How to start taxi company?

If you see a demand for passenger transport in your area, if you wait long for a taxi, prices are high and demand is strong – don’t hesitate! Fill this gap with your services. There are a few things you need to start with.

Registration

If you are already a registered taxi driver, skip to the next section.

In most countries, you need a license or permit to carry passengers. You must be at least 18 (in some countries 21), have a driver’s license (usually for at least a year), a clean criminal record, and pass psychological and medical exams. Unless you're applying for a taxi license in New York, the process should take 2–3 days. Review local regulations, contact your local office, and go through the process.

Secondly, you need a vehicle – it must be adapted for passenger transport, properly insured, and marked according to local rules. Contact your municipality and insurance provider.

Startup Costs

Startup costs can be high, but if you already have your license and a ready vehicle, you’ll mainly need to invest in marketing and a proper dispatch system. If you have the budget, build a fleet, recruit drivers, and define your business model.

Business Model

You must decide how you’ll manage your drivers. It’s best to define this from the beginning. One option is to hire drivers under contracts who will work set hours for a fixed salary. This approach has pros and cons – you'll likely bear social insurance costs and comply with labor laws. On the upside, your operations will be efficient – employees follow a schedule, arrive on time, and appreciate benefits. Another option is to collaborate with drivers. They can either buy ride orders from you or pay a monthly “subscription” to use your base, logo, and treat themselves as sole proprietors. This way, you avoid employment costs, but you’ll have less control over their work hours and no notice periods.

Marketing & Standing Out

If there’s demand in your area but not enough taxis, Google Ads, a Google Maps listing, and a simple website may suffice. Focus on local keywords like “cheap taxi [city]”. Create a story – e.g., a student taxi service, senior rides, or premium service. Share it on social media and in promotions.

System & Mobile App

If you’re growing or launching big, you’ll need a dispatch system and mobile app. You don’t have to build them from scratch – use white-label solutions tailored to your needs.

See how Tiskel Cloud can help your business – try it free for 14 days! Register here

Customer Service & Quality

Transporting people isn’t enough. Clean vehicles, polite drivers, quick issue resolution, and a driver rating system are key to customer loyalty and long-term success.

Scaling Your Business

If your business is profitable locally, think bigger – more cars, new cities, services like VIP rides, business accounts, or child transport. Consider franchising your model. Starting a taxi business is a great idea where demand exceeds supply. Your success depends on strategy, legal compliance, the right tools, and delivering a great experience. In this industry, the best service – not the cheapest – wins.