The taxi business in India is becoming one of the lucrative and profitable businesses because nowadays everybody prefers to go with taxis as it shows the symbol of status. Also in the present climate, the fuel prices are going through the roof this also increases people to preference for taxes rather than their own vehicles. This increases the competition in the taxi industry as well but getting into this industry is one of the best ideas to put up your services at a low and reasonable price because it is a vendor-driven market and it does not have to invest much.
So before starting a taxi business in India you should know about what factors influence the taxi business and how you can manage it.
Find the potential for taxi business
The first and foremost thing you need to understand for starting your taxi business is there are many prospects to start a taxi business and you can earn more even if you have a lot of competitions. For this, you need to know whether people in your region are willing to have a taxi business or not or if it is yes then what are their needs for the same.
For this at first, try to find out what your competitors are giving to your targeted customers and what you can give them new according to their willingness. Because studying your competitors can give you more knowledge about what is required in the market and how you can give better. Also, explore the market to find out what unique for extraordinary you can give to your clients for or their trust and how you can make your brand value this can be done with the help of planning keeping in view the demand of your targeted market.
TYPES OF TAXI BUSINESS
There are different types of taxi businesses depending upon the niche of customers you targeted. Firstly you need to find out which type of business you would like to do after you find the potential in the market.
One is a traditional type and the other one is modern type.
- Traditional type: it includes two types 1 individual taxis which are run by an individual and 2 are organizational organizations taxis where an organization number of cars and taxis and they run them as taxis.
- Modern type: as the period of modernization now people do not prefer to have a traditional type of taxis but a modern taxis called radio taxis this type of taxi has GPS service system install in it and can be booked online even the route of a taxi is traceable do people feel more trustable and secured in this type does prefer it.
DEVELOPING A BUSINESS PLAN
Now after realizing which type of business you need to start as a taxi business from the current size of the market and their preferences. Develop a plan about your business how can you run it where you can run net how you can make customers attracted to your business. How many vehicles you will own, how many and which kind of drivers will be required, which vehicles you will own, how will you invest your finance and how will you manage it all, provide you brief and perfect knowledge through planning. And this planning I will help you to make a profit by making your brand value.
ESTABLISH TRAFFIC AND ROUTE PLANS
After developing a plan think about which route you would like to choose and vary your tariff according to day and night also according to the different parts of regions and also provide some plants for customers within the regional limit. Also, make sure you have different options for your customers to pay so that you can make a flexible link between you and your customer between you and your company, and between you and your driver.
LEGAL FORMALITIES
Registration Process and Required Compliances
To purchase, register, and obtain permits for vehicles and the business is one of the most important and difficult tasks for a business during its initial stage. All these legal formalities are to be done before starting the business itself so that you could not get any complications in starting the business. Here are some of the steps which will help you in registering your business without complications:
- Firstly purchase the car or taxis for the business which are for the purpose of a taxi business and are economically affordable for it.
- After purchasing the vehicle you need to get it registered under the district transport office or regional transport office related to your state and it is mandatory to register your vehicles in 7 days from its purchase under the motor vehicle act 1988. After this, the transport authority provides you a legal certificate or registration of your vehicle but if you run your vehicles without registration you will have to pay a penalty of 2,000 rupees.
- The vehicles need to be registered so that when there is a third party issue or damage it can be useful. This insurance can be taken from any kind of insurance company by filling the application form and following the mandatory details.
- After that check ok that all your taxis are being cleared with all the environmental issues that are guided by the state.
COMMERCIAL DRIVING LICENCE
The person who has a car or any vehicle needs to have a driving license to show its authorization. It’s up to him to use it. But if that vehicle is used for commercial purposes then a person needs to have a commercial driving license for it. That driving license is issued by the RTO regional transport office of a particular state and this license is mandatory for all the vehicle owner and the one who is driving it.
SPECIFIC CRITERIA FOR OBTAINING COMMERCIAL DRIVING LICENCE ARE:
- Drivers must be at least 18 years of age.
- Drivers must be at least educated to class 8.
- Learning license is necessary for at least 6 months
- A driving test is necessary to assess whether he can drive.
- A medical fitness certificate of a driver is necessary.
- Application of LICENSE can be done on an offline basis
- Should have trained from government motor school.
A taxi driver needs to submit a medical certificate about his medical and mental fitness. After analyzing all the factors above then only the license will be provided by the RTO office.
Also, working hour of drivers are fixed that as an adult a person can work for not more than 8 hours a day or 48 hours a week it is also given under motor transport workers act 1961 but if the transportation distance is long-distance then a person needs to take permission from the proper authority who can grant permission for it but the permission cannot be granted for more than 10 hours a day or 54 hours a week.
Documents required for the application of the Commercial Driving License
- Identity Proof
- Address Proof
- Multiple passport size photos
- Application fee
Vehicle permit
Vehicles need to have a permit to use it as a taxi because not all vehicles can be used as taxis to transport goods or people. This permit of transportation is being obtained by RTO regional transport authority or state transport authority by submitting a form for a permit.it is mandatory for all vehicles to register it before using it or driving it.
In this taxi owner can choose to get a permit for all India transportation which can be obtained by giving summiting of form to All India Tourist Permit(AITP) along with the prescribed legal fees.
Contract of carriage passenger
If a person carries the passenger he needs to be registered under a contract of carriage passenger where a contract is made for the Number of persons in each to be carried for a particular sum to a particular place. Here you need to fill an application for a particular type of vehicle and the number of sittings in that vehicle also the area in which that particular vehicle is going to be operated with some more details likewise this is to be done under motor vehicle act 1988 section 73
Fitness certificate
Every vehicle needs to be maintained regularly on a periodic basis so as to keep it and passengers safe. Under the motor vehicle act 1988 section 84, every vehicle needs to have a fitness certificate from Thora in testing stations. Every vehicle needs to be run at a particular speed which varies from state to state. Usually, this speed is from 50 to 65 kilometers per hour. Also in this section, it is compulsory to have printed the name and the address of the operator of the taxi on it.
All India Tourist Permit
If if you need to go from state to state you need to have an all India tourist permit for your taxi. It can be done by filling in an application for it with particular fees even the number plate of all India permit should have written all India permit taxi on it. It is also mentioned in the act that these vehicles cannot be used for local purposes that is you can not carry any goods or passengers local with this Taxi.
GET A DRIVING TEAM READY
Drivers are one of the main components or factors of taxi companies. You need to take care of each and everything why hiring drivers for your taxi whether they are part time or full time drivers you need to check their backgrounds carefully before selecting them. There are some points to kept in mind which are as follows:
1. Background check
The first and the foremost thing you need to do is to check the background of drivers you are going to select, check their previous job records, their family background, their habits, and personal records. Try to find out whether the person is reliable and honest or not.
2. Interview
In an interview try to check their driving skills, their sincerity, their politeness because they need to deal with customers every single second even if you can go with the driving test of the candidate before selecting him.
3. Company ethics
After selecting a candidate you need to abide by his or her company rules, regulations, codes, and conducts that are to be maintained so as to increase the brand value of the company with a reliable transport provider.
4. Dress code
One of the most important ways to increase your brand value and to become unique on your own is to have a dress code of your drivers that will help you to recognize yourself and this will maintain the ethics of the company as well. Show arrange a well-designed and colored uniform for your drivers.
5. Operating time
They need to have a particular timetable for your drivers but that timetable should be flexible enough to manage during emergencies. A driver can make judicious schedule changes in emergencies for this you can even give some kind of additional remuneration for the one who works in the tough times like peak time or at night.
6. Rules
A driver should be provided with the rules and regulations that are to be followed during his service like being polite to the customers no drinking during driving no smoking, no overspeeding, no extra money from customers, no breaking of traffic rules, etc. tell your driver that all these rules are compulsory to be followed or he will be fired immediately if you did not follow any of the rules.
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