You may have considered starting a cab business if you live near the city. However, don’t dismiss the idea of a cab business if you don’t live near a large city, as there are plenty of individuals who need cab services, even in the smallest of towns.
Consider the elderly, for example. There are many senior citizens that no longer drive. Your cab service could drive them to doctor appointments, the grocery store and even the local senior citizen center. In other words, don’t limit yourself because of your location; there are always a good number of people who need dependable transportation!
You may also specialize in one type of transportation, such as airport pick-ups and drop-offs. You can set an attractive, flat rate to compete in the industry, and specializing in airport transportation is an easy way to develop repeat business and clients.
Skills Required: A dependable personality and a great sense of direction
You must be responsible and dependable, as people will rely on you to get where they need to go. You must also have a great sense of direction and a solid knowledge of the area in which you are driving so you can be more efficient at your part-time business.
Startup Expenses: $200 and up
Startup expenses may vary for a cab business, as some individuals may need to purchase a new or used car to start their part-time business. In addition, you will need to become licensed through a cab agency, and you will need to obtain a permit to run your cab business, both of which cost money. In addition, you will need to carry cab insurance, which costs much more than typical auto insurance.
Monthly Revenue:$500 to $1,000
As a part-time cab business owner, you can expect to receive anywhere from a few hundred dollars to upwards of a $1,000 a month. This, of course, will depend on how much business you pull in and how often you choose to operate your cab service. This is often attractive to many individuals who start a cab service, as they have the opportunity to make as little – or as much – money as they want during the course of any given week or month.
Monthly Expenses: $500 and up
Monthly expenses for a cab service will include the cost of gasoline, the cost of vehicle maintenance and the cost to maintain your insurance and license.
Time to Break Even: One month to several years
You may be able to break even almost immediately if you already own a dependable vehicle; however, if you have to purchase or finance a vehicle, your break-even time will certainly be extended.
Possible Bumps in the Road
You may have difficulty if your vehicle needs serviced and you lose jobs as a result. For this reason, many individuals who won a cab business often have two reliable vehicles for just this kind of situation. Of course, this will add to the overall capital needed to start your business, but the peace of mind knowing that they won’t lose business if one car breaks down is often worth it to many cab business owners.
