A meter taxi business is a very lucrative venture to start in South Africa. Meter taxis in South Africa offer valuable transportation services to multitudes of people. Meter taxis are vehicles authorised to carry between 1-9 passengers; are available for hire by hailing while roaming, by telephone or otherwise; and are equipped with a sealed meter for the purpose of determining the fare payable. This article will outline how to start the meter taxi cab business in South Africa, and the meter taxi business plan -PDF, Word and Excel.
If you’re passionate about the transport sector then a meter taxi business can be the right business for you. However market research is essential before you venture into the meter taxi transport business in South Africa. You need to comprehensively know how the taxi cab industry operates. You must study the market to know which niche is best in as far as profitability is concerned. The possible niches to cater for are numerous so you must know which ones are strategic to you. There’s a lot of competition in the meter taxi cab industry so you must study your competitors. Note the types of clients they’re serving, the routes they’re serving, their marketing strategy, amongst many other things. In studying your competition you’ll also be finding out general rates charged and operating frameworks.
There are some major decisions which you have to make before starting the meter taxi business in South Africa. These include target market, location of the business, and the number of vehicles which you will have. You should decide the location you are going to operate your meter taxi business in, and ascertain the demand for taxi cab services in that target area. A lot of research should be done before venturing in the meter taxi business. That’s why it is essential to have a good meter taxi business plan before you start this business.
Vehicles & Equipment
You will obviously require vehicles to start the meter taxi business in South Africa. Purchase of vehicles is the largest startup cost item when starting a meter taxi business in South Africa. You will have to decide on which type of vehicles to purchase, and where you are going to purchase them. The kind of vehicles which you need will depend on your target market. You may go for luxurious models if you are planning to offer luxurious premier meter taxi services for the wealthy. If you want to target the mass market then it will be better to buy fuel saver vehicles so as to minimise fuel costs. The meter taxi industry in South Africa is very competitive, so to offer competitive rates, you should have vehicles with a low fuel consumption rate.
The other important decision to make is whether to purchase brand new vehicles or second hand vehicles. Ideally it will be better to purchase brand new taxi cab vehicles as they are more reliable and efficient with low repair and maintenance costs. However, if you have limited capital, then you may start the meter taxi business with used vehicles which are cheaper. Ensure that the vehicles you buy have sufficient luggage space as some of the clients will have a lot of luggage. The equipment needed include garage equipment, repair tools, taxi meters, top lights, meter taxi partitions, and radio communication system for large meter taxi businesses. The costs of purchasing the meter taxis and equipment should be included in your meter taxi business plan.
Meter Taxicab Services
The services offered by your meter taxi business will depend on your target market and operational strategy. The common way is to use the taxi cabs as cash meter taxis. The meter taxis will be available at various points in the city. Clients may approach the meter taxi directly, or they can also call the dispatch centre to request for a meter taxi. The fee payable will depend on the amount of distance travelled. The meter taxi company will be having a rate per KM fee eg R11 per Kilometre. Meter taxis can also charge a waiting fee if a client is late.
Your meter taxis can also be used as contract meter taxis. The meter taxi company and the client will be in a contract. Such kind of clients are usually medium to large companies/organisations. The client eg a company will be issued a voucher book for authorised travel. Whenever the meter taxi is used, the meter taxi driver and the passenger will both sign the voucher book. Details on the voucher include time, date, distance travelled, cost, name of driver, name of passenger. After a set time, the meter taxi company will send all the vouchers to the client, and the payment will be processed. Meter taxis can also be used as prepaid meter taxis eg a personal contract to carry children to school everyday. The meter taxi business plan should include details of services offered and the pricing mechanism.
Meter Taxi Licences and Insurance
To operate a meter taxi business in South Africa, there are some legal requirements you have to adhere to. All your vehicles should be registered and have a valid vehicle licence which is renewed annually. Any person that transports passengers in South Africa must obtain a public operating licence, this applies also to meter taxi drivers. A public operating licence is a permit or document giving drivers permission to transport people for public gain. All your drivers should also have drivers license. It’s important that you adhere to all the regulation otherwise you risk getting fined and losing your operating license.
When operating a meter taxi cab business in South Africa, it is important to protect all of the assets of your business. Appropriate and adequate insurance coverage is an important part of protecting your meter taxi business. It is better to take out comprehensive insurance policies for all your vehicles. This is the most extensive form of insurance and covers you in the event of theft, hijacking, loss and/or damage caused by an accident, fire and natural disasters, and claims made against you by third parties where you are responsible for the damage to their vehicle. The costs of insurance and licences should be catered for in your meter taxi business plan.
Staff And Management
This is always a function of your intended scale of operations. If you’re starting off as an owner-driver then you can effectively run and manage the taxicab business alone. This is usually a wise market entry approach that’ll enable you to acclimatise yourself with the dynamics of the trade. Actually most people tend to do this as it eliminates a lot of possible operating costs thus widening the profit margins. However, a well-run business grows and with scaling comes the need to have more cars and more drivers. Once the business grows like that it becomes necessary to have staff and management.
One of the key things to be on top of is close monitoring of how drivers are conducting their trips. Having to ensure that daily revenue targets are being adhered to by the drivers, responsible vehicle handling and many other things will require some full-time staff. Management can always effectively be done by the owner if the business is relatively small to medium scale. When the business grows to huge proportions you might end up needing to have call centres, team leaders, managers and even a workshop or garage. Necessary staff for a medium to large scale business include marketing staff, operations staff, finance and accounting staff. Operations staff includes drivers, mechanics, supervisors and operations managers. Your meter taxi business plan should include costs for the wages and salaries of all your staff.
Market & Marketing for Meter Taxi Business
Despite the competition, the market for taxi cabs is vast and inexhaustible. The trick is in figuring out your niche and establishing yourself there. Types of clients can vary from corporate ones, academic, leisure to business logistics ones, just to mention a few. In this day and age you have the internet and social media to leverage on. So you must have a robust online presence because most people now look-up services online. Always carry out far-reaching digital marketing campaigns. Also bear in mind that your vehicles are in themselves the most effective marketing tool. They are more strategic in that they’re mobile and get exposed to many people as they move about. The cool thing about that is that it’s virtually free marketing so invest into having your vehicles branded and laden with all pertinent details about your services. Potential areas of operations include city centres, hospitals, airports, shopping centres, residential areas, universities, night clubs, tourist centres, hotels and lodges. The meter taxi transport business plan should include a proper marketing strategy for your business.
PRE-WRITTEN METER TAXI BUSINESS PLAN (PDF, WORD AND EXCEL): COMPREHENSIVE VERSION, SHORT FUNDING/BANK LOAN VERSION AND AUTOMATED FINANCIAL STATEMENTS
For an in-depth analysis of the meter taxi business in South Africa, purchase our meter taxicab business plan. We decided to introduce the business plans after noting that many South Africans were venturing into the taxi cab business without a full understanding of the industry, market, how to run the business, the risks involved, profitability of the business and the costs involved, leading to a high failure rate of their businesses.
Our business plan will make it easier for you to launch and run a meter taxi transport business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as the taxicab transport business plan will lay out all the costs involved in setting up and running the meter taxi business. The business plan is designed specifically for the South African market.
USES OF THE METER TAXI CAB BUSINESS PLAN (PDF, WORD AND EXCEL)
The meter taxi transport business plan can be used for many purposes including:
- Raising capital from investors/friends/relatives
- Applying for a bank loan
- Start-up guide to launch your taxicab business
- As a meter taxi project proposal
- Assessing profitability of the meter taxi business
- Finding a business partner
- Assessing the initial start-up costs so that you know how much to save
- Manual for current business owners to help in business and strategy formulation
CONTENTS OF THE METER TAXI BUSINESS PLAN (PDF, WORD AND EXCEL)
The business plan includes, but not limited to:
- Market Analysis
- Industry Analysis
- 5 Year Automated Financial Statements [ Income statements, cash flow statements, balance sheets, monthly cash flow projections (3 years monthly cash flow projections, the remaining two years annually),break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortisation]
- Marketing Strategy
- Risk Analysis
- SWOT & PEST Analysis
- Operational Requirements
- Operational Strategy
- Why some South Africans in the meter taxi business fail, so that you can avoid their mistakes
- Ways to raise capital to start your meter taxi business in South Africa
The Meter Taxi Business Plan package consist of 4 files
- Meter Taxi Business Plan – PDF file (Comprehensive – 76 pages)
- Meter Taxicab Business Plan – Editable Word File (Comprehensive – 76 pages)
- Meter Taxi Business Plan Funding Version – Editable Word File (Short version for applying for a loan – 42 pages)
- Meter Taxi Business Plan Automated Financial Statements – (Editable Excel file)
The financial statements are automated. This implies that you can change eg the pricing rate per KM, number of trips done etc, and all the other financial statements will automatically adjust to reflect the change.
GET THE METER TAXI BUSINESS PLAN (PDF, WORD AND EXCEL) - R400 Only.
We decided to make the business plan affordable to anyone who would want to start the business, and the price for the pre-written business plan is only 400 Rand.
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