How to Start a Taxi Business in India (Complete Guide)

Looking for a guide on how you can start a taxi business in India? Then you came to the right place. Taxi Business has always been in demand. This is due to the need to move from place to place for work, school, college, and other things as well. When you think of your own business in India, you should not lose sight of the option of the taxi business.

Of course, starting a business from scratch costs you a lot, and it just depends on whether you pay back the investments or not. First, you need to do marketing research to determine the feasibility of setting up a taxi business in India.

If you decide, you need to carefully study the nuances to make the minimum number of mistakes. This article will help aspiring entrepreneurs to open their businesses specializing in passenger transportation.

Start a Taxi Business in India

Here are the steps that you need to follow to start a taxi business in India:

Official Permission

The state is currently closely monitoring compliance with all necessary formalities. To open your taxi business you need to get several permits. One of the most important of these is a permit from the Ministry of Transport.

Also, you should have “all India tourist permits” to transport people from one to another state.

Building or Room

Many prospective entrepreneurs do not pay enough attention to the building and in particular to the room where the control room is located. And this, by the way, is one of the most important mechanisms of a taxi.

To make your business popular, you have to put in some effort. Income depends on the number of customers who should feel comfortable during a conversation with a specialist and the trip. The cost of the room must be incurred in the business plan with the dispatch of a taxi.

Getting a room is not a good move, because you will spend a lot of money, which does not guarantee a hundred percent result. It makes more sense to rent an office first. So without spending huge amounts, you can improve the work of the company. At the same time, the location of the office does not matter.


Many prospective entrepreneurs want to see an example of a taxi business plan and then navigate themselves based on the proposed material. Business professionals advise paying special attention to the control room. To start, determine the connection you will use.

Also, there are still many costs, including especially:

  • Table and chairs
  • Softwares
  • Phones
  • Equipment of the machine

If you want to open a company with your fleet, you must buy at least 5 cars. If you do everything modestly, make a competent business plan for a taxi with calculations, you can create a profitable business with minimal investment.


Everyone knows that people are the fundamental link of any company. Taxi is no exception in this case. It is necessary to select such personnel who know their work perfectly. This is of course not easy, but it is simply necessary to take this problem seriously.

So, the basic requirements for employees:

Drivers: Minimum service must be 3 years, preferably without traffic accidents. Experience welcome, beautiful appearance, license and conviviality.

Dispatchers: Competent communication, experience in comparable positions. In this work you must be able to work with a computer, having a pleasant voice is only an advantage.

Accountant: If the budget allows, don’t skimp on the design of such an employee. It is recommended to contact the outsourcing service. An expert person will also assist in drawing up a taxi hire business plan, which is quite profitable.

Work with drivers

In most cases, there are two types of driver work if you have your fleet and attract people with your car. In both cases, there are pros and cons. In the first case, costs and risks will increase, but there will be more profitable. You determine the percentage or a fixed interest as a salary.

The second option is characterized by the fact that you are an intermediary between the customer and the driver. You take a certain percentage with you for each order, but of course, the income is less. You can organize a business plan for hiring a taxi and at the same time take the drivers with their car. Mixed cooperation is quite effective and can bring good profits.

Machine requirements

It is worth noting that there are special cars that are great for taxis. At this time, it is not recommended to buy domestic cars, at least to start with the Uber model. The best option is Olla Cabs. Of course, you can work on any machine, but here you have to think about the convenience of customers in the first place. After all, once a loose car is driven, the second time a person will not call a taxi from your company.

Work dispatchers

How to open a taxi from scratch? The business plan should be the first. You have to take it seriously, write down all expenses, goals, tasks, etc. You need to write a work plan, an approximate starting capital, and also devise a plan to expand the organization for the future.

To be able to place orders clearly and quickly, you must organize the work of the control room well. For this you need:

Rent or buy a room: Consider all kinds of ads, try to find an office that removes the owner from paying the agency extra money.

  • Determine the provider and telephone.
  • Spend money on the necessary equipment, when it is better not to skimp.
  • Organize software acquisition to automate the process.
  • To pick up the staff after you previously interviewed everyone.

How do you find drivers?

Now, most people consider working in a taxi a part-time job, and nothing more. Very convenient to trade via the mobile application. For many taxi companies, this system now works at the highest level, so without its implementation, it is simply impossible to do.

So that the drivers want to work for you, create favorable conditions for them, and post vacancies on specialized sites. You interview each of the candidates personally and tell them in detail about the working conditions. Many people want extra income and taxis are created for it. For some, a part-time job later develops into a full-fledged job that makes good money.

The taxi company must be carefully designed. Indeed, the success of a company depends on the correctness of the compilation.

Taxi Business Plan

It is worth noting that there is no universal business plan. It is different for every situation. We can only provide estimated cost items and calculate the estimated cost of starting such a project. So, under the cost send:

  • Software,
  • Number of radio stations
  • Advertising and promotional costs

No wonder they say that advertising is the engine of commerce. This small cost list is far from complete and is constantly being updated. It is quite difficult to make a business plan for a taxi with only calculations. That is why we advise you to seek help from professionals.


Depending on the possibilities and desires, a novice entrepreneur can follow different development paths. If there is good starting capital, you can organize a company with a personal fleet. If things are bad, it is enough to perform the coordinator’s duties as an intermediary between the customer and the driver.

The taxi business plan, which is well written, can give a strong boost to the start of the action. If you choose a niche for opening your own business, you need to analyze the market situation. Taxi is a profitable business, but is it really in demand? This must be determined at the level of your residential area. And in case of a positive response, start trading and make money.

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