Office Space Expenses

$0

$7,000

Employee & Freelancer Expenses

$151

$352

Website Costs

$223

$7,215

Business Formation Fees

$600

$4,700

Equipment & Supply Expenses

$63

$200

Vehicle Expenses

$2

$10,004

Software Expenses

$162

$3,094

Advertising & Marketing Costs

$0

$2,800

Total Startup Costs

$1,201

$35,365

Lyft

lyft.com

11,671

Ola Cabs

olacabs.com

24,988

The new mytaxi: FREE NOW

free-now.com

220,673

TaxiFareFinder

taxifarefinder.com

281,679

Taximobility

taximobility.com

295,982

Addison Lee

addisonlee.com

417,998

Smart Car Tech

smart-car.tech

424,993

13cabs

13cabs.com.au

578,430

Curb Mobility

gocurb.com

634,642

Talixo

talixo.com

647,293

Little

little.bz

983,061

Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

Meaningful business connections

You never know who you will meet as a taxi cab company. This could be the start of an incredible business opportunity!

High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

Pick & choose the clients you work with

Taxi Cab Companyes have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!

Control of workload

With starting a taxi cab company, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.

Gain exposure and experience

This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Low margins

The gross margins for your taxi cab company are typically around 88%, which can make it more challenging to incur new expenses and maintain profitability.

High employee turnover

In the taxi cab company, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

High overhead expenses

With starting a taxi cab company, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.

Churn

In this business, customers can cancel their membership or subscription for your services - which can make revenue forecasting challenging and unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.

Time commitment

With starting a taxi cab company, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.