How To Start A Taxi Or A Private Hire Business

If you’re thinking of starting your own private hire or taxi business, the first thing that you have to do is to familiarize yourself with the different regulations that are involved in this industry. This short article will talk about some of these in detail.

The first thing that you need to remember, is that there’s a difference between a taxi and a private hire business.

Taxi Driving

For most taxi drivers, they are considered to be self-employed. They can work whenever they want to. If you’ve decided to go this route, you may want to look for other taxi drivers to work with and start a cooperative. You may alternatively work for a bigger taxi company and still become self-employed, that’s fine. For starters, working for a well-known taxi company is usually a good stepping stone as this gives them a lot of work initially.

 Just like any other jobs or businesses, there are certain regulations that you must follow and these are:

•  A UK driving license for at least a year.
• Taxi vehicle that doesn’t exceed 8 passenger seats.
• A fully operational taxi licence.

For licensing, you need to remember that the majority of the licensing agencies may have varying rules depending on their local community needs. This also includes the local and starting fare rates. If you’re planning on operating within a specific area, you have to always remember that rules and regulations may vary depending on the city. Always contact the councils when in doubt to confirm their set rules and regulations.

However, the overall process may be a bit different if you’re planning on doing this in London. Aside from the abovementioned requirements, you also have to take and pass the “The Knowledge” test which is particularly meant for London taxi drivers. Unfortunately, this may take more than a couple of years for completion.

Private Hire

On the other hand, private hire business gives more options when it comes to vehicles coverage. Unlike the taxi driving business, private hires follow a different kind of business model. This means that if you’re in this industry, you can drive a vehicle whether you have a minicab, a minivan or a monster truck. You can have fleets of these vehicles, or you can have one. If you’ve decided to have more than one vehicle in this business, you have to hire a driver assigned for each vehicle. As compared to taxis, private hire’s business model is more lucrative, though its business model is a bit more complex.

One of the main characteristics that differentiate a private hire business from the taxi business model is that your vehicles are booked in advance. If you happen to see a private hire vehicle in the streets, it’s either it’s on its way going to the pre-booked appointment, or on its way back. There are very slim chances that you’ll be able to successfully hail one. Just like taxi drivers, private hire vehicle drivers are required to have a UK driving licence. He/she must also complete the local borough’s registration, and the vehicle itself must have the permit to carry and transport passengers. Lastly, and the most important point, is that private hire businesses require a licence to operate – regardless if you’re going to drive one of your vehicles, or if you’re going to employ drivers.

Summary

One of the best things about either the taxi or the private hire business model is that both are most likely to get you to work. There’s no shortage when it comes to transportation. Just remember that you have to follow and adhere to certain regulations. Everything is laid out properly, and you don’t need to worry about it – they might seem complicated at first. As long as you know how to read, follow the instructions and rules, then you can definitely start your own business. As soon as you’ve set up your taxi business, you may also want to take a look at our mobile taxi payment solutions that allow you to accept cashless payments even when you’re on the go and start by comparing taxi insurance to figure out your costs.