Start a Taxi Business

    How to start a taxi business with dispatch software in 2026

    Step-by-step 2026 guide to starting a taxi business with dispatch software: licensing, insurance, vehicles, drivers, software and marketing budget.

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    Operator licence — TfL PHV / TCP / state TNC — 2–8 weeks
    Insurance — $5–15k per vehicle per year commercial
    3–5 vehicles + drivers as day-one launch fleet
    Dispatch software from $399 — up in 10 business days
    Marketing budget: $500–$2,000/mo for first 6 months

    Step 1: licensing

    Every market has its own operator licence — TfL PHV in London, PCO in Manchester, TCP in California, TLC in NYC, WMATC in DC. Timelines vary from 2 weeks (small councils) to 6 months (NYC TLC). Start the licence application before buying vehicles because insurance often requires the licence number.

    Step 2: insurance and vehicles

    Commercial hire-and-reward insurance is the largest recurring cost after driver wages: $5,000–$15,000 per vehicle per year depending on market and driver age. Vehicles: used Toyota Prius / Ford Mondeo / Mercedes E-class in good condition run $10,000–$40,000. Lease-to-own from a licensed fleet supplier is often faster than buying outright.

    Step 3: dispatch software

    The $399 + $10/month web booker gets you a booking website, driver app and dispatch console in 5–10 business days — enough to run 1–15 vehicles. Move up to the $8,500 enterprise plan when you cross 15 vehicles or need white-label apps on your own store listings.

    Step 4: drivers and driver retention

    Two shifts (day/night) per vehicle = 6–10 drivers for a 3–5 vehicle launch fleet. Pay competitive percentage split (typically 60/40 driver/operator) and daily payouts via Stripe Connect. Driver churn is the highest silent cost in taxi businesses — good software with on-time payouts and fair auto-assign is the largest single retention lever.

    Step 5: marketing budget

    First 6 months: $500–$2,000/month split across Google Ads (local search), Facebook Ads (retargeting) and local partnerships (hotels, restaurants). SEO on the booking website is a 6–12 month payoff — start early.

    Two Products · One Zero-Commission Platform

    Two Ways to Start — One Brand

    Every operator, from a single chauffeur to a 500-vehicle fleet, gets the same promise: zero per-trip commission, no per-driver fees.

    Launch fast

    Website & Booking

    From $399 setup · from $10/month

    Ideal for 1–10 vehicle operators who need professional bookings live within 24 hours.

    • Branded booking website
    • Fare calculator & payment gateway
    • Airport, point-to-point & hourly bookings
    • Free .com domain & business email
    • Live within 24 hours
    See Starter & Premium plans
    Own it all

    Full platform

    Enterprise Dispatch Platform

    From $8,500 one-time

    For operators running 10 to 500+ vehicles who want branded apps and source-code ownership.

    • Branded iOS & Android passenger + driver apps
    • Dispatch console with Caller ID & auto-allocation
    • Corporate billing & account management
    • Source-code ownership
    • Zero per-trip commission, zero per-driver fees
    Enterprise details & demo

    Not sure which fits? Book a live demo — we'll match you to the right product in 15 minutes.

    Frequently asked questions

    Realistic minimum for a 3-vehicle launch: $50,000–$120,000 depending on market — insurance and vehicles dominate; software is under 1% of budget.

    6–9 months for a well-run 3-vehicle fleet in a mid-size UK/US market.

    No — the booking website + driver app is enough for the first 6 months. Add the passenger app when repeat-booking share crosses 40%.

    SaaS at day one if uncertain; one-time as soon as you're confident in the business.

    Local partnerships (hotels, restaurants, care homes), Google Ads and existing driver networks. Uber/Bolt drivers moonlighting are a common early customer source.
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