This is the complete guide to start an online taxi business in Africa. In this guide, you’ll learn, 

  • Future of the taxi business in Africa
  • Why start taxi services in Africa?
  • Key players in the market
  • Steps to start a taxi service in Africa
  • And, bringing loads of customers to your business, etc. 

Also, there’s a bonus content at the end of this guide that’ll help you in choosing the best software solution for your business. 

So without further ado, let’s dive right into the guide.  

Future of taxi business in Africa

According to the recent report on RentALLScript about the on-demand economy, the global taxi industry is predicted to reach 218.0 billion dollars by 2025

And the revenue from the African market is projected to reach a market volume of US$5,641m by 2025. 

Hence, this is the right time to start your business right now. But why Africa? Have you wondered? If so, it’s time to move on to our next chapter. 

Why start taxi services in Africa?

The taxi service is one of the lucrative businesses in Africa. Some important points that support the claim are, 

  1. Less car ownership rate compared to other countries. 
  2. Increase in the use of mobile and other digital devices
  3. Most people prefer minibus and motorcycle taxis for their daily commute. [theconversation.com]
  4. Taxi services account for 75% of the public transport usage

Interesting facts, right? With this, let’s move on to know the competitors in the market.

Key Players in the African taxi market

As we said, there are not so many big players in the market. But after the advent and success of Uber in Africa, many companies and entrepreneurs are figuring their way to start their business. 

Some key players to look out for in the African market, 

  1. Uber
  2. Bolt
  3. Jrney 
  4. Jekalo 

Among these, Uber constitutes the most in the rideshare market revenue in Africa. Uber started expanding steadily into the West African markets such as Ghana, Guinea, Nigeria, Gambia, and Mali, etc. 

Also, Bolt started expanding its operations to South African towns. This portrays the potential of taxi services in Africa. 

To compete with these companies, you have to be unique and smart with your business objectives and niche down your services. 

6 steps to start an online taxi service in Africa 

Taxi services most often return a quick ROI if done right. So in this chapter, we’re gonna discuss the six steps to start an app-based taxi service. 

  1. Create a well laid out business plan. 
  2. Register your business
  3. Build a fleet
  4. Insure your fleet
  5. Set a affordable pricing plans
  6. Create a taxi app 


    1. Create a well laid out business plan. 

A business plan is a vital part that portrays the future and current goals of an organization and ways to achieve them. 

A business plan should be clear and well laid out. Some important points to include in your taxi business plan are, 

  • Business description
  • Goals of your taxi business
  • Market demand and supply
  • Financial analysis, etc. 

Read more on this blog to learn more about writing a successful startup business plan.  

After successfully creating your taxi business plan, now you have to move on to the next step in officially starting your business. 

2. Register your taxi business 

To start a business in any country, you have to register your business in any of the country’s legal entities. You have to register your company name, nature of business, and other formal details. The registration costs between R125 and R475.

After a successful registration, you can start building your fleet step by step. 

3. Build a fleet

You may not have to have dozens and hundreds of cars in your fleet. You can start with what you have and slowly scale it with the profits that you earn from your taxi business. 

There’re a lot of used cars available for sale. You can buy and customize them to suit your business. And make sure you register your vehicles too. 

4. Insure your fleet

The next step after building your fleet is to insure them for protection. Check out the factors such as reputation, coverages, financial strengths, and service quality of the company before opting for the service. 

5. Set an affordable pricing

Affordability is one of the main reasons behind the success of Uber. So set an affordable pricing for your taxi service to be competitive in the market. 

6. Create a taxi app for your business

Building a taxi app is the most important step in growing your business. A taxi app can help your customers book a ride anytime, anywhere. 

As we said earlier, mobile and other digital devices are starting to increase exponentially in the African market. Hence offering a mobile app may help grow your business. 

How does the taxi app help your business? 

The taxi booking app helps your customers book and pay for their ride easily. Some important benefits for the taxi business include, 

  1. Real-time tracking of taxis
  2. Higher business visibility
  3. With the help of an admin dashboard, businesses can easily manage their day-to-day operations effectively. 
  4. Scalability 

So how to build a taxi app for your business? 

  1. You can either connect with the developer to create your app
  2. Or, you can buy a readymade Uber clone app like Wooberly to launch faster into the market. 

The readymade app reduces development cost and time compared to developing it from scratch. 

Types of taxi business ideas in African countries

Other than regular cab taxi services, there are a lot of potential business ideas that you can start and be successful. 

Some ideas related to the African taxi market are, 

  1. Bike taxi services
  2. Airport taxi services
  3. Tow truck services
  4. Delivery services
  5. Shared taxis
  6. Water taxi, etc. 

Say you’ve started any of the above taxi services models, but how to reach the customers? 

How to promote your taxi business? 

You can promote your taxi business in both offline and online modes based on your business. 

Ways you can promote your taxi services are, 

  1. Present your business on billboards.
  2. Register your business on local directories
  3. Create a strong social media presence 
  4. Build a taxi app to reach a wider customer base. 
  5. Run social media ad campaigns
  6. Provide loyalty schemes and offers
  7. Word of mouth marketing – Provide the best user experience

Bonus tip: 

In the taxi app development section, we saw two types of development processes – building an app from scratch and customizing the existing readymade solution. 

So in this bonus content, we’re gonna discuss the features and benefits of the best ready-made taxi app solution, Wooberly

Wooberly is an on-demand app solution that can be customized to suit any on-demand service venture

Some astonishing features and benefits of Wooberly are, 

  1. Geofencing
  2. Stripe integration
  3. Built with the latest tech – Flutter and powered by GraphQL API
  4. Provide 100% source code
  5. Dynamic routing
  6. Multi-currency and language
  7. Auto-payout
  8. And most importantly cost-efficient.

Conclusion

We’ve looked at everything that you should know, from analyzing the business needs to attract customers to your taxi business.  

Now it’s your turn to make use of this guide to kick start your taxi business. 

Have any doubts about building a taxi booking app? Feel free to reach out to us at [email protected] 

Or, you can directly visit our product page to get a free demo of our product Wooberly

Thanks for reading, cheers. 

Ready to start your app based taxi business? 

Let’s have a conversation and discuss further your startup idea.

We are ready to clarify all your doubts and excited to hear new ideas.

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