Taxi Business Plan in Nigeria
Have you been thinking about how to start a taxi business in Nigeria? Do you have a car and are wondering how to make extra income from it? If your answer to any of these questions is yes, then you are reading the right article.
If you quickly want to get the taxi business plan in Nigeria, pay N20,000 to:
BANK NAME: FIRST BANK PLC
ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM
ACCOUNT NUMBER: 3066880122
After payment, text your full name, email address and title ( taxi business plan in Nigeria pdf) to 07033378184. Your business plan will be sent to your email within 15 minutes.
Also Read: Sample Car Hire Proposal Letter
The truth is not everyone in Nigeria will own a car. Even if we all do, not all of us will be willing to sit behind the steering wheel all the time. These facts open us up to a glaring reality. There will always be a need for taxis in Nigeria.
In this post, we will show you how you can start your own taxi business in Nigeria. We will also tell you how profitable this business is in Nigeria. If you are ready, let’s dive straight to the crux of this post.
Why you should invest in the taxi business in Nigeria
You may be wondering why you should even invest in this business. So many people see it as a waste of time and others see it as demeaning. However, when you consider how much taxi drivers make on a daily basis, you may leave your 9 to 5 job.
Currently, the population of Nigeria stands at an estimate of almost 200 million. Many of these individuals are resident in urban areas. Not everyone can afford a car but everyone has to move around every day for one reason or the other. In most cities in Nigeria, motorbikes and tricycles are being banned for several reasons.
This leaves us with reduced options for daily movement. These options include buses, private cars, and taxis. Many people going for official meetings, weddings, conferences, etc. prefer to make use of taxis. Do you now see why running a taxi business is very important?
Usually, depending on the location where a taxi driver operates, they can earn over #100,000 monthly. This is after spending on fuel and other maintenance costs.
Technology has even made this business more interesting and prestigious. You can register with Uber, Taxify, ORide, etc. and become a driver under these companies. People will request for your services from the app so you don’t have to queue at a motor park.
Do you know how much an average Uber driver makes in a year? On average, an Uber driver makes over #3 million per year. This is about the same amount earned from Taxify and ORide. Do you see how profitable this business is?
All you really need is your car, a phone, and an internet subscription and you are good to go. In the next section, we will tell how to start this business.
Starting your taxi business in Nigeria
Before you start your taxi business in Nigeria, there are a couple of things you need to set in place. In this section, we will show you most of these factors.
Write a business plan
You are probably wondering why you even need a business plan to start a taxi business. Here’s a basic truth you should know. Every business needs a business plan. It doesn’t have to be a huge business plan. The idea is that the business plan can provide guidance for your business and help you get investors.
With a business plan, you know the different pitfalls on the path to success for this business. Before you write a business plan, you need a comprehensive feasibility study. This gives you a picture of the current state of the industry and what you should expect. It also helps you know the best location to run your business.
These are the contents of your business plan:
- Executive summary
- Company description (even though you are a one-man business, you should aspire to grow).
- Market analysis
- Organization and management description
- Description of services
- Sale and marketing plan
- Financial projections
Your business plan is also a strong fund-sourcing tool. Banks and investors will always request a business plan before they invest in your business. These are a few reasons why you should write a business plan.
If you are running a sole proprietorship, you may be asking why you should register your business. By registration, we don’t mean with the Corporate Affairs Commission (CAC). You only need this if you will be running your own transport company.
If you want to run your business as a sole proprietor, you need to register with the relevant authorities in your locality. You should also consider registering with digital platforms like Uber and Taxify.
For you to register with these bodies, you need to meet several requirements. Some of these include:
- Driver’s license
- The appropriate vehicle
- Vehicle insurance
- Any other requirements stated by the body you want to register under.
There are several reasons why you need to register with these bodies. Some of these include:
- Improves your chances of expansion
- Gives you the opportunity for more patronage
- Improves confidence of customers
- Makes it easier to source loans
Asides these registrations, it is also very important to get your necessary licenses and permits. One very important permit to get is the Hackney Permit. You cannot operate as a taxi driver without this.
In this business, it is very important that you register with a reliable insurance company. Many Nigerian drivers overlook insurance and think it is just a waste. Insurance is an investment that protects your vehicle in the case of eventualities.
Certain losses may occur as a result of fire, accidents, or theft. With insurance, you will not be at a loss as these companies bear the loss on your behalf.
Buy the appropriate vehicles
The taxi industry has evolved over the last few years. Once upon a time, taxis were rickety and outdated vehicles. Thanks to technology, taxis are beautiful cars with the needed accessories like air-conditioning and music.
Before you register with Uber or Taxify, for example, there are vehicle requirements you must meet. At least, your car should not be older than 2005 and it should have a working stereo and air-conditioning system.
As a young graduate, how can you afford a car like this? There are places where you can get a car on hire purchase. Though this may be costlier, in the long run, it allows you to pay in installments.
Find a good location
Even if you are registered on these digital platforms, you still need to be in the right location to enjoy patronage. There are certain areas that have more human traffic at different times of the day. In your feasibility study, you should have found this out. Take advantage of these locations to enjoy better patronage.
In case you don’t want to register on the apps mentioned above, there are other options. You can register at the airport to become an airport cab. This is dependent on whether the airport in your city has a high flow of human traffic. You can also register as a car hire service operator. In this case, you may want to look at locations close to big hotels in your city.
Market your business
You shouldn’t just depend on your driving skills or a beautiful car to attract customers. Most of the time, you need to take the extra step in marketing your business. The question is how do you market a taxi business, especially if you are registered on a digital platform?
The truth is that there are times during the day that there will be no patronage from the apps. What will you do during these periods? While you have passengers, you need to treat them right and hand them a business card. This way, they have more personal contact with you and are likely to seek your services away from the app.
The details you should include on your business card include your name, company name (if you have one), phone number, and services.
Mode of dressing
This is another factor that many people don’t take seriously but is worth thinking about. A great man once said, “dress the way you want to be addressed.” The way you dress will determine the perception of your passengers about your business.
Put yourself in their position. If you entered a cab and the driver was dressed shabbily, will you be comfortable? Are you likely to call that driver again after that day? your answer to these questions is probably NO.
Can you see why you need to dress well? Another reason why you should dress well is harassment from law enforcement agents. When you look good, you save yourself embarrassment from our law enforcement agents.
Launch your business
Now that you have all of these in place, you can begin running your business. Begin by telling family members and friends about your services. Note that this business is to be taken one day at a time. It is a profitable business but it requires a lot of resilience and hard work.
In this post, we have shown you how to start a taxi business in Nigeria. We have also told you about how profitable this business is in this country. The ball is in your court now, good luck.
Hurry now and get your Taxi business plan in Nigeria. To place order, pay N20,000 to:
BANK NAME: FIRST BANK PLC
ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM
ACCOUNT NUMBER: 3066880122
After payment, send your full name, email address and topic (i.e. taxi business plan in Nigeria pdf) to 07033378184. Your business plan will be sent to your email within 15 minutes.
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