What’s Involved in Running a Taxi Firm?

Taxis are something that nearly all of us use at one time or another. They’re also a key part of the UK’s image, especially the iconic London Black Cab.

If you’ve ever wondered what’s involved in running a taxi firm, either because you’re interested in starting one yourself or you’re just curious, then below are some of the main things that taxi firm operators have to contend with.

Insurance

taxi-1161124_960_720

Getting the right insurance is extremely important for taxi firms. Some taxi firms will hire owner drivers who they expect to take care of their own insurance. However for taxi firms that own their own cabs, they need to protect them with a good insurance policy.

Most taxi firms will protect their vehicles with a with a taxi fleet insurance policy.  This gives them the ability to protect all their vehicles in their fleet for road risks as well as liability claims and breakdowns.

Hiring drivers

Hiring reliable drivers is another key aspect of running a successful taxi firm. Most taxi firms will look to hire drivers with a lot of experience who are at least 25 years old. Drivers under 25 are statistically much more likely to be involved in accident, meaning they cost more to insure. This is one of the reasons why you hardly encounter very young taxi drivers, if at all.

Hiring good drivers isn’t just about their age and experience though. A good taxi firm will take other factors into account. Good character and a clean driving history are two other extremely important factors when hiring taxi drivers.

Regulations

Taxi firms must abide by their local council’s regulations. The main rules around taxis depend on whether they’re public hire or private hire.

  • Public hire taxis – Public hire taxis can be hailed from the street and can display a ‘taxi’ sign on the vehicle. They are typically more expensive to insure than private hire cabs since drivers are subject to more risk, such as picking up drunk and aggressive passengers outside of nightclubs and pubs.
  • Private hire cabs – Private hire cabs must be booked in advance by phone or online. They cannot be hailed from the street and they cannot display a ‘taxi’ sign on the vehicle itself.