Starting a Taxi Business In Nigeria

Interested in small taxi business in Nigeria ideas? If YES, here is how to open a taxi cab business with no money and no experience. How much does it cost to start up?

How To Start A Taxi Business In Nigeria

Actually, apart from the basic needs of we humans which are food, shelter and clothing, there are other needs which really play very vital roles in our survival. One of such other vital need is transportation.

Taxi Transportation Business in Nigeria

 You know, there is the need to keep moving from one place to another in order to acquire our basic needs (food, shelter, and clothing). If one will have resources to get or buy food, one needs to go out and move from one place to another to get it. Same thing applies to others, one need to move from different spots to get resources. Thus, transportation becomes essential. I have seen someone to start a taxi business with one car and grow his taxi company into managing a fleet.

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How to run a taxi business in Nigeria

And you know, people began using public transport at what could be called a higher rate, simply because of the rise in fuel or petrol price. Even apart from the high price of petrol, there are other factors to consider (such as our unavoidable traffic congestion) that birth cab companies in Nigeria. Today, people use to calculate the time and money spent on their everyday transportation, and use to decide leaving their cars back at home (or in a nearby car park) while commuting anywhere. Therefore, the use of taxi cab service has increased in a reasonable rate.

Starting A Taxi Business In Nigeria

Many aspiring entrepreneur wants a business that provides an essential service to the community. If you are such, you can consider starting a taxi service. One eminent factor that made cab business a more preferred choice over cheaper bus transit is that people tend to seek comfort in everything.

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What do you need to start a taxi business?
Once a research had being conducted by you and you see there’s room for another taxi business in your environment, simply move towards finding what types of permits and licenses are necessary to obtain. One will also need liability insurance for the cars and drivers. It is said that they offer some tips that can’t be found elsewhere.

The best car for taxi business in Nigeria
After that, you will also need to decide on what types of cars will work best for your taxi business (including concluding on new or used vehicle). This is important if you are looking at starting a airport taxi business in Nigeria. Nevertheless, it is a wise thing to do if you form a relationship with a local mechanic that can be handling all your maintenance needs. Just be sure to put advertising on the vehicles (which includes your company name and phone number). You should also note that a website is not as necessary for a taxi service as it is for some other businesses. Why? Simply because, most of your customers will be calling your dispatcher.

Additionally, ensure you get a business phone number for your Taxi service which is easy to remember. And, if you know you want some insider information on how to start a taxi business (which is recommendable), then go to neighboring cities that won’t be in competition with your own taxi business, and talk to taxi service owners.

READ: How to Start Haulage Business In Nigeria

What Are The Prospects of Taxi Business In Nigeria?

Things are improving- and the taxi business industry isn’t left out. Now, most taxi cabs have free WIFI service on the go (though it’s mostly offered by government-owned taxis- especially Lagos state). It may be expensive to adopt this strategy considering the economic status of most Nigerian
Taxi drivers, nevertheless, it’s an added advantage that will increase patronage.

A good available source of income that’s available for this business is the opportunity of advertising for entities and organizations. This is form of mobile marketing that provides a large exposure as a commuter moves along the street, their attention is drawn towards captions (including pictures) that gives solution to their needs. Hence, the thing in transit advertising.

To get companies in need of such services, you can begin by placing adverts can be placed on the cab. You can put something like ‘FOR ADVERT CALL THIS NUMBER…’. You can also stop by at offices of potential entities and propose the service to them.

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Challenges of Taxi Cab Business In Nigeria

Sure, this write up won’t be complete if we fail to admit that there are challenges associated with running a taxi cab in Nigeria.

Transport business in Lagos
Under the Lagos State Taxi Drivers and Cab Operators Association (LSTDCOA) which is popularly known as ‘yellow cab’ (that can be found at every taxi park in Lagos), if you don’t want to paint your own taxi with yellow and black stripes, you are required to obtain a hackney permit from the Vehicle Inspection Office (VIO). This will indicate that your own vehicle is used as a car hire service.

For drivers, the hours are long and irregular. Again, start-up maintenance and fuel costs can be high for many taxi companies in Nigeria. However, they are always needed, taxi rates are attractive enough and one can as well start this business with one car and add to the fleet as one car.

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