Taxi Business Plan

Taxi Business Plan

City Taxi is a San Francisco, CA based company, whose mission is to provide reliable, timely, and safe cab services by using complete, in-car credit and debit card access, along with computer-aided dispatch. The company will establish its presence in the industry by acquiring an existing taxi cab association, Mighty Cab, a family-owned business that was formed 12 years ago.

City Taxi will provide complete taxi cab services using the latest equipment and technology to facilitate the travel of individuals in and around the San Francisco area. Our products and services are a reflection of our forward-thinking, innovative company. We recognize the need to adapt to ever-changing customer demands. At City Taxi, our philosophy is one that emphasizes service, and a realization that effective communication is a key component in our business. In a competitive world, professionalism and flexibility are key to maintaining a leading edge.

Drivers and employees are friendly, helpful, and well-trained in the use of the computer dispatch system. The City Taxi cabs come with Global Positioning Systems (GPS) as an extra safety measure. This allows the cabs and drivers to be tracked in an emergency. All City taxi cabs will have regular inspections to ensure safety, comfort, and cleanliness.

The company’s strategy is to build reputation and market share by establishing our business offering as a viable alternative to existing taxi cab services in the area. The company plans to continue a vigorous marketing campaign in the coming year, with the goal of capturing at least 65% of the market. The company’s long-term goal, is to be San Francisco’s top-rated ground transportation company.

The company’s focus is on the dispatch, mobile and credit/debit card markets in the taxi industry. These markets, taken together, are estimated to be worth more than $119million as of March 1999. City Taxi will be focusing on the most lucrative credit card/debit-card segment in these markets. This segment, when introduced into any area, has started out slow but over a three-year period has increased by 20% each year in Maryland and Virginia, and by 25-35% in New York each year.

City Taxi competes with Transportation, Inc., Capital Cab, Yellow Cab, Diamond Cab, and Yellow Cab. They don’t have the credit/debit cards payment option and some still use radio dispatch. The company has a competitive advantage, however, because our technology is unique to the taxi industry in San Francisco. The GPS will give the company an accurate estimate time of arrival (ETA) so that they can provide prompt service. Customers will have privacy and convenience during transactions thanks to the credit/debit-card feature.

Reliable communication is essential in any business. City Taxi will therefore use the KDT5000 system. KDT5000 system design has multiple levels to ensure communication will be maintained even under the most extreme conditions. Rockwell International will manage a state-of the-art call center.

The company seeks $2.5 Million of financing to help fund the acquisition of Mighty Cab Association as well as its initial operations. This funding will cover the purchase of Mighty Cab, marketing, purchase of extra vehicles, software, and hardware. Proposed revenues for 1999 and 2001 are $200,000; $1.5million; and $2.2million.

1.1 Objectives

The company’s goal for the next year is an aggressive marketing campaign that will allow it to penetrate at least 65% market share. In the next two- to five years, the company’s goal is to be the best ground transportation company in San Francisco Metro Area. This will be achieved by monitoring, evaluating and following up on all customer calls.

The following summarizes key components of City Taxi&#8217’s initial Strategy.

Establish a relationship with Rockwell International. Rockwell International is the company’s current focus. This will enable City Taxi to lock into the many services that they offer including, but not limited to:

  • Managerial

  • Customer service efficiency and call center efficiency

  • Management consulting

  • Technology consulting

  • Product management

  • Continuous improvement

1.2 Mission

City Taxi’s mission includes providing reliable, prompt, and safe taxi services. We use complete in-car credit/debit card access as well as computer-aided dispatch.

1.3 Highlights

Highlights of City Taxi

  • Technology

    . City Taxi features a unique Global Positioning System that (GPS) pinpoints the closest driver. This allows the driver give an exact ETA.

  • Credit/debit card system

    . This system is unique in San Francisco. Both the passenger and the driver can approve it instantly. The machine is hidden behind the passenger’s seat.

  • Trademarks

    . The company is in the process of registering the name Patriot as a trademark.

  • Advertising

    . City Taxi is in advanced discussions to partner with TCI Media Services for market research and advertising services.

  • Seasoned management

    . The company’s management is highly experienced and qualified and has extensive experience in the industry.

  • Strategic relationships

    . The company has developed and will continue building relationships with organizations that can help improve its professional growth. These alliances are valuable to City Taxi because they allow us to get updates on technology, added tech support, and a strong presence in the market.

  • Exclusive Rights to Software. City Taxi holds the exclusive rights for the most current taxi cab software in San Francisco.

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