Ask they average person and they would say that being a taxi driver is a great way to earn money. On the face of it, the customer jumps in a car for a short while, pays a tenner, and gets to their destination.
But what they fail to realise is that the tenner is not pure profit for a taxi driver.
If you yourself are a driver, you’ll know all too well that a whole host of other costs need to be considered before you get to your profit:
- Car payments
- Share of profit to operators like Uber (if applicable)
And the list goes on.
That said, it doesnt mean you can’t make a tasty living out of a taxi career. I’ve spoken to loads of cabbies over the years, some of the most down to earth people around, and they all seem to be doing well.
So, if you’re going to make a good living out of it, you should consider looking at ways to cut down your costs, therefore keeping more of the pie for yourself – and we all like the pie!
If you look at Uber for example, they take a great big chunk of the fare earned by the driver, is it the right amount? Who knows, but Uber drivers still make money and seem mostly happy to pay a third of their pie to the company generating them the business.
That cost is going to be hard to change so now, but the car you choose when looking at becoming a driver is within your control and can make a big difference. Is that Beamer looking appealing, impress the missus and all that. Well maybe not so impressive if you are losing £500 per month for the cost of it. As you all know many drivers go for a Prius, low running costs in terms of fuel, good value on the car lease side of things and your customers are expecting it, so why buck a good performing trend?
Again, very much in your control is your taxi insurance. As like most of things in life, don’t jump for the first insurance policy you get your hands on, take the time to shop around and find that better deal. Niche comparison sites can offer a lot of value, like Quote Goat. Get on there and you’ll get up to three quotes from specialist taxi insurers.
Cars nowadays are pretty blooming fuel efficient and therefore not only save you money on fuel but also on tax. If you’re reluctant to upgrade your old motor then it would be worthwhile taking the time to compare the fuel costs, you may be pleasently surprised to work out that you can get an upgraded car and bring home more bacon each month.
At the end of the day, there are plenty of ways to maximise your earnings whilst driving, it just takes the minimal of efforts to make the necessary changes.