11 Best Taxi Business Ideas for India

11 Best Taxi Business Ideas for India

The taxi industry has taken a full 180 turn after the launch of apps like Ola and Uber. It’s opened more doors and thus is one of the most attractive business ideas for small villages as well.

But before you start this business, here are some taxi business ideas to help you shine through the competition and become your own boss.

What does it take to start a taxi business?

Before spending your money, you must first comprehend and explore the sector in order to be aware of the many competitors and consumer wants.

No business is really simple to start; only a driven person with a willingness to succeed can begin and grow this business.

Starting and operating a taxi firm is not effortless; it necessitates extensive study and deliberation, which is documented in the shape of a business plan, which serves as a way to remind of what the company is really all about, the targets set forth, and the practices to obtain them within a specific time frame.

Create, Share, Collaborate

Work with your team in real-time. create documents together and share the same on Whatsapp, Gmail, etc.

Begin your taxi business plan by outlining the company’s aim, objectives, and accomplishments, as well as the corporation’s highlights, business description, and a thorough strategy for accomplishing the company objectives.

It is important to remember that your business plan should be able to outline the service you want to provide as well as establish the standard of specifications and priorities.

Taxi business ideas in 2023

1. Airport Taxi

Airport Taxi

Unlike most taxi-related business concepts, getting an operator’s license is the most difficult obstacle to conquer when starting an airport taxi.

If you want to buy one from an established taxi company, this license might be difficult to get and expensive.

However, acquiring an operator’s license for an airport taxi is far from unattainable, and it might be well worth the trouble.

Creating alliances and collaborations with organizations and localized businesses that can provide you with clients, such as hotels, tour operators, travel agencies, and huge corporations, is the ideal way to market this business.

2. Taxi painting service

Automobile repainting is not only a tried and true sector, but it can also be a very profitable business for Indians. To launch a major taxi painting service, you or an associate should have the knowledge and skill essential to finish bodywork and paint automobiles.

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Because the gear involved in running this business is huge, it is generally suited to experienced automobile painters.

You might also try forming a partnership with an existing vehicle repair business that does not provide restoration services. You may also exploit the customer network of the repair company for commercial reasons.

3. Bicycle Rental

This idea is still very new to the Indian economy and very much in its buds. It is the right time to leverage its scarcity to your advantage by opening up a bicycle rental of your own.

Bicycles are used to transport people from one point to the other and are garnering some buzz in certain regions.

Recreational tourist regions and cities are the two most viable venues for renting bikes. You can consider setting up a shop close to a major hotel or resort in a tourist location, where long holiday vacations generate ready clients.

You will need a retail outlet as well as a place to keep every one of your bikes and scooters with this sort of service. Plus, Lio’s transport template. This will help you track expenses, rental details, customer details, etc.

Another option for bike rentals is to use a bike-sharing service. Bicycle stations located throughout the city let cyclists hire a bicycle in one area, pedal to their desired location, and then return the bicycle to a station nearby.

4. Off-road Taxi

Off-road adventures are a favourite day outing for many tourists, and they are a fairly priced holiday experience that everyone in the group can love.

Bear in mind that marketing and advertising off-road or backwood trips are quite easy, and it is usually best done by producing and sending advertising messages to all area cafes, hotels, and travel companies.

Even if the business colleagues or associates earn a 10% or 20% commission for recommending customers to the business, this form of taxi business may be quite profitable.

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5. Food truck business

Food truck business

After doing some homework, the next step in beginning this business is to buy an enclosed trailer or a step van that can be transformed into a chuck waggon.

Chuck waggons, sometimes known as mobile food stalls, are widespread, and starting one will undoubtedly be rewarding.

For the convenience of your customers, your enterprise will move a portable restaurant from one location to the other.

eeAs previously indicated, you may buy an enclosed trailer or step van and furnish it with industrial kitchen equipment like cookers and ovens to turn it into a mobile food truck.

6. Medical Taxi

Medical taxis, often known as non-emergency medical transportation services, carry people who are unable to take themselves to a medical facility.

Elderly folks in healthcare facilities or people receiving care at home are the most common users of medical taxis.

All automobiles must be wheelchair accessible, and drivers must be familiar with the fundamentals of first aid.

This idea is best suited for persons with prior expertise in both the medical and logistics industries.

Irrespective of the neighbourhood they cover, entrepreneurs should have expertise in offering quick and effective pick-ups and drop-offs.

On a daily basis, medical taxi drivers may do the following tasks:

  • Creating connections with nursing homes, hospices, and physicians’ offices
  • coordinating the schedules of the drivers
  • Transporting patients between medical institutions
  • Upkeep of vehicles
  • Organizing logistics for transit

7. Tow truck business

Tow truck business

Nearly every day, automobiles, including taxis, break down, are rendered unattended, and are parked improperly.

It will be your responsibility to haul taxis to maintenance workshops, impound lots, and other destinations as ordered.

Many tow truck companies also provide roadside help in an emergency. Anyone who is mechanically adept is especially suitable for this area of work. Pulling a car is generally a simple process.

Chaining a malfunctioning automobile up to a tow truck or getting a car out of a sticky situation can be difficult at times. In certain cases, having a mechanically driven mindset might be beneficial.

You will devote most of your day travelling to broken-down, abandoned, or incorrectly parked taxis, attaching them to the tow truck, transferring them to a new location, and unlatching them from the tow truck.

8. Community delivery services

Individuals can provide customers in their neighbourhood with quick and efficient delivery and/or pickup solutions for laundry, spirits, convenience foods, medicines, tickets, grocery items, pet foods, flowers, or anything else conceivable with only a smartphone to take care of receiving and sending customer service calls and dependable transportation.

It is also important to note that this business may swiftly develop if you put your planning and sales talents to use.

Concentrate on marketing your business and attracting new clients, while recruiting outsourced drivers with their own vehicles to do pickups and drops on a revenue-sharing basis.

Integrating two-way radios in every truck and connecting them to a centralized dispatch system can help achieve optimum performance, reducing downtime and non-productive travel time.

Related: Delivery Challan Meaning and Template

9. Car maintenance

Start a service that trains your consumers, such as taxi drivers, how to undertake basic repairs on their automobiles, and you can apply your auto repair abilities to great use.

These classes might be run in collaboration with a community or instructional centre, such as a local college, or they could be run independently by renting a temporary training and skill development area.

Repair your oil, change a flat tire, and perform routine brake and steering inspections, as well as any other minor automobile repair duties, are all covered in this course.

10. Bus tour

Bus Tour Business in India

A bus tour agency offers trips to both visitors and local people. Trips to cultural locales, along with other interesting locations, are essential community service.

Bus tours get people closer as they share an experience together. They also provide information on historical sites, geography, local history, and other significant characteristics of the city and its surroundings.

If you want to give visitors the chance to know more about a place while appreciating the presence of everyone else, this business is really effective and engaging, especially for people looking for business ideas that work in Tamil Nadu.

Bus tours help in better appreciating and value cities, monuments, towns, and other significant places. Customers taking bus tours to develop a new respect for the place in which they are touring.

Related: Few Small Business Ideas For Indians

11. Livestock transportation

You may even launch a taxi service that carries and transfers livestock. Unless you go into commercial-size vehicles that house several animals, you don’t require special permission to carry personal horses for clients.

To gain perspective on clients’ faith in your capacity to move their livestock, you will need horse or bovine experience, as well as knowledge of livestock transport legislation.

Note that if you are carrying an animal above a great distance and need to lodge somewhere for the night, you will have to get the animals on and off the track multiple times.

You would need to learn how to cope with problems on the road — such as how to encourage the pony to sip while going and avoid colic, and how to clean or patch a wound if required — but you also have to understand the fundamentals of driving while pulling a live animal.


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How can Lio help?

Lio centralizes all of your documents in one place, permitting you to access them from your smartphone at any time and from any location.

The most essential advantage of using Lio to manage data within a company is that it saves time and money.

A well-organized professional will invest lesser time clarifying mistakes, looking for more information, and decluttering.

It gives managers a complete view of the company’s strategy, operations, and finances, which helps them make choices.

Entrepreneurs may adopt Lio to maintain a tally of a variety of information, such as employee data, news, and corporate notes.

In a business’s information portfolio, Lio helps in deciphering the facts and minimizing the chaos, which is a crucial action motivator in any issue impacting the organization.

Lio is definitely for the win and using it for your business is only going to make your journey smooth and easy to track.

Step 1: Select the Language you want to work on. Lio on Android

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Step 2: Create your account using your Phone Number or Email Id.

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Verify the OTP and you are good to go.

Step 3: Select a template in which you want to add your data.

Choose from 60+ Templates offered by Lio And Start Adding Your Data

Add your Data with our Free Cloud Storage.

Step 4: All Done? Share and Collaborate with your contacts.

Share you files with friends and colleagues

Frequently Asked Questions(FAQs)

Is Google my business important for the taxi business?

For your taxi service, Google MyBusiness is a great web tool. For people who Google your business, you may maintain your existing business data up to date.

You may include information like your contact number, search listings, and maps, as well as pictures of your taxi services, satisfied clients, and screenshots of your web app.

Another element of Google MyBusiness is a feedback part whereby your clients may provide feedback and you can answer in order to have a two-way dialogue. 

How to use social media to promote your taxi business?

It would be a smart option for you to continue using social media. It is among the most cost-effective methods for getting your business online and interacting with clients.

Pick two or three social media platforms that you feel will have the greatest impact, such as Facebook, Instagram, and Google+. 

When you are online, you would like to ensure you answer comments and inquiries quickly; after all, it is a media platform.

Should I have an app for my taxi business? Why?

Customer standards have relocated to a higher level as a result of Uber and other ride-sharing services.

Because they have been taught that apps improve their lifestyles and make them simpler as well as faster, an increasing proportion of the audience will no longer consider calling for a cab.

Why dial a cab on a busy weekend, hear the line ring 20 times, or be asked to wait by a rushed service provider when you can simply click a button?

By developing a taxi app that is personalized to your business, you can ensure that your cab company is ahead of the competition.

Once a consumer downloads your app, the likelihood of their utilizing it again increases considerably, saving you time on call-taking and dispatching.

What Are The Prerequisites For Starting A Taxi Company?

The standards that company owners must follow in order to run a taxi service vary greatly depending on local laws and regulations. However, there are certain general requirements:

– Licenses
– Taxes
– Gas 
– Maintenance Cost 
– Garage 
– Equipment
– Start-Up Capital 
– Initial Overhead Costs

How Do You Start An Online Taxi Business?

Some of your prerequisites are as follows:

– Get a powerful administration panel.
– Download a GPS-based map and location application.
– Set up your credit card details to make reservations easier.
– Install a single, unified app for all users.
– Continue to work on the server issue.
– Get a unified integrated system for payment 


Although you may keep coming up with your own innovative taxi business ideas, you can indeed learn from established taxi booking applications such as Uber, Lyft, and others.

You shouldn’t have to mimic, but you should actively look up to talented players for encouragement.

Watch and learn from other businesses, and always grow your business with concepts that are special to you.

A taxi business, like other enterprises, can be managed on a variety of models and strategies. The key planning concept should be the acquisition of resources or the utilization of existing assets.

In my opinion, a thriving taxi company should spend on good drivers who are also polite, as well as strong automobile service facilities and a great system for tracking client satisfaction.

For a productive cab business, all legal requirements should be meticulously recorded and obeyed.

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  • What an incredible article! You provided a thorough explanation of the various taxi business possibilities. Thank you a lot.

    • Hello Vimala,

      Thank you so much for your kind words.
      I’m pleased this article was enlightening for you.
      Enjoy your reading!

  • Please explain to me how I can obtain a taxi license in India. Thanks.

    • Hello Sangeeth,

      A learner’s license is required. The driver must complete driving lessons and pass a written test to receive a learner’s permit before applying for a commercial driver’s license.
      Identity proof, address verification, many passport-size photos, application cost, and other paperwork are needed to apply for a commercial driver’s licence.

      The required documents can be submitted with the licensing application either online or offline. 

  • Can you please tell me how big is the taxi industry in India? Thanks in advance..

    • Hello Nived,

      In FY 2019, the Indian market for online taxi services was valued at INR 29.75 billion. By 2024, sales are projected to total INR 61.59 Bn, growing at a compound annual growth rate (CAGR) of 16.60 percent.

  • Could you please provide a short list of Google My Business alternatives? Thanks.

    • Hello Aarushi,

      The top Google My Business alternatives are Yext, Birdeye, G2 Deals, Moz Local, Reputation, and Vendasta.
      Kindly research more and choose according to your needs and requirements.

  • Please outline the steps necessary to launch a taxi company. I really appreciate your works, thank you.

    • Hello Antony,

      First, make sure you know everything there is to know about the taxi business. To start a successful taxi company, you must first develop an effective business plan. The next important step in the taxi business is registration.

      Register your taxi company with all legal authorities. Driver licenses are another aspect that is required to start a taxi business. Another critical step is insurance, which is highly essential in the taxi industry. Good marketing is also essential for growing your taxi business.

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