How to start a taxi business

Being a taxi driver generally is a very versatile profession. You’ll be able to determine when and the way lengthy you need to work for – particularly in case you are a carer or have additional schooling commitments or if you wish to clean out irregular revenue in case you are, say, you’re an actor or a tradesman.

It’s supreme for these of us who’ve one other profession and want a “facet hustle” to spice up earnings. World-famous composer Philip Glass used to drive a New York yellow cab. Apparently, a lot of the Uber drivers in Los Angeles are would-be Hollywood screenwriters.

You’re your personal boss, deciding what number of hours and what time of the day or evening you need to work. And, as of 2023, there are 289,400 licensed taxis and minicabs in England (GOV.UK, 2023), practically a 30,000 enhance since 2022, that means there’s an excessive amount of demand.

>See additionally: 6 finest small enterprise concepts for 2023

Learn how to turn out to be a minicab driver

A taxi driver is a black cab/hackney carriage driver, however a minicab drivers are personal rent drivers. The important distinction between being a taxi driver and a minicab driver is that non-public rent automobiles (minicab) have to be booked prematurely via a licensed operator and can’t be hailed down on the street.

One other distinction is {that a} taxi can sit on a rank or be hailed on the road, and settle for bookings from any supply, whereas a personal rent automobile can not.

What are the necessities to turn out to be a minicab driver?

• You have to be at the very least 21 years outdated
• Maintain a UK licence for 3 years in case you are planning to drive in London, however you solely should have had a licence for one yr outdoors of London
• Have a authorized proper to stay and work within the UK

What paperwork do I must turn out to be a minicab driver?

Identification You will have to offer two paperwork as proof of identification, similar to a nationwide ID card or passport.

PHV (Non-public Rent Automobile) licence A personal rent automobile (PHV) is outlined as “any automobile that may carry as much as 8 passengers and is accessible for rent with a driver”. All licensed personal rent drivers should work for a licensed personal rent operator.

Learn how to get a PHV licence to drive a minicab

Up till 2016, the Driver and Automobile Requirements Company (DVSA) supplied a non-statutory scheme to many drivers and native authorities who required their taxi drivers to be assessed.

Quite a few driving colleges and associations now present this service to native authorities.

To acquire a PHV licence, you have to to fulfill particular necessities:

• Endure a Group 2 medical examination to substantiate you’re medically match. This consists of an eyesight take a look at and reporting any present medical situations, similar to diabetes or should you’ve had a coronary heart assault. Some authorities enable companies to certify driver well being, however others insist on a certificates out of your precise GP
• Some native authorities could require certification, similar to an NVQ Certificates in Street Passenger Automobile Driving (Taxi and Non-public Rent), which take as much as six months to move and which is usually theoretical
• Some require you to move a topographical or native space information abilities evaluation
• In London additionally, you will must take an extra SERU (Security, Equality and Regulatory Understanding) take a look at, which is the private-hire automobile model of the well-known London black cab “information” take a look at and is equally administered by Transport for London. And, like The Data, this SERU take a look at can take as much as three years to move
• Clear an enhanced prison report Disclosure and Barring Service (DBS) verify. A full DBS verify can take as much as six weeks to return via. You even have to enroll to the DBS replace service.

How lengthy does it take to turn out to be a minicab driver?

Broadly talking, even making use of to turn out to be a minicab driver up so far takes round six months and prices as much as £1,500.

Your native authority then assesses your PHV licence utility as soon as it has been submitted. The native authority can then take something between six to eighteen months to decide in your licence.

So we at the moment are a year-long utility course of.

And that’s assuming you move with flying colors – if there are any points, similar to a earlier prison conviction or medical issues, your licence utility could possibly be referred to a licensing committee listening to, which might take something as much as an extra six months to even set a date. A bit like a Justice of the Peace’s courtroom however on a civil legislation foundation, it’s a must to justify your PHV licence utility in particular person.

Do I’ve to purchase my very own minicab?

As soon as your PHV licence has been granted, you may have two choices: you possibly can both use your personal automotive or you’ll be able to work for a minicab operator which offers a automobile.

Shopping for your personal minicab can price something between £35,000 and £75,000 to get a very good automotive on the street, particularly if you wish to drive an electrical automobile.

You might also need or want to suit out your automobile, whether or not it’s purchased outright or leased, with a Covid display screen or CCTV in your personal security.

Dave Lawrie of the Nationwide Non-public Rent & Taxi Affiliation (NPHTA) means that beginner drivers ought to reduce their enamel working for an present minicab agency.

Shopping for a automotive even on the decrease finish “is a hell of a dedication to do for a few weeks after which determine you don’t even just like the job. So, take a look at the water first”, says Lawrie.

What insurance coverage do taxi drivers want?

For those who’re contemplating a profession as a taxi driver, it’s smart to think about what insurance coverage you want, particularly as some insurance coverage insurance policies are a authorized requirement for taxi drivers.

Legally required insurance policies

Each driver on UK roads is legally required to have a motor insurance coverage coverage. Nevertheless, as a taxi driver, a normal coverage gained’t reduce it and also you’ll want taxi insurance coverage (often known as rent and reward insurance coverage) as you can be driving paying clients.

Moreover, should you open a taxi firm and make use of different drivers (or another kind of worker), employer’s legal responsibility insurance coverage can be required by legislation. Employer’s legal responsibility protects you financially if any of your staff make a authorized declare towards you.

Extremely beneficial insurance policies

Not each kind of insurance coverage for taxi drivers is required by legislation, however there are some further insurance policies that would actually assist your enterprise, notably from a monetary perspective.

Listed here are some sorts of cowl to think about:

Scratch and dent for taxi drivers – As a taxi driver, you’ll need your automotive to look damage-free {and professional}. Scratch and dent insurance coverage will cowl you for beauty repairs that will help you keep your skilled look.

Motor GAP insurance coverage (rent and reward) – taxi drivers are on the street way over the typical driver that means, sadly, your automobile is extra liable to wreck. Motor GAP insurance coverage covers the distinction between your insurance coverage supply on the level your automotive is written off and your automotive’s worth once you purchased it.

Motor breakdown insurance coverage for taxi drivers –  Nobody needs their automotive to interrupt down, nevertheless it’s notably irritating should you can’t do your job with out it. Motor breakdown insurance coverage will make it as straightforward as potential to get your taxi again up and working within the case of a breakdown.

For those who’d like extra data on insurance coverage insurance policies that would prevent cash and trouble as a taxi driver, check out the business-specific insurance policies from Save Extra Cash.

How a lot can I earn as a minicab driver?

As of 2023, the typical base wage for taxi drivers within the UK is £31,146 (Certainly, 2023).

However should you function your enterprise in London, you possibly can earn as much as £65,000 as a self-employed taxi driver (Glassdoor, 2023).

What’s good about being a minicab driver?

Many individuals are taxi drivers alongside different jobs, whether or not it’s being a tradesman similar to an electrician or a plumber, a trainer or, in a single case, a solicitor.

Based on Dave Lawrie, being a minicab driver could be extraordinarily rewarding – maybe not financially however due to the service you present, whether or not that’s getting the aged to hospital appointments or serving to the disabled with their procuring or ferrying kids with particular wants to highschool. And even getting nurses to the hospitals they work in.

“I’d emphasise the non-public reward and the satisfaction it offers,” says Lawrie. “The appreciation you get for providing similar to service outweighs the cash facet. It’s about placing one thing again into the neighborhood.”

Learn how to turn out to be an Addison Lee driver

Addison Lee is seen as London’s premier minicab agency with over 5,000 vehicles in central London and carries out over 20,000 jobs daily and is accountable for over 10 million passengers every year within the capital.

Its positions vary from courier and black taxi drivers to electrical automobile drivers and drivers on its govt fleet.

What paperwork do I want?

• You’ll must have held a DVLA, Northern Eire or EEA driving licence for at the very least three years
• A PCO licence, which is licenced by the division of Transport for London. That is required if you wish to work as a taxi driver, minicab driver or chauffeur in London. To use for the PCO licence you have to be at the very least 21 years outdated and meet the required medical requirements, which you’ll be able to verify by finishing a normal check-up along with your GP
• You need to additionally move a prison report verify
• Two different types of identification

Does Addison Lee supply coaching?

Earlier than you apply, there isn’t any prior necessary coaching required, however you want to have the ability to converse, learn and perceive English to speak successfully with passengers.

Addison Lee offers a spread of coaching in-house to assist drivers really feel assured and supply the perfect service potential to clients. This consists of sensible coaching, similar to preparation and mock exams for necessary SERU exams, and it additionally has robust relationships with a number of coaching faculties.

Addison Lee additionally offers further coaching in partnership with UN Ladies UK, informing drivers about passenger security.

How a lot can I count on to earn as an Addison Lee driver?

Drivers on Addison Lee’s company fleet have seen their earnings overtake pre-pandemic ranges, the corporate says, and so they now common £1,168 per week.

Addison Lee ensures new drivers obtain a minimal of £5,000 earnings of their first month driving, adopted by a £1,200 money bonus after 12 weeks.

The agency additionally affords a pension, topping up 5 per cent of qualifying pensionable earnings via a 3 per cent contribution, in addition to offering sick and vacation pay. The corporate additionally affords a rewards bundle, together with low cost codes and cinema tickets.

Learn how to turn out to be a black cab taxi driver

The black taxi is an iconic picture of London however to turn out to be a cabbie is a demanding course of, which might take as much as 4 years and includes passing one of the vital troublesome exams potential – often known as The Data – and checks your encyclopaedic understanding of each road within the capital.

There are round 24,000 taxi drivers in London, with about 21,000 inexperienced badge All London drivers and about 3,000 yellow badge Suburban drivers.

Learn how to turn out to be a taxi driver

Named after a midsized horse which French ladies used to experience side-saddle – and extra typically grew to become synonymous as a horse and carriage for rent – the method of changing into what’s often known as a hackney carriage driver begins once you apply to your native council for a taxi driving licence.

At this stage, you need to:

• Be at the very least 21 years outdated and have held your full GB or Northern Eire driving licence for at the very least one yr
• You’ve gotten the best to stay and work within the UK
• Show you’re a “match and correct particular person”, which includes having an enhanced prison data verify from the Disclosure and Barring Service (DBS)
• Taking a medical examination to fulfill the Driver and Automobile Licensing Company (DVLA) Group 2 medical requirements

If you’re in London and need to drive an iconic London black cab, you have to to use to Transport for London (TfL) to acquire a Public Carriage Workplace (PCO) licence to drive a taxi. This PCO licence allows you to work as both a personal rent automobile minicab driver or a black taxi driver.

What do I must get hold of a PCO licence?

• You need to have a accomplished Group 2 medical type issued by both your personal physician or an authorized physique to guarantee the licensing authority that you’re medically match to drive a licensed automobile
• You need to have had a driving licence for at the very least three years

Taxi Evaluation of Driving Potential

All new drivers are required to finish the Taxi Evaluation of Driving Potential. That is a complicated driving evaluation, throughout which an expert driving examiner will mark your driving capability and elegance, in addition to your capability to carry out varied on a regular basis taxi manoeuvres, similar to figuring out secure stopping factors from the place to choose up or set down passengers and the right way to keep away from puddles.

Additionally, you will be requested quite a few driving concept questions, together with some on the related licensing laws and native situations.

Passing ‘the Data’

All London drivers, also called “Inexperienced Badge” drivers, want an in depth All London Data of London inside a six-mile radius of Charing Cross. To start with there are 320 routes or “runs” to be taught, together with all of the locations of curiosity and vital landmarks on and round these runs. Factors embrace landmarks similar to golf equipment, hospitals, motels, theatres, embassies, stations and historic buildings. You’ll want a duplicate of the Information to studying the Data of London, also called the Blue Guide.

Candidates for the All London Data should be taught the suburban routes from central London to the suburbs, and to and from Heathrow and London Metropolis airports.

It takes between two to 4 years to be taught and move “the Data”, which is able to imply appreciable gumption in your half.

Round 70 per cent of scholars coaching to turn out to be licensed London taxi drivers drop out of the All London Data testing course of.

Inexperienced badge vs yellow badge

Truly, there are two sorts of badges for drivers in London.

For those who don’t need to turn out to be a Higher London taxi driver, you can too turn out to be a taxi driver in one of many 9 suburban sectors. The method of changing into a Suburban taxi driver is much like the All London Data, besides suburban drivers can solely be hailed of their chosen sector. Profitable Suburban Data candidates are given a yellow badge.

Learn how to turn out to be an Uber driver

The method for changing into an Uber driver is similar as acquiring a normal automobile licence.

Uber affords a information on get a personal rent licence within the UK, in addition to particularly in London.

Signal as much as turn out to be an Uber driver on-line

• Join on-line. You’ll must obtain the Uber app onto your smartphone or different machine
• Add your paperwork:
• A sound UK driver’s licence
• Be at the very least 21 years outdated
• Non-public rent insurance coverage permitting you to move passengers for rent and reward
• Financial institution assertion for the checking account that can be used to obtain funds from Uber, which must be below your personal identify or a enterprise which you’re an proprietor of
• Driver profile photograph
• Full Edume digital onboarding course

How lengthy do I must have been driving for?

The variety of years’ expertise it’s essential to have varies relying on the town you need to drive an Uber automotive in – for instance, in London, a minimal of three years’ driving expertise is required.

Do I’ve to personal my very own Uber automobile?

No, you don’t. Uber affords varied choices for acquiring qualifying automobiles, together with flexi-lease, leasing and rental via Uber’s personal Automobile Options programme.

Uber additionally has a sister firm known as PartnerPoint, which affords offers on renting and leasing vehicles – nonetheless, taking place this route could be expensive and may solely be used in case you are testing the water.

For those who plan to make use of your personal automotive, your automobile have to be both hybrid or ZEC (zero emissions succesful) and have a 2008 registration or later.

What different paperwork will I want?

Private paperwork

• Nationwide Insurance coverage (NI) quantity
• Authentic plastic UK driving licence
• Digital counterpart code
• PCO Paper Licence (you’ll must carry this with you to your scheduled go to)

Automobile paperwork

• PHV licence
• Logbook/new keepers slip
• MOT (issued inside the earlier six months)
• Non-public rent insurance coverage certificates

Changing into an Uber driver in London

For those who’re focused on changing into an Uber driver in London, there are some particular necessities for working as an Uber driver within the capital:

Along with different normal Uber necessities, as we’ve got seen, additionally, you will must have a Transport for London (TfL) PHV licence or a Public Carriage Workplace (PCO) licence.

Uber affords in-person assist for acquiring your PCO licence via its Uber Ignition programme, which helps you negotiate the paperwork.

How a lot can an Uber driver make?

Full-time Uber drivers within the UK can count on to be paid between £22,000 to £65,000 a yr, in accordance with Glassdoor (2023).

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