by: Mark Bramston, Managing Director Aerial Capital Group Ltd
This Year, 2021 is going to be big. As soon as constraints on travel come off, and they will with vaccine driven hope fueling optimisms (forgive the puns), then taxis can and will make money again. Those drivers with a PLAN will do very well.
So, lets discuss how to make a DRIVER MONEY MAKING TAXI PLAN.
How can a taxi driver plan to make more money in today’s highly competitive market?
Yes, we face stiff competition from the app Cab rivals. Yes, there are a lot of travel choices for customers. And, Yes, the taxi industry is experiencing an identity challenge (not a crisis) as some of us chose to live in both or all camps (taxis, app cabs, etc, etc, etc). Like playing soccer and rugby using the same or no rules.
You probably reflected over 2020 as the lock downs shut your business down – asking, “Can I still make money in my taxi business? Will taxi demand return?”
My opinion, and if you search the web as I have looking for answers to these questions, you will find a lot of opinion focused on the growing demand for point-to-point transport in all cities driven by our way of life – and yes, I think it is still relevant and will return, with strength. These opinions use taxis best quality (a business strength). Taxis (at least the many with which I have experience) DON’T SURGE price when demand peaks. They provide “Great Service and a Fair price” meaning repeat business and profitability do happen. There are many, many examples of taxis businesses still living this reality even in the face of strong competition from other business models.
There is growing demand for good taxi services. Not hybrid forms that lack identity and commitment but taxis who use modern methods (tech, tools etc) but stay true to the golden rule – “GREAT SERVICE AT A FAIR PRICE”.
So how do you make more money?
Over the coming weeks I will share a number of tips that I hope will assist you in this endeavour.
We will quickly drive over costs. CUT COSTS wherever possible BUT CHOOSE CAREFULLY. Things like insurance and fuel are big ticket items. Naturally get the best deal that you can and pay up front. Those financing deals are very expensive. With interest rates at an all-time low paying 10% or more to pay a premium off is cutting your profitability and cashflow unnecessarily. Here, good advice from a professional can help. There are too many stories in the taxi industry where drivers have been helped with deals that do not really help, other than offer a quick solution that directly harms driver business viability. I am sure that you can name a few real examples of this. Do not do it, get some good reliable advice before you take that convenient deal.