How to Start a Taxi Business in Ghana
Do you want to become a taxi driver? Or are you a car owner who wants to know all about the taxi business before assigning a driver to your car? We will take you through the process and give you essential tips to start the business and make enough profits.
The driver of any vehicle, including a taxi, must have a valid license. We believe you should know this by now.
To get a driver’s license, you are supposed to attend driving school and go through the right protocols, but because of the corrupt system we find ourselves in, once you get someone to teach you how to drive a little, you can pay GHS 1,000 to get a license. No examinations, no paperwork, no protocols.
If you are a car owner and want to start a business that will flourish, make sure your driver has a license, and sometimes, someone experience in the field. Avoid “police have caught me on the way, my license has expired” wahala.
If you already have a car to use for the business, make sure the fuel holding capacity is good enough, make sure it is in good condition, and register it at Driver and Vehicle Licencing Authority.
If it is already a registered taxi, do a crosscheck, and be sure it is working well enough to hit the road, you wouldn’t want to be visiting the workshop every two weeks.
If you do not have a car and decide to purchase a new one, check the fuel efficiency, it is very important. Else you will spend all your hard-earned cash on fuel, which is increasing almost every day.
Toyota Vitz, Toyota Yaris, Nissan Sentra, Kia Picanto, and Daewoo Matiz are some of the best options for a taxi or Uber business in Ghana. So if you want to purchase, they should be on your list. Don’t worry about the size. It is not a private car.
If you are buying home used one, too, you should follow the same protocol. Research the previous owners, is it an accident car? What specs do I need to change? All these pieces of information are very important.
Respect the legislative instrument 2180, regulation 130, when buying a new car for a taxi business. The regulation says;
Paint the wings of the taxi in a shade of yellow to the extent required by the licensing authority
With the approval of the licensing authority, carry a neon sign with the word “Taxi” clearly written at the front end of the roof of the car.
Display at the right-hand side button corner of the front windshield the Taxi Transport Association or Taxi Unions Logo.
What to do next
If you are the car owner, it is reasonable to give the driver the option to choose between “work and pay,” or he should work and pay you a certain agreed amount every week, and whatever he makes after he pays that amount is his.
I’m simpler terms, with work and pay, the driver uses the car and pays the owner until the required money is paid for, then the driver takes ownership of the car. The agreement can last two years or more. The driver will be responsible for the maintenance and repair of the car.
The other option is, the car owner tells you he will take GHS 400 every week. The car is his, and he will be responsible for maintenance. If you can make the GHS 400 within four days, whatever you make the rest of the three days is yours. That is the second option.
There is a third option. Purchase your car if you can. Whatever you make at the end of the month is yours. Maintenance is in your hands. The average salary of a taxi driver in Ghana is between GHS 1,500 to GHS 2,000 a month. It all depends on how hard and smart you can work.
You can register to work at a taxi rank. It doesn’t look lucrative if you look at it from afar, but it is very lucrative.
When a taxi driver goes one round at a rank, he can make GHS 10. If he goes 8 to 9 rounds a day, that is GHS 90 a day, minus the amounts they make when returning from the rounds. Usually, if you want to work at a taxi rank, the taxi must belong to you.
You can also choose to roam with your taxi, or what we call “dropping.” this technique is more lucrative but not very easy, considering the competition.
You can make money if you work smart. Work is better at night, long journeys fetch more money and when you pick someone up, talk to them, take their numbers and ask them to call you in case they need to go anywhere.
Keep your car clean. People don’t like to stop cars that don’t look “healthy.”
With the introduction of Uber, Yango, and Bolt, the competition is even tighter.
Why become a taxi driver
Even though becoming a taxi driver has its element of risk, it is very lucrative, depending on when and how you work. The hours are flexible. You can choose to go to work today or not. Plus you have a car, you can go anywhere you want, once you have fuel of course. No more ” trotro.”
Drive safely, work smart and avoid going to dangerous places. Report any issues with your car to your car owner. If the car belongs to you, take it to be checked regularly. As a car owner, If you can, purchase more than one car and give it to people to drive for you. You can make lots of money.