I don’t get it. I recently purchased a '19 Tesla Model 3. And I was going to use it for my daytime job delivering for a local grocery store. But I wanted to use the car for more.
So I started a taxi company with the cheapest fare in town.
Some quick background: My town is relatively small, but not super small. Business is there, that’s a good way to put it.
There are three other competitors in my town running taxis. All of their vehicles, except one, are JUNK. I’m talking doors not closing, belts on the engine squealing louder than your neighbors at night. Just so many things wrong. Yet, they are constantly getting customers, primarily to the grocery store I deliver from.
I charge $5 one way anywhere in town. I offer a clean, respected, well-maintained vehicle with features such as Caraoke, Light shows, etc., FOR $5. And I can’t get a single call. I’ve advertised everywhere: Facebook, businesses (though I could do slightly better at handing out business cards).
I don’t get it. I need someone from a different perspective to tell me what I am doing wrong. I’ll answer any questions. As I’m tired of all my businesses failing. I’ve had a few and thought, well, I love driving. I love talking to people. Why not a taxi? I’m very passionate about this business and just want it to succeed.
I’ve had my prices at $8, $2 cheaper than my most expensive competitor (the one with nice vehicles). And still didn’t receive any calls. But you and the person above you have me really thinking about going back to that price and only offering $5 rides as special promos (holidays, LEO, Veteran, Fire etc discount). My other worry is my town is kinda broke. The only thing my top competitor has that I don’t is delivering out of town.
So many issues here…
Call? I’d pay $2 to use the Uber app. Way easier IMO.
How many people in your town actually take taxi within city limits? Is this a thing where people need another option? If people like and know the other guy, is $2 every few months worth trying someone new out?
A discount ride in a “premium” vehicle makes no sense. Charge extra and green-wash it. Then maybe offer a discount if you need to attract business. Charge $20 and offer it for $10 to new customers.
Also, if you’re particularly young, in a “fast” car, people may be suspicious of your safety and driving ability. It’s stereotypes, but there’s a reason insurance charges more for <25yo men. This doubly applies if you haven’t been background checked, don’t have a commercial license, don’t have liability insurance, etc that a “real” yellow cab or Uber will have.
I think OP should use one of the taxis and ask the driver some questions for a lot of insight that they are lacking.