In this article, we'd be listing out the steps involved in starting a taxi business in Nigeria, including the challenges you might face and how to get a good car for as low as ₦800,000.
When mentioning man's primary needs, many atimes, many of us fail to mention the need for transportation. We just list out food, clothing, shelter and others, but forget that every living being travels.
Whether you're moving withing your locality or travelling from one city to another, the need to board a taxi must arise, especially when your personal car is not available.
Taxi Business In Nigeria
A taxicab (also known as a taxi or a cab) is a type of vehicle for hire with a driver, used by a single passenger or small group of passengers, often for a non-shared ride. It conveys passengers between locations of their choice.
Taxis are different from other modes of public transportation in the sense that the pick-up and drop-off locations are not decided by the service provider, rather the passengers decide where you pick them.
There are taxi stations (parks) in most of the big Nigerian cities, but the taxi drivers also pick up passengers along the roads as they drive to their destinations.
How Profitable Is Taxi Business In Nigeria?
Travelling by taxi is far more cheaper than using a personal car, you won't have to pay for the fuel nor bother about the maintenance of the car.
It is one special kind of business that will promise you of daily returns. I'd use the distance from Ikenegbu (Owerri) to IMSU Back Gate. It is a very busy area, because of the number of IMSU students that ply the road on a daily basis.
How much does a taxi driver make in Nigeria?
The cost for carrying a passenger is ₦100 and you can carry up to 7 passengers in a trip. Now multiply ₦100x7 and you'd get ₦700.If you go on 10 trips a day (you can go more than that on a good day), you'd be making ₦7,000 in a day. Some times, you might also go on a drop and make more more.
How To Start Taxi Business In Nigeria
Below are some steps involved in running your own taxi business:
• Register with the taxi drivers' association in your state
Every business has an association, including taxi driving. The group will go a long way towards protecting your rights in the course of running your business.They'd also guide you and provide necessary support that you might need as a beginner in the career. Registering with them will also give you accreditation to operate taxi business in Nigeria.
• Get a car
Getting a car is the most important aspect of launching your business. A good percentage of your start-up capital will go into buying the vehicle. You can either decide to go for a brand new car or an already used one, if you will go for the later, ensure it has not been over-flogged, else it'd surely give you maintenance issues in the later run.If you're thinking of venturing into taxi business either as a driver or you want someone else to drive the vehicles, you can contact us for your mini-buses (7 carriers) at affordable rates.
For more information, you can call us with the number that I'd be dropping at the end of this article.
Challenges Facing Transportation Business In Nigeria
Inasmuch as transportation business is very lucrative, there are still some challenges that if not tackled, might affect your success as you venture into it.• Bad state of the Nigeria roads
You can hardly travel from one state to the other without witnessing a good number of potholes. This is very discouraging to both the road users and workers and negatively affects transportation business.Damages that might be caused by these roads will result in you spending a good sum of money on vehicle maintenance and repairs.
• Dishonest drivers
You won't have to bother about this if you'd be driving the vehicles yourself, but you plan on hiring a driver, I think this would really pose as a big challenge to you.I've discussed with a number of car owners in the past and many of them had negative comments about drivers they've hired in the past.
A particular man told me about his driver that would always complain of being sick so you'd assume that he didn't go to work, and not tell him to account for the day. One day, he decided to pay him (the driver) a visit and was shocked to find out that he actually went to work that day.
Other car owners have their own tales to tell too, but that doesn't mean that there aren't any honest drivers out there.
It's advisable to work with someone you already know very well, or get someone refer one to you.
These are the major issues you might be facing, but the start-up capital can also be challenging. You can read out article on the 7 easiest ways to raise capital for your business as a startup.
What more? Don't forget to drop us a comment and share with your friends. Also contact us for your affordable Suzuki and Daihatsu mini buses. You can send an email to [email protected] or call/WhatsApp 0815 744 9397 or 0907 297 9302.
Before you leave, also check out our guide how to set up a successful Keke NAPEP business in Nigeria. We shared a number of tips, ranging from the prices of Keke in Nigeria to the expenses you might estimate for and various ways of funding your business.
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