Table of Content

    Taxi business plan for starting your own business

    Are you looking for how to start taxi service ? Then this <srong>taxi service business plan is all you need. The taxi service business can be a great choice if you have a good budget for buying and maintaining vehicles. Starting a taxi services business doesn’t require you to be an expert in the transportation field. The business can be started small with a few cars and drivers, and later on, it can be expanded as you begin to profit.

    To start a business, it is important to follow certain procedures. You can also easily draft up a transport business plan  for your taxi service business. You can look at associated plans such as tipper truck company business plan as a guide. To make your business plan much better, you can also develop a mobile apps business plan when considering the marketing of the company.

    Executive Summary

    2.1 About the Business

    Grab A Cab will be a taxi service business owned by Benjamin Williams in San Francisco. The main aim of this taxi service business will be to provide trustworthy, well-timed, and safe cabs that will make use of complete in-car credit and debit card access, along with computer-aided dispatch. Grab A Cab taxi service will provide complete cab services using the latest equipment and technology to facilitate individuals’ travel in and around San Francisco.

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    2.2 Management of Taxi business

    If you are considering how to start taxi service, then it is important to establish strong management. Adequate business planning services must have a good management team. And there is no better way to plan out every aspect of your taxi service than through a  business plan for taxi service pdf like the one offered here.

    Other business plans like logistics company business plan can also aid you in developing the core plans of your company.

    In this taxi business plan example, we will guide you about all the components of a strong business plan. To write up a call taxi business plan follow our format.

    2.3 Customers of Taxi business

    Through our market survey and feasibility studies, we identified those customers that will benefit greatly from our service offerings. The recurring customers of the taxi service business will be:

    • Schools
    • Event planners
    • Retirement and care homes
    • Hotels and airport transfers

    2.4 Business Target

    The main goal of our taxi service business is that in the next three years, we will be the well-liked transportation company in the San Francisco Metro Area by continuously evaluating, monitoring, and following up on customer call-ins.

    Taxi Business Plan - 3 Years Profit Forecast

    Franchise Business Plan
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    Company Summary

    3.1 Grab A Cab Owner

    Benjamin Williams will be the owner of Grab A Cab taxi service business. Williams completed his Masters in Business Administration two years ago, after which he pursued a position as a manager in a noteworthy company. He was quite fascinated by the can service in his state. Conversely, four months ago, he left the post to fulfill his lifelong passion of starting his taxi service business.

    3.2 Why Grab A Cab is being started

    Benjamin Williams noticed that the other cab services businesses around him used traditional methods to work for their customers. Here, he saw the opportunity to cater to customers of San Francisco and the nearby regions with the latest technology cabs. The result was Grab A Cab, a taxi service that provides chauffeuring services to its customers by using the latest technology and equipment in cabs.

    3.3 How Grab A Cab business will be started

    Step1: Plan Everything

    Good planning is crucial when learning how to open taxi company. A business plan for taxi service can best aid in planning and managing a business. To write your taxi driver business plan, you can take help from this sample taxi business plan. The business plan for Grab A Cab is detailed here. You can take help from this example or go through other examples like truck driving business plan to get an idea of what to include when planning for a startup.

    Step2: Develop a Brand

    The next step in  starting up a taxi companyis to highlight your business and its unique offers. This can be achieved by creating a brand around your business idea. This will include everything from its principles to its unique value above its competitors. For this business to be successful, brand matters a lot.

    Step3: Establish Your Management Grounds

    The next important step is to maintain the physical aspect of your business. For this purpose, Benjamin Williams decided to buy a big place in the main San Francisco commercial area. The place would be spacious to park all his cabs. Moreover, there will also be a workshop inside that place to maintain and repair the cabs. This will effectively reduce the expenditure of sending damaged cabs to other workshops.

    Step4: Establish a Web Presence

    At present, it is necessary to establish a web presence. Therefore, Williams decided to develop a website for the business and social media presences for marketing as It will be essential to attract a wider audience.

    Step5: Promote and Market

    The last step is developing and executing an effective marketing plan to promote your services.

    Taxi Business Plan - Startup Cost

    Start-up Expenses  
    Legal $166,400
    Consultants $0
    Insurance $26,600
    Rent $36,600
    Research and Development $10,000
    Expensed Equipment $56,600
    Signs $3,400
    TOTAL START-UP EXPENSES $299,600
    Start-up Assets $261,400
    Cash Required $206,000
    Start-up Inventory $39,000
    Other Current Assets $226,000
    Long-term Assets $287,000
    TOTAL ASSETS $1,019,400
    Total Requirements $1,319,000
    START-UP FUNDING
    Start-up Expenses to Fund $299,600
    Start-up Assets to Fund $1,019,400
    TOTAL FUNDING REQUIRED $1,319,000
    Assets
    Non-cash Assets from Start-up $1,319,800
    Cash Requirements from Start-up $126,000
    Additional Cash Raised $56,000
    Cash Balance on Starting Date $35,000
    TOTAL ASSETS $1,536,800
    Liabilities and Capital
    Liabilities $16,200
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $56,000
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $72,200
    Capital
    Planned Investment $1,319,000
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $1,319,000
    Loss at Start-up (Start-up Expenses) $145,600
    TOTAL CAPITAL $1,464,600
    TOTAL CAPITAL AND LIABILITIES $1,536,800
    Total Funding $1,319,000

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    Services of taxi business

    Before setting up taxi business, you need to decide on your business’s services to your customers. You may have a taxi business plan tempelate, but it might not have everything you need for your sample plan.

    You can follow this guide on how to open a taxi service to figure out what the market for the business looks like and what services are ideal to be included in your startup.

    The cost factor is necessary to keep in mind while considering your services, so you can develop a taxi service business plan startup costs pdf to keep an estimate. Since Williams started with various services, this format can be used to develop even a uber taxi business plan or an airport taxi business plan.

    • Door to Door Taxi Service

    We will provide door-to-door taxi service to our customers as it is more convenient to use. Our capable drivers will pick customers from their homes and drop them directly at their destinations. Our customers will be able to book a cab through our mobile app or website.

    • Wheelchair Accessible Cabs

    Our specialized service will provide wheelchair user passengers with a ramp or a passenger lift to assist them with getting into the vehicle, which is far easier than transferring from a wheelchair to a car seat and dismantling the wheelchair for the journey.

    • Seniors on the Go

    We’ll also provide our professional, skilled, and highly patient cab drivers to assist seniors with their chores. Our company will provide senior citizens taxicab coupon booklets to maximize senior citizens’ benefits. We will aim to provide maximum customer satisfaction.

    • Hourly Service

    We will offer our clients affordable discounts that pay off in the long run with our hourly packages. Plus, booking hourly service will take the pressure off in terms of booking reliability: calling a cab and expecting the company to have an available vehicle at all times is a far stretch; however, booking an hourly service in advance ensures you’re covered 100%.

    Marketing Analysis of Taxi business

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    When starting a taxi service business, you should have an excellent understanding of your target market. You can gain this understanding by doing an extensive market analysis as a part of your taxi business plan sample.

    Your  business plan for a taxi business should also analyze the price of similar services in the market. This data should be used to forecast the prices you will set for starting your own taxi business.

    If you don’t know how to open a taxi company, you can take help of this taxi cab business plan. A complete market analysis is necessary for running a taxi business.

    If you want to learn how to setup your own taxi business, then this business plan taxi service will be of great use.

    5.1 Market Trends

    Taxi operations provide over 60 billion dollars a year to the general US economy. The industry employs 2,026,478 people. The growth rate of this industry has remained in step with the general growth of the country’s GDP. Management feels that by maintaining a local client base, the Company can continue to generate revenues despite the current deleterious economic conditions in the United States.

    5.2 Marketing Segmentation

    The potential customers of Grab A Cab are divided into the following groups:

    Taxi Business Plan - Marketing Segmentation

    Business Plan for Investors

    5.2.1 Schools

    Our primary customers will be the school students. They are expected to avail of our regular contract to and from school, traveling to sports matches or class trips.

    5.2.2 Event planners

    Our second target customer will be event planners. They need to organize events, and for this purpose, they have to travel to different places. They will utilize our cab service to get maximum comfort. Our cabs will pick them up from their pickup location and drop them at their destination.

    5.2.3 Retirement and care homes

    This will be our third target group of customers. Our taxi company will provide services to the people in retirement or care homes who may no longer be confident to drive. Our wheelchair assessable cabs are specially designed for these customers.

    5.2.4 Hotel and Airport transfers

    Lastly, our potential customers include families and individuals on holiday and business travelers. These groups don’t typically mind paying a bit more for a solution that takes care of transportation in an all-in-one way, so they don’t have to worry.

    Market Analysis
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Schools 27% 56,100 67,320 80,784 96,941 116,329 10.00%
    Event Planners 24% 46,100 55,320 66,384 79,661 95,593 10.00%
    Retirement & Care Homes 25% 21,600 25,920 31,104 37,325 44,790 10.00%
    Hotel & Airport Transfers 24% 22,600 27,120 32,544 39,053 46,863 11.00%
    Total 100% 146,400 175,680 210,816 252,979 303,575 10%

     

    5.3 Business Target

    • To become the number one taxi service throughout San Francisco and adjoining areas.
    • The main target of our taxi service business is to pursue an aggressive marketing campaign and penetrate at least 75% of the market share.
    • To earn a net profit margin of $50.5k per month by the end of the third year

    5.4 Product Pricing

    Our  business plan for transportation service ensures that our prices will be economical compared to our competitors as we will provide them with cabs that will be technologically advanced and equipped at nominal rates.

    Marketing Strategy of Taxi business

    To  open taxi business , you must develop the best business plan for a taxi business. For starting up a taxi companyyou also need to develop a strong marketing strategy to attract more customers.

    Any questions? Get in Touch

    In this taxi cab company business plan , we’re providing the sales strategy of Grab A Cab. You can learn a lot from here if you aspire to make a city taxi business plan.

    6.1 Competitive Analysis

    • We have quick customer care services. We respond to customer queries efficiently and respect their feedback to improve our services.
    • We have excellent customer support staff that guides our customers in choosing the best traveling package according to their budget.
    • Through our 24/7 online services, customers can inquire about our services.
    • We will also have a roadside assistance business plan to prevent any inconvenience.

    6.2 Sales Strategy

    • We’ll advertise our services through social media platforms like Facebook and Instagram.
    • We’ll give a free ride to our first 50 customers
    • We’ll offer a 25% discount to school and college students

    6.3 Sales Monthly

    Taxi Business Plan - Sales Monthly

    6.4 Sales Yearly

    Taxi Business Plan - Sales Yearly

    6.5 Sales Forecast

    Taxi Business Plan - Unit Sales

    Sales Forecast      
    Unit Sales Year 1 Year 2 Year 3
    Door to Door Taxi Service 4,250 4,505 4,775
    Wheelchair Accessible Cabs 3,500 3,710 3,933
    Seniors on the Go 2,550 2,703 2,865
    Hourly Service 4,500 4,770 5,056
    TOTAL UNIT SALES 14,800 15,688 16,629
    Unit Prices Year 1 Year 2 Year 3
    Door to Door Taxi Service $100.00 $116.00 $134.56
    Wheelchair Accessible Cabs $125.00 $145.00 $168.20
    Seniors on the Go $100.00 $116.00 $134.56
    Hourly Service $50.00 $58.00 $67.28
    Sales
    Door to Door Taxi Service $425,000.00 $522,580.00 $642,564.37
    Wheelchair Accessible Cabs $437,500.00 $537,950.00 $661,463.32
    Seniors on the Go $255,000.00 $313,548.00 $385,538.62
    Hourly Service $225,000.00 $276,660.00 $340,181.14
    TOTAL SALES $1,342,500.00 $1,650,738.00 $2,029,747.44
    Direct Unit Costs Year 1 Year 2 Year 3
    Door to Door Taxi Service $20.00 $22.00 $23.10
    Wheelchair Accessible Cabs $15.00 $16.50 $17.33
    Seniors on the Go $20.00 $22.00 $23.10
    Hourly Service $20.00 $22.00 $23.10
    Direct Cost of Sales
    Door to Door Taxi Service $85,000.00 $99,110.00 $110,309.43
    Wheelchair Accessible Cabs $52,500.00 $61,215.00 $68,132.30
    Seniors on the Go $51,000.00 $59,466.00 $66,185.66
    Hourly Service $90,000.00 $104,940.00 $116,798.22
    Subtotal Direct Cost of Sales $278,500.00 $324,731.00 $361,425.60
    Any questions? Get in Touch

    Personnel plan of taxi business

    There are a lot of taxi services in the world. But only those are popular that make customers happy and satisfied. This taxi service business plan sample has all the detail regarding the startup of the taxi service business.

    Understanding the importance of good staff, Williams included some essential features as a part of employee hiring criteria in the taxi cab advertising business plans. He also formed a list of employees necessary for running his business. This list can be seen in this taxi business plan pdf.

    7.1 Company Staff

    • 1 Operations manager
    • 1 Customer Support officer
    • 1 Marketing officer
    • 10 Drivers
    • 2 Mechanics
    • 1 Web Developer to manage online sites

    7.2 Average Salary of Employees

     Personnel Plan      
    Year 1 Year 2 Year 3
    Operation Manager $32,000 $35,200 $38,720
    Customer Support Officer $30,000 $33,000 $36,300
    Marketing Officer $32,000 $35,200 $38,720
    Drivers $225,000 $247,500 $272,250
    Mechanics $44,500 $48,950 $53,845
    Web Developer $22,500 $24,750 $27,225
    Total Salaries $386,000 $424,600 $467,060

     

    Financial Plan of taxi business

    A successful business yields profit. And It is essential to manage your operations timely and efficiently to earn profits. A detailed financial analysis is necessary to ensure that your business is not getting into a loss. The taxi business sample plan pdf must contain all the financial information to start a business.

    The  taxi service business plan startup costs are important for your financial plan. Moreover, in your financial plan, you must identify when and how you’ll cover your investment amount with the earned profits. Moreover, it would help to analyze your yearly expenses to determine the possibilities of reducing them.

    Here we’re providing the detailed financial plan made for Grab A Cab so that you can get an idea of the business finances.

    8.1 Important Assumptions

     General Assumptions      
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 8.12% 8.20% 8.26%
    Long-term Interest Rate 8.40% 8.44% 8.47%
    Tax Rate 24.03% 24.21% 24.60%
    Other 0 0 0

     

    8.2 Break-even Analysis

    Taxi Business Plan - Break-even Analysis

     Break-Even Analysis  
    Monthly Units Break-even 5340
    Monthly Revenue Break-even $132,500
    Assumptions:
    Average Per-Unit Revenue $231.00
    Average Per-Unit Variable Cost $0.62
    Estimated Monthly Fixed Cost $163,800

     

    8.3 Projected Profit and Loss

     Pro Forma Profit And Loss    
    Year 1 Year 2 Year 3
    Sales $1,342,500 $1,650,738 $2,029,747
    Direct Cost of Sales $278,500 $324,731 $361,426
    Other $0 $0 $0
    TOTAL COST OF SALES $278,500 $324,731 $361,426
    Gross Margin $1,064,000 $1,326,007 $1,668,322
    Gross Margin % 79.26% 80.33% 82.19%
    Expenses
    Payroll $386,000 $424,600 $467,060
    Sales and Marketing and Other Expenses $145,000 $148,000 $156,000
    Depreciation $2,300 $2,350 $2,500
    Leased Equipment $0 $0 $0
    Utilities $2,900 $3,000 $3,100
    Insurance $2,100 $2,100 $2,100
    Rent $2,900 $3,000 $3,200
    Payroll Taxes $24,000 $25,000 $27,000
    Other $0 $0 $0
    Total Operating Expenses $565,200 $608,050 $660,960
    Profit Before Interest and Taxes $498,800 $717,957 $1,007,362
    EBITDA $498,800 $717,957 $1,007,362
    Interest Expense $0 $0 $0
    Taxes Incurred $99,760 $143,591 $201,472
    Net Profit $399,040 $574,366 $805,889
    Net Profit/Sales 29.72% 34.79% 39.70%

     

    8.3.1 Profit Monthly

    Taxi Business Plan - Profit Monthly

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    8.3.2 Profit Yearly

    Taxi Business Plan - Profit Yearly

    8.3.3 Gross Margin Monthly

    Taxi Business Plan - Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Taxi Business Plan - Gross Margin Yearly

    8.4 Projected Cash Flow

    Taxi Business Plan - Project Cash Flow

     Pro Forma Cash Flow      
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $51,000 $55,080 $59,486
    Cash from Receivables $22,000 $23,760 $25,661
    SUBTOTAL CASH FROM OPERATIONS $73,000 $79,570 $85,936
    Additional Cash Received
    Sales Tax, VAT, HST/GST Received $0 $0 $0
    New Current Borrowing $0 $0 $0
    New Other Liabilities (interest-free) $0 $0 $0
    New Long-term Liabilities $0 $0 $0
    Sales of Other Current Assets $0 $0 $0
    Sales of Long-term Assets $0 $0 $0
    New Investment Received $0 $0 $0
    SUBTOTAL CASH RECEIVED $74,000 $79,000 $85,000
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $42,000 $42,000 $45,000
    Bill Payments $27,000 $28,000 $31,000
    SUBTOTAL SPENT ON OPERATIONS $69,000 $70,000 $76,000
    Additional Cash Spent
    Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
    Principal Repayment of Current Borrowing $0 $0 $0
    Other Liabilities Principal Repayment $0 $0 $0
    Long-term Liabilities Principal Repayment $0 $0 $0
    Purchase Other Current Assets $0 $0 $0
    Purchase Long-term Assets $0 $0 $0
    Dividends $0 $0 $0
    SUBTOTAL CASH SPENT $69,000 $74,520 $80,482
    Net Cash Flow $21,000 $23,000 $25,000
    Cash Balance $27,000 $30,000 $33,000

     

    8.5              Projected Balance Sheet

     Pro Forma Balance Sheet    
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $275,000 $308,000 $338,800
    Accounts Receivable $24,000 $26,880 $30,213
    Inventory $4,300 $4,816 $4,900
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $282,000 $315,840 $355,004
    Long-term Assets
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $19,400 $21,728 $24,444
    TOTAL LONG-TERM ASSETS $24,400 $27,328 $30,744
    TOTAL ASSETS $294,000 $329,280 $370,440
    Liabilities and Capital Year 4 Year 5 Year 6
    Current Liabilities
    Accounts Payable $18,700 $20,944 $23,541
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $19,000 $21,280 $23,919
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $15,000 $16,800 $18,883
    Paid-in Capital $30,000 $30,000 $31,000
    Retained Earnings $53,000 $57,770 $63,547
    Earnings $193,400 $210,806 $231,887
    TOTAL CAPITAL $285,000 $310,650 $341,715
    TOTAL LIABILITIES AND CAPITAL $300,000 $329,280 $370,440
    Net Worth $293,400 $319,806 $351,787

     

    8.6              Business Ratios

     Ratio Analysis        
    Year 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 7.25% 8.03% 8.90% 3.00%
    Percent of Total Assets
    Accounts Receivable 9.21% 10.20% 11.31% 9.80%
    Inventory 5.39% 5.97% 6.62% 9.90%
    Other Current Assets 2.11% 2.34% 2.59% 2.40%
    Total Current Assets 149.80% 151.00% 152.00% 158.00%
    Long-term Assets 11.55% 11.60% 11.64% 12.00%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.90% 4.94% 4.98% 4.34%
    Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
    Total Liabilities 7.59% 7.65% 7.72% 7.38%
    NET WORTH 100.45% 101.25% 102.19% 110.00%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.60% 97.15% 99.87% 99.00%
    Selling, General & Administrative Expenses 93.56% 96.09% 98.78% 97.80%
    Advertising Expenses 1.52% 1.56% 1.60% 1.40%
    Profit Before Interest and Taxes 41.50% 42.62% 43.81% 33.90%
    Main Ratios
    Current 34 35 36 32
    Quick 33 33.8 34.645 33
    Total Debt to Total Assets 0.18% 0.18% 0.17% 0.40%
    Pre-tax Return on Net Worth 74.08% 74.89% 75.00% 75.00%
    Pre-tax Return on Assets 96.30% 101.12% 106.17% 111.30%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 33.56% 34.60% 35.67% N.A.
    Return on Equity 55.80% 57.53% 59.31% N.A.
    Activity Ratios
    Accounts Receivable Turnover 7.7 7.8 7.8 N.A.
    Collection Days 100 100 100 N.A.
    Inventory Turnover 32.4 34.02 35 N.A.
    Accounts Payable Turnover 15.6 16 16.3 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 2.5 2.5 2.6 N.A.
    Debt Ratios
    Debt to Net Worth -0.04 -0.03 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $244,000 $257,664 $272,093 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.85 0.87 0.89 N.A.
    Current Debt/Total Assets 1% 0% 0% N.A.
    Acid Test 29 29.12 29.16 N.A.
    Sales/Net Worth 2.1 2.2 2.2 N.A.
    Dividend Payout 0 0 0 N.A.

     

    FAQ

    1. How do I start a taxi business?

    To start a taxi business, you need to develop a good sample business plan for taxi service. The above business plan taxi company will detail how to start your taxi business.

    2. How does the taxi business work?

    By providing taxi top advertising business plan you can set up your taxi service business plan and provide your services to targeted customers.

    3. How would you describe a taxi service?

    The taxi service provides transportation facilities to people without facing public transport problems. Business plan taxi provides details for setting up taxi business.

    Download Taxi Business Plan Sample in pdf