Taxi Business In India
With a population of 1.3 billion, India’s transport business is a hotcake. Taxis are in high demand in all of its provinces. Due to this, many taxi companies have sprung up to satisfy the demand. They include KTC India Private Limited, My Taxi India, Taxi Rent Muzaffarpur, Uber, Top Cabs, and Get Me Cabs. Besides this, you can still own a sole taxi in India.
Requirements Of Running A Taxi Business In India
Starting a taxi business in India is easy provided you have a car, a fleet of cars and some rupees to cater for taxi set up costs and taxi driver cost. You can also lease or hire cheap personal cars for a startup if you don’t own any yourself. Once you have a car, get a taxi operation permit and hire qualified and professional drivers to work for you on a small commission basis.
Is Taxi Business Profitable In India?
Taxi business in India is very profitable due to high demand and limited supply. Its profit margin lies between 45% and 55%. Note that this is minus the taxi driver cost and your initial taxi set up costs. However, to maximize your returns, you have to be hands on with how you run your business. To make this easier get taxi software and smart phone for taxi bookings management.
Pros and Cons of taxi Business In India
Just like any other business, a taxi business in India faces a lot of challenges, but also potential benefits. One, there is a mushrooming growth opportunity of taxi business in India with good returns. Sadly, you will deal with car breakdown once in a while, theft of money from your drivers if you are not keen which can lead to losses. All in all it is a good business that does not require a lot of resources.