How To Start Cab Taxi Business In Nigeria

Can everyone own a car in Nigeria? Even if everyone own a car, Can we all have the zeal and the right circumstances to drive ourselves around  for 365 days multiplied by the numbers of years possible? No this is not likely to be a correct assumption because not everyone can own or can drive one’s self all the time. So now, you don’t have a car and you need to go to work, meet up with that conference, attend those weddings, and other places too, how do you get there? Through taxi transport. Can you now see why cab or taxi business in Nigeria is profitable?

With the number of people trooping in and out of Lagos State alone, this state has over 20 million residents who need to move around on daily basis and still counting, Nigeria as a whole has a population of over 170 million, you can never go wrong if you start up a cab taxi business in Nigeria.

Cab drivers make about N 8,000 or more on daily basis, the good thing about this business is that you can start with just a car and gradually grow into having fleet of cars for your business or even starting a taxi company. It is not necessary you drive it yourself you can hire driver who would just give you returns on daily basis.

SEE ALSO: How To Start A Lucrative Taxi Company In Any Part Of Nigeria

Here I want to take you through the practical steps you need to put into consideration when starting  cab taxi business in Nigeria no matter the size or location.

Get The Capital Required For Taxi Business

Cab taxi business is a lucrative business but capital intensive due to the high cost of buying a vehicle, even if you decide to start with just one car, it will still involves start up capital of about N600,000. This will be used to buy a fairly used car to start your taxi business, you can buy products like Mazda, Opel, Mitsubishi, Toyota Corolla, and other related cars that are durable and cheap to maintain.

You can get your capital either through funds from family and friends or simply obtain loan from micro finance banks, it might even be your own personal savings. It is advised you start your taxi business in a small way and then grow to the level of owning fleet of cars. Ensure you buy a good car that can pay back what ever you have borrowed.

Decide On Rental or Hire Purchase

Rental in cab business means you give the car to the driver and he gives you returns on a daily basis, you will remain responsible for the car registration at any motor park, license, maintenance and repairs. If you choose the hire purchase arrangement, the hirer take full responsibility of the car which includes registrations at motor parks, licenses, maintenance and repairs of the vehicle. Which ever one you choose, it is important you carry out proper background checks on any driver you intend to rent or hire your car to. They should provide guarantors who can testify to their good and recommendable character and integrity, and ready to stand for them and be held responsible in case of any problem.

Remember, if you don’t carry out your investigation properly and you fall into the wrong driver, he may use or drive your car recklessly, damage your car or even sell it out-rightly, pocket the money and disappear. So make your research right before employing any driver.

Determine Where You Want To Run Your Cab Taxi Business

The areas you choose to run your taxi business will determine how much your driver will deliver to you on daily basis, for instance, if you run your cab through Victory Island you might get  daily delivery of about N10,000 while in some part of Ikorodu in Lagos you can earn daily delivery of N3,000 to about N7,000 on a daily basis. This daily delivery is only applicable if  you choose a rental service.

License And Mode Of Dressing Is Important

You must ensure that your drivers  have the acceptable commercial driver license. This will  help your driver to avoid embarrassment from the law enforcement agents on their daily activities.

SEE ALSO: How To Start Transport Business In Nigeria

Some drivers think their job is just to drive car and drop their passengers at their destinations and so, this makes most drivers look so unkept that they cause a lot of discomfort to the passenger/customer. You could just introduce dress code to your drivers. People address you base on how neatly you are dressed so make sure your drivers are neatly dressed.

When your business is fully set for operation, all you need to do is watch your business grow and then think of how you can expand in your taxi business.

Wish you all the best in your taxi business and getting ready to  read your success story soon.