• +91 7821055537, +91 9982201414
  • +1-603-275-9923
  • +1-650-727-6690

How to Start a Taxi Business in India?

App Development
Dec 21, 2023
Follow Us:
how to start taxi business in india

One of the most prominent questions investors are asking is “How to start a taxi business in India?” Are you also looking to invest in this lucrative industry and enjoy hefty returns? Fret not, this blog will provide an in-depth guide on how you can start an online booking taxi business and provide information on a cab business plan in India. 

With ongoing technological advancements, the taxi venture market is buzzing all around the world. The ever-increasing demand for the taxi market has led the taxi venture to grow by leaps and bounds. 

With the emergence of taxi giants like Ola, Uber, and Lyft, anyone in any corner of the world can now hail a taxi from their smartphone. This massive paradigm shift from traditional taxis to the taxi-hailing model is very profitable and has urged entrepreneurs to invest in this lucrative industry. 

India’s Taxi Booking App Revenue

In 2015, there were two major taxi online booking service providers in the country: Ola and Uber. That year people started booking online taxis and started gaining knowledge about taxi booking app development. The taxi app revenue in 2015 was $3.8 billion and continued to grow and in 2023 it stands at $6.6 billion. Have a look at the table below to understand the taxi app revenue growth (Source):

Taxi App Revenue$3.8 billion$5.3 billion$6.3 billion$6.9 billion$7.5 billion$3.7 billion$ 5.9 billion$6.5 billion$6.6 billion

How to Start a Taxi Business in India? Steps to Follow

In order to start a taxi business in India, you must have a well-structured plan and roadmap so that you can establish your taxi venture effectively and efficiently. A well-structured plan is essential for the proper workflow of business elements such as taxation, documentation, etc. Additionally, if you have a robust taxi booking app development solution, you can boost your business of taxi-haling to new heights. 

Here are the steps that must be followed to start a taxi business in India:

  • Market Analysis

The first thing is to analyse the market and target customers. Acquire information about the routes, fares, and cab demands by passengers in particular areas.

  • Plan Development

Develop a Taxi-led business plan that covers every aspect of the taxi business including routes, cab fares, how you can attract customers, your business goals, etc.

  • Business Registration & License

After making a complete business plan, get your business registered and obtain a license which is a permit that allows your business to run in the country legally.

  • Fleet Establishment

Purchase cars of segments that are mostly preferred by passengers. You should have hatchbacks, sedans, and MUVs in your taxi fleet as these segments are the most preferred mode of transportation by passengers.

  • Hire Taxi Drivers

After you have a fleet of taxi cars, you should hire experienced drivers who have legal licenses. You can hire them as full-time or part-time taxi drivers as per your requirements.

  • Plan Routes and Set Fares

Plan your routes and set fares according to the taxi market. Also, have a multiple mode of payment so that drivers and passengers have convenience in payment.

  • Develop a Taxi App

Before the promotion, make sure to develop a Taxi online app for your taxi business as nowadays most taxis are booked through mobile apps. If you want an expert taxi app developer team for your business you can contact a leading taxi app development company.

  • Marketing & Promotion

You can hire the best taxi app development services provider to promote your business through various promotional strategies including, pamphlets, digital marketing, social media marketing, newspaper advertisements, etc, which will be beneficial to your business to reach a number of people.

  • Customer Feedback

Listen to your customer’s needs and suggestions, and work on the feedback to improve customer satisfaction and business performance. 

Also Read: Taxi Booking App Solutions For Your Business- A Detailed Guide

Why To Invest In A Taxi Business?

India has over 1.4 billion population which creates great potential and a huge opportunity for taxi booking app development. The advancement in technology has changed the way we commute in our daily lives from short routes to long routes while also changing the way of book taxis. Taxis are going to stay and the requirement will increase with the population.

As the taxi venture is highly lucrative, it makes sense to invest in a taxi business. Here is a list that will help you understand why it is profitable to invest in a taxi business:

  • High ROI
    The need for taxis will only increase day by day and there is a high scope in this business. This is why the online booking taxi venture helps you generate a high return on investment along with maximized revenue.

  • Wide Network
    The taxi booking app development helps you expand your taxi network as you will reach a wider audience with an online taxi app. Earlier, people used to book taxis by visiting the taxi stands but now with the taxi online app, you can book with a single tap.

  • Brand Awareness
    With the help of the best taxi booking app development company, you can promote your taxi venture to remote areas, villages, and three-tier cities. As a large population uses smartphones, you can promote your brand pan India.

  • Low Development & Maintenance Cost
    Building multiplatform taxi software will also lower your expenses as the development cost of the taxi app is less and it will also reduce maintenance costs in many ways like live driver tracking, daily kilometers covered, GPS tracking of taxis, etc.

Also Read: Everything You Need to Know about On-Demand Taxi App Development

Features of a Taxi Booking App Development

Here are some emerging and unique features of the taxi booking app development that are integral in offering an enhanced user experience to users as well as drivers. Let’s take a look- 

User Panel Features

Features Description
User OnboardingIt is important to provide a simple user interface where users can register and log in to the app without any hassle.
Booking InterfaceUsers are able to book a taxi from the booking interface without any hassle.
GPS TrackingAn API is integrated into the app of taxi booking which shows real-time GPS tracking in the taxi-hailing app. 
Cab TypeUsers can choose which type of cab they want to ride in. Some options include Bikes, Autos, Mini Taxis, Sedans, and SUVs.
Pick-Up and Drop LocationUsers can choose the pickup and drop location for ease of convenience.
Estimated Ride FareAn estimated ride fare is calculated according to the distance and traffic of the route you have selected.
Live TrackingThe users can also track the live location of the driver before and during the ride.
Payment GatewaysSafe and secure payment gateways are integrated into the cab online app so users can make payments without any hassle.
In-app MessagesUsers can connect with the driver through the in-app messaging and call feature and coordinate with the driver accordingly.
Ratings & ReviewsThe users can rate their rides and drivers according to their experience. 

Driver Panel Features

Driver OnboardingA simple user interface where the driver can register and log into the application. 
Driver ProfileAll the personal details about the driver are listed in the driver profile including identity verification.
Ride AlertThe driver gets a notification whenever someone books their ride through the app.
GPSThe driver has real-time location services in the app so they can reach the users without any hassle.
DashboardThe dashboard functions like the home screen of the app where the driver can monitor and manage all the rides.
Push NotificationsDrivers receive push notifications whenever a user books or cancels a ride and other application functions.
Ride FareA ride fare is shown to drivers according to the distance and traffic of the ride. They can either choose or decline the ride. 
Booking HistoryAll the rides the driver has completed can be monitored by the booking history feature. 

How Much Does it Cost to Start a Taxi Booking Business?

The overall costs revolve around multiple factors above mentioned. While estimating how much it costs to start a taxi business, it can be around $25,000 to $30,000 with the availability of cars that can easily fulfill customer requirements. Starting a taxi business remains a feasible option that holds great potential in this leading market. Proper cost, effective strategies, and other adaptive plans lead to imperative opportunities for successful taxi online booking venture growth.

The factors which affect the cost of starting a taxi business depend on several factors including:

  • Business Registration & Getting a License: Registering your business and obtaining a license permit comes at a cost but you can legally run your business throughout the country.

  • Development of Taxi Online App: A top taxi booking app development company can help you in this phase. The overall development costs depend on features with core values. If you want to taxi app developer team to incorporate more features into the app, it will increase the project cost.

  • Integrating with Offline Vendors: Communicating with offline vendors for using their vehicles to use as taxis under your taxi venture. You will need to register them as taxis which will add a cost to your business.

  • Purchasing cars for building a Fleet: To have a full-fledged fleet that fulfills that caters to a large customer base you have to purchase a number of cars which increases business expenses.
  • Hiring experienced Drivers: You have to pay more for Hiring drivers who are skilled and experienced. They will also help in running the business efficiently.

Final Words

The taxi industry is rapidly growing, so investing in taxi app growth is a wise move. Travelling by taxi has become a lot more affordable since the introduction of online taxi apps, compared to when these apps were not available. These are popular because of the low rates, instant bookings, and large variety of cabs. 

If you want to develop a cutting-edge taxi online booking app BR Softech is a leading taxi app development services provider that can help you streamline the process. Our highly skilled taxi app developer team utilise their in-depth knowledge and expertise to develop cutting-edge and feature-rich Taxi online apps that have the potential to attract millions. 

Frequently Asked Questions(FAQs)

Q.1 Is it profitable to invest in the Taxi hailing industry?
Yes, this is booming right now and it is very profitable to invest in the taxi industry right now.

Q.2 Do you provide customized Taxi Booking app development solutions?
Yes, we offer completely customized taxi booking app development solutions that are tailored to our client’s requirements. 

Q.3 How much does it cost to start a taxi service business plan?
Initially, the business of taxi booking involves a lot of money as you would be purchasing many cars, and paying driver salaries, and other expenses. However, the taxi-hailing business is highly lucrative.

Q.4 Is Taxi App Profitable?
Yes, the Taxi App is highly profitable for your business as a large number of people book taxis through taxi mobile apps  and generates a high ROI. 

Quick Contact Us : 

Call/WhatsApp:  +91-998-220-1414, +971 527313556


Nitin Garg

I am Nitin Garg Founder of BR Softech PVT LTD - an Award-winning mobile game development company. We are armed with 180+ geeks & 2753 clients worldwide, I have driven by the spirit of entrepreneurship and dream to build a billion-dollar-company.

Get Live API Demo
SkillWaala Banner

Scan QR Code

For Immediate Contact

skypeSkype whatsappWhatsapp


Get in Touch



Country Name*

Mobile No*



Get in Touch

Country Name *