If you are planning to get into the taxi business, one of the first decisions you need to make is ✅ which car to buy for the business. There are several business models for taxi business in Kenya. Each model has its own requirements.There must be following questions in your mind.
- ✅How To Start a Taxi Business?
- ✅Which are the best cars for taxi business in Kenya?
- ✅Best Cars for online Ride Hailing Service?
- ✅Is Investing In Car Hire Or Taxi Business A Good Idea?
- ✅Which are the Best Cars for Car Hire Service?
- ✅Best Toyota Cars For Taxi Business In Nairobi?
There is the traditional taxi model, where your car will be parked in strategic locations in town where demand for taxis are high. The market here is open, and clients choose whichever car they prefer. Secondly, there has been the rise of ride hailing cab services which include Uber, Little Cabs, Taxify, and Mondo ride.
The third option of the taxi business in Kenya is the car-hire service, where one hires a car for use either self-driven or with a chauffeur. Here are insights into the best car for a taxi business in Kenya.
Best Cars for traditional Taxi Service
One of the features of the traditional Taxi Business is that the age of the car is not a big issue. In fact, some of the cars are so old that its only their drivers who can operate them, seeing that they are the only ones who understand the intricacies of their operations.
In this case, you have lots of latitude in the choice of a car if you want to run a traditional taxi service. You will be best served buying a locally used low consumption car such as a Toyota Corolla 100 or Toyota Corolla 110.
Other cars we recommend are Nissan Sunny, and Toyota Carina if you can find one in good mechanical condition. Some owners have opted for the Toyota Platz, and Toyota Ractis, and Toyota Raum for Taxis. If you use mid-range cars such as Toyota Premio or high capacity fielders, the operating costs may eat into your margins.
If you are the one who will drive the car, then you can pick almost any roadworthy car and you can make a business out of it. However, if you are hiring someone else, it is better to pick a more reliable car to reduce the chances of mechanical breakdowns.
It is also important to note that in a competitive place, new customers will tend to choose newer cars since they appear more reliable.
However, you can build good relationships with your customers to ensure the give you repeat business. This way you business may still be successful despite the car.
Best Cars for online Ride Hailing Service
Online Ride hailing services we listed (✅Uber, ✅Little Cabs, ✅Taxify, and ✅Mondo ride) have policies regarding the age and mechanical state of the car you want to use with their platform. These platforms try to give users a certain experience and as such, they are keen to ensure the cars they admit to their pool are in acceptable mechanical shape.
In this regard, you would need the more recent models to get admission. In this case, you still want to go with a low consumption, low cost car to ensure you break even. Some cars that fit the bill here include Toyota Axio, Toyota Belta, new model Spacio, new model Raum, and Toyota Ractis.
Some owners also use the new model fielder, and Toyota Vitz. Some Nissan and Mazda Models may also fit here, but they are not as commonly used.
Since you will not have much of a choice regarding who you carry and when, a car for ride hailing should be easy to clean and maintain. The longer your car is on the road, the more money you will make. If you have employed someone to ride the vehicle, ensure they are well versed with the basis maintenance needs of the car.
As the owner, keep a strict car maintenance schedule for the car. Personal relationships with your customers will go a long way in ensuring you have repeat business. This is however harder to implement since you are matched with potential clients using online systems.
Best Cars for Car Hire Service
Car hire service as a business usually involves finding a company that runs a car hire business, then getting into a contract with them. You hand over your car to them and then they hire out your car to clients and give you a pay at the end of the month. Depending on the clientele, you have a lot more latitude when it comes to car hire.
Some clients need a small capacity car such as a Toyota Axio to run weekend errands or to visit folks in the outskirts of the city. Some need large carrying capacity ones to ferry many people and may look for Voxy’s Wishes, or Mazda famila estate.
Still, some want high capacity cars such as the Toyota Prado, Toyota Land Cruiser, the Nissan Patrol or Mitsubishi Pajero either for long distance travel, or for social impact during weekend or weekday business engagements.
Whatever the case, the car hire business gives you the most latitude when it comes to the choice of car.
Running a successful car hire business means you have a contract with the car hire company. The contract will stipulate whether you are in charge of maintenance of the car, or whether the company is in charge of it. Always maintain an interest in the car, and make sure repairs are done on time, and the the routine maintenance of the car is followed to the latter.
Hired cars tend to be driven harder and with less care hence the need to keep the car under a strict maintenance regime.
In all these cases, you will need to ensure your car is appropriately insured as per the Kenyan laws, and also ensure you have the appropriate PSV licenses from NTSA.
NEXT Taxi Insurance will give you great rates for taxi insurance. Please check out our site for further details. NEXT gives you the opportunity to get discounts on your policy based on your profile as a car owner.
Popular Toyota Cars for Taxi Business in Kenya
Are you interested in the Taxi Business in Kenya? Whether you want to operate a traditional taxi business or whether you want to get into one of the online ride hailing services including ✅Uber, ✅Taxify, ✅Little Cabs or ✅Mondo Ride, it helps to know which cars other driver prefer.
While in theory you can use any type of car as a taxi, some models are simply not economical to run. If you are looking for a regular guys car, one that’s fuel effient, easy to maintain, and can handle Nairobi roads, here is a shortlist
The Toyota Axio (Full name Corolla Axio) took up the space occupied by the Toyota Corolla Saloon. The Axio continues the tradition of exemplary fuel efficiency thanks to Toyota’s commitment to be a market leader in the area of fuel economy. You can expect fuel consumption of about 15Km for every liter. In 2017, it will cost you about 1.2 million to import a Toyota Axio from Japan.
The Toyota Belta was the model that succeeded the Toyota Platz. It has excellent fuel economy and should be very comfortable to drive in the city, making it ideal as a city based taxi service car. The price of a Belta ranges from about Kshs 550,000 for locally used older cars to 950,000 freshly imported ones.
The Toyota Ractis is currently one of the most popular cars on Kenyan roads mainly because of its versatility. Many Owners find it a practical car for business since it has a spacious interior that can be converted to luggage space for light loads. The rear leg room is great and hence is very comfortable as a taxi. The ractis is also very fuel efficient. A ractis imported straight from Japan will cost around Kshs 750,000 to Kshs 800,000. Locally used ones can be obtained from Kshs 500,000, depending on trim and age.
The Toyota fielder is the sedan version of the Toyota Corolla, and the current model is analogous to the Toyota Axio. It however has more luggage space and has a roomy interior. The fielder is fuel efficient and is popular with businessmen who want to avoid the more rugged Probox, but need the space. As a taxi, a Toyota fielder would attract load carrying passengers such as professionals going to conferences, and families going for shopping. A Toyota Fielder imported from Japan will set you back by up to 1.3 million, depending on trim.
Despite various attitudes and sometimes unsouvery reputation of the Toyota Vits in the Kenyan market, the car is still very popular and is widely sold. The Toyota Vitz is part of the Toyota Corolla family. It has one of the best fuel economies and is superbly fitted for city driving. The car’s rear has surprisingly roomy interiors at the cost of luggage space. The latest models vitz can be imported for Ksh 700,000 to Kshs 850,000 depending on trim, and age.
To See Premiums – Visit NEXT TAXI Insurance (PSV Car Insurance Kenya)
- Resolution Partners With InsureAfrika To Launch Kenya’s First PSV Car Insurance App
- 10 Smart Ways To Save On Car Insurance – An Infographic
- I’ve Been In a Car Accident: Now What? [Infographic]
- When Is The Best Time To Buy A New Or Used Car In Kenya?
- Car Insurance Kenya Statistics 2018
- Top 10 Car Insurance Rantings That Went Viral On Social Media