Taxi Rental – is it a good business idea

Ever since cars were invented, there is one basic service that everyone can acknowledge as important – the taxi. This vehicle allows people to go where they want whenever they want with the help of a professional driver.

Many people with years of experience in this field that the most important thing is the car. That’s why it’s not surprising that entrepreneurs from all over the country are considering the idea of taxi rental services. But what exactly does that mean and why can it be a good business venture.

What you need to know before you start your business

The whole taxi rental process depends on the agreement between two parties – the person who rents out the taxi and the person who uses it. If you are the owner of the taxi, it’s important to make a decision whether that plan is worth it or is it better if you are the driver.

Here are some things to consider before you make that decision:

• The season, during which you rent out the taxi;
• Car maintenance due to depreciation;
• The average market price for the type of car you rent out;
• Profit;
• Do you trust the tenant.

The last one must be though out thoroughly because you don’t know the people who rent your taxi and don’t know if they have the experience needed to drive one. It’s also important that you calculate your profits – how much money you would earn if you were the driver and how much money you would earn if you rent out your taxi.

What to watch out for when renting a taxi

If you are the one who is looking for a taxi to rent and you need to get to the city of Plovdiv for example, it’s recommended that you check the condition of the car. Here are some important factors:

• Consumption and economy;
• Trunk volume;
• Taxi roof sign;
• Depreciation and maintenance of the car;
• Autogas system.

Fuel consumption in big cities (especially when you are driving for a long time) can sometimes be very high. This is also very common when there’s heavy traffic and you often need to stop.

Some cars are economical when they are driven above certain RPM, so that’s why cars with built-in autogas systems can save you money.

Pros and cons of renting out a taxi

Renting out a taxi in a big city like Varna has its pros and cons. If you want to rent out a taxi in resort cities like Varna or Burgas for example, it’s good to have in mind that summer is peak season and the possibilities for making a better profit are bigger.

Of course, it’s likely that there will be a large influx of people who want to rent your car but unless you making a good percentage of the proceeds, it’s probably not a good idea to rent out your taxi to another person. If you have another car, which you can drive, and rent out the other one, then it’s a bit safer, even recommended.

The demand for taxi rentals in cities like Plovdiv is big during the rainy months and the winter. In the summer the population of the city declines, so that’s why it’s better to rent out taxis during the spring, summer and winter.

If you want to find out more about this type of business and get detailed advice or just want to rent a normal car you can contact our team at SpeedyCars.eu.