Investing into Taxi Business

Dear All,
I want to invest into Taxi business but I am not sure of pre and cons of this.
Initially I want to lease the number plate for one year and then I want to be completely dedicated into this business.
Would need your advice into that.
1. Where I can find the number plate prices ?
2. Loan : Till what percentage I can get loan , is there any specific percentage.
3. To own a Taxi number plate do I need to have TAXI driver licence. What If I want to lease it post purchase of Taxi number plate.
4. Which TAXI company is better in terms of leasing the number plate?

Your feedback and advice on this matter is highly appreciated.
Regards,:)
 
Cons: long hours, dealing with drunk and abusive passengers, robbery, assault. Quiet periods mean little $ for long hours work. You really need to have the ability to deal with people.

Pros: very flexible business, you can employ people to drive for you (or contract taxi out), good capital gains (price has nearly doubled in less than 10 years), you can lease the plate out without car and get around $600pw return

Number plate prices are usually advertised in Saturdays Sydney Morning Herald under business's for sale or you can check with the radio companies

Re loans, my understanding is the major banks will require property as collateral. They wont use the taxi plates. But I heard The Arab Bank of Aust will (http://www.arabbank.com.au/business-banking/loans-for-business/taxi-loans)

You dont need a taxi drivers licence to buy a taxi. You may have to get some accreditation though. The same goes with leasing a number plate out.

But if you want to operate a taxi and hire drivers you need to do about a 2 week course.
You can check with the taxi council for more info.

As to which taxi co. is better, well its like choosing an IP manager. Look for what they charge, level of service, cleverage of receptionist etc

They aint too many taxi co. in Sydney. TCS is the biggest, they are located near the airport and have a lot of clout.

Go and get your taxi licence and start driving, even if its just weekends and see if you like the game.
 
Guessing a Property forum may not have the full details on investing/purchasing a taxi business. Looks like you have some good posts already though.
 
That sounds pretty interesting actually!
How would one go about leasing the plate to a taxi company?
What do you actually own? The plate number is in your name?

Would like to know more about it, if you guys have some interesting links or resources, I'd be keen to have a look!

Cheers and thanks for bringing up different topics :)
 
If you buy a taxi plate it becomes your property and is in your name. you will actually own a few hundred grams of metal that will be worth over $400K (hows that for precious metal)

I'm not sure if you can take possession of a taxi plate unless it is attached to a vehicle. It may have to stay with the dept of transport until it is ready to be attached to a taxi.

To lease it you sign an agreement with a leasee or a manager.

check out:

http://www.nswtaxi.org.au/category.php?id=3

http://business.domain.com.au/Search/buy/Business/Taxi/?ltype=Business
 
All the sourcing and complying with the requirements are part of the business. I think what you have to focus is the marketing aspect. Do some market research and find out what you can offer that will make your service unique. How you can be different if not better ? Have you considered client discounts, prepaid plans, or hiring chips and pins solutions? Learn to test and measure the results of new ideas. Consider the cost and time implications.
 
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How do you lease a number plate?
Doesn't the whole cab have to be leased?
Because they are painted in the colours/logo of the fleet.
In Sydney we have premier, combined, st george cabs.....
So I don't know how you could lease a number plate.
 
?
How do you lease a number plate?

It's not just the physical number plate, of course. You are leasing out the rights to operate a taxi, which is far more extensive than some 5 digit number. It's just like a celebrity allowing advertisers to use their face etc on advertising - you are selling your goodwill to generate income.
 
So does, say, premier cabs in sydney operate on a 'share' basis?
Is each cab individually owned?
I wouldn't have thought so. I thought someone would have had to set up a company with at least 10-20 cabs, get a licence, hire drivers (or hire the cabs out to drivers).
Interesting! I'd never thought much about cabs beyond as a means of transport.
Am I wasting my pity on cab drivers? It seems they don't make much.
 
yeah I always wondered how much they take home at the end of the day.
Do they pay for petrol?
Because all that cruising around...then once every few hours you get a $20 cab fare....
 
I remember about 7 years ago, a taxi driver would take home on average (after all expenses are deducted) between $50 and $120 after a 12 hour shift working in Sydney's suburbs.

Petrol (LPG) is paid by the driver. Driver must wash the cab, if they do night shift.

Taxi drivers mostly hire taxis under a contract of bailment from the owner/leasor. They pay a set fee called a "pay in" to their "boss". A weekly "pay in" may be $700 or $800 and the driver may use the taxi from Monday to Saturday from say 3pm to 3 am if they are a night driver. A day driver works from 3am to 3pm and their "pay in" is less than a night driver.

Friday night is the best night of the week for taxi drivers. School holidays are slow periods. Drivers dont usually cruise around. Rather, they "sit" at a taxi rank and wait for a passenger or a "radio job".

Permanent drivers are entitled to superannuation, holiday pay, sick pay and are supplied their uniform.
 
Yeowch.
Day drivers pay less than night drivers did you say? Is that because the day shift is less lucrative?
I think the hours of around 1-5am are very lean for tax drivers. When hailing cabs at this hour I have seen cabbies swerve, speed up and cut in to be the first to get the passenger. I have seen cabbies get into arguments over who got there first etc.
For $50-$120....why not go work at a supermarket then? Or any other job that would pay more than $10/hr. I think the average going rate for cash-in-hand jobs at restaurants is $8-$15/hr. I've heard of restaurants taking advantage of illegal immigrants or people who hardly speak english by paying them $4/hr.
 
Makes you wonder why one would bother driving a taxi for such little pay. But if you are an immigrant with poor English, no skills, no Centrelink etc then some money is better than none at all.

There are a few drivers who do make better money because over the years they have learnt to be where the work is eg Friday nights in the city after midnight, the airport after 6am. They may also have "private" bookings from regular passengers whom they have befriended.

The hours between 1 and 5 am can be quiet on most nights except Friday (esp) and Saturday when people want to get home.

In general, you can say that the average taxi driver is an exploited worker who is underpaid and works long hours in a fairly dangerous industry. They are also sometimes abused by not only their customers but also the media as greedy sex fiends.

But remember if you pay peanuts all you get is monkeys!
 
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