Running a taxi firm is not easy. Not only do you need to get a constant stream of business but you’re constantly having to think of ways to stay competitive and turn a healthy profit. If profits are low for your taxi firm right now then below are some of the best ways to turn things around.

Encourage loyalty

Encouraging loyalty is one of the best ways to ensure that your taxi firm is profitable. How do you encourage loyalty? By providing the best service possible from beginning to end. This means making the booking process as easy as possible, ensuring that your drivers are on time and reliable and friendly; and offering a competitive rate. Most people are looking for predictability when they order a taxi so if you can show that your company is reliable, it’s a great way to get repeat business.

Get the best insurance possible

If you own or lease your own vehicles then you’ll need to have a good taxi insurance policy that covers them all. Whatever you’re currently paying for your taxi insurance, there’s a good chance that you could be getting a better deal. If you do decide to look elsewhere when your current policy is about to expire then you should take as many steps as possible to reduce to cost of your insurance. Some of the best ways to reduce the cost of taxi insurance include –

  • Hire drivers who are experienced, have a clean licence and are over the age of 25
  • Make sure you choose the correct use - either private hire insurance or public hire insurance
  • Make your vehicles as secure as possible by fitting in-car CCTV and dashcams
  • Pay for your policy on an annual rather than monthly basis

Target specific types of customers

Targeting specific types of customers can be a great way to increase profits for taxi firms. There are many groups you can target but some are better than others. Frequent business travelers are one of the best groups to go after since they are in need of your services regularly and the fairs are often paid for by an expense account, which means you’re able to charge more if you can offer a premium service.

Hire great drivers

Your drivers are extremely important when it comes to increasing the success of your taxi firm. If your drivers are unreliable and show up late to fares; or if their general demeanor is unpleasant then it can have a very negative effect on your business. When hiring drivers always take everything into account, including their experience, enthusiasm and attitude.