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How to Start a New Taxi Business

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Category : > New Business Setup
Posted On : Tue Oct 18th,2016

A Complete guide to run a taxi business in the USA

What is a taxi?

A taxi is a licensed vehicle to transfer passengers from one station to other station.


What is meant by taxi business?

A taxi business provides the services of a taxi on rent for multiple purposes for a short duration.

Can a taxi business be started with a small amount?

Yes, you can start a new taxi business in the USA with a small investment as you can start it with few moderate cars and later you can expand your fleet as you gradually stable.


How to start a new taxi business?

You can start your taxi business by preparing a feasibility report, understanding the competitors, an average cash flow, and the most important are to get registration with necessary license or permits.


How can we check the competitors in the taxi business?

You can check out the websites of local companies. You can search following points:

  • What are the services and rates of local taxi service providers?
  • If there is any need to introduce new taxi service?


What are the types of taxi business?

  • Limousine service
  • Taxi for commercial purposes
  • Local taxi service
  • Local cab service


What are the advantages of a limousine taxi business?

People prefer luxury travel with a premium vehicle. A limousine fleet can create an outstanding outlook to your business. Limousine can be used for multi purposes.


Why people choose premium limousine service?

Limousine is considered the top choice for Prom tours, Wedding Ceremonies, private tours, and wine tours. As limousine provides luxury interior and latest technology to enjoy the journey; it is one of the famous services in the taxi business.


What points includes a solid taxi business plan?

A perfect taxi business plan includes:

  • Start-up costs
  • Marketing plan
  • Management strategy
  • Expansion plan


Which driver license do you need for a commercial taxi?

You need to apply for a commercial driver license at your local DMV office.


Why is a good location important to start a new taxi business?

A good location for a new taxi business is mandatory as it provides an easy access to all major routes and makes sure there is enough parking space available.


Why insurance for taxi company is important?

Get comprehensive, purchase property and liability insurance for your new taxi business. It protects from damage, theft, or any other accident.


What are the legal requirements to start a taxi business in the USA?

  • You need to register your company with the state, if using a business name to advertise your business as a fictitious name, corporation, Limited Liability Company or a partnership.
  • You will apply for a new taxi business license with the DMV.
  • Sales tax registration is also required in most states to operate a taxi business.

Where can we register vehicles for a taxi business?

You can register your vehicles at your local department of motors.


What types of insurance are available to operate a taxi business?

There are four types of insurance available for a taxi business:

  • Unemployment insurance
  • Self-employment insurance
  • Medical insurance
  • Life insurance
  • Liability insurance
  • Workers' Compensation and Disabiltiy Insurance


What is the best marketing strategy to open a taxi business online in the USA?

You can consider developing a website for your taxi business to display rates and taxi schedule. Online visibility is a main tool to reach out the maximum customers looking your services.


Why is an online presence necessary for a new taxi business in the USA?

If you place the pictures of your fleet with various packages and price, it will give your customers enough time to select the services according to their needs. You can provide them an online booking option too.


The Author of this article is a M.Phil in English Literature

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