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Are you looking to set up a taxi company that is profitable? That’s a good business idea. One of the most lucrative businesses in existence today is the transportation is taxi. Even in the technological advanced world, where people can transact billions of dollars worth of business virtually, there is still need to move persons or goods from one part of a country to the other.

Transportation business has many facets. There is air transportation, water transportation, rail and road transportation. This article will focus on one of the commonest aspect of road transportation -Taxi. Sometimes they are referred to as cabs; most times they are called taxis. Whatever you chose to call it, any means of transporting an individual or a small group of individuals from part of a city to another is what this article is dwelling on.

If you are interested in starting your own taxi company, you have picked interest in the right business, irrespective of the country you are presently, taxi business have been around for scores of years and it is not ready to go. Places that used to be towns have become major cities. Population explosion has made crowded cities to become more congested. Even when some nations claim to be experiencing economic hardships, businesses still boom, more investors are attracted, more people are employed, many more move from one part to the country to the other.

SEE ALSO: How To Make More Money From Your Transport Business

Millions of taxis are waved down the world over on a daily basis, thus generating millions of dollars in income for those who own the taxi companies. It is not too late to tap your own millions as you invest in your own taxi company today. What can you do? How can you go about setting up a cab or taxi company? Please read on.

How Much Money Can You Make From Taxi?

You decide how much money you want to make from your taxi business, the better you are in managing it, the money money you make. Average taxi in the major cities in Nigeria makes about $150 (N25,000) daily. From this you will settle the expenses such as fueling and others. You get to keep whatever the remaining if you are driving it yourself.

SEE ALSO: How T0 Start Equipment Rental Services In Nigeria

Since you are operating as a taxi company, charge percentage of fares for the right to drive the cab from each driver you employ. If its a new taxi and your company is registered and approved by the Government, the rate you charge will be about $70 (N14,000) daily flat rate while the driver takes care of fueling and keep the rest. You multiply that to how many taxis you have. If you have like 100 taxis, you will be making N14,000 x 100 = N1,400,000 daily!

Below are some of the necessary things you need to put in place to start your own taxi company in Nigeria

Get Governmental Approval

Registering a business name is not the same as getting an approval from the government. Getting authorization here involves licensing from the government for you to be owner of Cab or Taxi Company and its operations. It also includes getting the right to paint your cars in the approved colors depending on the city you are situated. You will also need to get the routes that your cabs will ply approved.

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All these can be done within few weeks and the Lawyer who helped in your company registration can also do it together with obtaining the Government approval for you.

Get Cars Suitable For A Taxi Company

You may not need to buy a lot as a beginner; there are people who will be willing to partner with you as a taxi company. Such ones however will only bring their car to you as partners when they see that you already have a structure on ground. For now, you may have to start with two or three cabs of your own. Before you go to the auto-mart, what are some of the things you need to give serious consideration? At this stage, care is needed on your part so that you do not go for cars that will constitute problems for you later in the future.

While it may not be wrong to appreciate beautifully designed cars, you are not going into the business so that you can exhibit beauty. Even if you are an absolute neophyte, take your time to ask around for brands that combine comfort with durability.

SEE ALSO: How To Start A Petroleum Product Marketing In Nigeria

Cars that are fuel efficient are your best bet as you will be running on a lot of fuel. You also need to consider if the car you are buying does not attract expensive maintenance. If you have decided on what to buy, take an experienced automobile expert with you so that he will do the final inspection before you pay.

Never go for second hand or used cars. The original owner may hide some faults that the car has from you. More so, taxis are put to use much more than private cars, buying used vehicles will only put your business at risk as they will soon wear out, requiring constant expenses. That you go for something new does not mean you have to expend all the fortunes on buying cars, it is also important that you look out for something relatively affordable.

Insurance Is A Necessity

The business you are about to start attracts a lot of risks; do not attempt to dodge insurance. Every car you buy must have a comprehensive insurance cover. Apart from the fact that the law necessitates that you do insurance cover for your business; insuring them will serve as a protection. While budgeting for your taxi company, it is important that you include funds for budgeting in the business.

Paint And Tag

The next stage is taking your car to experienced auto painters so they can spray paint your car for you. Ensure that they use the exact colour specified by the authority so that you do not do double expenses. You also need to tag each car for identifications. While some companies use number tags, others use letters and others chose both number and letters.

Tracker Is Important

At this stage, you need to set up a monitoring and surveillance system for your business. Apart from the fact that it will prevent your cars from theft, it will help you a lot to monitor their whereabouts every time. Thus they will not be able to step out of the bounds you have set for them.

Get Responsible Drivers

You need to go for experienced and responsible drivers licensed by the government to do the business. You are not organizing a car race, so you need to employ not on the basis of their ability to race, but on the basis of their ability to drive with minimal accidents.

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  • raquel garrido April 13, 2016

    very useful article!! I have a question, Where and how is the best and faster way to get the necessary documentation to get all the licenses and aprovals for the Nigerian goverment. Being all the way in Los Angeles, my major concern is how to obtain all that paper work and have it sent.

    Thank you so much for your help. hope to hear soon from you and thank you again for this great article!

  • Isaac April 25, 2016

    Thanks so much for this article…pls i want to ask if u know about wat it takes to go into importation of laptops nd other i.c.t gadget probably frm U.S..pls email me directly.thanks again

  • Belle July 28, 2016

    How do you make sure your passengers pay? If you opt for POS, does that mean that customers without ATM cards can’t use your service?

  • josephine September 28, 2017

    Thanks so much for the article… What do I need to know to start a delivery company like Dhl??

  • Segun May 9, 2018

    Thank you for this article. i want to know if one is to start inter state transport company in Nigeria, is it the same processes? if No, what are the differences and best way to go about it. Thanks

  • David August 19, 2018

    I love this article

  • Felix Monac July 8, 2019

    Thanks for the article I have 500,000.00 can I start up a transport business? If no give me an estimate of money that will be needed to start.thanks

  • DANIEL July 13, 2019

    I am so much interested in transport business, but the capital to Kickstart is the issue.

  • Raphael Ikpe August 25, 2019

    These article is one of the best I have ever read.
    I have done this business before in Nigeria Abuja but the problem is cars.
    If there is someone I can partner with, he be supplying cars at least 4 per week, while i supply licensed drivers who take an agreement to balance weekly, then at time goes by we can expand the business.
    Please if any can call me let’s make money


  • Queen October 17, 2019

    What are the licenses a cab hiring service company need from the Government?

  • CryAfrimedia November 30, 2019

    A well-written article. However, considering the growing population in Nigeria, I was hoping to have you delve into the medical area, too.
    Thank you.

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