Purchasing a car for a taxi service

Hey,

My friend (22 years old) would like me to purchase a car for a taxi business. He has a couple of buddies that do this now and wants to do the same. He presently drives his motorcyle to earn a living having quit Lek's bar late last year and is a much happier young man. For myself I wanted him to open up some kind of business. I never would have thought of a taxi service. He wants to do nothing else but drive a taxi. I feel uncomfortable with this revelation but it excites him to no end.

I asked Phet to do some legwork and to talk to his friends to get an idea of what we will be undertaking for him to operate a taxi business. How much they make per month on the average and what the expenses run per month, etc. A couple things in Phet's favor is that he is very mature and a hard worker.

My questions to you are.
1. Is this crazy or what?
2. Does anyone have any experience with this type of business?
3. What should we be keeping our eyes on?
4. Where is the best place to purchase a second hand car?

That's all for now. Thanks.

Dax

I have pondered this one a bit but have not taken any steps towards doing anything. Still the questions might help.

The Equipment:

How much for the car? I traveled back from Bangkok to Pattaya today in a 1992 Volvo 940 which was in good nick and reasonably comfortable. It had 85,000 km on the clock and the driver said he bought it from and old lady who did not travel much so maybe it was really only 285,000km? Cost 220,000 baht!

Fuel is a major expense and think about diesel or LPG or converting to LPG

How expensive is routine maintenance.

Does one have to license taxis in Pattaya?

Road license & Govt Insurance license

How costly is comprehensive insurance for cars and passenger used as taxis?

Driver should have a phone with an earpiece to take calls without holding a phone to his ear and driving one handed.

Maps of Bangkok, Pattaya and wherever likely to operate - plus must be able to map read

============

The Driver

I used to use one guy from the beach who had a nice Honda City and was a careful driver. Along came the busy season and he got too busy. He was seriously late 3 times and failed to pick up a friend from the airport. Being a driver is hard work and it can take up to six hours to make a pick up from the airport if traffic is heavy and flight delayed - is there any way of checking, by phone or computer, the status of incoming flights? He virtually has to give up alcohol in case a booking comes in. Hours can be anti-social.

Driver has to be smartly dressed and speak reasonable English.

He has to have reasonable knowledge of major motorway routes and keep up to date on roadworks and changes.

He must be prompt and that means early and in case of unforeseeable delay must phone the customer.

Car must be kept clean and tidy and oil and gas and Tyre pressures checked regularly.

He obviously must have a license and drive within the speed limits?

He must ensure that any front seat passenger has his seat belt on - only last week one did not and a friend was fined Bt300.

Must be polite and able to deal with difficult customers.

Relief drivers.

Must not smoke in car or permit smoking - offer to stop for nicotine break

Nice selection of music Chinese, German, English. Even better to have DVD player and selection of discs.

Nice to have tourist info, magazines, newspaper, cool towels, water for customers
===============

Misc.

Pricing and include motorway tolls or not

Where to get business

Business cards

Commissions to hotel porters?

Sex with customers????? :)

My friend (22 years old) would like me to purchase a car for a taxi business. He has a couple of buddies that do this now and wants to do the same...
I asked Phet to do some legwork and to talk to his friends to get an idea of what we will be undertaking for him to operate a taxi business. How much they make per month on the average and what the expenses run per month, etc...

Maybe not a good people to talk to??. To get real and genuine opinions/ideas, I think Phet should ask other taxi drivers who he has never known beore. Not knowing him, the other taxi drivers are more likely to tell him the truth without having to lose face if their businesses don't do well. And, do you think his friends welcome more competitors ?.

I don't know about Pattaya. But in Bangkok, a Thai person can easily ask any taxi drivers about the costs of rental, ownership, repairs, maintenace, etc as he/she sits in the taxi on the way to his/her destination. The drivers are more willng to tell their story !.

I think if he can also offer a more budget priced chauffeur service especially around Pattaya he could be on a winner.

Isn't John Botting selling some autos ???

##most important: if he drives smoothly and within speed limits he will always get repeat customers.

##most important: if he drives smoothly and within speed limits he will always get repeat customers.

The really most important : if he is smooth and knows exactly when to slow down and when to accelerate it will be a big plus !.

- a sensible several car lengths distance from the vehicle in front!

DELETED

[quote="Daxus"]Hey,

My friend (22 years old) would like me to purchase a car for a taxi business. He has a couple of buddies that do this now and wants to do the same. He presently drives his motorcyle to earn a living having quit Lek's bar late last year and is a much happier young man. For myself I wanted him to open up some kind of business. I never would have thought of a taxi service. He wants to do nothing else but drive a taxi. I feel uncomfortable with this revelation but it excites him to no end.


My questions to you are.
1. Is this crazy or what?
2. Does anyone have any experience with this type of business?
3. What should we be keeping our eyes on?
4. Where is the best place to purchase a second hand car?

T/quote]

If he does not know bangkok there is need of taxis at utapoa airport there are never enough taxis could be a nice niche

I take it your friend wants to run a hire car sort of business and not a TAXI business as such.In Bangkok you need to buy the TAXI plate and be registered with the Bangkok DEpt of Transport. Im not sure the cost of a plate in Bangkok,I heard however its around 2 million baht.Taxi plates can be good investments as you can lease out the plate to a owner/driver.
The TAXIS in Bangkok you see the drivers pay a flat fee to "rent" out the cab for that shift the same they do in Sydney.They rent the cab for 12hours or whatever the shift is paying for the fuel and whatever they work is up to them as long as the cab owner gets his shift rental FEE.
Same with some Pattaya baht buses it seems,got talking to a Baht driver in Pattaya one Friday night who told me he rented the baht bus 0ff the owner for 2500 b plus pays for fuel and any excess mileage.

can you find out the curent value of a Bangkok TAXI plate It maybe a better investment for the future.

Gents,

Thank you. You all have given us a lot of things to think about. Your list especially, Wowpow is just what the doctor ordered. I appreciate all of your inputs. Originally we were set on opening a restaurant, Phet is a fantatic cook (what Thai isn't?) This past Christmas he regularly cooked for his buddies in our condo. His mother is a well known cook in Udon Thani and like me is all excited about the idea. It went on so far that I have been spending time on the internet checking out buying a shophouse. I must admit that Phet was never really sold on the idea and was probably doing it or me. I don't want him hanging with his friends, working together, eating together drinking and partying. I want him to be a business man. I don't see a good future for him driving his motorcycle and car when he's 35. I'll get back when things work themselves out. John, we may just take you up on your offer.

Dax