Table of Content

    Taxi business plan for starting your own business 

    Are you looking for how to start taxi service ? If yes, then this 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 with just a few cars and drivers. Moreover, it can easily be expanded whenever you want. 

    To start a business, it is important to follow a certain procedure. You need to draft a  transport business plan  for your taxi service business as the first step. For that, you can look at associated plans such as  tipper truck company business plan . If you also want to launch a mobile app to let your customers book a taxi online, you should also analyze  mobile apps business plan .

    Executive Summary

    2.1 About the Business

    Grab A Cab will be a taxi service business owned by Benjamin Williams. The business will be based in San Francisco. The main aim of this taxi service business will be to provide trustworthy, well-timed, and safe cabs whenever and wherever someone needs them. Grab A Cab taxi service will provide cab services while integrating the operations with technology to facilitate individuals even more.

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    2.2 Management of Taxi business

    After you have learned how to start a taxi service, it is important to figure out how to manage the taxi business operations successfully. There is no better way to plan out every aspect of your taxi service than developing a  business plan for taxi service pdf. To know how what your business plan should include, you can read the strategic plan provided here. In this taxi business plan example, we will guide you about all the components of a strong business plan so that you can develop your call taxi business plan.

    It is better to hire business planning services to get a professional business plan for your startup. However, if you have the business knowledge and you want to create the business plan on your own, you can do so after doing adequate research. In that case, it is recommended to also go through a logistics company business plan.

    2.3 Customers of Taxi business

    Through our market survey and feasibility studies, we identified those customers that are most likely to benefit from our services. The recurring customers of the taxi service business will be:

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

    2.4 Business Target

    The main goal of our taxi service business is to become the most-liked transportation company in the San Francisco Metro Area within three years. We aim at doing so by continuously evaluating, monitoring, and following up on customer call-ins.

    Taxi Business Plan - 3 Years Profit Forecast

    Franchise Business Plan
    Helps the franchisee get business case approval from the franchisor

    Company Summary

    3.1 Grab A Cab Owner

    Benjamin Williams will be the owner of Grab A Cab taxi service business. Williams completed his MBA two years ago. After that, he pursued a position as a manager in a noteworthy company. He was quite fascinated by the cab service in his state. After a few months, he left the post to fulfill his lifelong passion of starting his own 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 and outdated methods to serve their customers. He decided to use the latest technological features to bring innovation to the business domain.

    3.3 How Grab A Cab business will be started

    Step1: Plan Everything

    Good planning is crucial when you are going to start a business. To ensure that you plan well for your startup, you should explore how to open a taxi company in the United States.

    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. You can also 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 offerings. This can be achieved by creating a brand around your business idea. This will include everything from your principles to your competitive advantages.

    Step3: Establish Your Office 

    The next important step is to establish your business. For this purpose, Benjamin Williams decided to buy a large parking space in the main San Francisco commercial area. He made sure that the place was spacious enough to park all his cabs. Moreover, he also got a workshop constructed inside that place to maintain and repair the cabs. In this way, he reduced the expense of sending damaged cabs to other workshops. 

    Step4: Establish a Web Presence

    Since we are living in the Information Age, it is necessary to establish a web presence to get known. Therefore, Williams decided to develop a website for the business and establish social media presence for marketing 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
    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 Expenses to Fund $299,600
    Start-up Assets to Fund $1,019,400
    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
    Planned Investment $1,319,000
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    Loss at Start-up (Start-up Expenses) $145,600
    TOTAL CAPITAL $1,464,600
    Total Funding $1,319,000
    Any questions? Get in Touch!

    Services of taxi business 

    Before setting up a taxi business, you need to decide on your business’s services. 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 up customers from their homes and drop them off 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. This approach is used as it 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.

    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 services to go to school, travel 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 people in retirement and care homes since they 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 travels. These groups don’t typically mind paying a bit more for a solution that takes care of transportation in an all-in-one way. Therefore, we expect to earn a handsome amount from them.

    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. The prices are set at a minimum to get introduced to a wider audience from the very beginning.

    Marketing Strategy of Taxi business

    To open taxi business, you must develop the best business plan for a taxi business. In addition, before starting up a taxi company, you 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 presence, customers can inquire about our services. 
    • We will also implement ideas from roadside assistance business plan to prevent any inconvenience to our customers. 

    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
    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 details regarding the startup of the taxi service business. 

    Understanding the importance of good staff, William 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

    It is essential to manage your operations timely to earn profits. A detailed financial analysis is necessary to ensure that your business is not getting into a loss. To ensure that you make a detailed financial plan, you should include all the components that we have mentioned in this taxi business sample plan pdf.

    The  taxi service business plan startup costs are also 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. This approach would also 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 AnalysisTaxi Business Plan - Break-even Analysis

     Break-Even Analysis  
    Monthly Units Break-even 5340
    Monthly Revenue Break-even $132,500
    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%
    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

    Any questions? Get in Touch

    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.



    • 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 do that.

    • How does the taxi business work?

    The taxi business works by purchasing some taxis, procuring a large parking area, and hiring staff to run and manage services. In this taxi top advertising business plan we have explained all these three aspects in detail. If you want to set up this business, you can take help from this taxi service business plan. 

    • 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