In India, over 75% of commuters travel up to 35 km every day. And, not all of them are happy with their current means of transport. Majority of them are looking for a reliable, and affordable alternative for their daily commutes. Why not harness this opportunity and serve them with the very best taxi services they deserve and desire? Believe it or not, taxi business profits in India is estimated to cross US$675 million in 2019. According to Road Transport Year book, there are 2.3 million registered taxis plying across different states in India. By far, a taxi business is one of the most profitable business. Thus, if you are nurturing an idea of starting your own car taxi business in India, here are some tips and the approximate cost to help you get started:
#1: Understand Your Business:
Understanding taxi business requirements is certainly the first step towards building a successful taxi brand. There are mainly two types of taxi businesses viz. Traditional and Radio taxis. Today, as digitalization is expanding its arms from e-commerce to banking – and everything in between, there are only a handful of people using traditional taxi services offered by local drivers. On the contrary, people love Radio taxis for the kind of flexibility and convenience it offers. Thus, for starting your own taxi business, it is crucial to determine what kind of business you are seeking to build. Once you know what it is, now it’s time to get your game plan ready!
#2: Strategize Your Taxi Business:
The holy ingredient that sets successful businesses from the rest of the crowd is the strategy, planning, and execution that goes behind it. Define the vision that propels your business towards the unsurmountable heights of success and growth. A lot of startups and even some mature businesses tend to take this for granted. Executing a solid plan, without any direction would lead you nowhere. Thus, the time taken for envisioning the future of your taxi business beforehand will pay high returns afterward. Apart from this, strategizing your business also includes procuring a sustainable growth strategy that will help you scale your business with time. A great business strategy will help you envision your future, execute your plans efficiently and grow your business exponentially!
#3: Market Your taxi Business:
You can have the very best product/service to offer – but if you fail to market it well, it won’t take you that far. Same is with your taxi business. For instance, you can offer the very best car for taxi business in India, but if you can’t find a way to communicate it with your audience – how will they know about you? There are many ways you can market your taxi business. Online and offline – both work equally for taxi businesses. You should see what works for your business and what not. While marketing, keep in mind that not all the channels will give you equal returns. Thus, it is always better to try various options to learn what works for you and what doesn’t.
Above were just a few tips on how to start an online cab business in India. Now let’s look at the overall cost of building a successful taxi business in India.
One of the first and most basic cost for starting a taxi business is the cost of taxi itself! Based on the car model and condition you prefer – you will have to spend a minimum of 5 lacs for getting started. Here, you can cut down your costs by purchasing a used car. For, used cars are typically cheaper and easily affordable.
Once you’re ready with your all-new car, it’s time to convert the car into a beautiful taxi! You will have to purchase taxi paint, taxi meter, and various other such resourceful things to help your customers easily spot you. The more they see, the better they perceive your brand as a whole. This will typically cost you around Rs.5600.
Taxi Booking App:
For traditional taxi business, there isn’t much you have to do. However, if you seek to establish a Radio taxi business, you must register yourself with a taxi booking app like Beep. By registering, you will get a global exposure, more clients, and you will be able to scale your business exponentially. Here, you might have to pay a little commission to the company you are registered with. It is certainly way lesser than the cost of creating such an app – all by yourself!
Adding It All Up!
So if we sum up all the costs, you will have to spend approximately around 5-6 lacs for establishing your own taxi business – if you don’t own a car. However, if you do, you can start your business right away with cost as low as 5-10k a month. Because, having a car means, you only have to pay commission to the taxi booking app you are registered with.
With taxi businesses at its peak, now would be the right time to get started with your amazing taxi business idea. Put your taxi business idea to work and let it earn you a fortune! If you are still thinking, is taxi business profitable in India – then look at the data: with over 2.3 million registered taxis across India, it is certainly one of the most profitable businesses that can help you thrive in today’s rapidly disrupting economy!
Join the Beep family today and start your taxi business today! Signing up with us is super-easy and truly rewarding. The official Beep app is available on Google Play store and App store. So what are you waiting for? Download our app today and start building your taxi business with us. The best part about us? You can count on us. We are very-easy-to-talk-to and would love to see you on board. So act now!