How to Make Money from Cab Services in India?

In light of rising fuel costs in India, where a liter of petrol costs as much as Rs. 119 in certain areas, the average Indian is turning to more affordable alternatives to driving. People are increasingly turning to the taxi industry since public transportation is so crowded and under-resourced, not to mention how miserable the rides are. A significant initial expenditure can seem intimidating, but the industry’s long-term profitability makes it a worthwhile investment. Let’s check out how to make money from cab services in India.

How to Make Money from Cab Services in India?
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Scope of cab/taxi services

When seen from a distance, the market seems to be quite crowded, yet new participants will find the industry to be very adaptable. Taxi software solutions are a well-established industry, so you’ll need to find a comfortable position before you get started. Cab fares have increased in India by 25% in the last several years compared to the previous year. Such enterprises are more likely to succeed in cities than in rural regions.

Types of cab services you can offer in India

In India, the traditional taxi industry is in decline. If you have your car then you have two options to earn money by cab services. The first one is the own cab service business and the second one is to tie up with radio taxis. People now choose Radio Taxis over the more conventional sort of taxi service because of the ease of accessibility.

Radio Taxis are equipped with GPS technologies that allow customers to order a cab online and track the vehicle’s whereabouts at all times. Ola Cabs, Uber, and other on-demand taxi services are all examples of Radio Taxis since they operate via the internet or mobile app platform. The taxi industry is regulated under the Motor Vehicles Act of the country.

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Cab Service
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It would be preferable if the Information Technology Act’s reach was expanded to include radio taxis, as the taxi company has made it possible for customers to book cabs online, making the Information Technology Act applicable to radio taxis. In contrast to the usual taxi service, in a Radio Taxi, the vehicle is often owned by the driver. Taxi drivers will pay a portion of the fare to the company that booked and coordinated the trips, and the rest will go to the drivers themselves.

How to make money from cab services in India?

Process of registration and requirements

Taxi/vehicle purchase, registration, and permit acquisition will be a hard task in the early stages of establishing a taxi service. To start a taxi service, one must make sure that the vehicles they purchase have taxi-type features and are reasonably priced. When a new vehicle is acquired, it must be registered within seven days to comply with Section 39 of the Motor Vehicles Act, 1988. The registration certificate is given to the owner by the transportation authorities. Driving an unregistered car is a criminal offense punishable by a fine of Rs. 2,000.

Transport authorities in different states have different websites and application forms for automobile registration. Make sure the taxi is insured so that it can be utilized if it causes hurt or damages to a third party. Filling out the insurance company’s Application form and following the insurance company’s required processes is all that is required to receive vehicle insurance from different insurance companies. Verify that the vehicle has obtained the necessary environmental permits from the appropriate government agencies.

Vehicle permits 

Several vehicles are not suitable for the taxi company. It is necessary to get certain vehicle permissions to move persons and/or commodities from one location to another. Because of this, the Regional Transport Office/State Transport Office must be contacted to get permission for moving individuals, as required by the relevant regulations.

Passenger transportation contract

Additionally, if the owner/driver transports people under contract to a certain location for a specific amount, an application must be submitted. To comply with Section 73 of the Motor Vehicles Act, 1988, the application must include information on the taxi’s kind and seating capacity, the region or area in which it will run, and any other relevant information mandated by the State Authorities.

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Inside Cab
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Certificate of fitness

A fitness certificate from an Authorized Testing Station is required under Section 84 of the Motor Vehicles Act, 1988. The Motor Vehicles Act mandates that the vehicle be properly maintained. The taxi’s maximum speed varies from one state to the next. The typical cab speed restriction is between 50 and 65 kilometres per hour. There must be an indication of the taxi operator’s name and address on the vehicle.

All India tourist permit

For a cab to go from one state to another, it must have an All India Tourist Permit. All India Permits can be acquired by applying to the Transport Authority after thoroughly examining the requirements. There should be an All India Permit on the number plate of a cab issued an All India Permit. The All India Transport Permit-issued cab cannot be used for local purposes, such as transporting people.

Drivers, their licences and work hours

If you want to start a business of cab services involving many drivers then you also have to take care of your drivers’ licences and permits. Taxi drivers must get a commercial driver’s licence from the state’s regional transportation office. To become a cab driver, one must meet several requirements, such as being at least eighteen years old, having finished at least Class 8 in high school, completing training at a government motor school, and passing a written and driving exam.

In addition, a doctor’s note attesting to the cab driver’s overall health and mental well-being must be provided. Regional Transport Authority will give the commercial driver’s licence after evaluating all of the following considerations and taking the Application into account.

Under the Motor Transport Workers Act of 1961, cab drivers’ working hours are defined. Section 13 of the 1961 Motor Transport Workers Act states that an adult motor transport worker may not work more than eight hours per day or 48 hours per week under any circumstances. There must be authorized by the proper authorities if a taxi company includes long-distance travel or if the driver must work more than 10 hours a day or 54 hours a week, depending on the circumstances.

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Start your cab service 

After obtaining all the vehicle licenses and permits you have to choose a location that best suits the demand of your cab service. When it comes to this there are several factors that you can look up to, such as the native language of the area choose because it can come in handy if you are familiar with the native language of the area you choose, check to see if you are familiar with routes of the area you are going to select, the population density of the area since it can have a significant impact on the demand for cab services.

Apart from these you can also select area which has a transportation center such as bus stands, airports, railway stations, etc. Consider all the above-mentioned parameters to become a successful cab owner.

How to do business with Ola or Uber?

Determine what sort of service you want to begin in the Ola/Uber taxi industry before starting it. Let us inform you that there are three ways you may make money with Ola/Uber cabs:

Drive your car: If you own a car and want to make money by driving it, link your vehicle to a transportation network provider like Ola/Uber. Also, customers can benefit from this service.

Rent your car: For those who own a vehicle and wish to make additional money by renting it out, this company is a great option. You’ll need to provide Ola/Uber with your vehicle and a driver in it to do this. It’s because Ola/Uber doesn’t have a driver’s service. 

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Taxi Service
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Driver with a partner: In this case, you’ll be driving with someone else if you know how to drive a vehicle but don’t have one. That doesn’t mean you should panic, though; if you find yourself in this circumstance, the Ola/Uber car-lease service is available. As a result, you can go to the firm and lease a vehicle for yourself, and you can then go out and serve consumers. You’ll have to pay Ola/Uber a fee in exchange for their services.

Documents required to start with Ola/ Uber

As a driver: The commercial driver’s licence, which is a yellow plate, as well as proof of identification and proof of permanent and current residence, are all necessary when you register your vehicle with Ola/Uber and provide a driver for it.

As an owner: Your PAN card and Aadhaar card, bank passbook or bank statement, and a cancellated check will be needed if you’re starting this business with a car; you’ll also need a Permanent and current address certificate.

Vehicle-related documents: At the time of Ola/Uber registration, you’ll need to provide proof of your vehicle’s ownership. There are several documents you’ll need for this, including your vehicle’s registration certificate (RC), a copy of your car’s insurance policy, and a picture of your vehicle.

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Offline process for ola/uber cab registration

  • To begin operating an Ola/Uber taxi service, you must first link your vehicle to Ola/Uber by bringing all of the necessary paperwork and your vehicle to an Ola/Uber Cabs Regional Office in your area.
  • In the office, you’ll find an application form, which you’ll need to fill out and submit together with a copy of all of your relevant papers.
  • Your documentation and vehicle will then be taken into account by Ola’s/Uber’s office staff, who will also determine whether or not your vehicle is in good working order.
  • You’ll learn all you need to know about Ola’s or Uber’s app, as well as the rules to regulate it, from the company’s professionals.
  • You’ll be signed up for the trade contract after the training is complete. If you don’t already have a bank account, you’ll need to create one for this company.
  • The firm will offer you a smartphone when the contract is signed so that you can take bookings from customers. It will be a smartphone that you can use solely for Ola/uber. You’ll be able to connect with Ola/uber and make money this way.

The online process for ola/uber cab registration

  • To join Ola/Uber, you could also apply online from your own home. Go to the Ola or Uber official website to do this.
  • Once you arrive at this website, you will be presented with a registration form in which you must enter all of your personal and vehicle information and submit it.
  • Ola or uber will notify you once your form has been completed. As a result of this, you will be given a day and time for you and your vehicle to visit that office.
  • All of your paperwork and vehicles will be checked on that day. In the process above, we gave you the information you need to follow.


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