Tips for Managing Your Taxi Company
Managing a taxi company is a demanding job. Not only will you need to manage a team of the perpetually moving remote employees that constitute your fleet, but you need to manage the financials related to endless transactions and expenses, not to mention business growth and fending off the competition. The taxi niche is more competitive now than ever and, with organisations like Uber here to say, managing a taxi company means staying competitive in a constantly evolving marketplace.
Consider Investing in Eco-Friendly Vehicles
People are more concerned with travel’s environmental impact now more than ever. Investing in a fleet of environmentally friendly taxis is a great selling point for your business. It is quite common for taxis to be electric or at least hybrid nowadays due to tax incentives, so it is crucial that you keep up with changing times. Electric cars are more expensive to purchase, but they pay off in the long-term because they are cheaper to run.
Find the Right Insurance
There are three main outgoing payments for taxi companies: driver salaries, vehicle upkeep (including fuel), and insurance. It is vital to your profitability that you find the right Motor and Taxi Insurance. You need to get cover from an insurance agency that specifically caters to those in your line of business. This will allow you to find a policy that will not only charge you a competitive rate but will offer you reassurance that if anything happens, you can get back on the road quickly and safely.
Create a Business Application
Investing in a mobile app is a great way to keep your business competitive. It allows you to capture customer phone real estate as well as offer them unique services like:
- The ability to track drivers
- Offers and adjustable rates to balance demand in high and low seasons
- Fixed-price journey options for common destinations like stations and airports
- A clear map of the journey and the cost that they will undertake.
Find Your Niche
Companies like Uber have an almost ubiquitous presence, so it is vital that to challenge their omnipresence, you need to create a niche to help your business stand out. Ideas for taxi business niche include:
- Having a localized focus
- Specializing in taxi services for kids
- Offering very good rates for longer journeys or airport pick-ups etc.
- Offering a car rental service
- Offering a female-only driver option
- Offering a loyalty programme
- Luxury service
Partner with Local Businesses
When you are running a fleet of vehicles, it is inevitable that at some point they will need repairs. It is a good idea to partner with local businesses that can repair your car or rent you new vehicles, like a local garage, mechanic, and rental company. This means that you will be offered more competitive rates and that they are more likely to prioritize your vehicle when getting to work – so you don’t lose too much money by having your assets sitting in a garage. While your insurance company will cover the costs for repairs, there will be other mechanic bills you will need to pay (like MOT), so it pays to have a good relationship with your local garage.