How to Make Money by Offering Cab Hire Service

One smart transportation business one can do in Nigeria is the cab(taxi) on demand business. It just basically involves getting people to hire your car for a time period and they get billed for it, just like a taxi service. You can charge them on a time used or distance traveled basis.
Unlike the normal taxi business whereby taxis would have to be parked at a particular car park waiting for customers and setting prices arbitrarily, you only need to have your cars at a spot and then take orders from customers who call you. You would need to have standard rates which should be transparent and people would know it even before calling you.

This can be profitable in major cities in Nigeria with huge population but it can also work everywhere else where you have a large customer base.
There are probably a lot of Nigerians who would prefer a pickup service that comes with standard rates than having to go to a public park to negotiate for prices.
At times I see some rich old people getting into buses or tricycles just to get to their daily or weekly destination. It would be smart if you could tap into that and offer them the routine service as often as they want it at a good fee.
Likely customer base
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Your target customer base could be:
- Rich old people too tired to drive
- Working class people too busy to own a car
- Mothers at home who don't drive but can hire a taxi
- Children who need a lift daily to and from school
- People who go to church or mosque on a weekly basis
This is a sort of taxi on demand service whereby customers call you by phone or make an arrangement to subscribe to your service on a continuous basis.
Niche services you can offer
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Pickup service: Pick people from home and drop them back.
Worship service
School service: For kids going to school frequently
Shopping service: For women who like to shop
What you'd need
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- Vehicles e.g. cars, tricycles, buses, motorcycles.
- Car park
- Drivers
- Customers
- Admin office
- Business permit
You can still smart small even with one car and a good customer network.
What you'll have to decide on
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- Choice destinations: Your approved routes for travelling. e.g inside state, inside LGA. Should be within 24 hrs
- How much to charge
- Fee basis: e.g. distance travelled or time used.
- When to get paid: Cash after service, cash before service or bank prepayment.
- How customers would order for a cab service: e.g by phone, in person e.t.c.
- Packages: Pay as you go or subscription basis
Some Nigerian companies who are already being successful at this business:
- Orange cabs
- Red cab
Marketing can help
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If you do start a small or big cab business, you would have to do some publicity so that people may patronize your business. It could be by word or mouth, church bulletin, newspapers, internet and social network. Your pricing strategy can also be a good marketing tool. Most cab businesses in Nigeria tend to be too expensive so there is a need for cheaper private cab services.