Starting a taxi business?

Question

I have been pondering over starting a small taxi business. Its not a business I have run before. I have carried out my market research on the viability and it appears a go-er. I have spoken to the licensing department at the local council and there is no issues with getting the appropriate licences.

In my business plan I would have to employ a minimum of 2 drivers, so my queries relate to this.

Firstly are they responsible for getting and paying the licence fees themselves or will this become my obligation as the taxi company?

Secondly, How should I pay them? - a flat rate or a percentage of the takings etc etc

How would I know what they are charging customers if the cars are not run on meters?

Is there anything else I should be aware of?

Thanks for your help

Answer 1

You and the other worker will need a criminal records check done.

Answer 2

We live in south wales and it has taken my husband 3 months so far to get a private hire badge and he still hasn't heard from the crb check or had a medical i do not believe how hard it is to get a badge here, so far he has spent nearly £200, so have you got good drivers lined up, operators licence, planning permition, premises, our council do not make things easy ,so i hope your council is better than ours,  good luck

Answer 3

If you mean a Private Hire business ? this entails

the drivers to purchase there own licence.

They pay you each week for the use of car plus

a weekly fee for the use of the radio that are supplied

all moneys that are collected are the drivers,self employed.

by you for bookings.

Taxi`s are entirely different as they can be haled by punters

from the street and have strict rules on running

these hackney cabs.

Answer 4

You will need to pay the lience as the owner of the company, most taxi drivers theese days want a steady income, meaning you'd get better drivers by paying them a flat rate and maybe introducing an extra commission based bonus if they get a certain amount of customers. taxi drivers will usually bring along new customers that they know from elsewhere - friends/family. you'd need someone at the office to take calls, so u'd know where each driver was picking up from and dropping off so you'd be able to estimate the fare which needed to be charged. You'd need to set a standard base rate and an increase depending on miles etc. Taxi companies have a lot of competition, advertise well and you'll need something the other cab companies dont have to find customers who will use you over and over as these are the people that make up the majority of your business!