Car Rental Business in India
Rental Business is growing rapidly nowadays and too many people are entering into this Business.But do we Know How to start a Taxi Business in India?
How can we earn more from Cab rental business?
First of all let’s look at the background India, where the manual Rickshaw or Auto-Rickshaw ruled the streets for decades has finally opened arms for the car transport even to the lower income people. ola and Uber are the King of Taxi Business.
It’s been only a few years when Meru cabs, Chansons, and other Radio taxi services got started. They earned a good market share until OLA entered their ground. With prices so low and the cabs so good, people preferred OLA over any other cab service.
Then came UBER and the rest is history. We won’t be talking about the OLA UBER battle for now.
Let’s move on to the topic on HOW TO START RENTAL CAR BUSINESS?
Before scrolling further, let me explain to you the basic requirements and important points of Taxi Business In India
You might not need a huge amount for starting Cab business. The amount you spend towards the car gives Profit once the business starts rising. If you don’t have this amount then also you have option to finance the same with banks. Most of the Banks are easily providing car Loans for Taxies. Ola and Uber taxi Provider also arrange the Loans from Private Finance.
These days Cabs are way better than a personal vehicle for they offer good comfort and air conditioning than our normal economic cars.
Therefore, you must plan to opt for a vehicle for starting a car rental business that has the following things to offer.
- Low maintenance
- Higher mileage
- Lower taxes
- Better after sale services
- Better resale value
NOTE: “If possible try to go with a dual channel fuel system like Petrol and LPG / CNG gas kit. Even second-hand vehicles come with these kits and for much lower price tags.
Maruti, Tata, Hyundai and Mahindra are some of the few that offer LPG / CNG KIT, company made, installed vehicles”.
You have two options to put your car for rental Business.
- Start your own Car Rental transport service.
- Run it with OLA or UBER.
Comparison Between Self Business and Partner With other Taxi Services Like Ola/uber:
- The latter is a much better choice since they have better coverage using their mobile application that allows people from any place to book a cab. Starting your own transport services comes with a lot of risks.
- For one instance there is a huge competition in your place while the exposure is very less compared to hiring it to Ola and Uber.
- you need to have 3 to 4 cars to run your own rental business, But you can start partnering with ola and above-mentioned only with a single car.
- Hiring your cab to these Cab market giants not only allows in having a standard income every month but also the drivers have less chances to cheat over the fares.
- Traditional taxi business only runs in certain periods like summer or on festive seasons where the earnings are high but for a limited time. With hiring your taxi to Ola or Uber, you can easily make 30,000 to 60,000 given the City is big and users are more. There have been cases where a person would earn 90000 on Uber due to better coverage.
HIRING A DRIVER:
If you opt for hiring a driver, make sure to take a short interview in
understanding his background and behavior. Driver’s ill behavior can lead to termination of your service with the above-mentioned firms.
So, select wisely for starting a car rental Business.
Having said the above, I would give a personal suggestion for all those that want to start a rental car business. Go for Ola or Uber rather than starting an individual transport business. The profits are real high and consistent.
GOOD LUCK AND HAPPY EARNING!!