referrals.
Another faster and more effective strategy is to work with social media influencers. Work especially with macro influencers (between 40000 and 1 million followers) and m icro influencers (between 1000 and 40000 followers). Such influencers are often characterised by highly engaged audiences.
Keys To Taxi Business Profitability
You are supposed to be big on quality in your operations. This refers to aspects such as cleanliness, timeliness, cordialness, and convenience. Customers will always settle for taxi businesses that have these qualities. That is why customers will not hesitate to switch to other taxi operators if you are lacking. Using vehicles with good fuel economy is a vital key to profitability in a taxi business. Regular servicing and using fuel from reputable sources also feeds into good fuel economy. This significantly reduces your operating costs. The first ever taxi service or business was started in 1897. It has been more than a century since then and taxis still continue to proliferate. This is because the market is inexhaustible. You can start your own taxi business today and still make significant money.
Pre-Written Taxi Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements
For an in-depth analysis of the taxi cab business, we encourage you to purchase our well-researched and comprehensive taxi cab business plan. We introduced the business plans after discovering that many were venturing into the taxi transport business without enough knowledge and understanding of how to run the meter taxi business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.
The StartupBiz Global taxi transport business plan will make it easier for you to launch and run your meter taxi business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the taxi cab business.
Uses of the Taxi Business Plan (PDF, Word And Excel)
The taxi cab business plan can be used for many purposes including:
- Raising capital from investors/friends/relatives
- Applying for a bank loan
- Start-up guide to launch your taxi business
- As a taxi business proposal
- Assessing profitability of the meter taxi business
- Finding a business partner
- Assessing the initial start-up costs so that you know how much to save
- Manual for current business owners to help in business and strategy formulation
Contents of the Taxi Cab Business Plan (PDF, Word And Excel)
The meter taxi business plan include, but not limited to:
- Marketing Strategy
- Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
- Risk Analysis
- Industry Analysis
- Market Analysis
- SWOT & PEST Analysis
- Operational Requirements
- Operational Strategy
- Why some people in taxi cab business fail, so that you can avoid their mistakes
- Ways to raise capital to start your meter taxi business
The Pre-written taxi cab business plan package consist of 4 files
- Taxi Cab Business Plan – PDF file (Comprehensive Version – 71 Pages)
- Taxi Business Plan – Editable Word File (Comprehensive Version – 71 Pages)
- Taxi Cab Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 42 pages)
- Taxi Business Plan Automated Financial Statements – (Editable Excel File)
The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the number of taxis, pricing rate per KM etc, and all the other financial statements will automatically adjust to reflect the change.
Click below to download the Contents Page of the Taxi Business Plan (PDF)
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Get the Taxi Business Plan (PDF, Word And Excel)
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The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.
We wish you the best in your taxi business! Check out our collection of business plans , and more business ideas .
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- Case studies
Starting a taxi business: guide for beginners in 2022
- Growth hacks
What do you need to start a taxi business in 2022?
Entrepreneurship is more than just having a brilliant idea. It’s also about making this idea work for you (and, needless to say, for your customers) sustainably, year after year. Setting up a taxi business is no different.
What do you need to start a taxi business that will change the future of transportation in your region? Here’s the guide on how to start a taxi company in 7 steps. Check all the boxes and make sure you’ve got it all.
Start with your taxi service business plan
Setting up a taxi business begins with a taxi service business plan—and that’s one hard pill to swallow for many aspiring entrepreneurs. We’ve broken the chunky concept of a business plan down to basic questions to make the planning easier for you.
- Who are the customers of your cab business? Why will they use your services? Define the business opportunities of0 your future taxi cab company, the services it will provide, and its target audience.
- What’s the price segment of your taxi business? What will trips cost for different service types, locations, types of bookings, etc.? Knowing this is essential for planning your taxi business’s financial perspectives.
- What’s the market for your services? Market research and analysis are crucial to understanding your competition and defining your cab business’s unique selling proposition.
- How will you promote the company? Knowing who your potential customers are will make it easier for you to find out how to reach out to these people efficiently. Answering this question is a great starting point for the future marketing plan of your cab business.
- What resources (financial and human) do you need to start a taxi service? Financial planning is paramount: it allows you to evaluate various options for funding a private taxi company.
- What are the potential critical risks and challenges? Two years into the pandemic, we know one thing for sure: try to think through even the unthinkable risks—it’s the only way to make your taxi service business plan strong.
Your first step in creating a sound taxi service business plan is to give clear answers to all of these questions. A business plan makes pitching to potential investors, accelerators, and business partners easier and more convincing.
Need more assistance with it? Use this template to write a taxi service business plan.
Figure out the business model for your taxi cab company
It’s time to think through a well-functioning financial model!
For a cab business, rides are the main source of revenue. Start with calculating the average cost for a ride with your taxi company. In your calculation, include salaries, taxes, rent, and all other fixed and variable costs your taxi business might have. Add initial marketing and promotion expenses, fleet-related investments, and other costs. With this calculation, you can now see how much funds your company will need to launch.
For a taxi business, it’s normal to not be able to cover all the costs in the very beginning. To actually start making money, your cab business needs to grow a bit first. However, try and plan when your business can reach a breakeven. Consider factors like seasonality in your calculations.
Think of the software for your cab business
A plain taxi business is great for many places on Earth that need stable mobility services. However, it’s smart to think of scaling your cab business from the start. One of the best ways to make your taxi cab company scalable from the outset is to power it with a strong technical infrastructure.
So make an inventory of the must-have features for the software that can boost your taxi business. Some of these are:
- Passenger and driver applications for iOS and Android to attract more bookings and make drivers’ work easier.
- Possibility to preorder your services.
- Cashless payments for an impressive turnover on your private taxi company’s bank account.
- Automated business processes such as driver billing.
- Reports and statistics on your taxi business progress.
- Features facilitating business partnerships (Web App, referral programs, custom location names).
- Operation zones feature for easier management of rates and service types.
This isn’t the ultimate list: you decide which features are essential to let your cab business grow. Depending on your business plan, you can choose whether to order custom software development, use a white-label solution , or go for a franchise ride-hailing service.
Get your paperwork done
Now your plans are all ready, time to register your cab business and make it official.
Depending on your local regulations, get your employer papers, required licenses and permits, and all the needed insurance contracts. In some countries, the taxi business is very regulated. Find out what the relevant requirements are to not be stunned with unpleasant surprises later. Do your research as to what papers are required from your employees, too.
This is also the time to check and double-check all the obligations you have towards your business partners, investors, and stakeholders.
Do the fleet and hardware check
Taxi meters, a dispatch system, pieces of equipment such as rooflight—these are just some hardware instances you need to keep in mind to prepare your cab business ready to launch. Some of these hardware pieces can be effectively replaced by good software, such as taxi meters and dispatch installations.
For most new taxi cab companies, fleet is the largest initial investment. Depending on your business planning, you can purchase vehicles based on deferred payment options (paying monthly fees until the total is paid off); look for used vehicles; invest in brand-new electric cars or scooters—the possibilities are endless, really.
Vehicle branding is important for young taxi cab companies, too: it allows your business to stand out and gain initial recognition. Keep in mind: your fleet should convey your brand message. For instance, selling “luxury rides” requires luxury vehicles, while “affordable rides” give you more freedom as to what vehicles to use and how to brand them. This thought brings us forward to the marketing part of the story.
Market your cab business professionally
To young cab businesses, marketing often seems a money-drainer. Nothing is less true. A marketing plan developed well and tailored to the available budget is the only way for a taxi cab company to survive beyond the launch.
Well-planned marketing campaigns help your private taxi company to get first loyal customers—so that later you can scale the user base with referral marketing, offline and online advertising.
You don’t need a whole team of in-house marketing specialists at the initial stages of starting your taxi business: for the sake of money-saving, you can outsource expertise . For instance, we at Onde offer branding and marketing assistance to our business partners at any stage of business development.
How to plan marketing activities for a new taxi business? First of all, do some customer development and find out what drives your target audience. Think of where you can reach your potential customers and how to get their attention. Then check out our tips for every budget and pick ones that suit you most.
Dare to learn
As your taxi business develops, your team will learn more and more about the customers, their needs, and the local taxi industry. Gradually, your cab business will become better at responding to customers’ needs. You’ll discover new opportunities and maybe change the business model.
To do so, make sure there’s enough space for your team to learn from what is happening out there in the wild. Listen to the feedback from customers, employees, and business partners. A cab business plan is never cast in stone because growth requires flexibility. Starting a taxi business is more about rethinking the future than looking for a one-size-fits-all solution or trying to become “a local Uber.”
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Related posts, 5 best youtube channels for entrepreneurs to binge on holidays, how to start a taxi business: initial costs, electric vehicle changing ride-hailing business: future is here, get started with onde today.
- Business Plan for Taxi Company
Business plan for taxi service
- how will you stay ahead of your competitors;
- how will you meet the needs of potential customers;
- how you will attract employees.
5 Important steps for developing a taxi business plan
- Define the business concept.
- Do a competitor analysis.
- Calculate the market capacity in your city.
- Calculate the costs of starting a business.
- Calculate the payback period of investments.
Step 1. Define the business concept
Step 2. do a competitor analysis.
- how much the services cost;
- how fast the vehicle is served;
- what vehicle are in the fleet: make, appearance, year of manufacture;
- how professional and polite the drivers are;
- whether the drivers like their working conditions;
- how customers are attracted;
- what channels are used to advertise services.
Step 3. Calculate the market capacity in your city
Step 4. calculate the cost of starting a business, step 5. calculate the expected profit and payback period, taxi business plan sample.
- We have been working in the taxi market for more than 20 years and have become real experts in our field.
- We help companies around the world to start a taxi business.
- We support customers at every stage of the launch.
- We regularly analyze the work of different companies and help them optimize processes.
- We implement technical solutions that allow our customers to automate their work and. successfully compete with major aggregators.
Taxi business plan sample pdf
- Description of the taxi company's business model;
- Calculation of the market capacity;
- Calculation of the initial costs;
- List of the initial expenses;
- Calculation of the return on investment and payback period;
- Information on how to attract customers;
- Information on how to attract drivers;
- Information about the automation of business processes in a start-up company.
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Market Analysis Summary how to do a market analysis for your business plan.">
The company’s emphasis is on the dispatch, mobile data, and credit/debit card markets of the taxi industry. In aggregate, these markets are believed to represent potential sales in excess of $119 million as of March 1999. Within these markets, City Taxi will focus on the more lucrative credit/debit card segment. This segment, when introduced into any area has started out slow, but over a three-year period has increased by 20% each year in Maryland and Virginia, and by 25-35% in New York each year.
The company believes that the major future trend in the industry will be complete credit card access for consumers. The International Taxi Livery Association (ITLA) forecasts a very steady growth for the taxi industry in the next four years.
Market Size Statistics :
4.1 Market Segmentation
Customers and Target Markets
City Taxi’s focus will be on the credit card market with target customers in the low to mid income range in the Metropolitan San Francisco area. The target customers are motivated to use our services over that of competitors because of the convenience and quality associated with our services.
Customer Buying Criteria
We believe our customers choose our cab service based on the following criteria:
- Convenience . This involves the credit/debit card feature.
4.2 Service Business Analysis
Market 1-Taxi Cabs
This category covers establishments engaged primarily in furnishing passenger transportation by automobiles not operated on regular schedules or between fixed terminals. Taxi cab fleet owners and organizations are included, regardless of whether drivers are hired, rent their cabs, or are otherwise compensated.
In 1990, U.S. consumers spent an estimated $3.17 billion on taxis. That year, approximately 32,600 were employed in the industry as owners, managers, drivers, dispatchers, or mechanics. Since the mid- 1970’s, when a trend toward independent contracting among drivers developed, three out of every four drivers became independent contractors licensed through, and renting their vehicles from, the taxi companies. Overall, the U.S. taxi industry consisted of 205,300 vehicles in 1993. Of these, 170,800 were licensed taxis and 16,600 were hired cars, also referred to as executive sedans or liveries. The remainder was minibuses or vans, many of which were wheelchair-accessible for transporting the elderly and disabled.
Organization and Structure
Most taxi companies followed a similar organizational pattern. Managers, sometimes the company owners’ ran the business, hired drivers, and performed other administrative duties. Dispatchers took calls and assigned cabs to passenger locations. The position of dispatcher once represented a promotion awarded to experienced cab drivers, whose familiarity with the city best qualified them for the job. However, the increase in computer-based dispatching in the early 1990’s prompted cab companies to favor computer skills over specialized knowledge of local geography when filing the dispatcher position.
Regulation of the U.S. taxi industry varied from city to city. While almost all cities had some form of licensing requirements, larger urban areas had the strictest regulations. San Francisco regulations focused on fares charged to customers, with rates assigned to designated zones of the city.
In 1998, 6,342 taxi fleets, consisting of 144,000 cars, were operating in the United States. On a national level, in the early 1990’s, taxi’s made approximately 2 billion passenger trips a year. Most taxi fleets were small, family-owned businesses or individual partnerships; only 5% were corporations. Almost all operated within a single municipality, and more than half of all taxi companies had fewer than 10 vehicles. In rural areas, companies tended to be extremely small, with 1 to 3 cars available for customers. In cities of 100,000 people, the average fleet size was 20 cars. In urban centers of 200,000 or more people, cab companies retained hundreds of cars and carried more passengers than the multitude of smaller companies combined.
Research and Technology
Although the taxi cab industry was not regarded as demanding in a high degree of technology, several innovations have changed the way businesses operate. Computerized dispatching–in which cabs were tracked by computer and dispatch instructions appeared only to the cab assigned to a call–allowed more efficient assignment of cabs to passengers. Computerization also helped remedy the problem of “fare stealing,” in which one driver intercepts a message meant for another and picks up the first driver’s fare.
Another development likely to change the industry’s focus involved its use of certain radio frequencies. In the late 1980’s and early 1990’s, with investment in cellular and digital communications skyrocketing, taxi cab companies found themselves in possession of a valuable asset in the form of the broadcast frequencies granted them by the Federal Communications Commission. During this time, the FCC, allowing them only two frequencies in any one area, heavily restricted the cellular telephone industry’s use of the airwaves. By the mid-1990’s, some cab-related services, such as New Jersey’s dispatcher Fleet Call, were in a strong position to become players in the burgeoning telecommunications industry.
Due to increasing decentralization in the industry, few national taxi corporations were in operation in the early 1990’s. A few companies, however, many of which were owned by larger holding corporations, had operations that reached beyond the local. Figure 1 shows the industry leaders in the San Francisco area and their share of the market.
Figure 1 Breakdown of Market Share in San Francisco .
Market 2- Taxi top Display
Taxi top display is a market from which City Taxi can gain a substantial amount of revenue. This has been shown to be a viable means of advertising for a number of companies and it is used widely. Figure 2 shows the growth in the taxi top display market segment from 1993.
4.2.1 Competition and Buying Patterns
Competitive threats come from existing taxi cab companies in the San Francisco area. Their weaknesses are, however, that they do not have the credit/debit card payment option, and some still use the radio dispatch system. Transportation, Inc. has computer-aided dispatch but no credit card processing capabilities. Capital Cab, Yellow Cab, and Diamond Cab all have radio dispatch with selected drivers accepting credit cards. However, these drivers do not offer in-car processing, approval must be given at the home office.
Taxi Cabs . City Taxi’s competitors include existing taxi cab companies that have been operating in the San Francisco area. Specifically, competitors include:
- Town Cab is an organization run by Mr. Pete Whitehead. The company uses the radio dispatch system and has a fleet of 800 cabs.
City Taxi’s competitive advantage is our cutting edge technology which is unique to the taxi industry in San Francisco. The GPS will enable City Taxi to provide timely service by giving an accurate ETA. The credit/debit card feature will give our customers convenience and privacy during the transaction period.
Maintenance and Repair Services . City Taxi’s competitors include the above mentioned companies and general maintenance and repair shops in the area. Some of these operations do not have the capacity to handle a large amount of vehicles. While others may have the capacity, their operations are run in a primitive manner, and City Taxi intends to capitalize on that.
City Taxi’s competitive advantages include the availability of space, operations management, and skilled employees.
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Uber Business Plan Sample
Uber taxi business plan for starting your own business
Do you want to create ease for people on every road they go and every turn they run? You must start an uber business then. By starting this business, you will become a part of the global transport network. You will be using the software and setup that has already been created. And thus starting it would not be much difficult.
To embark on this journey, the first step is to research what is uber business model and then create an extensive strategic business plan. Since this startup would be a lot different than others, we are providing a sample business plan for uber for an uber startup in Manhattan.
2.1 the business.
Charles Ben will be running the uber business franchise in Manhattan. The business will initially operate in just one city. However, within two months, the network will be expanded to the neighboring cities as well.
2.2 Management of uber taxi business
If you are starting an uber business, you do not have much to decide on your own. It is because you will have to comply with uber operating model and your choices would be limited. So to manage the business and make sure that the business operates in line with the set guidelines, you will need to make uber business plan.
Ben did the same, He studied uber business models, undertook an exhaustive research on how does uber for business work before creating uber business plan for a franchise. In this uber business plan pdf we will be giving the uber business model explained and developed by Ben free of cost for everyone’s benefit.
2.3 Customers of the uber taxi business
The customers of uber business will the same as are mentioned in taxi business plan and transport business plan . They are:
- Senior Citizens
2.4 Business Target
Our long-term target is to expand to at least one more location within a year. The short-term goals include attaining a CSAT score of more than 90 and increasing the no. of customers by 5% every month for the first year. The financial targets are given as:
3.1 company owner.
Charles Ben will be the owner of the uber franchise in Manhattan. Charles is an MBA from a prestigious institute in the U.S. He initially decided to start a bus transportation business. But later, he went for purchasing a franchise.
3.2 Why the uber taxi business is being started
Ben started the uber business because of his special interest in transportation businesses. Upon thorough research, he figured out that the uber business will be both easy to run and profitable for him as compared to the bus business.
3.3 How the uber taxi business will be started
To start the uber business, the first thing to do is to understand what is uber for business, how the uber model works, and how does uber make money. After that study uber type businesses and follow the following steps.
Step1: Develop Uber Taxi Business Plan
Making a business plan of an uber will be your first toward entering this venture. To help you in this we are offering uber business plan sample for the franchise Ben acquired. According to your agreement with the uber company, you may also access uber original business plan.
Step2: Market Your Venture
Getting to your customers will be the next step. For this, you will have to carry out an exhaustive marketing strategy. In this uber cab business plan we will list the sales strategy adopted by Ben to use online and offline media in his favor.
Step3: Web Presence is a Must
Since the business activities will depend on your online presence, establishing a strong website is a must as you enter this venture.
Step4: Recruit and Serve
The last step is to reach the drivers and make your package attractive for them so they join you and service the customers in their best interests.
Services of uber taxi business
Since the uber franchise will not operate in an isolated fashion, it is important to realize that you will be providing only those services that come in the sphere of uber operating model. In this uber driver business plan all those services will be listed.
Moreover, the personnel required to maintain the operations will also be given in this uber business plan template. Thus, your queries regarding what is the uber business model will be addressed.
Like the global uber network, services of the uber franchise started by Ben will provide the following services:
- Standard Rides
As per the uber car service business plan, the foremost service will be the provision of standard rides. They will be affordable for daily use and routine commute. This service will provide rides on Hatchback and Sedan cars mostly.
- Premium Rides
For use in VIP events and weddings, we will also offer rides in luxurious cars and SUVs.
- Pickup & Delivery
One of our major services will be the offering of pickup and delivery options to our customers. Our drivers will procure the desired food items from any location in Manhattan to deliver them to the consumers. For more details, you can also visit business plan uber eats.
Besides food, the pickup service for shifting house and office appliances will also be provided.
We will also provide the facility to ride bikes that can carry two people.
To reach a maximum of people, we will provide packages and discounts on special festivals and events. In this uber partner business plan we will specify the discount strategy adopted by Ben in his business plan uber.
Marketing Analysis of uber taxi business
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If you are wondering how to open an uber franchise you are in the right space. After going through the initial procedure to get an uber taxi franchise you should study who your customers and riders are going to be. This will help you evaluate the uber franchise cost. While carrying out the market analysis for how to start a business with uber you should also study other uber type businesses to know how others are doing in the domain.
In this business plan of uber, we will be answering all your queries regarding uber starting such as how to franchise uber taxi or uber is from which country. You will also discover uber strategies and ideals for setting up an uber cabs company.
5.1 Market Trends
The market trends for uber business are promising . According to IBISWorld, the ride-sharing services and uber business are expected to increase over the next five years i.e. from 2022 to 2027. Due to ever-increased awareness of the environment and air pollution, people are opting for using public transport and uber in shared rides instead of owning a car.
5.2 Marketing Segmentation
The customers of uber business will belong to various lifestyles and ages. Major customers will be the ones who do not either possess the capability to own a car and parking space or prefer to not drive themselves.
The groups of target customers as identified by Ben are given in this uber business plan.
UK Start-Up Visa Business Plan
This is the category that does not own their cars and cannot do so. This will be our biggest group of target customers as students have to move from their home space to the educational institute on day to day basis.
5.2.2 Senior Citizens
The second biggest category of our target customers includes senior citizens. They are expected to use uber because they prefer to not drive even when they own a car to avoid anxiety and tension.
The third category comprises tourists who cannot own a vehicle as they move.
People who do jobs usually possess a car or any vehicle for the commute. However, still, some of them are expected to avail themselves of uber services.
5.3 Business Target
Setting business targets help you in devising the future course and strategy. The goals as per business plans for trucking company and logistics business plans are usually related to the fiscal benefits. Ben, however, went for a different approach as he focused also on customer satisfaction and retention in his transportation business plan .
The business targets of the Uber franchise as started by Ben are as follows:
- Acquire a CSAT score of 90+ within a year of the launch
- Expand the customer base by 5 percent every month for the first year
- Start making at least $30k in monthly profits by the end of the first five years
5.4 Product Pricing
The pricing will be based on the Uber guidelines and will be set as such to make the rides more and more affordable for the people.
Marketing Strategy of uber taxi business
After you have known how to start a uber business and you fulfill all the requirements to start a uber cab franchise, you should start looking for marketing ideas. Uber startup is distinct from other transport businesses or tipper truck business plan . Therefore, you will have to advertise two ways to gain the target customers as well as drivers.
6.1 Competitive Analysis
- We will be offering many types of packages and discounts .
- We have an excellent sales marketing team who will market how safe it is to travel with us.
6.2 Sales Strategy
The advertisement techniques as per uber business strategy are given here.
- Advertising the business on social media and through newspapers and magazines
- Creating awareness of how using Uber is both more affordable and convenient than buying a car
- Offering regular packages on a monthly and weekly basis to customers who use Uber on a daily basis
- Offering a 20% discount on standard rides on festivities and cultural events
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
Personnel plan of uber taxi business
While creating uber strategy and planning, you have to outline a list of the personnel you will need to run your business. In this uber business plan pdf we are providing the personnel plan of the uber franchise of Ben.
7.1 Company Staff
Under this business plan for uber, these positions will be hired for:
- 1 Operation Manager
- 1 Social Media Manager
- 1 Sales Executive
- 2 Software Manager
- 2 Customer Care Executives
- 1 Business Consultant
7.2 Average Salary of Employees
Financial plan of uber taxi business.
If you are considering uber for startups you must want to know how much you can build in return for your investments. As you can see in this uber business plan pdf Ben started making huge profits within only three years of the launch. Therefore, if you manage the business successfully you can make your way through it too.
The cities in which uber makes an immense profit might make you wonder why is uber so successful there. The fact is, the better you market and convince the users to use your service, the more you are going to earn.
The financial details of the uber franchise started by Ben are given here:
8.1 Important Assumptions
8.2 break-even analysis.
8.3 Projected Profit and Loss
8.3.1 profit monthly.
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
8.5 Projected Balance Sheet
8.6 business ratios.
All tables in PDF
- How do I start the Uber business?
To start an uber business you have to follow the steps that are mentioned in detail in this uber taxi business plan. They include making an uber cab business plan for your own business/ franchise, hiring the staff, arranging the stuff, and marketing your venture.
- What is Uber’s business model?
The Uber business model is that you provide a platform for the drivers to connect with the people who want to take a ride. As the business owner, you have to ensure that the drivers fulfill the criteria of licensing, national identity, etc. Moreover, you will be responsible for making the experience safe and affordable for your users. For further information, you can visit uber original business plan.
- How do I open an Uber office?
You have to first meet the legal requirements and licensing pre-requisites that are unique to your locality and service area. Then, you have to enter the legal agreement with uber to start a franchise and make further arrangements. The further steps can be studied in detail from this uber partner business plan. In this uber business plan in we have provided all details on how Ben started his Uber office successfully in Manhattan.
Download Uber Business Plan Template in PDF
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