The margins are thin in the taxi trade. There are a lot of regular expenses that members of the public often do not consider when they order a taxi, or worse still do not show up for their booking. If you are a taxi driver, you need to do everything you can to cut out costs and maximise your profits.
Your vehicle is your business. Here are a few basic money-saving tips for taxi drivers that can help you put more money in your pocket every month, and even get you behind the wheel of a better car in the process.
Fuel Economy Is Your Economy
Fuel economy is your primary expense regardless of where you are driving, what types of jobs you are doing, or how often you drive your taxi. Being a taxi driver comes with many regular costs, but the largest regular outgoing is how much you spend on petrol or diesel fuel. The prices at the pumps are increasing every year, making your vehicle’s fuel economy an essential part of your economy.
The only way to beat the ever-increasing fuel cost is to upgrade your taxi model to save money. At Cab Direct, you can find a modern taxi for sale that has excellent fuel economy when driving in cities and towns, as well as on the motorway.
Switching to a newer vehicle will save you money on every mile you drive, putting more of your fares into your pocket. You also get all the modern conveniences that come with a modern vehicle, like in-built GPS systems, self-parking features, and cleaner and more comfortable interiors.
Get Better Insurance Cover
After the cost of fuel, the cost of insurance coverage will be one of your biggest expenses. The price of insurance for regular motorists will usually decrease over time, especially if they do not make any claims. This is not entirely true for taxi drivers. Carrying passengers comes with added liabilities, so the cost of insuring your private hire vehicle will always be more expensive than insuring a personal one.
After you have insured your cab for a few years, it is easy to just renew your existing policy without shopping around. This can be a costly mistake. Whether your private hire vehicle insurance is due for renewal or you still have many months left on your existing policy, you should take a long look around and see what deals are out there.
Search online for cheaper quotes, especially from insurers that specialise in providing private hire vehicle policies. You could shave a significant amount off your premiums, and put more money in your pocket every month.
Ditching The ‘Dead Miles’
Small costs add up quickly. When you are driving a taxi, your most costly foe is ‘dead miles’. These are the miles you drive your private hire vehicle between jobs. One of the oldest sayings in the industry is that if your wheels are turning, you are earning, but this is not exactly true. Fare prices have been stagnant for many years and barely beating inflation, while costs like fuel, insurance, and car payments increase. To put more money in your bank account every time you go out on the road, you need to minimise the number of dead miles you drive.
This can be difficult to do. You only have so much time in your day to find fares and earn money, so staying busy often means driving around between jobs to get the next fare. Bouncing from one end of your area to the other like a housefly will cost you money in fuel. It is also worth remembering that the longer it takes you to get to the next job, the more likely it is that your potential passenger has found another way to travel. Turning up to a ‘no-show’ fare after driving for ten or fifteen minutes costs you even more money, and causes frustration.
When you drop off your customer, do not be tempted to jump on the next available job. Drive a short distance away from your drop-off point and wait for five to ten minutes for a job in your zone. Cutting down on dead miles will save you money, and stress. When you are without a passenger, pay close attention to your mileage and be prepared to wait for the next job instead of rushing to another area. Fresh work is coming in all the time over the phone lines and apps. You will be surprised how often you have driven away from a fare because you have accepted a job a mile or two away just moments before the booking was made. Patience leads to profits.
Follow these tips, and you will find yourself a little better off without having to put in any extra hours. With a better car that gives you better fuel economy, and some savings on insurance, it is up to you to drive more economically, and use the wisdom you have gained from years on the roads to cut down on dead miles.